AUDITOR'S REPORT

Himatsingka Seide Ltd.

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Market Cap. (₹)	1434.09 Cr.	P/BV	0.68	Book Value (₹)	167.38
52 Week High/Low (₹)	208/108	FV/ML	5/1	P/E(X)	18.86
Bookclosure	19/09/2025	EPS (₹)	6.05	Div Yield (%)	0.22

Year End :2025-03

We have audited the accompanying standalone financial statements of Himatsingka Seide Limited ("the Company”), which comprise the
Balance Sheet as at March 31,2025, 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 the standalone financial statements, including material
accounting policy information 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, the aforesaid 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 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 31,2025, its profit (including other 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 (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 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 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.

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 for the year ended March 31, 2025. 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. We have
determined the matters described below to be the key audit matters to be communicated in our report.

Sl.No.

Key Audit Matters

How the Key Audit Matters was addressed in our audit

Revenue recognition

(Refer Note 2.1 to the material accounting policies and the
disclosures related to revenues in Note 20 to the standalone
financial statements)

As per Ind AS 115 Revenue from Contracts with Customers,
revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The
transaction price of goods sold is net of variable consideration
on account of various discounts and schemes offered by the
Company as part of the contract.

Revenue from sale of goods is recognised at a point in time
when control is transferred to customer and there is no
unfulfilled obligation.

The Company and its external stakeholders focus on revenue
as a key performance indicator. This could result in a risk of
revenue being overstated or recognised before control has
been transferred.

Because of the above factors, we have identified revenue
recognition as a key audit matter.

Our audit procedures in respect of this area included:

1. Evaluated the appropriateness of the revenue
recognition accounting policies of the Company with
the principles of Indian Accounting Standard 115 -
'Revenue from contracts with customer' ('Ind AS
115').

2. Evaluated the design, implementation and tested the
operating effectiveness of the relevant key controls
with respect to revenue recognition including general
information and technology control environment, key
IT application controls over the Company's IT systems
which govern revenue recognition and sales return in
the accounting system.

3. Performed substantive testing by selecting samples
of revenue transactions recorded during the year,
verifying with the underlying documents like sales
invoices/ contracts and related logistics documents.

4. Performed cut off testing to ensure that the revenue
is recorded in the appropriate period by reviewing
the Company's revenue recognition policies, testing
samples of revenue transactions near the end of the
reporting period and verified shipping and billing
documents to ensure that the revenue is recorded in
corrected accounting period.

5. Obtained the historical trends for revenue and
corresponding sales returns based on the accounting
records maintained by the Company.

6. Ensured completeness and existence assertion by
performing substantive testing on selected samples
of revenue transactions recorded during the year by
testing the underlying documents including contracts,
invoices, goods dispatch notes, shipping documents
and customer receipts, wherever applicable and
obtaining independent balance confirmation from the
customers at the balance sheet date.

7. Tested on a sample basis, manual journal entries
relating to revenues to identify and inquire on unusual
items, if any.

8. Performed analytical procedures on revenue
recognised during the year to identify and inquire
on unusual variances, if any and getting the reasons
for variances confirmed from the management of the
Company.

Sl.No.

Key Audit Matters

How the Key Audit Matters was addressed in our audit

9. Assessed the underlying assumptions and estimates
used for determination of variable consideration
and tested rebates and discount provided to the
customers on a sample basis, comparing the same
with underlying approvals and terms of the contracts
and schemes offered to customers.

10. Assessed the adequacy and appropriateness of
the disclosures made in the standalone financial
statements to ensure they are accurate, complete,
and comply with the requirements of Ind AS 115 -
'Revenue from contracts with customer'.

Assessment for impairment of investments in subsidiaries

(Refer Note 2.14 and 2.15 to the material accounting policies
and the disclosures related to carrying value of investments in
subsidiaries in Note 4 to the standalone financial statements)

At March 31,2025, the balance sheet includes investment in
subsidiaries amounting to ? 99,057.14 lacs which constitutes
16.79% of the total assets of the Company.

The Company performs periodic assessment of these
investments to identify any indicators of impairment and
make adequate provisions in accordance with Ind AS 36
Impairment of Assets. The determination of recoverable
value for impairment assessment, being higher of fair value
less costs of disposal and value in use, involves significant
judgements and involves various estimates including
weighted average cost of capital; sales growth rate; operating
margins (%); discount rate (%); and perpetuity growth rate
(%).

Changes in these assumptions, if any, could lead to
significant changes in the value of investment in subsidiaries
and accordingly impairment provision. Considering the
significant degree of management judgement involved in
the assumptions used for computation of the recoverable
amount, this is determined as key audit matter.

Our audit procedures in respect of this area included:

1. Assessed whether the Company's accounting policies
relating to the impairment of investments in subsidiaries
are in accordance with Ind AS 36 Impairment of Assets.

2. Obtained an understanding of the Company's process for
identification of indicators of impairment and tested the
design and operating effectiveness of internal controls
over such identification and impairment of identified
investments through fair valuation of investments.

3. Evaluated and challenged management's assumptions
such as implied growth rates during explicit period,
terminal growth rate, targeted savings and discount rate,
and operating margins, for their appropriateness based on
our understanding of the business of the subsidiaries, past
results and external factors such as industry trends.

