We have audited the accompanying Financial
Statements of Mangal Credit and Fincorp Limited
(“the Company”), which comprise the Balance
Sheet as at March 31^st, 2025 and the Statement of
Profit and Loss (including Other Comprehensive
Income), the Cash Flows Statement and the
Statement of Changes in Equity for the year then
ended, and notes to the Financial Statements,
including a summary of material accounting
policies and other explanatory information.

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^st, 2025 and its
profit, total comprehensive income, its cash
flows and the changes in equity for the year then
ended.

2. Basis for Opinion

We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under
section 143(10) of the Act. Our responsibilities
under those Standards are further described in
the Auditor’s Responsibilities for the Audit of the
Financial Statements in paragraph 6 below 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 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. We
believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for
our opinion on the Financial Statements.

3. Key Audit Matters

Key audit matters are those matters which, 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 matter described below to be the key audit
matter to be communicated in our report.

4. Information Other than the Financial
Statements and Auditor’s Report thereon

The Company’s Management and Board of
Directors are responsible for other information.
Other information comprises the information
included in the Annual Report, but does not
include the Financial Statements and our auditor’s
report thereon. Other information comprises the
information included in the Annual Report are
expected to be made available to us after the date
of this auditor’s report.

Our opinion on the Financial Statements does not
cover 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 when it becomes available
and, in doing so, consider whether the other
information is materially inconsistent with the
Financial Statements or our knowledge obtained
in the audit or otherwise appears to be materially
misstated.

When we read other information comprising the
information included in the Annual Report and
we conclude that there is a material misstatement
therein, we are required to communicate the
matter to those charged with governance.

5. 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 Act with respect to
the preparation 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 the
Ind AS 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 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
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 the management either intends to
liquidate the Company or to cease operations,
or has no realistic alternative but to do so. The
Company’s Board of Directors are also responsible
for overseeing the Company’s financial reporting
process.

6. Auditor’s responsibilities for the audit of the
Financial Statements

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 scepticism 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 financial
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
respect 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 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 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.

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 Statement 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.

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.

7 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), the Cash Flows Statement and the
Statement of Changes in Equity dealt with
by this Report are in agreement with the
relevant books of account.

(d) In our opinion, the aforesaid Financial
Statements comply with the Indian
Accounting Standards specified under
Section 133 of the Act.

(e) On the basis of the written representations
received from the directors as on April
01^st, 2025 taken on record by the Board of
Directors, none of the directors is disqualified
as on March 31^st, 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
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 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.

(h) 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,
if any, of pending litigations as at 31^st
March, 2025 on its financial position in
its Financial Statements - Refer Note 32
to the Financial Statements;

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

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 it’s knowledge
and belief, as disclosed in the
notes to 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
person(s) or entity(ies), 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 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 it’s knowledge
and belief, as disclosed in the notes
to accounts, 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:

• 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
performed 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 (iv) (a) and (b) above, contain any
material mis-statement.

(v) (a) The dividend proposed in the previous
year, declared and paid by the Company
during the year is in accordance with
Section 123 of the Act, as applicable.

(b) The Board of Directors of the Company
have proposed dividend for the year
which is subject to the approval of the
members at the ensuing Annual General

Further, during the course of our audit we did not
come across any instance of audit trail features
being tampered with and the audit trail has been
preserved by the Company as per the statutory
requirements for record retention.

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
“B”, a statement on the matters specified in
paragraphs 3 and 4 of the Order to the extent
applicable.