Auditor Report of Prashant India Ltd.

Mar 31, 2025

We have audited the standalone financial statements of Prashant India Limited (“the Company”),
which comprises of the Balance Sheet as at 31st March 2025, and the Statement of Profit and Loss
(including other Comprehensive Income), the Statement of Changes in Equity and the Statement of
Cash Flows for the year then ended, and notes to the standalone financial statements, including 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, the
aforesaid standalone financial statements give the information required by the Companies Act 2013
(“Act”)in the manner so required and subject to our notes in Qualified Report, give a true and fan-
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 of the
Company as at March 31, 2025 and its profit/loss, total comprehensive income, the changes in equity
and cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the 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.

Qualified Report

• Material Uncertainty Related to Going Concern

We draw attention to Note No. 1(b) on Going Concern, which states inter alia that

a. the Company has incurred net loss after tax of Rs. 20.02 lakhs during the year ending
on 31st March, 2025 and has been incurring net losses / cash losses since past several
years

b. the accumulated losses of the Company have far exceeded its entire capital plus
reserves. Net Worth of the Company has been negative since the year ending on 31^st
March, 1998.

c. the Company’s current liabilities exceeded its current assets by Rs. 3382.01 lakhs as on
31^st March, 2025 indicating the state of financial distress and reflecting its almost
inability in meeting with its financial obligations

d. the company has not made provisions on account of liabilities and doubtful assets to
the extent of Rs. 11223.26 lacs

e. the operations of Agro division of the company have stood suspended since the year
1998. The Company has sold all the plant and machineries of Agro division as scrap
during the financial year 2018-19 and has been in the process of selling land and
building of the said Division.

f. the operations of Textile Division of the Company are closed since July 2023, due to
issues like unavailability of job work, unaffordable pricing, machineries obsolete
technology, etc.

g. there is not full captive consumption of wind power generation by Wind Power
division of the Company resulting into partly sale of power to DGVCL at predefined
rate, which is significantly lower than the billing rate. Though the Agreement with
GETCO for the wheeling of power generated by Wind Power division is valid till 30^th
Sept., 2025, the Gujarat Renewable Energy Policy, 2023 demands scrapping off of all
wind turbines of the Company having completed 25 years of life.

h. the Company has entered into an Agreement for Sale with one of the Secured
Creditors of the Company for the sale of factory land and building of Textile Division
and execution of sale deed is pending subject to the approval of members in the
General Meeting.

i. The Company has invited bids / offers for the sale of all its plant & machineries of
Textile Division on “as is where is basis” and shall dispose of said plant & machineries.

j. the Company has invited bids / offers for the sale of all its plant & machineries of Wind
Power Division on “as is where is basis” and shall dispose of said plant & machineries

All these collectively indicate that a material uncertainty exists that may cast significant

doubt on the Company’s ability to continue as “Going Concern

Management’s perspective:

The Management’s plan is to get rid of all the debts and making the Company debt free by
disposing of the existing assets of the Company, negotiating with secured creditors for waiver
of debt against settlement of dues and thereafter to launch a new project finding out new
investors.

Auditor’s view point Management’s perspective

We have our own reservations about Management’s plans and hence, our opinion is Modified
(Qualified) in respect of the aforesaid Matter.

• Non provision of liabilities -

We draw attention to Note No 20(b) on Provisions and Contingent Liabilities. In this
regulatory environment, there is an inherent risk of litigations and claims. Consequently,
provisions and contingent liabilities disclosures may arise from tax proceedings, legal
proceedings including regulatory and other government / department proceedings as well as
investigations by authorities and other financial obligatory positions. As at March 31, 2025,
the Company has not provided for liabilities and assets to the extent of Rs. 11223.26 lakhs.
Management applies significant judgement in estimating the likelihood of the future outcome
in each case when to consider- whether, and how much, to provide or in determining the
required disclosure for the potential exposure of each matter. This is due to the highly
complex nature and magnitude of the legal matters involved along with the fact that resolution
of tax and legal proceedings may span over multiple years, and may involve protracted
negotiation or litigation. These estimates could change substantially over time as new facts
emerge and each legal case progresses. In our Audit approach, we found that recording of the
outstanding litigations against the Company for consistency with the previous years, enquire
and obtain explanations for movement during the year, need development for those matters
where management concluded that no provisions should be recognised, considering the
adequacy and completeness of the Company’s disclosures.

