Auditor Report of Supreme Engineering Ltd.

Mar 31, 2025

We have audited the accompanying Ind AS Financial Statement of Supreme Engineering Limited
(Formerly known as Supreme Heatreaters Private Limited) (“the Company”), which comprise the Balance
Sheet as at March 31, 2025. the Statement of Profit and Loss (including the Statement of Other
Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year
then ended and notes to the Ind AS Financial Statement, including a summary of significant accounting
policies and other explanatory information.

Qualified Opinion

We have conducted our audit of the Ind AS Financial Statement in accordance with the Standards on Auditing
(“SAs”) as specified under section 143(10) of the Act. Our responsibilities under those Standards are further
described in the ‘Auditor''s Responsibilities for the Audit of the Ind AS Financial Statement’ 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 are relevant to our audit of the
Ind AS Financial Statement under the provisions of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the ICAI Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Ind AS Financial Statement. We believe that the audit evidence obtained is sufficient and
appropriate to provide a basis for our Qualified Opinion.

Basis for Qualified Opinion (Matters)

1. Non-Compliance with Laws & Regulations:

a. The company is required to file Audit report under income tax act 1961 and file income tax
return under the same act: however, the same has not filed for the two financial years i.e. FY
2019-20, FY 2020-21

b. The company has not paid/short paid the statutory dues such as TDS, PF, Professional Tax
etc., that have become overdue and remained unpaid. Interest, penalties in respect of the same
remained unascertained and unaccounted for.

c. The Company is liable to appointment Company Secretary as per section 203 of Companies
Act 2013 read with rules thereof. However, currently there is no Company Secretary on board
of the Company and accordingly the Financials are not being signed by all the Key Managerial
Persons as required under section 134(1) of Companies Act 2013.

d. The Secretarial Report of Independent Company Secretary has highlighted various delays and
non-compliances, the effect of the same is presented as a part of Contingent Liability.

2. The Company has long-outstanding trade receivables, trade payables, recoverable advances, and
borrowings, including cash credit accounts, which have remained unsettled for a substantial period.
The consequential impact, if any, on the financial statements remains unascertained since very few
ledger confirmations has been provided. However, the Management on conservative basis and as per
IND AS has provided for Expected Credit Losses on such Assets.

3. The classification of trade payables between MSME and other parties as at March 31, 2025, could
not be verified due to non-availability of adequate records and documentary evidence.

4. The inventory is valued and verified by the management. We have not conducted physical verification
of inventory as at March 31, 2025, due to our late appointment as statutory auditors of the Company.
We also faced a further limitation due to non-availability of the stock movement register or supporting
documentation to cross-verify the accuracy of valuation. Accordingly, we are unable to comment on
the correctness of the quantities and valuation of inventory as reported by the management.

5. The Company is required to get cost audit conducted as per the requirement of section 148 of the
Companies Act, 2013. However, the same has not been conducted from the financial year 2020-21
and onwards.

6. The Company is required to conduct an internal audit under the provisions of the Companies Act,
2013. However, no internal audit has been carried out for the previous financial year. Further, no
records or evidence were provided to substantiate whether internal audits were conducted for years
prior to the previous year.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for
the possible effects of the matters described in the Basis for Qualified Opinion paragraph above, the
accompanying Statement:

• presents financial results in accordance with the recognition and measurement principles laid down
in the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with
relevant rules issued thereunder; and

• gives a true and fair view, in conformity with the accounting principles generally accepted in India,
of the net loss, total comprehensive income/(loss), and other financial information of the Company
for the quarter and year ended March 31, 2025.

EMPHASIS OF MATTER PARA

We draw your attention to the notes mentioned in the Results declared by the company as follows:

1. The Company had a secured loan account which was classified as NPA on August 19, 2021, and has
since stopped repayment of principal and interest. The Company has been incurring losses
continuously and incurred a loss for the quarter ended March 31, 2025. The Company’s current
liabilities exceed its total assets, resulting in negative net worth. These conditions indicate the
existence of a material uncertainty that may cast significant doubt on the Company’s ability to
continue as a going concern. However, management has prepared the financial results on a going
concern basis, as they are in the process of loan restructuring and exploring fund infusion, preferential
allotment, and asset monetization options. The Company has deposited a preliminary deposit of 10%
with the bankers and submitted an application for One Time Settlement Plan with the bank. The
appropriateness of the going concern assumption depends upon successful implementation of these
plans, which are yet to be concluded.

2. The company has not provided accrued interest, charges, penalties or any other charges from the date
of being classified as Non-performing Assets and the impact of the same on the financial results and
statement remains unaccounted for.

