Auditor Report of Jattashankar Industries Ltd.

Mar 31, 2025

We have audited the accompanying Standalone Ind AS financial statement of JATTASHANKAR
INDUSTRIES LIMITED (“the company”), which comprise the Balance Sheet as at 31^st MARCH 2025,
the statement of Profit and Loss (including other comprehensive income) and the cash flow statement of the
Company and the Statement of Changes in Equity for the year ended and a summary of significant
accounting policies and other explanatory information, (hereinafter referred to as “Ind. AS Financial
Statements”.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Standalone Ind. AS financial statements give the information required by 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 financial position of the Company as at 31^stMarch 2025 and its financial performance including
other comprehensive income, its cash flows and the changes in equity 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 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 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
audit opinion on the 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 financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.

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

Sr. No.	Key Audit Matter	Audit procedure to address the key audit matter
1	During the year ended March 31, 2025, the company has sold its Plant and machineries at sale value of Rs. 101.14 lakhs at a loss of Rs. 80.76 Lakhs resulting in the discontinuance of its operational activities. Due to above exceptional matter limited income has been generated in the current year	Our audit procedures included reviewing the sale agreement, assessing the appropriateness of the accounting treatment of the sale, and evaluating the assumptions used in determining the gain. We also considered whether the related disclosures in the financial statements adequately reflect the nature of the transaction and its impact on the company’s financial

				position.
2	Pursuant to the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, an Open Offer has been made by Tarunkumar Gunvantlal Patel, Vedant Tarunbhai Patel, Vishal Prakashbhai Ashara, Keval Jayanti Khudai and Nileshbhai Bhagvanji Bapodara for acquisition of up to 11,40,646 equity shares representing 26% of the total paid-up equity share capital of the Company at a price of t 60/-per share. The open offer was triggered due to execution of the share purchase agreement by the acquirers on dated 20/12/2024 to purchase 31,82,900 equity shares consisting 72.55% of the fully paid up equity shares at a consideration of Rs.60/- per equity share and was formally announced through a public announcement dated 17/03/2025 after getting approval from SEBI. Key Terms of the Offer:			As per information given to us The Company has taken note of the development, and appropriate disclosure has been made in accordance with SEBI (LODR) Regulations, 2015, where applicable. Accounting Impact: The open offer does not result in any direct impact on the financials of the Company
		Particulars	Details
		Name of acquirer	Tarunkumar Gunvantlal Patel, Vedant Tarunbhai Patel, Vishal Prakashbhai Ashara, Keval Jayanti Khudai and Nileshbhai Bhagvanji Bapodara
		Offer Size	acquisition of up to 11,40,646 equity shares representing 26% of the total paid-up equity share capital of the Company at a price of t 60/-per share.
		Offer Price per share	Rs.60/- per share
		Total Consideration	684.39Lacs
		Offer Opening date	19/03/2025
		Offer Closing date	02/04/2025

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

The Company’s Management and Board of Directors are responsible for the other information. The other
information comprises the information included in the Company’s annual report but does not include the
financial statements and 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.

Management’s Responsibilities 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 and presentation of these Standalone Ind AS financial
statements that give a true and fair view of the financial position and financial performance including other
comprehensive income of the Company in accordance with the accounting principles generally accepted in
India, including the 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.

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 Ind. AS financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error.

In preparing the 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.

The Board of Directors are also responsible for overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance 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 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 annual financial results.

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 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 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
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 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 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 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 results 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 Annual Financial Results,
including the disclosures, and whether the financial results represent the underlying transactions and events
in a manner that achieves fair presentation

Materiality is the magnitude of misstatement in the standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the
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 misstatement in the 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 significant deficiencies in internal control
that we identify during our audit.

We also provide those charged with governance with a statement that we may 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.

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

2. (A) As required by section 143 (3) of the Act, we repot 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 Company has no branches hence, the provisions of section 143(3)(c) is not applicable.

d. 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 agree with the books of account.;

e. In our opinion, the aforesaid Standalone Ind. AS financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with relevant Rule issued thereunder.

f. There are no observations or comments on financial transactions or matters which have any adverse effect on
the functioning of the company.

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

h. There is no any qualification, reservation or adverse remark relating to maintenance of accounts and other
matters connected therewith.

i. 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 our separate Report in Annexure “B”. Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the company’s internal
financial controls over financial reporting.

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

k. 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 :

a) The Company has disclosed the impact of pending litigations on its Standalone Ind AS financial statements.

b) The Company has made provision, as required under the applicable law or Ind. AS, for material foreseeable
losses, if any, and as required on long-term contracts including derivative contracts.

c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.

d) (i) 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 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 required by The Companies (Amendment) Act, 2017, in our opinion, according to
information, explanations given to us, the remuneration paid by the Company to its directors is within the
limits prescribed under Section 197 of the Act and the rules thereunder.

