We have audited the accompanying Financial
Statements of FREDUN PHARMACEUTICALS LIMITED

(“the Company”), which comprise the Balance Sheet as
at March 31, 2026, the Statement of Profit and Loss
(including comprehensive income), Cash Flow Statement
and the statement of changes in Equity for the year then
ended and summary of significant accounting policies
and other explanatory information, (herein referred to as
“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 (“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, 2026, 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 specified under section 143(10) of the Act (SAs).
Our responsibilities under those Standards are further
described in the Auditor's Responsibilities for the Audit
of the 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 independence requirements that are

relevant to our audit of the financial statements under
the provisions of the Act and the Rules made
thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the ICAI's Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the
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 Ind AS financial statements of
the current period. These matters were addressed in the
context of our audit of the standalone Ind AS financial
statements as a whole, and in forming our opinion
thereon, 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
to our report

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

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

4. Managements Responsibility 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, total
comprehensive income, changes in equity and cash flows
of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India.
This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding 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.

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

Our objectives are to obtain reasonable assurance
about whether the Standalone Financial Statements 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 specified
under section 143(10), we exercise professional judgment
and maintain professional skepticism throughout the
audit. We also:

i) 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.

ii) Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate
internal financial controls with reference to financial
statements in place and the operating effectiveness of
such controls.

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

iv) 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.

v) 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.

II. Report on Other Legal and Regulatory Requirements

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

a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the 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 Flow 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.

e) On the basis of the written representations received
from the directors as on March 31, 2026 taken on record
by the Board of Directors, none of the directors is
disqualified as on March 31, 2026 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 with reference to financial statements of the
Company and the operating effectiveness of such
controls, refer to our separate Report in “Annexure A”. Our
report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's internal
financial controls with reference to financial statements.

g) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements of
section 197(16) of the Act, as amended:

In our opinion and to the best of our information and
according to the explanations given to us, the
remuneration paid by the Company to its directors during
the year is in accordance with the provisions of section
197 of the Act.

h) With respect to the other matters to be included in the
Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended
in our opinion and to the best of our information and
according to the explanations given to us:

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

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

iii) There has been a delay in transfer of unclaimed
dividend amounts and the corresponding equity shares to
the Investor Education and Protection Fund (“IEPF”) in
accordance with the provisions of Sections 124(5) and
124(6) of the Companies Act, 2013 read with the Investor
Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016, as amended.

The Company was required to transfer to the IEPF the
unclaimed dividend pertaining to the financial year

2015- 16, together with the corresponding equity shares
in respect of which dividend had remained unclaimed for
seven consecutive years, during the financial year
2023-24. Further, the Company was required to transfer
the unclaimed dividend pertaining to the financial year

2016- 17 and the corresponding equity shares during the
financial year 2024-25, and the unclaimed dividend
pertaining to the financial year 2017-18 and the
corresponding equity shares during the financial year
2025-26.

However, as at 31 March 2026, the aforesaid transfers
had not been completed within the timelines prescribed
under the Act and the Rules made thereunder.

Management has represented that it is in the process of
undertaking the necessary actions for transfer of the
applicable unclaimed dividend amounts and
corresponding equity shares to the IEPF and completion
of related statutory filings.

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 (a)
and (b) above, contain any material misstatement.

v) As stated in note no - 40 of the standalone financial
statements,

a) The final dividend proposed in the previous year,
declared and paid by the Company during the year is in
accordance with Section 123 of the Act, as applicable

b) The Board of Directors of the Company have proposed
final dividend for the year which is subject to the approval
of the members at the ensuing Annual General Meeting.
The amount of dividend proposed is in accordance with

section 123 of the Act, as applicable.

vi) Based on our examination, which included test checks,
the Company has used accounting software systems for
maintaining its books of account for the financial year
ended March 31, 2026 which have the feature of
recording audit trail (edit log) facility and the same has
operated throughout the year for all relevant transactions
recorded in the software systems. Further, during the
course of our audit we did not come across any instance
of the audit trail feature being tampered with and the
audit trail has been preserved by the Company as per the
statutory requirements for record retention.

2) As required by the Companies (Auditor's Report)

Order, 2020 (“the Order”) issued by the Central
Government in terms of Section 143(11) of the Act, we give
in "Annexure B” a statement on the matters specified in
paragraphs 3 and 4 of the Order.

For R H Nisar & Co Rakesh Nisar

Chartered Accountants Proprietor

Firm Registration No - 120895W Membership No - 103659

UDIN No. : 26103659AYTTXA7821

Place - Mumbai
Date :- May 25, 2026