We have audited the accompanying financial statements of Aadi Industries Limited (‘the Company’), which
comprises the Balance Sheet as at 31^st March 2024, the statement of Profit and Loss (including Other
Comprehensive Income), Statement of Changes in Equity and statement of cash flows for the year then ended,
and notes to financial statements, including a summary of the significant accounting policies and other
explanatory information.

In our opinion and to the best of our information and according to the explanations give to us, except for the
effects of the matter described in the Basis for Qualified Opinion’ section of our report, the aforesaid financial
statements give a true and fair view in conformity with the accounting principles generally accepted in India,
of the state of affairs of the Company as at 31^st March, 2024 and its loss and its cash flows for the year ended
on that date.

Basis for Qualified Opinion

The company has discontinued the recognition of interest while calculating the amortized cost of the
borrowings, which is in violation of Effective Interest Method (EIM) and Effective Interest Rate (EIR)
principles and concepts underpinning the Amortised Cost measurement.

At the year-end company has measure the financial liability i.e. borrowings at Rs 4,608 based on the statement
of accounts received from the bank. However, the payable to bank is subject to confirmation and adjustment,
if any, required upon such confirmation. Pending such confirmation, the effect thereof on interest and penal
interest on the financial statement is not ascertainable.

Material uncertainty related to Going Concern

We draw attention to note 24 of the financial statements, which indicates that the Company has incurred a loss
after tax of Rs. 9.18/- Lakhs and Rs. 17.69/- Lakhs for the year ended 31^st March 2024 and 31^st March 2023
respectively. There has been significant decline in the key financial ratios on account of the persistent loss in
preceding previous years.

In the opinion of the Company, based on the reasons mention in note no 24 company expects to realise its
assets and discharge its liabilities in the normal course of business and hence the financial statements have
been prepared on a going concern basis.

The said assumption of going concern is inter-alia dependent on the Company’s ability to achieve
improvements in liquidity and turnaround in its business operations. Though a material uncertainty exists on
the Company’s going concern assumption, Company’s management is of the view that there are mitigating
factors to such uncertainties including discussions with infusion of funds by promoters, orders on hand etc.

Our conclusion on the financial statement is not modified in respect of this 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. Refer basis of opinion and emphasis of matter paragraph for key audit matter during
the year under consideration. Other than that there has been no Key Audit Matter identified given the fact of
no or minimum business operations of the Company.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s management and Board of Directors are responsible for the other information. The other
information comprises the information included in the Company’s annual report, 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 and will 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 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.

Management’s Responsibility for the Financial Statements

The Company’s management and Board of Directors are responsible for the matters stated in Section 134(5)
of the Companies Act, 2013 (“the Act”) with respect to the preparation and presentation 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 Indian
Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended and other 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 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, management and Board of Directors are 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.

Board of Directors is 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 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

• 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 a bility 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 Section 197(16) of the Act, we report that the Company has paid remuneration if any
to its directors during the year in accordance with the provisions of and limits laid down under Section
197 read with Schedule V to the Act.

2. 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 the paragraph 3 and 4 of the order.

3. 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 of the accompanying financial statements.

b. Except for the matters described in the basis of qualified opinion paragraph, 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. Except for the matters described in the basis of qualified opinion paragraph, the financial statements
dealt with by this Report are in agreement with the books of account;

d. Except for the effects of the matter described in the basis of qualified opinion paragraph, in our opinion,
the aforesaid financial statements comply with the Indian Accounting Standards prescribed under
Section 133 of the Act

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;

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

g. 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:

1. The Company does not have any pending litigations as on 31^st March, 2024 which would impact
its financial position other than that mentioned in the basis of opinion paragraph and disclosed in
the financials;

2. The Company has made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts.

3. There has been no delay in transferring amounts required to be transferred to the Investor Education
and Protection Fund.

4. 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 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.

5. The management has represented, that, to the best of its knowledge and belief, 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 from or on behalf of the Ultimate Beneficiaries;
and

6. 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
subclause (g) (4) and (g) (5) contain any material mis-statement.

7. Based on our examination, which included test checks and in accordance with the requirements of
the Implementation Guide on Reporting on Audit Trail under Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014, the Company has not used accounting software for maintaining its
books of account, which has a feature of recording an audit trail (edit log) facility.

For RAK CHAMPS & CO LLP.

CHARTERED ACCOUNTANT

Firm Registration No. 131094W

RAMANATHA SHETTY

M. No. 218600

UDIN: 24218600BKBWHA5787

Place: Mumbai

Date: 29/05/2024