Auditor Report of Pharmaids Pharmaceuticals Ltd.

Mar 31, 2025

We have audited the Financial Statements of PHARMAIDS PHARMACEUTICALS LIMITED ("the
Company"), which comprise the balance sheet as at 31st 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 period ended, and notes to the Financial Statements, including a summary of significant
accounting policies and other explanatory information [hereinafter referred to as "the Financial
Statements"].

In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Financial Statements give the information required by the Companies Act, 2013 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 March 31, 2025, its Loss including other
comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Companies Act, 2013. 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 together with the ethical
requirements that are relevant to our audit of the Financial Statements under the provisions of the
Companies Act, 2013 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 we
have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone
financial statements.

"Information Other than the Financial Statements and Auditor''s Report Thereon"

The Company''s Board of Directors is responsible for the other information. The other information
comprises the information included in the Annual report, but does not include the Financial
Statements and our auditor''s report thereon.

Our opinion on the Financial Statements does not cover the other information and we do not express
any form of assurance or conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the 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.

Emphasis of Matter

We draw attention to Note 34 of the standalone financial statements, which describes a non-adjusting
subsequent event that occurred after the Balance sheet date 31st March 2025. The Board of Directors
of the Company, at its meeting held on 04 July 2025, approved the disinvestment of the Company''s
entire 66.50% partnership stake in Anugraha Chemicals. In accordance with the applicable provisions
of the Companies Act, 2013 and SEBI Listing Regulations, shareholders'' approval is also being sought
through a Postal Ballot Notice dated 04 July 2025. The e-voting process through postal ballot concluded
on August 14, 2025, with a majority of shareholders voting in favor of the proposal, thereby granting
approval.

As approved in the resolution passed by the Board, the company entered into an enabling agreement
with Anugraha Chemicals on 10 July 2025, to sell the stake to Mr. Sourabh Hadimani (existing partner)
or his nominee subject to receipt of shareholders'' approval.

This transaction occurred after the reporting date of 31st March 2025 and is classified as a non¬
adjusting subsequent event under Ind AS 10. As such, the financial statements for the year ended 31st
March 2025 have not been adjusted for this event. However, it has been disclosed in this report to
provide stakeholders with relevant information regarding the Company''s ongoing activities.

The Company''s management believes that this event does not affect the financial position or
performance for the year ended 31st March 2025.

Management''s Responsibility for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone Financial
Statements that give a true and fair view of the financial position and financial performance including
other comprehensive income, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind
AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the Standalone Financial Statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, the Board of Directors 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.

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

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these Standalone Financial Statements.

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

A. Identify and assess the risks of material misstatement of the Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

B. 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 Companies
Act, 2013, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.

C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

D. Conclude on the appropriateness of management''s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company''s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor''s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.

E. Evaluate the overall presentation, structure and content of the Standalone Financial Statements,
including the disclosures, and whether the Standalone Financial Statements represent the
underlying transactions and events in a manner that achieves fair presentation

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually
or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of
the Financial Statements may be influenced. We consider quantitative materiality and qualitative
factors in

(i) Planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the Standalone Financial
Statements.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.

From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the Standalone Financial Statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor''s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse

consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we
give in the Annexure 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

(c) The Balance Sheet, the Statement of Profit and Loss including statement of other
comprehensive income, the Statement of Changes in Equity and the Cash Flow statements
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, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended.

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

(f) According to information and explanations given to us together with our audit examination,
reporting with respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls we give in
Annexure B to the extent applicable.

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 (which are material either individually or in the aggregate)have been
advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the company to or in any other person(s)
or entity(ies), including foreign entities ("Intermediaries"), with the

understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;

2) The management has represented, that, to the best of its knowledge and belief,
no funds ((which are material either individually or in the aggregate)have been
received by the company from any person(s) or entity(ies), including foreign
entities ("Funding Parties"), with the understanding, whether recorded in writing
or otherwise, that the company shall, whether, directly or indirectly, lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and

3) Based on such audit procedures that the auditor has considered reasonable and
appropriate in the circumstances, nothing has come to their notice that has
caused them to believe that the representations under sub-clause (i) and (ii)
contain any material mis-statement.

V. No Dividend has been declared or paid during the year by the company, hence
provisions of section 123 of the Companies Act, 2013, are not applicable.