Management’s perspective:

The Management’s plan is to get rid of all the debts and making the Company debt free by
disposing of the existing assets of the Company, negotiating with secured creditors for waiver
of debt against settlement of dues and thereafter to launch a new project finding out new
investors.

Auditor’s view point Management’s perspective

We have our own reservations about Management’s plans and hence, our opinion is Modified
(Qualified) in respect of the aforesaid Matter.

Emphasis of Matter

• We draw attention to Note No 17 on Employee Benefit Expenses (including transactions
related to provident fund, ESIC, profession tax, gratuity, leave encashment, bonus liability) for
the year ended on 31st March 2025. We perceived that the system of recording such expenses
needs advancement to ensure terminality, transaction trail and related documentary evidences.
Accordingly, we are impuissant to assess and quantify effect of aforesaid transactions on the
financial statements. However, according to management estimates, such
expenses/transactions are fairly stated in the financial statement and there are no material
deficiencies/ non provisions.

Our opinion is not modified in respect of the aforesaid Matter.

• We draw attention to Note No 20(c) on Confirmations/ Reconciliation of trade receivables,
trade and other payables (including micro and small enterprises and including capital
creditors) and loans and advances that are pending. The management is confident that on
confirmation/ reconciliation, there will not be any material impact on the financial statements.

Our opinion is not modified in respect of the aforesaid Matter.

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 the key audit matters to be communicated in
our renorts:

The key audit matters	How our audit addressed the key audit matter
Evaluation of uncertain tax positions
The Company operates in multiple jurisdictions and divisions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. This involves significant management judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosure in the financial statements.	Our audit procedures include the following substantive procedures: • Obtained details of completed tax assessments and demands up to March 31, 2025 from the management to understand management’s underlying assumptions in estimating the tax provision and the possible outcome of the disputes. • Discussed with appropriate senior management and evaluated management’s underlying key assumptions in estimating the tax provisions. • Legal precedence and other rulings in evaluating management’s position on these uncertain tax positions were also considered. • Read and analyzed select key correspondences, external legal opinions/consultations by managements for key uncertain tax positions.
Allowance for doubtful debts/ Provision for Expected Credit Loss
Allowance for doubtful debts was identified as key audit matter since- • Receivables comprise a significant portion of the liquid assets of the Company. • There is an inherent risk around the accuracy of company’s trade receivables being fairly valued and adequately provided against where doubt exists. • There is a risk of debtors being misstated and disclosures related to the same in the financial statements. • Accordingly, the estimation of the allowance for trade receivables is a significant judgement area and is therefore considered a key audit matter.	Our audit work included but was not restricted to the following procedures: • The assessment of the appropriateness of the allowance for trade receivables comprised a variety of audit procedures including: Verifying the appropriateness and reasonableness of the assumptions applied in the management’s assessment of the receivables allowance. To address the risk of management bias, we evaluated the results of our procedures against audit procedures on other key balances to assess whether or not there was an indication of bias.

The Company’s Board of Directors is responsible for the preparation of the other information. The
other information comprises of the information included in the Management Discussion and Analysis,
Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s information, 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
standalone financial statements or our knowledge obtained during the course of our 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 observation, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance 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 financial statements that
give a true and fair view of the financial position, financial performance including other comprehensive
income, cash flows and changes in equity of the Company, in accordance with the Indian Accounting
Standards (Ind AS), prescribed under Section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Rules 2016 as
amended from time to time and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records, with tracking of
changes, in accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.

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

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:

• 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.

• 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.

• 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

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”, a statement on the matters specified in paragraphs 3 and 4 of
the Order.

2. (A) As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, subject to our note regarding limited maintenance of edit log report,
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 other comprehensive
income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by
this Report are in agreement with the books of accounts

d) In our opinion, subject to our qualification regarding viability of the Company as “Going
Concern”, 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.

e) 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^st March, 2025, from being appointed as a director in terms of Section 164 (2) of the
Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, please refer to our separate
Report in “Annexure B”.

g) With respect to the matter to be included in the Auditor’s Report under section 197(16),
according to the information and explanations given to us, the Company has not paid
remuneration to its directors during the current year The Ministry of Corporate Affairs
has not prescribed other details under section 197(16), which are required to be
commented upon by us.

