We have audited the accompanying standalone financial
statements of LKP Finance Limited (“the Company”),
which comprise the balance sheet as at 31 March
2025, the statement of profit and loss (including other
comprehensive income), the statement of changes in
equity, the statement of cash flows for the year then
ended and notes to the standalone financial statements
including a summary of the material accounting policies
and other explanatory information (hereinafter referred
to as “the standalone financial statements”).

In our opinion and to the best of our information and
according to the explanations given to us, except for
the possible effects of matter described in the “Basis
for Qualified opinion” paragraph of our report, the
aforesaid standalone financial statements give the
information required by the Companies Act, 2013 (“the
Act”), the circulars, guidelines and directions issued
by the Reserve Bank of India (“RBI”) from time to time
applicable to NBFC (“RBI guidelines”) 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 31
March 2025, its profit, total comprehensive loss, the
changes in equity and its cash flows for the year ended
on that date.

2. Basis for Qualified Opinion

The Company has not obtained balance confirmations /
term sheets from two lenders with outstanding balances
aggregating to Rs. 3,596.65 lakhs, included under
borrowings. Accordingly, external confirmations as
required under Standard on Auditing (SA) 505, External
Confirmations, were not available for our verification.
Further, the Company has not provided interest expense
on the above mentioned borrowings, the amount of
which is presently not ascertainable, and is not in
compliance with Ind AS 109 “Financial Instruments”
wherein such financial liabilities are required to be
measured at amortised cost using the effective interest
rate method. Had the interest expense been provided,
the liabilities would have been higher, the net profit for
the year and networth as at 31 March 2025 would have
been lower to that extent. In respect of one lender,
Kingfisher Finvest India Limited, with an outstanding
balance of Rs. 2,122.40 lakhs, the Company received
a garnishee Order from the Recovery Officer, Debt
Recovery Tribunal (DRT), Bangalore, for Rs. 2,500 lakhs
plus interest. This Order was pursuant to order obtained
by State Bank of India from DRT against Kingfisher
Airlines Limited, United Breweries (Holdings) Limited
and others. The Company has contested the claim
and deposited Rs. 1,126.22 lakhs, included in other
non-financial assets and mutual fund investments of
Rs. 595.12 lakhs have been attached by the Recovery
Officer. The matter is currently pending before the
Debt Recovery Appellate Tribunal, Chennai. In the
absence of external confirmations, pending outcome
of the legal dispute and non-provision of interest, we
are unable to determine whether any adjustments or
additional disclosures are required in the accompanying
standalone financial statements.

Our opinion for the year ended 31 March, 2025 was also
modified in respect of the above matter.

We conducted our audit of the standalone Financial
Statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the
Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor’s
Responsibilities for the Audit of the 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 we have obtained is sufficient and appropriate
to provide a basis for our qualified audit opinion on the
standalone financial statements.

5. 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 standalone financial statements as a
whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.

4. Other information

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

Our opinion on the 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 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 annual report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged with
governance and take necessary actions, as applicable
under the relevant laws and regulations.

5. Management responsibility for the standalone
financial statements.

The Company’s Board of Directors is responsible for the
matters stated in Section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financial performance (including other comprehensive
loss), changes in equity and cash flows of the Company in
accordance with the Indian Accounting Standards (Ind
AS), prescribed under Section 133 of the Act, read with
rules issued thereunder, the RBI guidelines and other
recognized accounting principles generally accepted
in India. 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 standalone financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the
Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless
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 Audit of the
Standalone Financial Statements

Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high

level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of these standalone financial
statements.

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

• 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.

• 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 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 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.

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.

7. 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 in terms of Section 143(11) of the Act,
we give in the “Annexure A” a statement on the
matters specified in the paragraph 3 and 4 of the
Order.

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

a) We have sought, except for the matter
described in the “Basis for Qualified
Opinion” paragraph above, and obtained all
the information and explanations which to
the best of our knowledge and belief were
necessary for the purpose of our audit.

b) Except for the effects/possible effects of the
matter described in the “Basis for Qualified
Opinion” paragraph above, 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), the Statement of Changes in Equity
and the Statement of Cash Flow dealt with by
this Report are in agreement with the books
of account.

d) Except for the effects/possible effects of the matter
described in the “Basis for Qualified Opinion”
paragraph above, in our opinion, the aforesaid
standalone financial statements comply with the
Indian Accounting Standards specified under
Section 133 of the Act, read with the Companies
(Indian Accounting Standards) Rules, 2015, as
amended.

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

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

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

h) 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/payable by the Company to its
directors 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, in
our opinion and to the best of our information and
according to the explanations given to us:

i. The Company has disclosed the impact of
pending litigations on its financial position
in its standalone financial statements.
(Refer note 29 of the standalone financial
statements)

ii. The Company did not have any long term
contracts including derivative contracts for
which there were any material foreseeable
losses; and

iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company.

iv. (a) The management has represented,

that, to the best of its knowledge
and belief, as referred in notes to the
accounts, no funds have been advanced
or loaned or invested (either from
borrowed funds or share premium or
any other sources or kind of funds)
by the Company to or in any other
persons or entities, 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,
as referred in the notes to the accounts,
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,
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

(a) Based on the information and
details provided and other audit
procedures followed, nothing
has come to our notice that has
caused us to believe that the
representations under subclause
iv(a) and (b) contain any material
misstatement.

v. The Company has not declared or paid
any dividend during the year and has not
proposed final dividend for the year.

vi. Based on our examination which included
test checks, the Company has used an
accounting software for maintaining its
books of account which has a feature of
recording audit trail (edit log) facility and
the same has operated throughout the year
for all relevant transactions recorded in the
software. Further, during the course of our
audit we did not come across any instance of
audit trail feature being tampered with. Also,
the audit trail has been preserved by the
Company as per the statutory requirements
for record retention.

For MGB & Co LLP

Chartered Accountants

Firm Registration Number 101169W/W-100035

Hitendra Bhandari

Partner

Membership Number 107832

Mumbai, 22 May 2025

UDIN: 25107832BMLLWR8472