(ii) The Management has represented that, to the best of its knowledge and belief, no funds 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 Parties or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

(iii) 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) contain any material misstatement.

e) The Company has not declared or paid any dividend in the current year. Hence, reporting the compliance
with section 123 of the Act is not applicable.

f) Based on our examination, which included test checks, we observed that the company did not use accounting
software with an audit trail feature for maintaining its books of account for the financial year ended March
31, 2025. As a result, the company is in non-compliance with Rule 3(1) of the Companies (Accounts) Rules,
2014, which requires the maintenance of books of accounts using software that includes an audit trail
feature.

For and on behalf of
K.K. Jhunjhunwala & Co.

Chartered Accountants
F. R. No. 111852W

SD/-

SurendraSureka

Place: Mumbai Partner

Date: 30.05.2025 M.No. 119433

UDIN: 25119433BMHPSZ2006

---

Mar 31, 2024

We have audited the accompanying Standalone Ind AS financial statement of JATTASHANKAR INDUSTRIES LIMITED (“the company”), which comprise the Balance Sheet as at 31^st MARCH 2024, the statement of Profit and Loss (including other comprehensive income) and the cash flow statement of the Company and the Statement of Changes in Equity for the year ended and a summary of significant accounting policies and other explanatory information, (hereinafter referred to as “Ind. AS Financial Statements”.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind. AS financial statements give the information required by 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 financial position of the Company as at 31^stMarch 2024 and its financial performance including other comprehensive income, its cash flows and the changes in equity 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 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 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 audit opinion on the 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 financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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

Sr. No.	Key Audit Matter	Audit procedure to address the key audit matter
1	During the year, the company sold its immovable asset and recognized an exceptional gain of Rs. 367.42 lakhs. This transaction was significant to the financial statements due to its size and its impact on the company’s overall financial position. Additionally, the accounting for this transaction involved significant judgment related to the valuation and classification of the gain.	Our audit procedures included reviewing the sale agreement, assessing the appropriateness of the accounting treatment of the sale, and evaluating the assumptions used in determining the gain. We also considered whether the related disclosures in the financial statements adequately reflect the nature of the transaction and its impact on the company’s financial position.

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

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report but does not include the financial statements and 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.

Management’s Responsibilities 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 and presentation of these Standalone Ind AS financial statements that give a true and fair view of the financial position and financial performance including other comprehensive income of the Company in accordance with the accounting principles generally accepted in India, including the 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.

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 Ind. AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the 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.

The Board of Directors are also responsible for overseeing the company’s financial reporting process. Auditor’s Responsibilities for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance 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 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 annual financial results.

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 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 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 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 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 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 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 results 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 Annual Financial Results, including the disclosures, and whether the financial results represent the underlying transactions and events in a manner that achieves fair presentation

Materiality is the magnitude of misstatement in the standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the 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 misstatement in the 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 significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we may 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.

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

2. (A) As required by section 143 (3) of the Act, we repot 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 Company has no branches hence, the provisions of section 143(3)(c) is not applicable.

d. 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 agree with the books of account.;

e. In our opinion, the aforesaid Standalone Ind. AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant Rule issued thereunder.

f. There are no observations or comments on financial transactions or matters which have any adverse effect on the functioning of the company.

g. On the basis of the written representations received from the directors as on 31^st March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31^stMarch 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

h. There is no any qualification, reservation or adverse remark relating to maintenance of accounts and other matters connected therewith.

i. 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 our separate Report in Annexure “B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company’s internal financial controls over financial reporting.

j. 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, as amended, In our opinion and to the best of our information and according to

the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

k. 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 :

a) The Company has disclosed the impact of pending litigations on its Standalone Ind AS financial statements.

b) The Company has made provision, as required under the applicable law or Ind. AS, for material foreseeable losses, if any, and as required on long-term contracts including derivative contracts.

c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

d) (i) 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 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 required by The Companies (Amendment) Act, 2017, in our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within the limits prescribed under Section 197 of the Act and the rules thereunder.

(ii) The Management has represented that, to the best of its knowledge and belief, no funds 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 Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iii) 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) contain any material misstatement.

e) The Company has not declared or paid any dividend in the current year. Hence, reporting the compliance with section 123 of the Act is not applicable.

f) Based on our examination, which included test checks, we observed that the company did not use accounting software with an audit trail feature for maintaining its books of account for the financial year ended March 31, 2024. As a result, the company is in non-compliance with Rule 3(1) of the Companies (Accounts) Rules, 2014, which requires the maintenance of books of accounts using software that includes an audit trail feature.