(B) With respect to the other matters to be included in the Auditor’s Report in accordance with

Rule 11 of the Companies (Audit and Auditors) Rules, 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 financial position in its
financial statements - Please refer Note 20 to the financial statements;

b) The Company has not made provisions as required under applicable Laws or Accounting
Standards for material foreseeable losses as mentioned in Note No. 20(b). The Company
did not have any long term contracts including derivative contracts for which there were
any material foreseeable losses.

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

d) The management has represented that to the best of its knowledge and belief that

(i) 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 to or on behalf of the Ultimate
Beneficiaries

(ii) 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
Party or

• provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries and

(iii) Based on such audit procedures as 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 (d)(i) and (d)(ii) of Rule 11(e) above contain any
material misstatement.

e) The company has not declared or paid dividend during the year.

f) Based on our examination, which included test checks, the company has used Tally prime
Edit log accounting software in its standard form as supplied by the Vendor, for
maintaining its books of accounts, which has the feature of recording audit trail (edit log)
facility and that has operated throughout the year for all relevant transactions recorded in
the software except that the audit trail at database level contains only the modified value.
Further, during the course of our audit, we did not notice any instance of audit trail
feature being tampered with for the period the audit trail was enabled and the audit trail,
where enabled, has been preserved by the Company as per the Statutory requirements for
record retention.

For SONIJHAWAR & CO.
CHARTERED ACCOUNTANTS

Sd/-

Place : Surat. SATYANARAIN SONI

Date : 28-05-2025 PARTNER

M.No.: 071689

FRN. : 0110386W
UD1N :

25071689BMHUVJ3156

---

Mar 31, 2024

We have audited the standalone financial statements of Prashant India Limited ("the Company”),
which comprises of the Balance Sheet as at 31st March 2024, and the Statement of Profit and Loss
(including other Comprehensive Income), the Statement of Changes in Equity and the Statement of
Cash Flows for the year then ended, and notes to the standalone financial statements, including 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, the
aforesaid standalone financial statements give the information required by the Companies Act 2013
("Act") in the manner so required and subject to our notes in Qualified Report, 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 of the Company as at
March 31, 2024 and its profit/loss, total comprehensive income, the changes in equity and cash flows
for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the 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.

Qualified Report

• Material Uncertainty Related to Going Concern

We draw attention to Note No. 1(b) on Going Concern, which states that the Company has
incurred net loss of Rs. 35.84 lakhs (loss after tax) during the year ending 31st March, 2024 and
as of that date, the Company''s current liabilities exceeded its total current assets by Rs. 3457.73
lakhs resulting into erosion of the Net Worth of the Company. Further, the operations of Agro
division of the company have stood suspended since the year 1998 and has sold all plant and
machineries as scrap during FY 2018-19 and is in the process of selling land and building of the
said Division. The operations of Textile Division of the Company had to be closed after July
2023, due to unavailability of job work and unaffordable pricing issues and since the Textile
Division of the Company is non- operational, there is no captive consumption of wind power
generation by Wind Farm Division, resulting into sale of power to DGVCL at predefined rate,
which is significantly lower than the billing rate. Besides, Gujarat Energy Development Agency
(GEDA) has informed the Company that as per Gujarat Renewable Energy Policy 2023,
announced by Energy & Petrochemical Department, Govt of Gujarat, all wind turbines of more
than 25 years old have to be repowered. The Company''s Wind turbines are already more than
25 years old Moreover, contract with the Company has been terminated by Gujarat Energy
Transmission Corporation Limited as per Letter Dt06.07.2023, and operations of Wind
Turbines have been discontinued by it with effect from 01.04.2024.A11 these indicate that a
material uncertainty exists that may cast significant doubt on the Company''s ability to continue
as "Going Concern".

Our opinion is modified in respect of aforesaid Matter.

• Non provision of liabilities -

We draw attention to Note No 20(b) on Provisions and Contingent Liabilities. In this regulatory
environment, there is an inherent risk of litigations and claims. Consequently, provisions and
contingent liabilities disclosures may arise from direct and indirect tax proceedings, legal
proceedings, including regulatory and other government / department proceedings, as well as
investigations by authorities. As at March 31, 2024, the Company has not provided for liabilities
of Rs 11288.39 lakhs. Management applies significant judgement in estimating the likelihood of
the future outcome in each case when to consider- whether, and how much, to provide or in
determining the required disclosure for the potential exposure of each matter. This is due to the
highly complex nature and magnitude of the legal matters involved along with the fact that
resolution of tax and legal proceedings may span over multiple years, and may involve
protracted negotiation or litigation. These estimates could change substantially over time as
new facts emerge and each legal case progresses. In Our Audit approach, we found that
recording of the outstanding litigations against the Company for consistency with the previous
years, enquire and obtain explanations for movement during the year, need development for
those matters, where management concluded that no provisions should be recognized,
considering the adequacy and completeness of the company''s disclosures.