VI. Based on our examination, which included test checks, the Company has used
accounting software for maintaining its books of account for the financial year ended
March 31, 2025 which has a feature of recording audit trail (edit log) facility and the
same has operated throughout the year for all relevant transactions recorded in the
software. Further, during the course of our audit we did not come across any instance
of the audit trail feature being tampered with.

For PPKG & Co

Chartered Accountants

Firm''s Registration No: 0096555

CA Girdhari Lal Toshniwal

Partner

Membership No: 205140

UDIN: 25205140BMOPDT2067

Place: Hyderabad

Date: 21-08-2025

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Mar 31, 2024

PHARMAIDS PHARMACEUTICALS LIMITED.

BENGALURU

Report on the Audit of the Financial Statements Opinion

We have audited the Financial Statements of PHARMAIDS PHARMACEUTICALS LIMITED ("the Company"), which comprise the balance sheet as at 31st March 2024, and the statement of profit and loss, and statement of cash flows for the period ended, and notes to the Financial Statements, including a summary of significant accounting policies and other explanatory information [hereinafter referred to as "the Financial Statements"].

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Companies Act, 2013 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 March 31, 2024, its Profits, (changes in equity) and its cash flows for the period ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. 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 together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Companies Act, 2013 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 we have obtained is sufficient and appropriate to provide a basis for our opinion.

"Information Other than the Financial Statements and Auditor''s Report Thereon"

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Director''s report, but does not include the Financial Statements and our auditor''s report thereon.

Our opinion on the 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 Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 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.

Key Audit Matters

Key Audit Matters are those matter that, in our professional judgement, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and We have determined the matter described below to be the key audit matters to be communicated in our report

Key Audit Matter	How our Audit addressed the key audit matter
Carrying value of Investment in Subsidiary entity.	Discussion with the management on the
The Company has increased its	development during year ended March 31st,
investment in its associate Anugraha	2024
chemicals from 25.64% to 50.60% which results in Subsidiary of the company.	Review of the disclosures made by the company in the financial statements in this
The carrying value of such investment as	regard.
on the reporting date is Rs.5.06 lakhs	Obtain representation letter from the
towards Capital a/c and Rs. 488.88 lakhs	management on the assessment of these
(net) towards Current a/c.	matters.
Carrying value of Investment in	Discussion with the management on the
Subsidiary entity.	development during year ended March 31st,
The company has made investment in	2024
Adita Bio Sys Private Limited through	Review of the disclosures made by the
share swap by issuing 1,28,56,578 equity	company in the financial statements in this
share of the company. The company has	regard.
acquired 99.86% and its carrying value as on reporting date is Rs. 5,254.48 lakhs.	Obtain representation letter from the
	management on the assessment of these matters.

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 Financial Statements that give a true and fair view of the financial position and financial performance, (changes in equity) and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial 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, the 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.

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

Auditor''s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with 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 Financial Statements.

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

A. Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

B. 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

D. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. Flowever, future events or conditions may cause the Company to cease to continue as a going concern.

E. Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation

Materiality is the magnitude of misstatements in the 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 misstatements 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 any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure 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

(c) The Balance Sheet, the Statement of Profit and Loss, (the Statement of Changes in Equity) & Cash Flow statements 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.

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

(f) According to information and explanations given to us together with our audit examination, reporting with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls we give in Annexure B to the extent applicable.

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (eitherfrom 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, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

2) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, 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, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

3) Based on such audit procedures that the auditor has considered reasonable and appropriate in the circumstances, nothing has come to their notice that has caused them to believe that the representations under sub-clause (i) and (ii) contain any material mis-statement.

V. No Dividend has been declared or paid during the year by the company, hence provisions of section 123 of the Companies Act, 2013, are not applicable.

VI. Based on our examination, which included test checks, the Company has used accounting software''s for maintaining its books of account for the financial year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software''s. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

For PPKG & Co

Chartered Accountants

Firm''s Registration No: 0096555

Sd/-

CA Girdhari Lai Toshniwal

Partner

Membership No: 205140 UDIN:24205140BKALKP4289 Place: Hyderabad Date: 28-08-2024

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Mar 31, 2023

Pharmaids Pharmaceuticals Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Pharmaids Pharmaceuticals Limited (‘the Company’), which comprise the Standalone Balance Sheet as at March 31, 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Cash Flow Statement and the Standalone Statement of Changes in Equity for the year ended, and a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us except for thunder section 133 of the Act, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (‘Act’) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards (‘Ind AS’) specified under section 133 of the Act, of the state of affairs (Financial position) of the Company as at March 31, 2023, and its profit (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 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 abasis for our opinion.