For and on behalf of K.K. Jhunjhunwala & Co.

Chartered Accountants F. R. No. 111852W

SD/-

SurendraSureka

Place: Mumbai Partner

Date: 30.05.2024 M.No. 119433

---

Mar 31, 2015

We have audited the accompanying standalone financial statements of JATTASHANKAR INDUSTRIES LIMITED, which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 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, read with Rule 7 of the Companies (Accounts) Rules,2014. 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on the financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its profit and its cash flows for the year ended on that date.

EMPHASIS OF MATTER

We draw attention to Note No.5 to the financial statement that company has made the provision of gratuity an estimated basis instead of on the basis of actuarial valuation, impact of profit is unascertained. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

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 Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014,except AS -15 liabilities of gratuity in respect of which is accounted for on estimated basis instead of actuarial basis.

(e) On the basis of the written representations received from the directors as on 31st March, 2015

Taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) 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 its financial statements

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE TO AUDITORS REPORT

1. a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed assets of the Company have been physically verified during the year by the management and no material discrepancies between the books records and physical inventory have been noticed. The company has not disposed off any substantial part of fixed assets during the year.

2. In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on such physical verification. The procedures followed by the management for physical verification of stock are in our opinion, reasonable and adequate in relation to the size of the Company and nature of its business.

3. The company has not granted any loans,Secured or unsecured to companies, Firms or other Parties Covered in the register maintained under Section 189 Of the Companies Act,2013.

4. In our opinion and according to the information and explanation given to us there is adequate internal control system commensurate with the size of the company and nature of its business with regard to purchases of fixed assets, goods/services and sale of goods/services. During the course of our audit, we have not observed any continuing failure to correct the major weakness in the internal control system.

5. The company has not accepted deposits and accordingly there no requirement to comply with directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.

6. The Central government has not prescribed the maintenance of cost records under section 148 (1) of the Companies Act & as informed to us, the same has also not been maintained.

7. a) According to the information and explanation given to us and based on the books and records examined by us the Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and other statutory dues, wherever applicable, have been generally deposited regularly during the year with appropriate authorities. There are no outstanding statutory dues as on 31st March, 2015 for a period of more than six months from the date they become payable.

b) According to the information and explanation given to us and based on the books and records examined by us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and other statutory dues, wherever applicable.

c) The Company does not have any amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under has been transferred to such fund within time.

8. The company has accumulated loss at the financial year of Rs.3,35,87,390/-(reported figure) and has not incurred cash loss during the financial year and immediately preceding current financial year.

9. As there is no term loan taken from bank or institutions. Hence there is no question arise for default in repayment of such loans.

10. The company has not given guarantee for loans taken by others from Banks or Financial Institutions , the terms and conditions whereof are prejudicial to the interest of the company;

11. The company has not taken any term loan during the year. Hence relevant clause is not applicable to the company.

12. According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year.

For SHANKARLAL JAIN & ASSOCIATES Chartered Accountants Firm Reg. No.109901 W

S.L. AGARWAL Place: Mumbai (PARTNER) Date : 29.05.2015 Membership No. 72184

---

Mar 31, 2014

We have audited the accompanying financial statements of JATTASHANKAR INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position , financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanations given to us, the financial statements , give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) in the case of the Statement of Profit and Loss Account, of the profit for the year ended on that date;and

c) in the case of the Cash Flow Statement , of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the companies ( Auditor''s Report ) order , 2003 issued by the central government in terms of Section 227 (4A) of the companies Act , we give in the Annexure, a statement on the matters specified in Paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our Audit;

b) In our opinion , proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books;

c) The Balance Sheet , Statement of Profit and Loss Account & Cash Flow Statement with this report are in agreement with the books of accounts;

d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow Statement dealt with this report Comply with the Accounting Standards as specified in section 211 (3 C ) of the Companies Act , 1956

e) On the basis of written representations and explanations received from Directors, as on 31.03.2014 and taken on record by the Board of directors, none of the Directors Iis disqualified as on 31.03.14 from being appointed as a director in terms of Clause (g) of Sub Section (1) of Section of 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITORS REPORT

(Referred to its paragraph 1 thereof)

As required by the companies ( Auditors Report) Order ,2003 issued by the company Central Government of India in terms of section 227 (4A) of the companies Act.,1956 On the basis of such checks as we considered appropriate ,we report that :-

1. a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed assets but the same is to be updated.

b) We are informed that fixed assets were not verified by the management during the year. Discrepancy if any , will be determined only after the fixed asset register is updated.

c) The company has not disposed off substantial part of fixed assets during the year to effect to its going concern.