Our opinion is modified in respect of aforesaid Matter.

Emphasis of Matter

• We draw attention to Note No 1(a) on Employee Benefit Expenses (including transactions related
to provident fund, ESIC, profession tax, gratuity, leave encashment, bonus liability) for the year
ended on 31st March 2024. We perceived that the system of recording such expenses needs
advancement to ensure terminality, transaction trail and related documentary evidences.
Accordingly, we are impuissant to assess and quantify effect of aforesaid transactions on the
financial statements. However, according to management estimates, such
expenses/transactions are fairly stated in the financial statement and there are no material
deficiencies/ non provisions.

Our opinion is not modified in respect of aforesaid Matter.

• We draw attention to Note No 20(c) on Confirmations/ Reconciliation of trade receivables, trade
and other payables (including micro and small enterprises and including capital creditors) and
loans and advances that are pending. The management is confident that on confirmation/
reconciliation, there will not be any material impact on the financial statements.

Our opinion is not modified in respect of aforesaid Matter.

• As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,
2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on
preservation of audit trail as per the statutory requirements for record retention is applicable
for the financial year ended March 31, 2024.

Based on our examination which included test checks, the company has moved to Tally Prime
Edit log accounting software in its standard form ready to use available in the market, for
maintaining its books of accounts, which has a feature of recording audit trail (edit log) facility
with its inherent limitations and the same was enabled and operated for all relevant
transactions recorded in the software with effect from 2^nd May, 2023. During the course of
performing our procedures where the audit trail facility was available for part of the year, we
did not notice any instance of the audit trail feature being tempered with.

Our opinion is not modified in respect of aforesaid Matter.

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 the key audit matters to be communicated in
our reports:

The key audit matters	How our audit addressed the key audit matter
Evaluation of uncertain tax positions
The Company operates in multiple jurisdictions and divisions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. This involves significant management judgment to determine the possible outcome of the uncertain tax positions, consequently having an impact on related accounting and disclosure in the financial statements.	Our audit procedures include the following substantive procedures: • Obtained details of completed tax assessments and demands for the year ended March 31, 2024 from the management to understand management''s underlying assumptions in estimating the tax provision and the possible outcome of the disputes. • Discussed with appropriate senior management and evaluated management''s underlying key assumptions in estimating the tax provisions. • Legal precedence and other rulings in evaluating management''s position on these uncertain tax positions were also considered. • Read and analyzed select key correspondences, external legal opinions/consultations by managements for key uncertain tax positions.
Allowance for doubtful debts/ Provision for Expected Credit Loss
Allowance for doubtful debts was identified as key audit matter since- • Receivables comprise a significant portion of the liquid assets of the Company. • There is an inherent risk around the accuracy of company''s trade receivables being fairly valued and adequately provided against where doubt exists. • There is a risk of debtors being misstated and disclosures related to the same in the financial statements. • Accordingly, the estimation of the allowance for trade receivables is a significant judgement area and is therefore considered a key audit matter.	Our audit work included but was not restricted to the following procedures: • The assessment of the appropriateness of the allowance for trade receivables comprised a variety of audit procedures including: Verifying the appropriateness and reasonableness of the assumptions applied in the management''s assessment of the receivables allowance. To address the risk of management bias, we evaluated the results of our procedures against audit procedures on other key balances to assess whether or not there was an indication of bias.

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

The Company''s Board of Directors is responsible for the preparation of the other information. The
other information comprises of the information included in the Management Discussion and Analysis,
Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s information, 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 standalone financial statements or our knowledge obtained during the course of our 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 observation, we are required to report that fact We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance 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 financial statements that give
a true and fair view of the financial position, financial performance including other comprehensive
income, cash flows and changes in equity of the Company, in accordance with the Indian Accounting
Standards (Ind AS), prescribed under Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Rules 2016 as
amended from time to time and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records, with tracking of
changes, in accordance with the provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company''s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

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

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

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:

• 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.