4. Involved our valuation specialists to test the underlying
assumptions used by management along with their
external experts in computing recoverable value of
investments in subsidiaries, such as weighted average cost
of capital, sales growth rate, operating margins, perpetuity
growth rate and discount rate.

5. Evaluated the competence and objectivity of the valuation
specialist engaged by the management.

6. Performed sensitivity analysis of aforesaid key assumptions
to assess the effect of reasonably possible variations on the
current estimated recoverable amounts of investments to
evaluate sufficiency of headroom between recoverable
values and carrying amounts.

7. Tested the arithmetical accuracy of the management's
impairment testing model.

8. Assessed and validated the adequacy and appropriateness
of the related presentation and disclosures made by
the management as per the requirements of Ind AS
36: "Impairment of Assets” in the standalone financial
statements.

Sl.No.	Key Audit Matters	How the Key Audit Matters was addressed in our audit
3.	Recognition of government grants and assessment of its	Our audit procedures in respect of this area included:
	recoverability	1. Evaluated the government grant accounting policies ad-
	(Refer Note 2.5 to material accounting policies and the disclo¬ sures related to government grants in Note 6 and 8 to the ac¬ companying standalone financial statements.)	opted by the management of the Company, for compli¬ ance are with Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance.
	The Company is eligible for government grants under various schemes enacted by the State and the Central Government.	2. Tested the design and operating effectiveness of internal controls with respect to recognition of grants (including its classification as capital or revenue grant) and assessment
	Each of these schemes requires fulfilment of certain condi-	of its recoverability.
	tions by the Company to be eligible to receive the grant.	3. Performed substantive testing, on a sample basis, towards
	Recognition of grants (including its classification as capital or revenue grant) requires a suitable assurance by the Company towards compliance with the conditions specified in the rele-	recognition of grants in accordance with the respective schemes, its classification as revenue or capital grant and verified the same with supporting documents.
	vant schemes and that the grants will be received. The assess¬ ment of fulfilment of relevant conditions specified in the grant at the time of recognition involves judgement and assump¬ tions which are subject to uncertainty. The Company reas¬ sesses the recoverability of these grants at each balance sheet date.	4. Evaluated the Company's assessment of recoverability of respective grants based on ageing analysis and obtained explanations from management to assess the adequacy of the level of provision, if any, required for amounts consid¬ ered recoverable.
	We have identified recognition of grant and assessment of its recoverability as a key audit matter because of the complexi¬ ties in establishing the compliance with the eligibility condi¬ tions of the grant and judgement involved towards assess-	5. Tested the ageing analysis for matter that are not under litigation, and assessed the information used by the man¬ agement to determine the recoverability of these grants by considering collections against historical trends.
	ment of its recoverability and related provisions made considering the delayed recoveries in accordance with Ind AS 109 'Financial Instruments'.	6. Tested the arithmetical accuracy of the calculation of ac¬ crual of export benefits and prevailing discount on e-Scrips in compliance with the relevant conditions as specified in
		the notifications and policies, as applicable.
		7. Evaluated management's assessment of determination of
		provision for time value of money determined on the basis of expected credit loss methodology, evaluated the rea¬ sonableness of expected credit loss amount and assessed whether the requirements of applicable accounting princi¬ ples have been complied.
		8. Assessed and validated the adequacy and appropriate¬
		ness of the disclosures made by the management as per requirement of Ind AS 20 - 'Accounting for Government Grants and Disclosure of Government Assistance' in the standalone financial statements.

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

The Company's Board of Directors are responsible for the other information. The other information comprises 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 under SA 720 'The Auditor's responsibilities Relating to Other Information'

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE 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, changes in equity and
cash flows of the Company in accordance with the 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 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 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 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 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 are also responsible for overseeing the Company's financial reporting process.

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.

We give in "Annexure A" a detailed description of Auditor's responsibilities for Audit of the Standalone 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 "Annexure B" 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, 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 except for the matters stated in the paragraph 2 (h) (vi) below on reporting under Rule 11(g);

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 Flows dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section
133 of the Act;

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

f) The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 2
(b) above on reporting under Section 143(3)(b) and paragraph 2 (h) (vi) below on reporting under Rule 11(g);

g) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the
Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C”;

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 of pending litigations on its financial position in its standalone financial
statements - Refer Note 28 to 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.

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, 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 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, as on the date of this audit report, 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, and according to the information and explanations provided to us by the Management in this
regard 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 (1) and (2) above, contain any material mis-statement.

v) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the
members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act
to the extent it applies to declaration of dividend. (Refer Note 13 to the standalone financial statements).

vi) Based on our examination, which included test checks, the Company has used three accounting softwares for
maintaining its books of accounts (two of the softwares are managed and maintained by third-party software service
providers) 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 these softwares except that we are unable to comment on audit trail at database
level pertaining to one of the softwares due to absence of SOC report.

Further, during the course of our audit and considering SOC reports, we did not come across any instance of audit
trail feature being tampered with at application level for all the three softwares and at database level for two softwares,
except for the above. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory
requirements for record retention for one of the softwares.

3) In our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within
the limits laid prescribed under Section 197 read with Schedule V of the Act and the rules thereunder.

For M S K A & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Vikram Dhanania

Partner

Membership No. 060568

UDIN: 25060568BMJJRK5638

Place : Bengaluru

Date : May 28, 2025

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