2. a) Inventories have been physically verified during the year by the management at reasonable intervals.

b) The procedure followed by the management for physical verification of stock is in our opinion reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to information and explanation given to us ,the company has maintained proper records of its inventories & discrepancies were noticed on verification between the physical stock and book stock were not material & have been properly dealts with in the books of account.

3. a) The company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956. Hence relevant Provisions are not applicable to the Company .

b) The Company has taken interest free unsecured loan from a company (strategic promoter).Balance outstanding of Rs. 340.00 lacs at the end of the year. In our opinion the terms and conditions of the said loan are not prejudicial to the interest of the Company.

c) Company is regular in repayment of principal and interest as stipulated .

4. In our opinion and according to the information and explanation given to us ,there are adequate internal control procedures commensurate with the size of the company and the nature of its business ,for the purchase & sale of inventories, fixed assets and with regards to sale of goods and services .During the course of our audit ,We have not observed any continuing to correct the major weakness in internal controls .

5. a) There are transactions in the company that need to be entered in the register in pursuance of Section 301 of the Companies Act 1956 ,were duly entered .

b) In our opinion and according to the information and explanation given to us,the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of companies Act 1956 and aggregating during the year to 5,00,000/- or more in respect of each party ,have been made at prices seems reasonable as prevailing market prices for such goods ,materials or the price at which transactions for similar goods ,materials or services have been made with the other parties are not comparable not having similar goods or services.

6. In our opinion and according to information and explanation given to us ,the company has not accepted any deposits from public ,hence provisions of Section 58A & 58 AA of the Companies Act 1956 are not applicable.

7. The company has no Internal Audit System during the year.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) of the companies Act 1956 & are of the opinion that prima facie the prescribed accounts and records have been made maintained by the company . However, We have not made detailed examination of records so as to ascertain whether they are accurate and complete.

9. The company is regular in depositing statutory dues including Provident fund ,Investor Education & Protection Fund ,Employees State Insurance ,Income Tax, Wealth Tax ,Sales Tax ,Customs duty and Excise duty, Service Tax , Cess and other materials statutory dues wherever applicable with appropriate authorities . We are informed that no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March 2014for the period of more than six months from the date they became payable.

10 The company has accumulated loss at the financial year of Rs. 6,12,39,692/- (reported figure) and it has incurred no cash loss in the financial year & immediately preceding current financial year .

11. In our opinion and according to information and explanation given to us, company has not defaulted in repayment of dues to financial institution & others .

12. According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion the company is not a chit / nidhi / mutual fund/society. Therefore the provision of Clause 4 (Xiii) of the companies (Auditors Report) orders 2003 are not applicable to the company.

14. In our opinion the company is not dealing or trading in any shares ,securities ,debentures & others investments Accordingly the provision of Clause 4 (Xiii) of the companies ( Auditors Report) order 2003 are not applicable to the company.

15. The company has not given guarantee for loans taken by others from Banks or Financial Institutions.

16. The company has not taken any term loan during the year.Hence relevant clause is not applicable to the company.

17. According to information and explanation given to us and an overall examination of Balance Sheet of the company, we report that no funds raised during the year, on short term basis have been used for long term investments.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the companies Act, 1956.

19. The company has not issued any debentures during the year.

20. The company has not raised any money by way of Public issue during the year.

21. According to information and explanations given to us, no frauds on or by the company has been noticed or reported during the course of our audit.

For SHANKARLAL JAIN & ASSOCIATES CHARTERED ACCOUNTANTS (Firm Reg. No. 109901W) sd/- PLACE: MUMBAI S.L.AGRAWAL DATE: 30/05/2014 (PARTNER) Membership No. 72184

---

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Jattashankar Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position , financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanations given to us, the financial statements , subject to Note No. 23(a) regarding Non Provision of Gratuity liability and Note No. 23(b) regarding provision of Leave encashment instead of cash basis due to which profit is understated by Rs. 50,000/- , give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) in the case of the Statement of Profit and Loss Account, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement , of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the companies ( Auditor''s Report ) order , 2003 issued by the central government in terms of Section 227 ( 4A) of the companies Act , we give in the Annexure, a statement on the matters specified in Paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our Audit;

b) In our opinion , proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books;

c) The Balance Sheet , Statement of Profit and Loss Account & Cash Flow Statement with this report are in agreement with the books of accounts;

d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow Statement dealt with this report Comply with the Accounting Standards as specified in section 211 ( 3 C ) of the Companies Act , 1956 except Accounting Standards 15 in respect of gratuity liability as referred in Note No. 23(1)

e) On the basis of written representations and explanations received from Directors, as on 31.03.2013 and taken on record by the Board of directors, none of the Directors Is disqualified as on 31.03.13 from being appointed as a director in terms of Clause (g) of Sub Section (1) of Section of 274 of the Companies Act, 1956.