• 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.

• 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

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", a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. (A] As required by Section 143(3] of the Act, we report that:

a] We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit

b] In our opinion, subject to our note regarding non maintenance of changes tracking report,
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 other comprehensive
income], the Statement of Changes in Equity and the Cash Flow Statement dealt with by
this Report are in agreement with the books of account

d] In our opinion, subject to our qualification regarding viability of the Company as "Going
Concern", 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.

e] 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^st March, 2024, from being appointed as a director in terms of Section 164 (2] of the Act

0 With respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, please refer to our separate
Report in "Annexure B".

g) With respect to the matter to be included in the Auditor''s Report under section 197(16), in
our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the currentyear is in accordance
with the provisions of section 197 of the Act The remuneration paid to any director is not
in excess of the limit laid down under section 197 of the Act The Ministry of Corporate
Affairs has not prescribed other details under section 197(16), which are required to be
commented upon by us.

(B) With respect to the other matters to be included in the Auditor''s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 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 financial position in its
financial statements - Please refer Note 20 to the financial statements;

b) The Company has not made provisions as required under applicable Laws or Accounting
Standards for material foreseeable losses as mentioned in Note No. 20(b). The Company
did not have any long term contracts including derivative contracts for which there were
any material foreseeable losses.

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

d) The management has represented that to the best of its knowledge and belief that

(0 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 to or on behalf of the Ultimate
Beneficiaries

(ii) 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
Party or

• provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries and

(iii) Based on such audit procedures as 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 (d)(i) and (d)(ii) of Rule 11(e) above contain any
material misstatement

e) The company has not declared or paid dividend during the year.

f) Based on our examination which included test checks, the company has moved to Tally

prime Edit log accounting software in its standard form ready to use available in the
market, for maintaining its books of accounts, which has a feature of recording audit trail
(edit log) facility with its inherent limitations and the same was enabled and operated for
all relevant transactions recorded in the software with effect from 2^nd May, 2023. During
the course of performing our procedures where the audit trail facility was available for

part of the year, we did not notice any instance of the audit trail feature being tempered
with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April
1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014
on preservation of audit trail as per the statutory requirements for record retention is
applicable for the financial year ended March 31, 2024.

For GHEEWALA & CO.
CHARTERED ACCOUNTANTS

Sd/-

Place : Surat. K.R.GHEEWALA

Date : 30-05-2024 PARTNER

M. No. :034405
FRN. : 115746W
UD1N :24034405BKECSR3780

---

Mar 31, 2014

We have audited the accompanying financial statements of M/s. Prashant India Limited (''the Company'') which comprise the Balance Sheet as at 31st March 2014, 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 perfnance 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 asevaluating 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, subject to the matters emphasized here in below, 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:

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

(ii) in the case of the Statement of Profit and Loss, of the profit / 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. Emphasis of Matter

Note no.2(a) :

Regarding non accounting for gratuity, leave encashment & bonus liability contrary to sec.209 of the Companies Act, 1956 and AS-15 issued by the ICAI.

Note no.2(b):

Regarding accounts of the comp any having been prepared on ''Going Concern Basis'', despite operations of Agro Division of the Company having stood suspended, since 1998, '' net losses / cash losses incurred by the Company for last several years including the current financial year, net worth of the Company having been totally eroded and substantial losses having been carried forward as at 31st March, 2014,

BIFR having held the Company as sick under the provisions of sec.3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and ordered for winding up of the Company, which is upheld by the AAIFR in the absence of adequate data and information for its compilation on an alternative basis and consequently no adjustments having been made in the accounts relating to the recoverability of recordedasset amounts and in respect of recorded liabilities and contingent liabilities that might devolve on the company.

Note no.24(b): Regarding non provision of liabilities of Rs.6852.95 lacs Note no.24(k) :

Regarding certain balances being subject to confirmation the effect of which could not be quantified, Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the 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 informatiort 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 appears from our examination of those books

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

d. in our opinion, the Balance Sheet the Statement ot Profit and Loss and Cash, Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e. on the basis of written representations receivemfthe directors as on. 31st March, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

f. Since the Central Government has not issued any not ification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.(3)

ANNEXURE TO THE AUDITOR''S REPORT REFERRED TO IN PAR AGRAPH ''2'' OF OUR AUDIT REPORT OF EVEN DATE ON ACCOUNTS OF PRASHANT INDIA LTD. FOR THE YEAR ENDED ON 31st MARCH, 2014.

