A. We have audited the accompanying Standalone
Ind AS Financial Statements of AETHER INDUSTRIES
LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2025, 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 ended on
that date, and a summary of the significant
accounting policies and other explanatory
information (hereinafter referred to as "Financial
Statements").

B. 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
("the Act") in the manner so required and give a
true and fair view in conformity with the Indian
Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended,
("Ind AS") and other accounting principles
generally accepted in India, of the state of affairs of
the Company as at March 31, 2025, the profit and
total comprehensive income, changes in equity
and its cash flows for the year ended on that date.

2. Basis of opinion

We conducted our audit of the Financial Statements in
accordance with the Standards on Auditing specified
under section 143(10) of the Act (SAs). 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
independence requirements that are relevant to our
audit of the financial statements under the provisions
of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI's
Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Standalone
Financial Statements.

3. 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 report:

A. Inventory valuation

The Company manufactures and sells speciality
chemicals and intermediates for the pharmaceutical,
agrochemicals, oil & gas, coatings and various other
segments, which carry shelf life. As a result, significant
level of judgement is involved in estimating inventory
valuation. Judgement is required to assess the
appropriate net realisable value for short dated raw
materials, semi-finished goods and finished goods.
Such judgements include management expectations
for future sales and inventory liquidation plans.

Auditors' response: Our audit procedures included,
amongst others:

- We attended stock counts to identify whether any
inventory was obsolete,

- We assessed the basis for the inventory valuation, the
consistency in policy and the rationale in its
application,

- We tested the accuracy of the ageing of inventories
based on system generated reports,

- We reviewed the testing done for net realizable value
of inventories and future plans for consumptions;

- We tested the arithmetical accuracy of valuation
files; and

- We reviewed product-wise historical data relating to
sales return etc. and also its impact on valuation.

We have assessed the adequacy of disclosure in the
Standalone Financial Statements.

B. Assessment of Impairment of Investment made in
and Loans given to the subsidiary Company

Management is required to review regularly whether
there are any indicators of impairment of such
investments / loans by reference to the requirements
under Ind AS and perform its impairment assessment
by comparing the carrying value of these investments
made/ loans given to their recoverable amount to
determine whether impairment needs to be
recognized.

For impairment testing, value in use has to be
determined by forecasting and discounting future
cash flows of subsidiary.

Further, the value in use is highly sensitive to changes
in critical variable used for forecasting the future cash
flows including market projections for revenues and
discounting rates.

The determination of the recoverable amount from
subsidiary company involves management estimates
and judgement which may affect the outcome.

So, there is an inherent risk in the valuation of
investment / recoverability of loans, due to the use of
estimates and judgements mentioned above and.
Accordingly, the assessment of impairment of
investment/loans in subsidiary company has been
determined as a key audit matter.

Auditors' response: Our audit procedures included,
amongst others:

- We tested the Design, Implementation and Operating
effectiveness of controls over impairment assessment
process, including those over the forecasts of future
revenue and operating margin, and the selection of
the discount rate.

- Our substantive testing procedures included
evaluation of appropriateness of management
assumption whether any indicators of loss allowances
and impairment existed by verifying a discounted cash
flow model prepared by the Management of the
Company.

- We have tested the reasonableness of key
assumptions, including revenue, profit and cash flow
growth rates, terminal value and the selection of
discount rates management has applied.

- We performed our own independent sensitivity
analysis to understand the impact of reasonable
changes in management assumptions.

- Independent assessment of the future cash flows
and assessing the appropriateness of the future cash
flows estimated. In making this assessment, we also
evaluated the objectivity, independence and
competency of specialists involved in the process.

- Assessing the assumptions around the key drivers of
the revenue projections, future cash flow, discount
rates / weighted average cost of capital that were
used by the management.

- Management evaluation of recoverability of loans
and granted to its subsidiary company.

- Test the arithmetical accuracy.

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

A. The Company's Board of Directors is responsible for
the preparation of the other information. The other
information comprises 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 Standalone 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.

B. 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
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 information; we
are required to report that fact. We have nothing to
report in this regard.

5. Management's responsibilities for the Financial
Statements

A. The Company's management is responsible for
preparation of these Financial Statements that give
a true and fair view of the state of affairs, profit,
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 read with relevant rules
issued there under. This responsibility also
includes maintenance of adequate accounting

records in accordance with the provisions of the Act
for safeguarding 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.

