We have audited the accompanying standalone financial
statements of Precot Limited (“the Company”) which
comprise the Standalone Balance Sheet as at March 31,
2025, the Standalone Statement of Profit and Loss (including
Other Comprehensive Income), the Standalone Statement of
Changes in Equity, the Standalone Statement of Cash Flows
for the year then ended, and notes to the standalone financial
statements including a summary of material 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, 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 the Indian
Accounting Standards prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended ("Ind AS"), of the state of affairs of
the Company as at March 31,2025, its profit including other
comprehensive income, changes in equity and its cash flows
for the year ended on that date.

Basis for Opinion

We conducted our audit 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 Rules thereunder and we
have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the
standalone financial statements.

Emphasis of Matter

Attention is invited to Note no.38 of the standalone financial
statements on the discontinuation of one of the spinning units
located at Hindupur, Andhra Pradesh and the consequent
presentation of assets, liabilities, and financial performance in
the standalone financial statements.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
standalone financial statements of the current period. This
matter was 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 this matter. We have determined the matter described
below to be the key audit matter to be communicated in our
report.

Information other than the Standalone Financial
Statements and Auditor's Report thereon

The Company's Management and the Board of Directors are
responsible for the preparation of the other information. The
other information comprises the information included in the
Company's annual Report but does not include the
standalone financial statements and our auditor's report
thereon.

The other information is expected to be made available to us
after the date of this report.

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
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.

When we read the other information, as stated above, which is
expected to be received after the date of our audit report, if we
conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with
governance and take necessary actions, as applicable under
applicable laws and regulations.

Management's and Board of Directors' Responsibilities
for the Standalone Financial Statements

The Company's Management and the 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
financial position, financial performance including other
comprehensive income, statement of changes in equity and
cash flows of the Company in accordance with the accounting
principles generally accepted in India, including Ind
AS specified under section 133 of the Act, read with relevant
rules issued there under. 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 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 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 management either intends to
liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

The Management and Board of Directors are also responsible
for overseeing the company's financial reporting process.

Auditor's Responsibility 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 skepticism
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 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
standalone 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
and Board of Directors.

• Conclude on the appropriateness of the 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.

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.

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 of India in terms of section 143(11) of the
Act, we give in “Annexure 1”, a statement on the
matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.

2. (A) 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 Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone
Statement of changes in Equity and the
Standalone Statement of Cash Flows 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
read with relevant rules issued thereunder;

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 March 31, 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 standalone
financial statements of the Company and the
operating effectiveness of such controls, we give
our separate report in “Annexure 2”;

(B) 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, 2021, 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 on 31^st March 2025 on its financial
position in its standalone financial statements - Refer
Note 46 to the standalone financial statements;

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

(iii) There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company during the year
ended 31^st March 2025;

(iv) (a)The management has represented that, to the best
of its knowledge and belief, as disclosed in note
no.60(ii)A 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 persons or entities, 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 (“Ultimate Beneficiaries”) by or on behalf
of the Company 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.60(ii)B to the standalone financial statements, no
funds (which are material either individually or in the
aggregate) have been received by the Company from
any persons or entities, 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 (“Ultimate Beneficiaries”) by or on behalf
of the Funding Party or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.

(c) Based on such audit procedures as considered
reasonable and appropriate in the circumstances,
nothing has come to our notice that caused us to
believe that the representation under sub-clause (iv)

(a) and (iv) (b) contain any material mis-statement.

(v) The final dividend proposed with respect to previous
year, declared and paid by the company during the
year is in compliance with section 123 of the
Companies Act 2013 as applicable. 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 Companies Act 2013 as
applicable.

(vi) (a) The Company has used an accounting software
for maintaining its books of account which has 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.

(b) Further, during the course of our audit, we did not
come across any instance of audit trail feature being
tampered with.

(c) Additionally, the audit trail has been preserved by
the company as per the statutory requirements for
record retention.

(C) With respect to the matter 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/provided by the Company to its
directors during the current year is in accordance with the
provisions of section 197 of the Act. The remuneration
paid to any director is not in excess of the limit laid down
under section 197 of the Companies Act.

For VKS Aiyer& Co.,

Chartered Accountants
ICAI Firm Registration No. 000066S

C.S.Sathyanarayanan

Partner

Place: Coimbatore Membership No. 028328

Date: 23^rd May, 2025 UDIN:25028328BMIZUU9865