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone 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 matter described below to be the key audit matters to be communicated in our report.

Information other than the Financial Statements and Auditor’s Report thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 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 Management 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 state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial 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 is also responsible for overseeing the Company’s financial reporting process.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report on Standalone Financials that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or override 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 section143(3)(i) of the Act, we are also responsible for explaining our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020 (‘the Order’) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A statement on the matters specified in paragraphs 3 and 4 of the Order.

Further to our comments in Annexure A, as required by section 143(3) of the Act, we report that:

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

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

c) the standalone financial statements dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;

e) on the basis of the written representations received from the Directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2023 from being appointed as a director in terms of section164(2) of the Act;

f) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report as per Annexure B expressed unmodified opinion; and

g) with respect to the other matters to be included in the Auditor’s Report in accordance with rule11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), 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 as at March 31, 2023;

ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at March 31, 2023;

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2023; and

iv)

• The Management has represented that, to the best of its knowledge and belief, other than as disclosed in the Notes to the Accounts, 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, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

• The Management has represented, that, to the best of its knowledge and belief, other than as disclosed in the Notes to the Accounts, 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, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

• Based on such Audit Procedures that the Auditor has considered reasonable and appropriate in the circumstances, nothing has come to their notice that has caused them to believe that the representations under sub-clause (i) and (ii) contain any material mis-statement.

• The Company has not declared Dividend and nor paid during the year.

For PPKG & Co

Chartered Accountants

Firm’s Registration No.: 009655S Sd/-

Girdhari Lai Toshniwal

Partner

Membership No: 205140

UDIN: 23205140BGUNKB7110

Place: Hyderabad

Date: 29^th August 2023

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Mar 31, 2013

Report on Financial Statements

We have audited the accompanying financial statements of PHARMAIDS PHARMACEUTICALS 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 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.

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, 2013;

b) in the case of the 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.

Emphasis of Matter

We draw attention to Note No. 14.2 to the financial statements regarding non confirmation / reconciliation of balances of Sundry Debtors, Sundry Creditors, Un-Secured Loans and Advances, the impact of which is unascertained. Our opinion is not qualified in respect of this matter.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give

Referred to in paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our Report of even date On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets on the basis of available information.

(b) All the assets have not been physically verified by the management during the year, but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted loans, secured or unsecured, to companies, firms or other parties listed in the register to be maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses 3(b), 3(c) and 3(d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us, during the year the company has taken unsecured loan of Rs. 4.95 Lakhs from three parties and repaid Rs 0.38 Lakhs to two parties and total amount outstanding as on 31st March2013 was Rs.16.08 Lakhs payable to six parties covered in the register maintained under section 301 of the Companies Act, 1956.

(f) In our opinion, the rate of interest and other terms and conditions on which loans were taken from Companies, Firms, or other parties covered under the register maintained under Sec. 301 of the Companies Act. 1956, are not prima facie, prejudicial to the interest of the Company.

(g) According to the information and explanations given to us, the company is regular in repayment of the principal and interest wherever applicable.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and for the sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the transactions made in pursuance of contracts or arrangements that need to be entered in the register to be maintained under Section 301 of the Act have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the

Register maintained under Section 301 of the Companies Act and exceeding value ofRs. Five Lakh in respect of each party during the financial year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. During the year, the company has not accepted any deposits from the public within the meaning of Sec. 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules frame there under.

7. In our opinion, the Company has an internal audit system by their own staff, which needs to be further strengthened.

8. We have broadly reviewed the books of accounts relating to material, labour and other items of cost maintained by the company pursuant to the rules made by the

Central Government for the maintenance of cost records under

Sec. 209(i)(d) and are of the opinion that prima-facie prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

9. (a) According to the information and explanations given to us and the records of the company examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident Fund, Investor education and protection fund, Employees state Insurance, Income tax, wealth tax, sales tax, customs duty, Excise duty, cess and other Material statutory dues applicable to it, except Service Tax. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2013 for a period of more than six months from the date of becoming payable except Service Tax.