(Referred to its paragraph 1 thereof)

As required by the companies ( Auditors Report) Order ,2003 issued by the company Central Government of India in terms of section 227 (4A) of the companies Act.,1956 On the basis of such checks as we considered appropriate ,we report that :-

1. a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed assets but the same is to be updated.

b) We are informed that fixed assets were not verified by the management during the year. Discrepancy if any , will be determined only after the fixed asset register is updated.

c) The company has not disposed off substantial part of fixed assets during the year to effect to its going concern.

2.a) Inventories have been physically verified during the year by the management at reasonable intervals.

b) The procedure followed by the management for physical verification of stock is in our opinion reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to information and explanation given to us ,the company has maintained proper records of its inventories & discrepancies were noticed on verification between the physical stock and book stock were not material & have been properly dealt with in the books of account.

3. a) The company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956. Hence relevant Provisions are not applicable to the Company .

b) The Company has taken interest free unsecured loan from a company (strategic promoter).Balance outstanding of Rs. 439.00 lacs at the end of the year. In our opinion the terms and conditions of the said loan are not prejudicial to the interest of the Company.

c) Company is regular in repayment of principal and interest as stipulated .

3. In our opinion and according to the information and explanation given to us ,there are adequate internal control procedures commensurate with the size of the company and the nature of its business ,for the purchase & sale of inventories fixed assets and with regards to sale of goods and services .During the course of our audit ,We have not observed any continuing to correct the major weakness in internal controls .

5.a) There are transactions in the company that need to be entered in the register in pursuance of Section 301 of the Companies Act 1956 ,were duly entered .

b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of companies Act 1956 and aggregating during the year to 5,00,000/- or more in respect of each party ,have been made at prices seems reasonable as prevailing market prices for such goods ,materials or the price at which transactions for similar goods ,materials or services have been made with the other parties are not comparable not having similar goods or services.

6. In our opinion and according to information and explanation given to us ,the company has not accepted any deposits from public ,hence provisions of Section 58A & 58 AA of the Companies Act 1956 are not applicable.

7. The company has no Internal Audit System during the year.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) of the companies Act 1956 & area of the opinion that prima facie the prescribed accounts and records have been made maintained by the company .However, We have not made detailed examination of records so as to ascertain whether they are accurate and complete.

9. The company is regular in depositing statutory dues including Provident fund ,Investor Education & Protection Fund ,Employees State Insurance ,Income Tax, Wealth Tax ,Sales Tax ,Customs duty and Excise duty, Service Tax , Cess and other materials statutory dues wherever applicable with appropriate authorities . We are informed that no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March 2013 for the period of more than six months from the date they became payable.

10 The company has accumulated loss at the financial year of Rs. 8,71,49,715/- ( reported figure ) and it has incurred no cash loss in the financial year & immediately preceding current financial year .

11. In our opinion and according to information and explanation given to us, company has not defaulted in repayment of dues to financial institution & others .

12. According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion the company is not a chit / nidhi / mutual fund/society. Therefore the provision of Clause 4 (Xiii) of the companies (Auditors Report) orders 2003 are not applicable to the company.

14. In our opinion the company is not dealing or trading in any shares ,securities ,debentures & others investments .Accordingly the provision of Clause 4 (Xiii) of the companies ( Auditors Report) order 2003 are not applicable to the company.

15. The company has not given guarantee for loans taken by others from Banks or Financial Institutions.

16. The company has not taken any term loan during the year. Hence relevant clause is not applicable to the company.

17. According to information and explanation given to us and an overall examination of Balance Sheet of the company, we report that no funds raised during the year, on short term basis have been used for long term investments.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the companies Act, 1956.

19. The company has not issued any debentures during the year.

20. The company has not raised any money by way of Public issue during the year.

21. According to information and explanations given to us, no frauds on or by the company has been noticed or reported during the course of our audit.

For SHANKARLAL JAIN & SSOCIATES

CHARTERED ACCOUNTANTS

(Firm Reg. No. 109901W)

sd/-

PLACE: MUMBAI S.L.AGRAWAL

DATE: 03/09/2013 (PARTNER)

Membership No. 72184

---

Mar 31, 2012

We have audited the attached Balance Sheet of M/s. Jattashankar Industries Limited (Formerly Known as Jatta Industries Limited.) as at 31st March 2012, & also the Profit & Loss Account and The Cash Flow Statement for the year ended on that date annexed thereto. These Financial statements are the responsibility of the company's Managements .Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan & perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An Audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable Basis for our opinion.