3. The Company has ongoing litigations before the Hon’ble Supreme Court and other forums under
Income Tax and GST laws, the impact of which is contingent upon the outcome of such proceedings.

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 Board of Directors'' Report, but does not include the Ind AS Financial Statement and our Auditor''s report
thereon.

Our opinion on the Ind AS Financial Statement does not cover the other information and we do not express
any form of assurance conclusion thereon.

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

Responsibilities of Management and Those Charged with Governance for the Ind AS Financial
Statement

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 Ind AS financial statements that give 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 Indian Accounting Standards (“Ind AS”) prescribed 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 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 Ind AS financial statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS 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 charged with governance are also responsible for overseeing the Company’s financial reporting
process.

Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 but it is not a guarantee that an audit conducted in accordance with the Standards on
Auditing (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 Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of the Ind AS 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 Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the company has adequate internal financial controls with
reference to financial 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 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 Ind AS 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 Ind AS financial statements, including
the disclosures, and whether the Ind AS 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 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 Ind AS 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 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 in terms of Section 143(11) of the Act, we give in “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 Companies Act, 2013, 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) Except for matters stated in the Qualification Para, 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) Except for matters stated in the Qualification Para, The Balance Sheet, the Statement
of Profit and Loss (including the Statement of Other Comprehensive Income), the
Statement of Cash Flows, and the Statement of Changes in Equity dealt with by this
report are in agreement with the books of account.

d) Except for matters stated in the Qualification Para, In our opinion, the aforesaid Ind
AS Financial Statements comply with the Indian Accounting Standards specified under
Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. However, since the Company has been classified as a Non¬
Performing Asset (NPA), Ind AS 23 on Borrowing Costs has not been applied.

e) On the basis of written representations received from the directors as on 31st March
2025, and 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” to this report.

g) In our opinion, the managerial remuneration for the year ended 31st March 2025
has been provided by the Company to its directors 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, in our opinion and to
the best of our information and according to the explanations given to us:

i) The Company does not have any pending litigations which would impact 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) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the financial statements, no funds have been
advanced, loaned, or invested (either from borrowed funds, share premium, or any other
source 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 its knowledge and belief, other
than 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 Parties (“Ultimate
Beneficiaries”) or provide any guarantee, security, or the like on behalf of the Ultimate
Beneficiaries.

(c) Based on the audit procedures performed that were considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clauses (a) and (b) above contain any material
misstatement.

v) The Company has not declared or paid any dividend during the year and has not
proposed a final dividend for the year.

vi) Based on the audit tests and procedures performed in respect of the financial year
ended 31st March 2025, the Company has maintained its books of account using Tally
Edit Log (Gold) accounting software. The audit trail feature, however, had not been
enabled at the database level in the said software to keep a log of any direct data
changes, and therefore, it did not operate throughout the year.

For RUSHABH DAVDA & ASSOCIATES

Chartered Accountants

(Firm’s Registration No. 156559W)

CA. RUSHABH K DAVDA

Proprietor

Membership No: 188053
Peer Review No: 016545
Place: Mumbai
Date: 29/10/2025
UDIN: 25188053BMJHPH4268

---

Mar 31, 2024

We have audited the accompanying Ind AS Financial Statement of Supreme Engineering Limited (Formerly known as Supreme Heatreaters Private Limited) (“the Company”), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including the Statement of Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and notes to the Ind AS Financial Statement, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS Financial Statement 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 Ind AS & accounting principles generally accepted in India:

a) In the case of the balance sheet, of the state of affairs of the Company as at March 31,2024; and

b) In the case of the statement of profit and loss, of the loss including other comprehensive income for the year ended on that date.

c) In the case of the statement of cash flows, of the cash flows for the year ended on that date.

d) In the case of the statement of changes in equity, of the changes in equity share capital and other equity for the year ended on that date.

Basis for opinion

We have conducted our audit of the Ind AS Financial Statement in accordance with the Standards on Auditing (“SAs”) as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Ind AS Financial Statement’ 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 are relevant to our audit of the Ind AS Financial Statement under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS Financial Statement.

Emphasis of Matter

We draw attention to the fact that;

• The Company is required to get cost audit conducted as per the requirement of section 148 of the Companies Act, 2013. However, the same has not been conducted from the financial year 2020-21 and onwards.

