We were engaged to audit the accompanying financial
statements of Kalyani Forge Limited ("the Company"),
which comprise the Balance sheet as at 31^st March
2025, the Statement of Profit and Loss (including Other
Comprehensive Income), Statement of Changes in Equity,
the Statement of Cash Flows for the year then ended and
Notes to the Financial Statements, including a summary
of material accounting policies and other explanatory
information (hereinafter referred as the "financial
statements").

We do not express an opinion on the accompanying
financial statements of the Company because of the
significance of the matters described in the basis for
disclaimer of opinion paragraph of our report, we have
not been able to obtain sufficient appropriate audit
evidence to provide a basis for an audit opinion on
these financial statements as to whether these financial
statements give a true and fair view in conformity with the
applicable accounting standards ("Ind-AS") and other
accounting principles generally accepted in India of the
net profit and other comprehensive income and other
financial information of the Company for the year ended
31^st March 2025.

BASIS FOR DISCLAIMER OF OPINION

I. The Company has been in the process of refining its
stock valuation methodology since prior financial
years. This involves updating standard rates for
material, labour and overheads based on the
current prevailing rates and relevant data. As the
said process is not completed, the quantities and
valuation of inventories and the consequential
impact thereof, if any on the cost of raw materials
and components consumed and the changes in
inventories of finished goods, work in progress and
stock in trade is unascertainable.

II. Balance of trade receivables, trade payables and
stock with vendors are subject to confirmations,
reconciliations, and consequential adjustments, if
any, as a result of which we are unable to obtain
sufficient and appropriate audit evidence. We
were unable to satisfy ourselves even after applying
alternative means concerning such balances.

III. Balances of amount appearing under GST input
tax credit and sales reported in GSTR 1 is subject
to reconciliations, and consequential adjustments,
if any. We were unable to satisfy ourselves even
after applying alternative means concerning
such balances.

IV. We have been given to understand that the
Company is in the process of updating the relevant
documentation for internal financial control over
financial reporting. In the absence of necessary
documentation, we could not determine if the
Company has established adequate internal
financial control with reference to financial statements
and whether such internal financial controls were
operating effectively as at 31^st March 2025.

INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR'S REPORT THEREON

The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Board's Report but does not
include the financial statements and our auditor's report
thereon. The Company's board report is expected to be
made available to us after the date of this auditor's report.

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

In connection with our audit of the financial statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial statements, or
our knowledge obtained in the audit otherwise appears
to be materially misstated.

When we read the board's report, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to those charged
with governance.

RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of the Act, with respect
to the preparation of these financial statements that give
a true and fair view of the financial position, financial
performance, total comprehensive income, changes in
equity and cash flows of the Company in accordance
with accounting principles generally accepted in India,
including the Ind AS specified under section 133 of the Act.

This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other
irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant
to the preparation and presentation of the financial

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

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

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF
THE FINANCIAL STATEMENTS

Our responsibility is to conduct an audit of the Company's
financial statements in accordance with Standards on
Auditing and to issue an auditor's report. However, because
of the matters described in the Basis for Disclaimer of
Opinion section of our report, we were not able to obtain
sufficient appropriate audit evidence to provide a basis
for an audit opinion on the financial statements.

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 Act, and the
Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the Code of Ethics.

OTHER MATTERS

The comparative financial information of the Company
for the year ended 31^st March 2024 included in these
financial statements, are audited by the predecessor
auditor whose report for the year ended 31^st March 2024
dated 30^th May 2024 has expressed disclaimer of opinion
on those financial statements.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

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

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

a. As described in Basis for Disclaimer of Opinion
paragraph, we have sought but we were
not provided with all the information and
explanations which to the best of our knowledge
and belief were necessary for the purposes of
our audit.

b. Due to possible effects of the matters described
in the Basis for Disclaimer of Opinion paragraph,
we are unable to state whether, 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. Due to possible effects of the matters described
in the Basis for Disclaimer of Opinion paragraph,
we are unable to state whether the Balance
Sheet, the Statement of Profit and Loss including
Other Comprehensive Income, the Statement
of Changes in Equity and the Statement of Cash
Flows, dealt with by this Report are in agreement
with the books of account.

d. Due to possible effects of the matters described
in the Basis for Disclaimer of Opinion paragraph,
we are unable to state whether, the aforesaid
financial statements comply with the Indian
Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.

e. The matters described in the Basis for Disclaimer
of Opinion paragraph above, in our opinion,
may have an adverse effect on the functioning
of the Company.

f. 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 are disqualified as on 31 ^st
March 2025, from being appointed as a director
in terms of Section 164 (2) of the Act.

g. With respect to the adequacy of the internal
financial controls with reference to these Financial
Statements and the operating effectiveness of
such controls, refer to our separate Report in
Annexure ‘B'. Our report expresses disclaimer
of opinion on the Company's internal financial
control over financial reporting with reference
to financial statements.

h. Due to the possible effects of the matters
described in the "Basis for Disclaimer of Opinion"
section of this report, we are unable to comment
whether the managerial remuneration paid/
provided by the Company during the year is in
accordance with the provisions of Section 197 of
the Act.

i. 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, as amended, in our opinion and to the
best of our information and according to the
explanations given to us:

i. In the absence of sufficient information, we
are unable to state whether the Company
has disclosed the impact of pending
litigations on its financial position in its

financial statements - Refer Note 32.1 to the
financial statements.

ii. The Company does not have any material
foreseeable losses on long term contracts
including derivative contracts requiring
provision under the applicable law or
Indian Accounting Standards.

iii. There has been delay in transferring
amounts, required to be transferred to
the Investor Education and Protection
Fund by the Company on account of
unclaimed dividend.

iv. (a) The Management has represented

that, to the best of its knowledge and
belief, no funds have been advanced
or loaned or invested (either from
borrowed funds or share premium or
any other sources or kind of funds)
by the Company to or in any other
person(s) or entity(ies), including
foreign entities ("Intermediaries"),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, whether,
directly or indirectly lend or invest in
other persons or entities identified
in any manner whatsoever by or on
behalf of the Company ("Ultimate
Beneficiaries") or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

(b) The Management has represented,
that, to the best of its knowledge and
belief, no funds have been received
by the Company from any person(s)
or entity(ies), including foreign
entities ("Funding Parties"), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall, whether, directly or indirectly,

lend or invest in other persons or entities
identified in any manner whatsoever
by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or
provide any guarantee, security or
the like on behalf of the Ultimate
Beneficiaries; and

(c) Based on the audit procedures that
have been considered reasonable
and appropriate in the circumstances,
nothing has come to our notice that
has caused us to believe that the
representations under sub-clause (i)
and (ii) of Rule 11 (e) as provided under
(i)(iv)(a) and (i) (iv)(b) above contain
any material misstatement.

v. Due to the possible effects of the matters
described in the Basis for Disclaimer of
Opinion section of this report, we are
unable to comment whether the dividend
declared or paid during the year by the
Company is in compliance with section 123
of the Companies Act, 2013.

vi. Based on our examination, which included
test checks, the Company has used
accounting software for maintaining its
books of account for the year ended
31^st March 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, except for the Accounting
Software (SAP ERP) wherein the audit trail
has not been enabled at application
level for modification to customized tables
and at database level. Further, during the
course of our audit, we did not come across
any instance of the audit trail feature being
tampered with for software's maintained by
the Company.

For M. P. Chitale & Co.,

Chartered Accountants

ICAI Firm Registration No: 101851W

Sanat Ulhas Chitale

Partner

ICAI Membership No: 143700
UDIN: 25143700BMMJKF1609

Place: Pune
Date: 27^th May 2025