1. As required by the companies ( Auditor's Report ) order, 2003 issued by the central government in terms of Section 227 ( 4A) of the companies Act, 1956

2. We enclose in the annexure, a statement on the matters specified in Paragraphs 4 and 5 of the said order.

3. Further to our comments in the annexure referred to the above, we report that

a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our Audit;

b) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books;

c) The Balance Sheet, Profit and Loss Account & Cash Flow Statement with this report are in agreement with the books of accounts;

d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow Statement dealt with this report Comply with the Accounting Standards as specified in section 211 ( 3 C ) of the Companies Act, 1956 except Accounting Standards 15 in respect of gratuity liability and Leave encashment as referred in Note No. 5 .

e) On the basis of written representations and explanations received from Directors, as on 31.03.2012 and taken on record by the Board of directors, we report that none of the Directors On the basis of the written representation received from all of them are disqualified as on 31.03.12 from being appointed as a director in terms of Clause (g) of Sub Section (1) of Section of 274 of the Companies Act, 1956.

4. In our opinion and to the best of our information and according to the explanations given to us, the accounts subject to Note No.5 regarding non provision of gratuity & Leave Encashment liability amount is unascertained, due to this, Profit is overstated to that extent, and read together with the significant accounting policies and other notes of NOTE-1, give the information required by the Companies Act, 1956 in the manner so required by the Companies Act, 1956 in the manner so required give a true & fair view ;

(i) In the case of Balance Sheet of the state of affairs of the company as at 31st March, 2012

And

(ii) In the case of Profit and Loss Account of the PROFIT for the year ended on that date.

And

(iii) In the case of the Cash Flow Statement of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT (Referred to its paragraph 1 thereof)

As required by the companies (Auditors Report) Order, 2003 issued by the company Central Government of India in terms of section 227 (4A) of the companies Act., 1956 On the basis of such checks as we considered appropriate, we report that :-

1. a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed assets but the same is to be updated.

b) We are informed that fixed assets were not verified by the management during the year. Discrepancy if any, will be determined only after the fixed asset register is updated.

c) The company has not disposed off substantial part of fixed assets during the year to effect to its going concern.

2.a) Inventories have been physically verified during the year by the management at reasonable intervals.

b) The procedure followed by the management for physical verification of stock is in our opinion reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to information and explanation given to us, the company has maintained proper records of its inventories & discrepancies were noticed on verification between the physical stock and book stock were not material & have been properly dealts with in the books of account.

3. a) The company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956. Hence relevant Provisions are not applicable to the Company . b) The Company has taken interest free unsecured loan from a company (strategic promoter). Balance outstanding of Rs. 426.19 lacs at the end of the year. In our opinion the terms and conditions of the said loan are not prejudicial to the interest of the Company.

4. In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase & sale of inventories, fixed assets and with regards to sale of goods and services .During the course of our audit, We have not observed any continuing to correct the major weakness in internal controls .

5.a) There are transactions in the company that need to be entered in the register in pursuance of Section 301 of the Companies Act 1956, were duly entered .However there transactions are subject to compliance of section 300 of the Act.

b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of companies Act 1956 and aggregating during the year to 5,00,000/- or more in respect of each party, have been made at prices seems reasonable as prevailing market prices for such goods, materials or the price at which transactions for similar goods, materials or services have been made with the other parties are not comparable not having similar goods or services.

6. In our opinion and according to information and explanation given to us, the company has not accepted any deposits from public, hence provisions of Section 58A & 58 AA of the Companies Act 1956 are not applicable.

7. The company has no Internal Audit System during the year.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) of the companies Act 1956 & are of the opinion that prima facie the prescribed accounts and records have been made maintained by the company .However, We have not made detailed examination of records so as to ascertain whether they are accurate and complete.

9.a) The company is regular in depositing statutory dues including Provident fund, Investor Education & Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Customs duty and Excise duty, Service Tax, Cess and other materials statutory dues wherever applicable with appropriate authorities . We are informed that no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March 2012 for the period of more than six months from the date they became payable.

b) The disputed statutory dues in respect of excise demand pending before appropriate higher authorities details as under :-

Name of the Nature of dues Amount Period to which Statue amounts relates

Central Excise Differential Duty 11,11,073/- F.Y.2002-03 Act 1944 of poy purchased DRI. under EOU

Name of the Forum where the Statue dispute is pending

Central Excise Act Add.Comm.Customs 1944

10. The company has accumulated loss at the financial year of Rs. 9,91,35,495/- ( reported figure ) and it has incurred no cash loss in the financial year & immediately preceding current financial year . .

