Auditor Report of Bluestone Jewellery and Lifestyle Ltd.

Mar 31, 2025

We have audited the accompanying standalone
financial statements of BlueStone Jewellery and
Lifestyle Limited (formerly known as BlueStone
Jewellery and Lifestyle Private Limited) ("the
Company”), which comprise the Balance Sheet as at
31 March 2025, and the Statement of Profit and Loss,
including Other Comprehensive Income, Statement
of Changes in Equity and Statement of Cash Flows
for the year then ended, and notes to the standalone
financial statements, including 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 prescribed under section 133
of the Act read with 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 31 March 2025, and its loss (including other
comprehensive loss), 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 (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 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 obtained by us is
sufficient and appropriate to provide a basis for our
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 Director’s report 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 standalone
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 in the 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.

RESPONSIBILITIES OF BOARD OF
DIRECTORS 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, changes in equity and cash flows of
the Company in accordance with the 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; makingjudgments
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 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,
the Management and Board of Directors 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
the 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 is 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.

We give in “Annexure A” a detailed description of
Auditor’s responsibilities for Audit of the standalone
financial statements.

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

2. 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 except for
the matters stated in paragraph 2(h)(vi)
below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.

(c) The Balance Sheet, the Statement of Profit
and Loss including other comprehensive
income, the Statement of Changes in
Equity and the Statement of Cash Flow
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
Accounting Standards specified under
Section 133 of the Act.

(e) On the basis of the written representations
received from the directors as on 31
March 2025 taken on record by the Board
of Directors, none of the directors are
disqualified as on 31 March 2025 from being
appointed as a director in terms of Section
164 (2) of the Act.

(f) The reservation relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 2(b)
above on reporting under Section 143(3)(b)
and paragraph 2(h)(vi) below on reporting
under Rule 11(g).

(g) 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, refer to our separate
Report in “Annexure C”.

(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 does not have any
pending litigations which would
impact its financial position.

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

iii. There were no amounts which were
required to be transferred to the
Investor Education and Protection
Fund by the Company.

iv. (1) The Management has represented

that, to the best of its knowledge
and belief, no funds 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(ies), 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 by
or on behalf of the Company
("Ultimate Beneficiaries”) or
provide any guarantee, security or
the like on behalf of the Ultimate
Beneficiaries;

(2) The Management has represented,
that, to the best of its knowledge
and belief, no funds have been
received by the Company from any
person(s) or entity(ies), including
foreign entities (Funding Parties),
with the understanding, whether
recorded in writing or otherwise,
as on the date of this audit report,
that the Company shall, 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;

(3) Based on the audit procedures
performed that have been
considered reasonable and
appropriate in the circumstances,
and according to the information
and explanations provided to us
by the Management in this regard
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 (1) and (2)
above, contain any material mis¬
statement.

v. The Company has neither declared nor

paid any dividend during the year.

vi. Based on examination which included
test checks, the Company has used
certain accounting software(s) for
maintaining its books of account
(managed and maintained by a
third-party software service provider)
which has a feature of recording
audit trail (edit log) facility and the
same has been operated throughout
the year for all relevant transactions
recorded in the software except that
we are unable to comment on audit
trail at database level due to absence
of SOC I Type II report, as explained
in Note 51 to the standalone financial
statements.

Further, the Company migrated
to a new accounting software on
October 1, 2024 for maintaining
its books of account (managed
and maintained by a third-party
software service provider), which
has a feature of recording audit trail
(edit log) facility except that we are
unable to comment on audit trail
at database level due to absence of
adequate coverage in SOC 1 Type II
report, as explained in Note 51 to the
standalone financial statements.

Further, except for above, audit trail
feature has operated throughout
the year for all relevant transactions
recorded in the accounting software.
Also, during the course of our audit,
we did not come across any instance
of audit trail feature being tampered
with except for above. Additionally,
the audit trail of prior year has
been preserved by the Company as
per the statutory requirements for
record retention to the extent it was
enabled and recorded in respective
years.

Based on our examination which
included test checks, the Company
has used certain accounting
software(s) for maintaining its books
of accounts, which is managed and
maintained by a third-party software
service provider as explained in
note 51 to the standalone financial
statements. However, in absence
of sufficient and appropriate audit
evidence including SOC I Type II
report we are unable to comment
whether the accounting software has
a feature of recording audit trail (edit

log) facility and whether the same
has operated throughout the year
for all relevant transactions recorded
in the software or whether there is 3.
any instance of audit trail feature
being tampered with. Additionally,
we are unable to comment whether
the audit trail of prior year(s) has
been preserved by the Company as
per the statutory requirements for
record retention prescribed under

Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014.

In our opinion, according to information,
explanations given to us, the remuneration
paid by the Company to its directors is within
the limits laid prescribed under Section 197
read with Schedule V of the Act and the rules
thereunder.

For M S K A & Associates

Chartered Accountants
ICAI Firm Registration No. 105047W

Ankush Agrawal

Partner

Place: Bengaluru Membership No. 159694

Date: April 24, 2025 UDIN: 25159694BMLWGT7265