In terms of the information and explanations given to us and the books and records examined by us in the normal course of our audit and to the best of our knowledge and belief, we state that in our opinion: 1

(a) The company has been maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) Fixed assets have been physically verified by the management at reasonable intervals and that no material discrepancies were noticed by the management on such verification.

(c) No substantial part of fixed assets has been disposed off during the year, which has affected the going concern assumption (Also refer Note 1(b) of our Audit Report).

2.

(a) Physical verification of inventory (except stocks lying with third parties, confirmation for which has been obtained and in stocks in transit) has been conducted at reasonable intervals during the year by the management.

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

(c) The Company has been maintaining proper records of inventory and discrepancies noticed on physical verification as compared to book record s were not material and have been properly dealt with in the books of accounts.

3.

(a) The Company has not granted any loans, secured or unsecured, to Companies, Firms or other parties listed in the register maintained u/s. 301 of the Companies Act, .1956 (1 of 1956). The Company has taken secured loans from Companies, Firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956 (1 of 1956) and number of such party is one wherein the balance repayable as at the end of the year is Rs. 11,22,86,903/- plus interest payable on account of loan/debt assignments. ( Maximum balance during the year Rs. 11,32,86,903/- plus interest payable and number of party is two)

(b) Since there are no transactions of loans given by he company, clauses (b) to (d) of paragraph 3 of the order are not applicable.

(c) In our opinion, the rate of interest and other terms and conditions of secured loans taken by the company are prima facie not prejudicial to the company.

(d) In respect of loans taken by the company, payment of principal amount and interest is not regular, as stipulated

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and for 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 control system.

5. Based on Audit procedures applied by us and according to the information ana explanations given to us, we report that

(a) the particulars of contracts or arrangements referred to u/s 301 of the Companies Act, 1956 (1 of 1956) have been recorded in the register maintained for the purpose. '' (b) these transactions prima facie appear to have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. During the year, the company has not accepted deposits from the public.

7. Due to meager turnover and huge losses, the comparfy does not afford to have an internal audit system.

8. As informed to us, maintenance of cost records in accordance with the provisions sec. 209(1 )(d) of the Companies Act, 1956 is not applicable for job work activity and power generation activity undertaken by the Company

9.

(a) The provisions of the Provident Fund Act, Investor Education & Protection Fund and Employees'' State Insurance Act as applicable are duly complied with. There were no undisputed amount payable in respect of Income tax, Wealth tax, Sales tax, Service tax, Customs duty, Excise duty, Cess or any other statutory due which were outstanding as at 31-03-2014 for a period of more than six months from the date they became payable, except as mentioned below:

Nature of statute- Nature of dues Amount Remarks Authority Rs. lacs

Customs Act, 1962 & Custom duty 77.03 Nil Central Excise Act, 1944

Land Revenue ct Land rev. 4.87 Nil

(b) The disputed dues of Income tax, Wealth tax, Sales tax, Service tax, Customs duty, Excise duty or CesS as on 31/03/2014 are as follows :

Nature of statute- Nature of Amount Forum where dispute is Authority dues rs lacs pending

G.S.T. Act, 196 Sales tax 544.68 AC, Bhavnagar

I.T.Act, 1961 Income Tax- Not High Court, Gujarat A.Y. 1992-93 fixed

10. The Company has accumulated losses of Rs.4468.46 lacs as at the end of the financial year, which is in excess of 50% of its net worth. The com pany has Incurred cash losses in the current financial year but not in the immediately preceding financial year.

11. According to the information and explanations given to us and based on our audit checks, we report that the company in the current financial year has not made repayment to any banks or financial institutions. The company has defaulted in repayment of dues to various banks and financial institutions. The company had been declared sick u/s 3(1 )(0) of the Sick Industrial Companies (Special Provisions) Act, 1985 by the BIFR vide order dt.20-09-2005 and has been held to be wound up u/s 20(1) of the said Act by the BIFR vide order dt. 14-09-2006. The entire outstanding of all financial institutions/banks is overdue since long. Please refer to Audit note no.5 & 7 also.

12. Since the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, paragraph 4(xii) of the Order is not applicable.

13. Since the company is not a chit fund or a nidhi/mutual benefit fund/society, paragraph 4(xiii) of the Order is not applicable.