11. In our opinion and according to information and explanation given to us, company has not defaulted in repayment of dues to financial institution & others due to One Time settlement .

12. According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion the company is not a chit/nidhi/mutual fund/society. Therefore the provision of Clause 4 (Xiii) of the companies (Auditors Report) orders 2003 are not applicable to the company.

14. In our opinion the company is not dealing or trading in any shares, securities, debentures & others investments .Accordingly the provision of Clause 4 (Xiii) of the companies ( Auditors Report) order 2003 are not applicable to the company.

15. The company has not given guarantee for loans taken by others from Banks or Financial Institutions.

16. The company has not taken any term loan during the year

17. According to information and explanation given to us and an overall examination of Balance Sheet of the company, we report that no funds raised during the year, on short term basis have been used for long term investments.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the companies Act, 1956.

19. The company has not issued any debentures during the year.

20. The company has not raised any money by way of Public issue during the year.

21. According to information and explanations given to us, no frauds on or by the company has been noticed or reported during the course of our audit.



For SHANKARLAL JAIN & ASSOCIATES CHARTERED ACCOUNTANTS (Firm Reg. No. 109901W)

SD/- S. L. AGRAWAL (PARTNER) Membership No. 72184

PLACE : MUMBAI DATE : 03.09.2012

---

Mar 31, 2010

We have audited the attached Balance Sheet of M/s. Jattashankar Industries Limited (Formerly Known as Jatta Industries Limited.) as at 31st March 2010, & also the Profit & Loss Account and The Cash Flow Statement for the year ended on that date annexed thereto. These Financial statements are the responsibility of the company's Managements .Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan & perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An Audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable Basis for our opinion.

1. As required by the companies ( Auditor's Report ) order , 2003 issued by the central government in terms of Section 227 ( 4A) of the companies Act , 1956

2. We enclose in the annexure, a statement on the matters specified in Paragraphs 4 and 5 of the said order.

3. Further to our comments in the annexure referred to the above , we report that

a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our Audit;

b) In our opinion , proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books;

c) The Balance Sheet , Profit and Loss Account & Cash Flow Statement with this report are in agreement with the books of accounts;

d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow Statement dealt with this report Comply with the Accounting Standards as specified in section 211 ( 3 C ) of the Companies Act , 1956 except Accounting Standards 15 in respect of gratuity liability and Leave encashment as referred in Note No. 5 .

e) On the basis of written representations and explanations received from Directors, as on 31.03.2010 and taken on record by the Board of directors, we report that none of the Directors On the basis of the written representation received from all of them are disqualified as on 31.03.10 from being appointed as a director in terms of Clause (g) of Sub Section (1) of Section of 274 of the Companies Act, 1956.

4. In our opinion and to the best of our information and according to the explanations given to us , the accounts subject to Note No.4 regarding sundry balances of debtors ,creditors and loan & advances are subject to confirmation and reconciliation , Note No.5 regarding non provision of gratuity & Leave Encashment liability amount is unascertained , Note No.9 regarding land purchased from the Directors for which agreement is yet to be executed , Note No.14 certain discarded assets sold of Rs.1,49,39,413/- in earlier years subject to approval of Financial Institutions , Note No.16 non provision of interest on secured loan for the year of Rs.8,85,66,848/- and accumulated interest of Rs.53,25,15,426/-(up to previous year ) due to this loss is understated to that extent , Note No. 17 regarding Assignment deed yet to be registered and read together with the significant accounting policies and other notes of Schedule "M" accounts , give the information required by the Companies Act,1956 in the manner so required.

We further report that without considering item mentioned for Note No.4 & Note No.5 effect of which can not be determined ,had the observation made by us in Para 3 above been considered the loss for the year would have been Rs.8,38,29,007/- ( as against report the figure of Profit of Rs.47,37,841/-) and accumulated loss ( including loss of earlier year Un provided for Rs.53,25,15,426/-) would have been Rs.87,41,62,853/-( as against reported figure Rs.25,30,80,579/-).

Due to increase in loss for the year after considering the observations as referred in Para 3 above , Earning Per Share basic & diluted as reported in Note No.18 in Schedule "M" would be (Rs.19.11)as against reported of Rs.1.08 The information required by the Companies Act , 1956 in the manner so required give a true & fair view ;

( i ) In the case of Balance Sheet of the state of affairs of the company as at 31st March , 2010

And

(ii ) In the case of Profit and Loss Account of the PROFIT for the year ended on that date.