• The Company had Secured Loans account which has turned NPA on 19^th August 2021 and has stopped servicing the borrowing repayment and interest from that day. The Company has incurred a net loss of Rs. 1101.51 Lakhs during the year ended March 31, 2024 and, as of that date; the company’s current liabilities exceeded its total assets making its Net worth being reduced by Rs. 1085.32 Lakhs. The Company’s current liabilities borrowings have become NPA and Net worth is further reduced to Rs. -8743.49 Lakhs from Rs. - 7993 Lakhs which has resulted further erosion of the net worth of the company. In spite of these events or conditions which may cast a doubt on the ability of the company to continue as a going concern, the management is of the opinion that going concern basis of accounting is appropriate in view of the restructuring in process of the loans and the wide asset base the company carries.

The Management is responsible for assessing the Company’s ability to continue as a going concern, including whether the use of the going concern basis of accounting is appropriate. The use of the going concern basis of accounting is appropriate unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Management is also responsible for disclosing a material uncertainty of which management becomes aware related to

events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern.

The Company''s net worth is negative and it continues to incur losses. We were informed that the Company is in the process of raising funds through equity allotment and also by selling non core assets of the company which in the opinion of the management will enable the Company to have positive networth and support to have a turnaround.

The Company is also in the process of identifying strategic business partners and alternative business plans to improve the performance of the Company. The Company’s ability to generate positive cash flows depends on the successful implementation of such alternative business plans. The above factors cast a significant uncertainty on the Company’s ability to continue as a going concern. Pending the resolution of the above uncertainties, the Company has prepared the aforesaid statement on a going concern basis.

• The company has not provided accrued interest, charges, penalty or any other charges from the date of being classified as Non-Performing Assets and the impact of the same on the financial result and statement remain unaccounted for.

• The Company is required to file Audit report under the Income tax Act 1961 and file corresponding Return under the act; however, the same has not been done for AY 20-21 and AY 21-22.

• The Company has not paid the statutory tax dues like TDS (paid for FY 22-23), PF, Professional Tax and Income tax etc. that has become overdue and remain unpaid. Interest, Penalty in respect of the same has remained unascertained and unaccounted.

• The Company has Trade Receivables including Advances, Trade Payables including Advances to Suppliers and Others, Recoverable Advances in Cash or Kind, Borrowings, Cash Credit account in bank etc. includes balances which remain outstanding for a substantial period. The reported Financials may have consequential / subsequent impact which remains unascertained.

• The company has incurred losses in the processing of its stock which was found to be irrecoverable which has led to the stock value being diminished. The valuation of Stock is done at Net Realizable Value. This has led to the value of stock losses to the tune of Rs. 5.58 crores.

• The demand notice issued by the income tax department for Rs. 908.61 lakh for AY 2018-

2019 has been appealed by the company before the CIT(A). At present the matter is pending with the CIT(A) and final order / proceeding is pending.

• The demand notice is issued by the GST department for interest payable amount to Rs.5.52 lakhs of financial year 2017-18 on 3i/os/2022.The company has filed an appeal against this order.

• The demand notice is issued by the GST department for Rs. 571.17 lakhs for FY 2018-2019 on 03/11/2022. The company has received the rectification order and has filed a writ petition before the Bombay High Court on 11/10/2023.

Our opinion is not modified in respect of above matters.

Other Information

The Company’s Board of Directors is responsible for the other information. The other information comprises the Board of Directors'' Report, but does not include the Ind AS Financial Statement and our Auditor’s report thereon.

Our opinion on the Ind AS Financial Statement does not cover the other information and we do not express any form of assurance conclusion thereon.

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

Management’s Responsibility for the Ind AS Financial Statement

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 Ind AS Financial Statement that give 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, 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS Financial Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS Financial Statement, the 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 Responsibilities for the audit of the Ind AS Financial Statement

Our objectives are to obtain reasonable assurance about whether the Ind AS Financial Statement 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 Ind AS Financial Statement.

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 Ind AS Financial Statement, 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 section i43(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal

financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Ind AS Financial Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Ind AS Financial Statement, including the disclosures, and whether the Ind AS Financial Statement 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 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 (Auditors 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 the paragraph 3 and 4 of the order.

2. As required by section 143(3) of the Act, we report that:

a) We have reasonably sought and obtained 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 appears from our examination of those books.

c) The balance sheet, the statement of profit and loss including the statement of other comprehensive income, the statement of cash flows and Statement of Changes in Equity dealt with in this report are in agreement with the books of account.

d) In our opinion, the aforesaid Ind AS Financial Statement comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. Since the Company has become NPA, IND AS23 on Borrowing Cost is not applied.

e) On the basis of written representations received from the directors as on 31 March 2024, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 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”.

g) In our opinion, the managerial remuneration for the year ended 31^st March 2024 has been provided by the Company to its directors 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 Auditors 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 explanations given to us:

i) The Company does not have any pending litigations which would impact 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) The Management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes 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 its knowledge and belief, other than 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 procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule n, as provided under (a) and (b) above, contain any material misstatement.

v) The Company has not declared or paid any dividend during the year and has not proposed

a final dividend for the year.

vi) Based on the audit tests and procedures performed, in respect of financial year ended 31^st

March 2024, The Company used Tally Prime (Gold), an accounting software for maintaining books of accounts. The Audit trail feature has not been enabled at the

database level for the said accounting software to keep a log of any direct data changes and it did not operate throughout the year.