14. Since the company is not dealing in or trading in shares, Securities, debentures and other investments, paragraph 4(xiv) of the Order is not applicable.

15. According to the information and explanations given to us,''the Company has not given guarantees for loans taken by others from banks and financial institutions.

16. On the overall examination of the Balance Sheet of the Company, we report that term loans have been applied for the purpose for which they were obtained.

17. On an 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 investment.

18. Since the company has not made any preferential allotments of shares to any parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956, paragraph 4(xviii) of the Order is not applicable.

19. Since the company has not issued any debentures, paragraph 4(xix) of the Order is not applicable.

20. Since the company has not raised money by way of public issue during the year, paragraph 4(xx) of the Order is not applicable.

21. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For DEVENDRA GHEEWALA & CO. CHARTERED ACCOUNTANTS

sd/- Place : Surat. D.M.GHEEWALA Date : 20-06-2014 PROPRIETOR M.No.: 049857 FRN. :115563W

---

Mar 31, 2012

We have audited the attached Balance Sheet of PRASHANT INDIA LTD. as at 31st March, 2012 and also the Profit & Loss Account and Cash Flow Statement for the year ended on that date 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.

We conducted our audit in accordance with 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 for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, ('CARO') as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 issued by the Central Government in terms of provisions of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records as we considered necessary and appropriate and according to the information and explanations, given to us during the course of the audit, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 & 5 of the said order.

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 purposes of our audit.

b. In our opinion, proper books of account except cost records, as required by law, have been kept by the company, so far as appears from our examination of those books.

c. The Balance Sheet the Profit & Loss Account and the Cash Flow Statement dealt with by the report are in agreement with the books of accounts.

d. In our .opinion, the Balance Sheet, the Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the mandatory Accounting Standards referred to in section 211 (3c) of the Companies Act, 1956 except AS15 as referred to in Audit Note no. 1(a)

e. On the basis of written representations received from the directors as on 31st March, 2012 and taken on record by the Board of Directors of the company and also the information and explanations given to us, we report that none of the directors is, as at 31st March, 2012 prima facie disqualified from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, subject to the

Note no. 1(a) : Regarding non accounting for gratuity, leave encashment & bonus liability contrary to sec 209 of the Companies Act. 1956 and AS15 issued by the ICAI.

Note no. 1(b) : Regarding accounts of the company having been prepared on Going Concern Basis, despite

- operations of Agro division of the company having stood suspended,

- cash losses incurred by the company for last several years,

- net worth of the company having been totally eroded and substantial losses having been carried forward as at 31st March, 2012,

- BIFR having held, the company as sick under the provisions of sec.3(I)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and ordered for winding up of the company, also upheld by the AAIFR

in the absence of adequate data and information for its compilation on an alternative basis and consequently no adjustments having been made in the accounts relating to the recoverability of recorded asset amounts and in respect of recorded liabilities and contingent liabilities that might devolve on the company.

Note no. 3 : Regarding non provision of liabilities of Rs. 5940.2 7 lacs

Note no. 9 : Regarding certain balances being subject to confirmation the effect of which could not be quantified,

the said accounts read together with other audit notes thereon, give the information as 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 so far as it relates to the Balance Sheet, of the state of affairs of the Company at the 3 1st March, 2012, -

(II) in so far as it relates to the Profit and Loss Account, of the loss of the Company for the year ended on that date and

(III) in so far as it relates to the Cash Flow Statement, of the cash flows of the Company for the year ended on that date

ANNEXURE TO THE AUDITOR'S REPORT REFERRED TO IN PARAGRAPH '2' OF OUR AUDIT REPORT OF EVEN DATE ON ACCOUNTS OF PRASHANT INDIA LTD. FOR THE YEAR ENDED ON 31st MARCH, 2012

In terms of the information and .explanations given to us and the books and records examined by us in the normal course of our audit and to the best of our knowledge and belief, we state that in our opinion: 1

(a) The company has been maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) Fixed assets have been physically verified by the management at reasonable intervals and that no material discrepancies were noticed by the management on such verification.

(c) No substantial part of fixed assets has been disposed off during the year, which has affected the going concern assumption (Also refer Note 1(b) of our Audit Report).

2. (a) Physical verification of inventory (except stocks lying with third parties, confirmation for which has been obtained and in stocks in transit) has been -conducted at reasonable intervals during the year by the management.

