We have audited the accompanying standalone financial statements of Milkfood Limited (“the Company”), which comprise
the standalone Balance Sheet as at March 31,2026, 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 for the year ended on
that date, notes to the standalone financial statements including the material accounting policy information 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, (“the Act”) in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards (“Ind AS”) specified under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted
in India, of the state of affairs of the Company as at March 31,2026, its profit including total comprehensive income, changes
in equity and its cash flows for the year ended on that date.

Basis for Modified Opinion:

Attention is drawn to Note no 24(i)(b) regarding the revaluation of Land of Rs. 3197 Lakhs resulting in Profits before tax/
Retained Earnings higher and OCI/Revaluation Surplus lower to that extent as per Ind AS 16, Note no 24(i)(2) regarding
retrospective re-evaluation of useful economic life of Vehicle resulting in overstatement of profit before tax/ other equity and
PPE to the extent of Rs 251 Lakhs, Note no 24(i)(3) in respect of share based expense of Rs 318 Lakhs net of from other
income instead of separate classification in Employee benefit expense as per Ind AS 102.Consequentally basic and diluted
Earning per share as per note 32 is Rs. 18.17 and Rs. 17.30 instead of Rs. 4.02 and Rs. 3.83 respectively.

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities
for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements
that are relevant to our audit of the standalone financial statements under the provisions of the Act and 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.

Emphasis of matter:

We draw attention to Note No 24(i)(a) regarding profit on sale of Property , Plant and Equipment, Note No 6(ii) regarding Trade
Receivables, Note No 8(ii) regarding Advance to suppliers/ employees, Note no 12(ii) regarding GST matters

Our opinion is not qualified in respect of these matters.

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 year ended March 31, 2026. These matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. For each key matter mentioned below, our description of how our audit addressed the matter is provided in that
context.

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

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 Annual Report through Management Discussion and Analysis, Board’s Report including Annexures
thereto, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the
standalone financial statements and our auditor’s report thereon. The 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 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.

After reading the annual report, if we conclude, basis the work performed by us, that there is a material misstatement in the
other information , we communicate the matter to those charged with governance and describe actions applicable under the
Act, other applicable laws and regulations.

Management’s and Board of Directors Responsibility for the Standalone Financial Statements

The Company’s management and Board of Directors are 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 state of affairs, profit and
total 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, the Management and Board of Directors are responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.

The Board of Directors are also 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 scepticism throughout
the audit. We also:

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

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

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

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

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

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 for the year ended March 31,2026 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 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 of accompanying standalone financial statements.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books, except for the possible effects of matters stated in paragraph (i)(vi) below on reporting
in relation to audit trail as required under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);

(c) The standalone financial statements dealt with by this report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified
under Section 133 of the Act except to the extent described in para “ Modified basis of opinion” and “Emphasis of
matter” para stated above.

(e) On the basis of the written representations received from the directors and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March, 2026 from being appointed as a director in terms of Section 164
(2) of the Act;

(f) The modification relating to the maintenance of accounts and other matters connected therewith in relation to audit
trail are as stated in paragraph (b) above on reporting under Section 143(3)(b) of the Act and paragraph (i)(vi) below
on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);

(g) With respect to the adequacy of the internal financial controls with reference to the standalone financial statements of
the Company as on 31^st March 2026 and the operating effectiveness of such controls, refer to our separate report in
“Annexure B” wherein we have expressed an unmodified opinion.

(h) As required by Section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its
directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule
V to the Act.

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

i. The Company has disclosed the impact of pending litigations as at 31 st March, 2026 on its financial position in its
standalone financial statements. (Refer note 34 of financial statements).

ii. The Company, as certified, did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses as at 31^st March, 2026. Accordingly no provision has been recognised
under applicable Ind As and applicable law.

iii. There has been no delay in transferring amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company during the year ended 31st March, 2026;

iv. (a) The Management has represented that, to the best of its knowledge and belief, as disclosed in Note 43 to the

standalone financial statements, 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(s) or entity or entity(ies), including foreign entity or
entity(ies) (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly lend or invest in any other person(s) 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, as disclosed in Note 43 to the
standalone financial statements no funds (which are material either individually or in the aggregate) have
been received by the Company from any person (s) or entities, including foreign entities (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other person(s) or entities identified in any manner whatsoever by or on behalf of
the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and

(c) Based on the audit procedures 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 management
representations under sub-clause (i) and (ii) of Rule 11 (e), as described under (a) and (b) above, contain any
material misstatement.

v. Based on our examination which included test checks and in accordance with requirements of the Implementation
Guide on Reporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, the
Company in respect of financial year commencing on 1 st April, 2025, has used accounting software’s 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, during the course of
our audit we did not come across any instance of audit trail feature being tampered with for the period where audit
trail is enabled and operated and for this we also relied upon the certificate of the management. Furthermore, the
audit trail has been preserved by the Company as per the statutory requirements for record retention where the
audit trail feature was enabled. Further, the daily back-up of audit trail (edit log) in respect of its accounting
software for maintenance of all accounting records, an accounting software for journal entries has been maintained
on the servers as mentioned in Note no 46 to the standalone financial statements.

vi. In respect of accounting software used for journal entries, the audit trail at data base level is preserved for
preceding 365 days.

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 A” a statement on the matters specified in paragraphs 3 and 4 of the
Order to the extent applicable.

for Madan and Associates

Chartered Accountants
Firm’s registration number: 000185N

M.K. Madan

(proprietor)

Place: New Delhi Membership number: 082214

Date : 22.05.2026 UDIN: