We have audited the accompanying Ind AS standalone financial statements of Kanani Industries Limited (“the Company”), which comprise the
Balance Sheet as at 31st March 2025, the statement of Profit and Loss (Including Other Comprehensive Income), the Statement of Change in Equity
and the Statement of Cash Flows for the year ended on that date, and a summary of significant accounting policies and other explanatory information
(hereinafter referred to as the “Ind AS standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS Standalone 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 31st March 2025, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (“SA”s) specified under section 143(10)
of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibility for the Audit of the Standalone financial
statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the standalone 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 obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of
the current year. These matters were addressed in the context of our audit of the financial statement 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.

2. Trade receivables and other financial assets and Principal Audit Procedures:

Impairment

The Company has significant trade receivables and other In view of the significance of the matter, we applied the following key audit
financial assets at year end. Given the size of the balances procedures:
and the risk that some of the trade receivables and other

financial assets may not be recoverable, judgement is • Obtaining an understanding of and assessing the design, implementation
required to evaluate whether any allowance should be made and operating effectiveness of the Company's key internal controls over the

t_{o re}fl_ect th_{e r}i_sk process of estimating the loss allowance for trade receivables and other

financial assets including adherence to the requirements of the relevant
accounting standards.

• Assessing the Company's methodology for provisioning towards trade
receivables and other financial assets.

• Understanding the key inputs used in the provisioning model by the Company
such as repayment history, overdue balances, market conditions.

• As a part of substantive audit procedures, we tested on sample basis the
ageing of trade receivable having different overdue period.

• In case of overdue debts inquired with management for any dispute which
may require additional provisions.

• Assessing the disclosures made against the relevant accounting standards.

3. Other Current Assets Principal Audit Procedures:

The company has disclosed in Note 9: Other Current Assets: • As part of our substantive audit procedures, we reviewed the relevant
Bank of Baroda - Penal Interest under protest amounting to documents pertaining to the interest under protest and noted that the

Rs.42,09,025/-, which is receivable in future. Company is actively following up with the bank to resolve this matter.

Additionally, the Company has formally appealed to the bank regarding this
issue.

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Information Other than the Standalone 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 including Annexures to Board's Report, Corporate Governance Report and Shareholder Information, but does not include the standalone
financial statements and our auditor's report thereon.

The Board's Report, Annexures to Board's Report, Corporate Governance Report and Shareholder Information is expected to be made available to us
after the date of this auditor's report. Our opinion on the Ind AS Standalone financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon. In connection with our audit of the Ind AS Standalone financial statements, our responsibility is to
read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent
with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the Board's Report, Report on Corporate governance and Business Responsibility report, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with governance and describe actions applicable in the applicable
laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Ind AS Standalone financial statements:

The Company's board of directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Ind AS
Standalone financial statements that give a true and fair view of the financial position, financial performance, including other comprehensive Income,
changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India, including
the accounting standards 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 the assets of the Company and for preventing and detecting frauds and other irregularities,
selection and application of appropriate accounting policies; making judgements 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 standalone financial statements, management is responsible for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

Auditor’s Responsibility for the Audit of the Ind AS Standalone financial statements

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

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

• Identifying and assess the risks of material misstatements 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.

• Obtaining an understanding of internal financial control relevant to the audit in order 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 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 the
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 standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as
a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the
standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality
and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the standalone financial statements.

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Companies Act, 2013, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.

2. As required by Section 143(3) of the Act, 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;