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

(c) The Company has been maintaining proper records of inventory and discrepancies noticed on physical verification as compared to book records were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has not granted any loans, secured or unsecured, to Companies, Firms or other parties listed in the register maintained u/s. 301 of the Companies Act, 1956 (1 of 1956). The Company has taken secured loans from Companies, Firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956 (1 of 1956) and number of such party is one wherein the balance repayable as at the end of the year is Rs. 2,95,00,000/- on account of debt assignments. (Maximum balance during the year Rs. 2,95,00,000/-)

(b) Since there are no transactions of loans given by the company, clauses (b) to (d) of paragraph 3 of the order are not applicable.

(c) In our opinion, the rate of interest and other terms and conditions of secured loans taken by the company are prima facie not prejudicial to the company.

(d) In respect of loans taken by the company, payment of principal amount and interest is not regular, as stipulated.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and for 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 control system.

5. Based on Audit procedures applied by us and according to the information and explanations given to us, we report that

(a) the particulars of contracts or arrangements referred to u/s 301 of the Companies Act, 1956 (1 of 1956) have been recorded in the register maintained for the purpose.

(b) these transactions prima facie appear to have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. During the year, the company has not accepted deposits from the public.

7. Due to recessionary trend and huge losses, the company does not afford to have an internal audit system.

8. The company has made and maintained cost records in accordance with the provisions sec. 209( 1 )(d) of the Companies Act, 1956.

9. (a) The provisions of the Provident Fund Act, Investor Education & Protection Fund and Employees' State Insurance Act as applicable are duly complied with. There were no undisputed amount payable in respect of Income tax, Wealth tax, Sales tax, Service tax, Customs duty, Excise duty, Cess or any other statutory due which were outstanding as at 31-03-2012 for a period of more than six months from the date they became payable except as mentioned below:

Nature of statute- Nature of dues Amount Remarks Authority Rs. lacs

Customs Act, 1962 & Custom duty 77.03 Nil

Central Excise Act, 1944

Land Revenue Act Land rev. 20.01 Nil

(b) The disputed dues of Income tax, Wealth tax, Sales tax. Service tax. Customs duty. Excise duty or Cess as on 31/03/2012 are as follows:

Nature of statute- Nature of Amount Forum where dispute is Authority dues Rs. Lacs pending

G.S.T. Act, 1969 Sales tax 544.68 AC, Bhavnagar

G.S.T. Act, 1969 Sales tax 10.24 GVAT Tribunal, A bad

10. The Company has accumulated losses of Rs. 4319.79 lacs as at the end of the financial year, which is in excess of 50% of its net worth. The company has not incurred cash losses in the current financial year but has incurred cash losses in the immediately preceding financial year.

11. According to the information and explanations given to us and based on our audit checks, we report that the company in the current financial year has not made repayment to any banks or financial institutions. The company has defaulted in repayment of dues to various banks and financial institutions. The company had been declared sick u/s 3(1 )(0) of the Sick Industrial Companies (Special Provisions) Act, 1985 by the B1FR vide order dt.20-09-2005 and has been held to be wound up u/s 20(1) of the said Act by the BIFR vide order dt. 14-09-2006. The entire outstanding of all financial institutions/banks is overdue since long. Please refer to Audit note no.2 & 3 also.

12. Since the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, paragraph 4(xii) of the Order is not applicable.

13. Since the company is not a chit fund or a nidhi/mutual benefit fund/society, paragraph 4(xiii) of the Order is not applicable.

14. Since the company is not dealing in or trading in shares, securities, debentures and other investments, paragraph 4(xiv) of the Order is not applicable.

15. According to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks and financial institutions.

16. On the overall examination of the Balance Sheet of the Company, we report that term loans have been applied for the purpose for which they were obtained.

17. On an 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 investment.

18. Since the company has not made any preferential allotments of shares to any parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956, paragraph 4(xviii) of the Order is not applicable.

19. Since the company has not issued any debentures, paragraph 4(xix) of the Order is not applicable.

20. Since the company has not raised-money by way of public issue during the year, paragraph 4(xx) of the Order is not applicable.

21. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.



For DEVENDRA GHEEWALA & CO. CHARTERED ACCOUNTANTS

Sd/ D.M.GHEEVVALA PROPRIETOR

M.No. : 049857 FRN. : 115563W

Place : Surat. Date : 20-07-2012