PRADHIN LIMITED

Report on the Audit of the Standalone Financial Statements

Disclaimer of Opinion

I have audited the accompanying standalone financial statements of PRADHIN LIMITED (“the Company"), which comprise the Balance Sheet as at 31^st March 2025, the statement of Profit and Loss (including other comprehensive income), the statement of changes in equity and statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

I do not express an opinion on the accompanying financial statements of the entity. Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of my report, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for Disclaimer of Opinion

I conducted my audit in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013, as amended. My responsibilities under those standards are further described in the section titled "Auditor's Responsibilities for the Audit of the Standalone Financial Results" of this report. I am 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 my audit of the standalone financial results under the provisions of the Companies Act, 2013 and the Rules thereunder. T have also fulfilled my other ethical responsibilities in accordance with these requirements and the Code of Ethics. However, despite my professional efforts, I was unable to obtain sufficient and appropriate audit evidence, data, workings, and documentation necessary to provide a basis for expressing an opinion on the standalone annual financial statements. Accordingly, I do not express an opinion on these financial statements.

• The company has unsecured loans amounting to 445.95 Lakhs. Management has not charged interest on these loans, and relevant agreements along with cross-confirmations are not available. In the absence of valid agreements and necessary confirmations, the accuracy of

the balances and their interest-free status could not be verified, potentially impacting the fair presentation of liabilities and interest expenses.

• Balance of GST Credit Payable €5.76 Lakhs pending for GST reconciliation. Reconciliation; with the GST Online Portal has not . been carried out, affecting the accuracy of GST Input Credit and the liability towards the government.

• The company has trade payables amounting to f 1123.31 Lakhs; however, the bifurcation of Micro, Small, and Medium Enterprises (MSME) creditors has not been provided. Non-disclosure of MSME classification contravenes the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, impacting regulatory compliance and financial transparency.

• Advances to suppliers of ?938.76 Lakhs remain unconfirmed. Absence of confirmations from these suppliers affects the reliability of liabilities disclosed in the financial statements.

• A loan/advances amounting to €2483.43 Lakhs remains unconfirmed to certain parties. The absence of loan confirmations impacts the reliability of Advances/Receivables and financial disclosures.

• I am not in receipt of sales invoices, E-invoices, E-Way bills, Delivery Challans, or Transportation details. In the absence of these critical documents, I am unable to verify the genuineness of the transactions.

• With respect to purchases, the company has not provided Goods Inward Reports. Further, the company does not own or lease any godown facilities, raising concerns over the storage of inventory. Management claims that the goods are traded directly from suppliers to customers without being held in the company’s¹ possession; however, in the absence of evidence, I am unable to verify’this assertion.

• Details of Related Party transactions mentioned in the financial statements

are not in tune with previous year and no information has been entered or provided for financial year 2024-25. >

I conducted my audit of standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. My responsibilities under' those¹ "Standards are ^: further^: described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of my report. I am 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 my audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the Code of Ethics. I believe that the audit evidence I have obtained is not sufficient and appropriate to provide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the standalone financial statements of the current period. These matters were addressed in the context of my audit of the standalone financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these .matters. I have determined depending upon the facts and circumstances of the entity and the audit, that there are no key audit matters to communicate in the Auditor’s Report except stated’.above under Basis for Disclaimer of Opinion. . , . _: .

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Director’s Report including Annexures to the Director’s Report, but does not include the standalone financial statements and my auditor’s report thereon.

My opinion on the standalone financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.

In connection with my audit of the standalone financial statements, my 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 my knowledge obtained during the course of my audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Emphasis on matter

I do not have any other matter to report here except mentioned under Basis for Disclaimer of opinion.

Management’s responsibility for the Standalone 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 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 Ind AS and other accounting principles generally accepted in India, including the accounting Standards specified 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 statement 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.

Those Board of Directors are'also responsible for'overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objective is to obtain reasonable assurance¹ about whether the standalone annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my 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 annual financial results.

As part of an audit in accordance with SAs, I exercise professional judgment and

maintain professional skepticism throughout the audit; I also:

Identify and assess the risks of material misstatement of the standalone annual financial results, 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 my 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, I am also responsible for expressing my opinion through a separate report on the complete set. of financial statements 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 in the standalone annual financial results made by the Management and Board of Directors.

- Conclude om the appropriateness of the 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 appropriateness of this assumption. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the standalone annual financial results or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my: 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 annual financial results, including the disclosures, and whether the standalone annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the Statement to express an opinion on the Statement.¹ Materiality is the magnitude of misstatements in the Statement that, individually or in aggregate, make it probable that the economic decisions of a reasonably knowledgeable user of the Statement may be influenced. I consider quantitative materiality and qualitative factors in

i) planning the scope of my audit work and in evaluating the results of my work; and

ii) to evaluate the effect of any identified misstatements in the Statement

I 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 I identify during my audit.

I also provide those charged with governance with a statement that I 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 my independence, and where applicable, related safeguards.

I also performed procedures in accordance with the Circular No. CIR/CFD/CMD 1/44/2019 dated 29th_:March, 2019 issued by the SEBI. I under Regulation 33(8) of the Listing Regulations to the extent applicable.

Report on Other Legal and Regulatory.Requirements,.

As required by theiCompanies i(Auditor’s Report) Order,.2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, l give in “Annexure A” a statement on^; the matters specified in paragraphs 3 and 4 of the Order, to.the extent applicable.

a) As described in the Basis for Disclaimer of Opinion and Key Audit Matters paragraph, I sought but was unable to obtain all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.

b) In my opinion, proper books of account as required by law have not been kept by the Company so far as details and records provided to me.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement'of-Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In my opinion, the'aforesaid standalone financial statements subject to the matters mentioned in theJBasis for Disclaimer of Opinion’ para above, comply with the Indian

Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31st March, 2025 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 my separate report in “Annexure B". My report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s Internal Financial Controls over financial reporting.

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

i. The Company does not have any pending litigation which would impact it’s financial position. '

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

iii. There has been noidelay in transferring amounts, required to be transferred, to the Investor.Education and Protection Fund by the Company.

iv. 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; ,

v. 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;

vi. Based on such audit procedures that I considered reasonable and appropriate in the circumstances, nothing has come to my notice that has caused me to believe that the representations under sub-clause (i) and (ii) contain material misstatement.

vii. The company has not declared any dividend during the year.

viii. Company has not used such accounting software for maintaining its books of account which has a feature:of recording audit trail (edit log) facility and ,the, same has not been operated throughout the year for all transactions,recorded in the software. Since the accounting software with audit trail has not been -used,:the question of. it being tampered with and preserved by the company does not arise.