And

(iii) In the case of the Cash Flow Statement of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(Referred to its paragraph 1 thereof)

As required by the companies ( Auditors Report) Order ,2003 issued by the company Central Government of India in terms of section 227 (4A) of the companies Act.,1956 On the basis of such checks as we considered appropriate ,we report that :- 1. a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed assets but the same is to be updated.

b) We are informed that fixed assets were not verified by the management during the year. Discrepancy if any , will be determined only after the fixed asset register is updated.

c) The company has not disposed off substantial part of fixed assets during the year to effect to its going concern.

2.a) Inventories have been physically verified during the year by the management at reasonable intervals.

b) The procedure followed by the management for physical verification of stock is in our opinion reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to information and explanation given to us ,the company has maintained proper records of its inventories & discrepancies were noticed on verification between the physical stock and book stock were not material & have been properly deals with in the books of account.

3. The company has not granted or taken any loans, secured or unsecured to /from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act 1956.

4. In our opinion and according to the information and explanation given to us ,there are adequate internal control procedures commensurate with the size of the company and the nature of its business ,for the purchase & sale of inventories ,fixed assets and with regards to sale of goods and services .During the course of our audit ,We have not observed any continuing to correct the major weakness in internal controls .

5.a) There are transactions in the company that need to be entered in the register in pursuance of Section 301 of the Companies Act 1956 ,were duly entered .However there transactions are subject to compliance of section 300 of the Act. b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of companies Act 1956 and aggregating during the year to 5,00,000/- or more in respect of each party ,have been made at prices seems reasonable as prevailing market prices for such goods ,materials or the price at which transactions for similar goods ,materials or services have been made with the other parties are not comparable not having similar goods or services.

6. In our opinion and according to information and explanation given to us ,the company has not accepted any deposits from public ,hence provisions of Section 58A & 58 AA of the Companies Act 1956 are not applicable.

7. The company has no Internal Audit System during the year.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) of the companies Act 1956 & are of the opinion that prima facie the prescribed accounts and records have been made maintained by the company .However, We have not made detailed examination of records so as to ascertain whether they are accurate and complete.

9.a) The company is regular in depositing statutory dues including Provident fund ,Investor Education & Protection Fund ,Employees State Insurance ,Income Tax, Wealth Tax ,Sales Tax ,Customs duty and Excise duty, Service Tax , Cess and other materials statutory dues wherever applicable with appropriate authorities . We are informed that no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March 2010 for the period of more than six months from the date they became payable.

b) The disputed statutory dues in respect of excise demand ,Income Tax Liability pending before appropriate higher authorities details as under :-

Name of the Nature of dues Amount Period to which Forum where Statue amounts relates the dispute is pending

Central Excise Differential Duty of 11,11,073/- F.Y.2002-03 Add.Comm. Act 1944 poy purchased custom ms under EOU DRI.

Central Excise Excise duty on 17,33,150/- F.Y.2004-05 Deputy Act 1944 stocks of yarns Commissioner lost in floods

Income Tax Act Disallowance 1,54,16,891/- F.Y.2000-01 Income Tax 1961 of Sundry Bal. Appellate w/off Tribunal

10. The company has accumulated loss at the financial year of Rs. 25,30,80,579/- ( reported figure ) and it has incurred no cash loss in the financial year & immediately preceding current financial year However as per our main report accumulated loss would be Rs. 87,41,62,853/- .

11. In our opinion and according to information and explanation given to us and with reference to Schedule "C" the company has defaulted in repayment of dues of Rs.81,13,62,300/- (including interest un-provided of Rs.62,10,82,274/- ) to financial institution & others.

12. According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion the company is not a chit / nidhi / mutual fund/society. Therefore the provision of Clause 4 (Xiii) of the companies (Auditors Report) orders 2003 are not applicable to the company.

14. In our opinion the company is not dealing or trading in any shares ,securities ,debentures & others investments .Accordingly the provision of Clause 4 (Xiii) of the companies ( Auditors Report) order 2003 are not applicable to the company.

15. The company has not given guarantee for loans taken by others from Banks or Financial Institutions.

16. The company has not taken any term loan during the year

17. According to information and explanation given to us and an overall examination of Balance Sheet of the company, we report that no funds raised during the year, on short term basis have been used for long term investments.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the companies Act, 1956.

19. The company has not issued any debentures during the year.

20. The company has not raised any money by way of Public issue during the year.

21. According to information and explanations given to us, no frauds on or by the company has been noticed or reported during the course of our audit.

For SHANKARLAL JAIN & SSOCIATES

CHARTERED ACCOUNTANTS

(Firm Reg. No.109901W)

SD/-

PLACE : MUMBAI S.L.AGRAWAL

DATE : 06.09.2010 (PARTNER)