We have audited the accompanying Standalone Financial Statements of Modern
Insulators Limited (the 'Company') which comprise the Balance Sheet as at 31
March 2025, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Cash Flows and the Statement of Changes in Equity
for the year then ended, and notes to the financial statements, including a summary
of the significant accounting policies and other explanatory information
(hereinafter referred to as the 'Standalone Financial Statements').

In our opinion and to the best of our information and according to the explanations
given to us, except for the effect of the matters described in "Basis for Qualified
Opinion” section of our report, 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 accounting
principles generally accepted in India including Indian Accounting Standards
(Ind AS) specified under section 133 of the Act, of the state of affairs of the
Company as at 31 March 2025, its profit (including Other Comprehensive
Income), its cash flows and the changes in equity for the year ended on that
date.

Basis for Qualified Opinion

Provision for taxation including interest to the extent of estimated Rs.1915.17
lacs for the year ended 31 March 2025 (Previous Year Rs.2209.77 lacs; upto the

year Rs.11844.19 lacs) has not been made in accounts in view of the proposed
amalgamation under the provisions of Companies Act, 2013. (Refer note no.
35(iv)(a))

We conducted our audit in accordance with the Standards on Auditing 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 financial statements under the provisions of the Act
and the rules made there under 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 qualified opinion on the standalone financial
statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of
most significance in our audit of the standalone financial statements for the year
ended 31 March 2025. These matters were addressed in the context of our audit
of the standalone financial statements as a whole and in forming our opinion
thereon, and we do not provide a separate opinion, on these matters.

In addition to what has been stated in the "Basis for Qualified Opinion" section,
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 and Management is responsible for the other
information. The other information comprises the information included in the
Company's annual report, but does not include the standalone financial
statements, consolidated financial statements and our auditor's reports thereon.
Our opinion on the standalone financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our
responsibility is to read the other information and, in doing so, consider whether
such other information is materially inconsistent with the standalone financial
statements or our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Management’s Responsibility for the Standalone Financial Statements
The accompanying standalone financial statements have been approved by the
Company's Board of Directors. The Company's Board of Directors and
Management is responsible for the matters stated in section 134(5) of 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,
cash flows and changes in equity of the Company in accordance with the
accounting principles generally accepted in India, including the Ind AS prescribed
under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities;
selection and application of 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.

In preparing the standalone financial statements, Board of Directors and
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 Board of Directors and
Management either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.

The Board of Directors and Management 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 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 Standards on Auditing will always detect a
material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of the 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
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 the
Management.

• Conclude on the appropriateness of Board of Directors and 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 financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained upto 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 financial
statements, including the disclosures and whether the financial statements
represent the underlying transactions and events in a manner that achieves
fair presentation.

We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during
our audit. We also provide those charged with governance with a statement that
we have complied with relevant ethical requirements regarding independence
and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related
safeguards.

From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial
statements for the year ended 31 March 2025 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
As required by the Companies (Auditor's Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of section 143(11) of the
Companies Act, 2013 and on the basis of such checks of the books and records
of the company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure A, a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by section 143(3) of the Act, we report that:

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

b) In our opinion, proper books of account as required by law have been kept by
the Company so far as it appears from our examination of those books;

c) The Standalone Balance Sheet, the Statement of Profit and Loss including
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 the effects of the matter described in the "Basis for Qualified
Opinion" section, in our opinion, the aforesaid financial statements comply
with the Ind AS specified under section 133 of the Act;

e) On the basis of 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 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 with reference
to financial statements of the Company and the operating effectiveness of
such controls under clause (i) of sub-section 3 of section 143 of the Companies
Act, 2013, refer to our report in Annexure B;

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

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

i) The Company has disclosed the impact of pending litigations on its
financial position in standalone financial statements. (Refer note no. 39)

ii) The Company has made provision, as required under the applicable law
or Ind AS for material foreseeable losses, if any, on long term contracts
including derivative contracts. (Refer note no. 52)

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, as disclosed in note no. 51(v), 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 to 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, as disclosed in note no. 51(vi), 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 to 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 11(e) as provided under sub
clause (a) and (b) above, contain any material misstatement.

v) The Company has not declared or paid any dividend during the year ended
31 March 2025.

vi) Based on our examination, which included test checks, except for the
exception mentioned below, the Company has used accounting software
for maintaining its books of accounts for the year ended 31 March 2025,
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 software. 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 other than the exception mentioned below:

One unit (separate segment) of the company has used such accounting software
for maintaining books of accounts for the year ended 31 March 2025, which
does not have a feature of recording audit trail (edit log) facility and consequently
we are unable to report whether the audit trail facility has been operated and
maintained throughout the year for all relevant transactions recorded in the
software or if the audit trail feature has been tampered with or the audit trail has
been preserved by the Company as per the statutory requirements. (Refer note
no. 53)

For R B Verma & Associates
Chartered Accountants
Firm Registration No. 012650C

Rajesh Verma
Partner

Place - Abu Road Membership No. 404029

Date - 28th May, 2025 UDIN - 25404029BMOTOY9896