(b) According to the information and explanations given to us, there are no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty , excise duty and cess which have not been deposited on account of any disputes.

10. In our opinion the accumulated losses of the company are not more than fifty percent

For Laxminiwas & Jain Suresh Kumar Jain

Place: Hyderabad Chartered Accountants Partner

Date: 30-05-2013 Firm Reg No. 001859S (M. No.:018465)

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of PHARMAIDS PHARMACEUTICALS LIMITED as at 31 st March 2012 the Profit And loss Account and also the Cash Flow Statement for the year ended on that annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit

2. We conducted our audit in accordance with the auditing standards generally accepted India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on 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 management. As well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis of our opinion.

3. As required by the Companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of sub-sec (4A) of Sec.227of the companies Act.1956 of India. We enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order.

4. Further to our comments in the annexure referred to above. We report that:

(a) We have obtained all the information and explanations' 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) TheBalarHMSheet'ProfitandLDssAccountandCashRowStatementdeattwithby this report are in agreement with the books of account

(d) In our opinion' the Balance Sheet' Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standard referred to in Sub Sec (3C) of Sec.211 of the Companies Act' 1956;

(e) On the basis of written representations received from the directors as on 31.03.2012 and taken on record by the board of Directors' we report that none of the Director is disqualified as on 31 -03- 2012 from being appointed as a Director in terms of clause (g) of sub section (1) of the section 274 of the Companies Act 1956.

(f) In our opinion and to the best of our information and according to the explanation given to us' the said account read with the accounting policies and notes forming part of accounts appearing in Subject to note No. 14.2 regarding non confirmation / reconciliation of balances shown Sundry debtors' Sundry Creditors' Un-Secured Loans' Loans and Advances' the impact of which is unascertained' give the information required by Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(0 In the case of the Balance Sheet of the state of affairs of the Company as at 31.03-2012 (ii) In the case of Profit and Loss account of the Profit for the year ended on that date and (ii) In the case of Cash flow statement' of the Cash flows for the year ended on that date.

ANNEXURE TO AUDITOR'S REPORT Ref. PHARMAIDS PHARMACEUTICALS LIMITED

(Referred to in paragraph 3 of our report of even date)

(i) (a) The Company is maintaining proper records showing full particulars including Quantitative details and situation of Fixed Assets.

(b) All the assets have not been physically verified by the management during the year' but there is a regular programme of verification which' in our opinion' is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations furnished to us' the company has not disposed off a substantial part of its fixed assets during the year.

(ii) (a) The inventory has been physically verified by the management during the year. In our opinion' the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of the business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) (a) The Company has not granted loans' secured or unsecured' to Companies' Firms' or other parties covered in the register maintained under Sec. 301 of the Companies Act. 1956.

(b) During the year the Company has taken unsecured loans' amounting to Rs 30975007- from 7 parties covered in the register maintained under section 301 of the Companies Act' 1956. The balance payable as on 31.03.2012 is Rs. 1150337/-.

(c) In our opinion' the rate if interest and other terms and conditions on which loans were taken from Companies' Firms' or other parties covered under the register maintained under Sec. 301 of the Companies Act 1956' are not prima facie' prejudicial to the interest of the Company.

(d) According to the information and explanation given to us' the company is regular in repayment of the principle and interest wherever applicable.

(IV) 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 with regard to the purchase of inventory' fixed assets and with regard to the sale of goods and services. During the course of our audit' we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanations given to us' we are of the opinion that the transactions that need to be entered into the register maintained under Sec. 301 of the Companies Act. 1956 have been so entered. (b) In our opinion and according to the information and explanations given to us' there is no transaction made in pursuance of contracts or arrangements entered in the register maintained under Sec. 301 of the Companies Act. 1956 and exceeding the value of Rs. Five lakhs in respect of any party during the year.

(vi) In our opinion and according to the information and explanations given to us' the company has not accepted any deposits from the public within the meaning of Section 58A & 58 AA or any other relevant provisionsoftheCompaniesAct'1956andrulesframed there under.

(vii) In our opinion' The Company has an internal audit system by their own staff' which needs to be further strengthened.