For S R Dhariwal and Co

Chartered Accountants^''^^^v FRN: 102466W

^iral K Saboo

Partner M. No. 158054

UDIN: 24158054BKEMZL2145 Date: 28/08/2024 Place: Mumbai

---

Mar 31, 2018

Independent Auditor''s Report To the Members of SUPREME ENGINEERING LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Supreme Engineering Limited ( Formerly Known as Supreme Heatreaters Pvt. Ltd) ("the Company"), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these financial statements, that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 of the Order. 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 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 financial statements dealt with by this report are in agreement with the books of account;

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

Accounting Standard 15 - "Accounting for retirement benefits in the financial statement of employees''" with respect to non provision for liability for gratuity.

e. On the basis of the written representations received from the directors as at 31 March 2018 and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March 2018 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 2" to this report;

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, in our opinion and to the best of our information and according to the explanations given to us:

i. the Company does not have any pending litigations which would impact its financial position;

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

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

For H L Saini & Co. Chartered Accountants

HL Saini

Partner

Membership No. - 128301

Mumbai

Date: 26.04.2018

Annexure -1 to the Auditors Report

The annexure referred to in independent auditors report to the members of the Company on the financial statements for the year ended 31 March 2018. We report that:

(i) (a) The Company in process to maintaining fixed Assets records in full particulars, including quantitative details and situation of fixed assets but said register not available for our verification.

(b) As explained to us, the Company has a program for physical verification of fixed assets at periodic intervals. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies reported on such verification were not material and have been properly dealt with in the books of account.

(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company.

(ii) The Company has maintained stock register but due to highly complexity in stock items. We have verified stock only test check basis. However the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.

(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the company.

(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013and are of the opinion that prima facie, the specified accounts and records have been made and maintained. However, Company need to maintained systematic record in respect of consumption, production and procurement of materials, wastages, material reconciliation.

(vii) (a) Undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, wealth-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, duty of excise, service tax and value added tax have not been deposited by the Company on account of disputes.

Name of the Statute	Nature of Dues	Period to which amount relates	Forum where dispute is pending	Amount**
Maharashtra Value Added Tax Act	CST	FY 08-09	Commissioner of Sales(Appeal)	16,43,510
Maharashtra Value Added Tax Act	VATandCST	FY 09-10	Commissioner of Sales (Appeal)	1,04,06,560
Maharashtra Value Added Tax Act	VAT and CST	FY 10-11	Commissioner of Sales (Appeal)	1,09,30,611
Maharashtra Value Added Tax Act	VATandCST	FY 11-12	Commissioner of Sales (Appeal)	5,92,85,224

*As represented by the management

** Include deposit against appeals Rs. 46,53,776

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has taken loan from financial institutions or from the government and has not issued any debentures.

(ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management and on an overall examination of the balance sheet, we report that monies raised by way term loans were applied for the purposes for which those were raised.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud on or by the officers and employees of the Company has been noticed or reported during the year.

(xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.

(xii) In our opinion, the Company is not a Nidhi company. Therefore, the provisions of clause 3(xi) of the order are not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.

(xiv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has complied with provisions of section 42 of the Companies Act, 2013 in respect of the preferential allotment of shares during the year. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the amounts raised, have been used for the purposes for which the funds were raised.

(xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him except disclose in note no.l of financial statements

(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For H L Saini & Co. Chartered Accountants

HL Saini

Partner

Membership No. - 128301

Mumbai

Date: 26.04.2018

Annexure - 2 to the Auditors Report

ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF SUPREME ENGINEERING LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

To the Members of SUPREME ENGINEERING LIMITED

We were engaged to audit the internal financial controls over financial reporting of SUPREME ENGINEERING LIMITED ("the Company") as of March 31, 2018, in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor''s Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. However, the internal controls over accounting of consumption, production and procurement of materials, wastages, material reconciliation need further strengthening. For H L Saini & Co. Chartered Accountants

HL Saini

Partner

Membership No. - 128301

Mumbai

Date: 26.04.2018