B. In preparing the Financial Statements,

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

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

6. Auditor's responsibilities for the Financial
Statements

A. 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
Standards of Auditing issued by the institute of
chartered accountants of India, 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.

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

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

ii) Obtain an understanding of internal financial
controls relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under Section 143(3)(i) of the Act,
we are also responsible for expressing our opinion
on whether the Company has adequate internal
financial controls with reference to financial
statements in place and the operating
effectiveness of such controls.

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

iv) 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.

v) 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.

C. 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.

D. 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.

E. 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.

F. 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.

II. Report on other legal and regulatory requirements

1. As required by Section 143(3) of the Act, based on
our audit 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 Other Comprehensive Income,
Statement of Changes in Equity and the Statement
of Cash Flow dealt with by this Report are in
agreement with the relevant books of account.

D. In our opinion, the aforesaid standalone financial
statements comply with the Ind AS 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 March 31, 2025
taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2025
from being appointed as a director in terms of
Section 164 (2) of the Act.

F. With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's
internal financial controls with reference to
standalone financial statements.

G. With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of section 197(16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the
Company to its directors during the year is in
accordance with the provisions of section 197 of the
Act read with Schedule V of the Act and the rules
thereunder.

H. With respect to the other matters to be included
in the Auditors' 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 companies forming part of the Group do
not have any pending litigations which would
impact the financial position of the Group as at
31 March 2025.

ii. The companies forming part of the Group 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 companies forming part
of the Group.
iv)

(a) The respective Managements of the
Company and its subsidiaries which are
companies incorporated in India, whose
financial statements have been audited
under the Act, have represented to us that,
to the best of their 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
or any of such subsidiaries to or in any other
person or entity, outside the Group,
including foreign entity ("Intermediaries"),
with the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, directly or indirectly lend or invest in
other persons or entities identified in any
manner whatsoever by or on behalf of the
Company or any of such subsidiaries
("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

(b) The respective Managements of the
Company and its subsidiaries which are
companies incorporated in India, whose
financial statements have been audited
under the Act, have represented to us that,
to the best of their knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been received by
the Company or any of such subsidiaries
from any person or entity, including foreign
entity ("Funding Parties"), with the
understanding, whether recorded in writing

or otherwise, that the Company or any of
such subsidiaries shall, directly or indirectly,
lend or invest in other persons or entities
identified in any manner whatsoever by or
on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.

(c) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances
performed by us on the Company and its
subsidiaries which are companies
incorporated in India whose financial
statements have been audited under the
Act, nothing has come to our notice that has
caused us to believe that the
representations under sub-clause (i) and
(ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material
misstatement.

v) The company has not declared or paid any
dividend during the year in accordance with
section 123 of the Companies Act 2013", Hence
clause not applicable.

vi) Proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 for maintaining books of
account using accounting software which has a
feature of recording audit trail (edit log) facility
is applicable with effect from April 1, 2023 to the
Company and its subsidiaries, which are
companies incorporated in India, and
accordingly, reporting under Rule 11(g) of
Companies (Audit and Auditors) Rules, 2014 is
applicable for the financial year ended March
31, 2025.

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.

We have checked audit trail feature at every
quarter end we did not come across any
instances of audit trail feature being tempered.
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 not
applicable for the financial year ended 3l
March, 2025.

2. As required by the Companies (Auditor's Report)
Order, 2020 ("the Order") issued by the Central
Government in terms of Section 143(11) of the Act,
we give in "Annexure B" a statement on the matters
specified in paragraphs 3 and 4 of the Order to the
extent
applicable.

III. Emphasis matter

We draw attention to Note - 35 to the standalone
Ind AS financial statements, which describes the
effect of fire occurred in factory premises on
November 29, 2023. The loss on account of fire are
duly considered under exceptional item of profit
and loss and account and Note-35. Our opinion is
not modified in respect of this matter.

IV. Other matters

Opening balance with respect to the financial
information for the year ended 31 March 2025,

included in these Financial Statements, are based
on audited Financial Statements for the year ended
31 March 2024, which has been approved by the
Company's Board of Directors on May 21, 2024.

Our opinion is not modified in respect of this matter.

For Birju S. Shah & Associates

Chartered Accountants | ICAI Firm Reg. No.: 131554W

Birju S. Shah - Proprietor

Membership No.: 107086 | UDIN: 25107086BMLCC17271

Place: Surat | Date: May 2, 2025