(viii) We have broadly reviewed the books of accounts relating to material labour and other items of cost maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under Sec. 209(i)(d) and are of the opinion that prima-facie prescribed accounts and records have been made and maintained. We have not however' made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) According to the information and explanations given to us and the records of The company examined by us' the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident Fund investor education and protection fund' employees state Insurance' Income tax' wealth tax' sales tax' customs duty' cess and other Material statutory dues applicable to it except Service Tax'(Goods transport Agencies (b) According to the information and explanations given to us' there are no dues of sales tax' income tax. Customs duty' wealth tax' excise duty' service tax and cess' which have not been deposited on account of any dispute.

(x) In our opinion the accumul at edlosses of the company at then do the year are less than fifty percent of its net worth. It has not incurred cash losses in the current year' where as there were cash losses in the immediately preceding financial year.

(xi) According to the information and explanation given to us' the company has not defaulted in repayment of dues to financial institution' Bank and Debenture holders as at Balance Sheet date.

(xii) In our opinion and according to the information and explanations given to us' the company has not granted loans and advances on the basis of security by way of pledge of shares' Debentures and other securities. Accordingly the provisions of Clause 4

(xii) of the Companies (Auditor's Report) Order' 2003 are not applicable to the company.

(xiii) In our opinion' the company is not a chit Fund or a nidhi/mutual benefit fund/society. Therefore' the provisions of Clause 4

(xiii) of the Companies (Auditor's Report) Order 2003 are not applicable to the company. (xiv) In our opinion' the company is not dealing in or trading in Shares' Securities debentures and other investments. Accordingly' the provision of Clause 4

(xiv) of the Companies (Auditor's Report) Order is not applicable to the company.

(xv) According to the information and explanation given to us' the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

(xvi) In our opinion' the term loans have been applied for the purposes for which they were raised. (xvii) According to the information and explanations given to us and on the overall examination of the Balance Sheet of the Company' we report that no funds raised on short-term basis have been used for long-term investments.

(xviii) According to the information and explanation given to us' the company has not made preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act 1956. Accordingly' the provisions of Clause 4

(xviii) of the Companies (Auditor's Report) order' 2003 are not applicable to the company.

(xix) According to the information and explanation given to us' during the year the company has not issued any debentures. There fore' the provision of Clause 4

(xix) of Companies (Auditor's Report) Order' 2003 are not applicable to the company. (xx) According to the information and explanation given to us' the company has not raised any money by public issues during the year. Therefore' the provision of Clause 4

(xx) of Companies (Auditor's Report) £t Order' 2003 are not applicable to the company. ptxi) According to the information and explanation given to us' no fraud on or by the company has been noticed For reported during the course of our audit

Sd/-

For Laxminiwas & Jain

Suresh Kumar Jain Place: Hyderabad Chartered Accountants

Partner

Date: 21-08-2012 Firm Reg No. 001859S

(M. No.:018465)

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of PHARMAIDS PHARMACEUTICALS LIMITED AS AT 31st March 2010 the Profit And loss Account and also the Cash Flow Statement for the year ended on that annexed thereto, These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted India. Those Standards require that we plan and 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 management. As well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis of our opinion.

3. As required by the companies (Auditors Report) Order 2003 issued by the Central Government of India in terms of sub-sec (4A) of Sec.227of the companies Act, 1956 of India. We enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order,

4. Further to our comments in the annexure referred to above. We report that :

(a) We have obtained all the information and explanations, 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 and Cash Flow Statement dealt with by this report are in agreement with the books of account:

(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standard referred to in Sub Sec (3C) of Sec.211 of the Companies Act, 1956;

(e) On the basis of written representations received from the directors as on 31.03.2010 and taken on record by the board of Directors, we report that none of the Director is disqualified as on 31-03-2010 from being appointed as a Director in terms of clause (g) of sub section (I) of the section 274 of the Companies Act 1956.

(f) In our opinion and to the best of our information and according to the explanation given to us, the said account read with the accounting policies and notes forming part of accounts appearing in Schedule no. 12 Subject to note No. 3 of the Schedule 12, regarding non confirmation /reconciliation of balances shown under debtors,Creditors, Un-Secured Loans and Advances, the impact of which is unascertained, and Note no. 4 of Schedule 12 regarding non-provision of interest on Cash Credit and Term Loan,account impact of which is uncerterned, give the information required by Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In the case of the Balance Sheet of the state of affairs of the Company as at 31.03-10

(ii) In the case of Profit and Loss account of the loss for the year ended on that date and

(iii) In the case of Cash, flow statement, of the Cash flows for the year ended on that date.

ANNEXURE TO AUDITORS REPORT Ref. PHARMAIDS PHARMACEUTICALS LIMITED (Referred to in paragraph 3 of our report of even date)

(i) (a) The Company is maintaining proper records showing full particulars including Quantitative details and situation of Fixed Assets

(b) All the assets have not been physically verified by the management during the year, but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations furnished to us, the company has not disposed off a substantial part of its fixed assets during the year.

(ii) (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) The procedures of .physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of the business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) According to the information and explanation given to us, the company has Neither granted nor taken any loans secured or unsecured to/from companies, Firms or other parties covered in the register maintained under Sec. 301 of the Companies Act. 1956 hence clause iii ( a to g) are not applicable.

(iv) 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 with regard to the purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under Sec. 301 of the Companies Act. 1956 have been so entered. (b) In our opinion and according to the information and explanations given to us, there is no transaction made in pursuance of contracts or arrangements entered in the register maintained under Sec. 301 of the Companies Act. 1956 and exceeding the value of Rs. Five lakhs in respect of any party during the year.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of Section 58A & 58 AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under. The company has not accepted any deposits from the public within the meaning of Sec. 58A and 58AA or any party during the year.

(vii) In our opinion, The Company has an internal audit system by their own staff, which needs to be further strengthened.

(viii) We have broadly reviewed the books of accounts relating to material labour and other items of cost maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under Sec. 209(i)(d) and are of the opinion that prima- facie prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) According to the information and explanations given to us and the records of The company examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident Fund investor education and protection fund, employees state Insurance, Income tax, wealth tax, service tax, sales tax, customs duty, cess and other Material statutory dues applicable to it.

(b) According to the information and explanations given to us, there are no dues of sales tax, income tax, Customs duty, wealth tax, excise duty, service tax and cess, which have not been deposited on account of any dispute.

(x) In our opinion the accumulated losses of the company at the end of the year are less than fifty percent of its net worth. It has incurred cash losses in the current year aswell as in the immediately preceding financial year.

(xi) According to the information and explanation given to us, the company has not paid dues to Central Bank against Cash Credits, Term Loan Accounts in view of the pending court proceedings in respect of non acceptance of One Time Settlement by bank as requested by the company. Subject to the above the Company has not defaulted in repayment of dues to financial institution, Bank and Debenture holders at Balance Sheet date.

(xii) In our opinion and according to the information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares. Debentures and other securities. Accordingly the provisions of Clause 4 (xii) of the- Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xiii) In our opinion, the company is not a chit Fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of Clause 4 (xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in Shares, Securities debentures and other investments. Accordingly, the provision of Clause 4(xiv) of the Companies (Auditors Report) Order is not applicable to the company.

(xv) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

(xvi) In our opinion, the term loans have been applied for the purposes for which they were raised,

(xvii) According to the information and explanations given to us and on the overall examination of the Balance Sheet of the Company, we report that no funds raised on short- term basis have been used for long-term investments.

(xviii) According to the information and explanation given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of Clause 4 (xviii) of the Companies (Auditors Report) order, 2003 are not applicable to the company,

(xix) According to the information and explanation given to us, during the year the company has not issued any debentures. There fore, the provision of Clause 4 (xix) of Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xx) According to the information and explanation given to us, the company has not raised any money by public issues during the year. Therefore, the provision of Clause 4 (xx) of Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xxi) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For LAXSHMINIWAS & JAIN Chartered Accountants

Sd/-

SURESH KUMAR JAIN

Place: Hyderabad Partner

Date: 01-09-10 (M. No.:018465)

---

Mar 31, 2009

1. We have audited the attached Balance Sheet of PHARMAIDS PHARMACEUTICALS LIMITED AS AT 31st March 2009 the Profit and Loss Account and also the Cash Flow Statement for the year ended on that annexed thereto. These financial statements are the responsibility of the Companys management..Our responsibility is to express an opinion on these financial

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis of our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government

4. Further to our comments in the Annexure referred to above, we report that:

(a) We have obtained all the information and explanations, 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 and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion this the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub Sec (3C) o Sec. 211 of the Companies Act, 1956ec

(e) On the basis of written representations received from the directors, as on 31.08.2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31.03 2009 from being appointed as a director in terms of Clause (g) of Sub-section (1) of the Section 274 of the Companies Act, 1956;

(f) In our opinion and to the best of our information and according to the explanations given non confirmation / reconciliation of balances shown under debtors, creditors unsecured loans and loans and advances, the impact of which is understated give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In the case of the Balance Sheet, of the State of affairs of the Company as at31.03.2009;

(ii) ln the case of Profit and Loss Account of the Loss 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.

Ref: PHARMAIDS PHAKMA CEUTICALS LTD ANNEXURE TO AUDITORS REPORT (Referred to in paragraph 3 of our report of even date)

(i) (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(ix) All the assets have not been physically verified by the management during the year, but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(b) The procedures of physical verification of inventories followed by the management reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) According to the information and explanations given to us, the company has neither granted nor taken any loans secured or unsecured to/from companies firms or other

(iv) 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 with regard to the purchase of inventory fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the maintained under Sec. 301 of the Companies Act, 1956 have been so entered.

(d) In our opinion and according to the information and explanations given to us, there is no transaction made in pursuance of contracts or arrangements entered in the register maintained under Sec 301 of the Companies Act, 1956 and exceeding the value of Rs. Five lakhs in respect of any party during the year.

(vi) The company has not accepted any deposits from the public within the meaning of Sec.58Aand 58AA or any other relevant provisions of the Companies Act, 1956.

(vii) In our opinion, The Company has an internal audit system by their own staff, which needs to be further strengthened.

(viii) We have broadly reviewed the books of accounts relating to materials, labour and other items of cost maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under Sec.209(l)(d) and are of the opinion that prima-facie prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) According to the information and explanations given to us and the records of the company examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutorydues including provident Fund investor education and protection fund, employees state Insurance, income tax, wealth tax, service tax, sales tax, customs duty, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, there are no dues of sales tax, income tax, Customs duty, wealth tax, excise duty, service tax and cess, which have not been deposited on account of any dispute.

(x) In our opinion, the accumulated losses of the company at the end of the year are less than fifty percent of its net worth. It has incurred cash losses in the current year as well as in the immediately preceding financial year.

(xi) According to the information and explanation given to us, the company has not paid dues to Central Bank against Cash Credits Term Loan Accounts in view of the pending court proceedings in respect of non acceptance of One Time Settlement by bank as requested by the company. Subject to the above the Company has not defaulted in repayment of dues to financial institutions Bank and Debenture holders has at Balance Sheet date.

(xii) In our opinion and according to the information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provisions of Clause 4

(xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (xiii) In our opinion, the company is not a chit Fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of Clause 4

(xiii)In our opinion, the company is not a chit Fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of Clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company,

(xiv) In our opinion, the company is not dealing in or trading in shares, securities debentures and other investments. Accordingly, the provision of Clause 4(xiv) of the Companies (Auditors Report) order is not applicable to the company.

(xv) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the (xvi) In our opinion, the term loans have been applied for the purposes for which they were raised.

(xvii) According to the information and explanations given to us and on the overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investments. .

(xviii) According to the information and explanation given to us, the company ha, not made preferential allotment of shares to partres and companies covered the rigister maintained under Section 301 of the Companies Act, J956. Accordingly, the provisions| of Clause 4(xviii) of the Companies (Auditors Report.) Order, 2003 are not applicable the company.

(xix) According to the information and explanation given tous, the company has not issued any debentures. Therefore, the provisions of CIause 4(xix) of the Companins . Auditor,s Report) Order, 2003 are not applicable to the company.

(xx) , According to the information and explanation given to us, the company has not raised any money by public issues during the year. Accordingly, the provisions of Clause

(xx) of the Companies (Auditors Report) Order 2003 are not applicable to the company. (xxi) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For LAKSHMINIWAS & JAIN Chartered Accountants Sd/-

Place: Hyderabad SURESH KUMAR JAIN

Date : 01-09-2009 (M.No:18465)