We have audited the accompanying Standalone Financial Statements of
CELEBRITY FASHIONS LIMITED (“the Company”), which comprise the Balance
Sheet as atMarch 31, 2025, the Statement of Profit and Loss (including Other
Comprehensive Loss), the Statement of Changes in Equity, and the Statement
of Cash Flows for the year then ended and notes to the financial
statementsincluding a summary of 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, 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 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
31,2025, the loss and total comprehensive loss, changes in equity and its cash
flows for the year ended on thatdate.

Basis for Opinion:

We conducted our audit 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 together with the ethical
requirements that are relevant to our audit of the Standalone Financial Statements
under the provisions of the Companies Act, 2013 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 we
have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

The Company has accumulated losses of Rs.39.13 crores as on March 31,2025.
We have evaluated the appropriateness of the ‘going concern’ concept in
accordance with SA-570, based on such evaluation and on the basis of the
information and explanations given to us, we report that we have obtained
sufficient evidence to establish the continuance of the Company as a going
concern. The Financial Statements of the Company have been prepared on a
going concern basis. Our opinion 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. We have determined the matters described
below to be the key audit matters to be communicated in our report.

a) Revenue recognition (Ind AS 115)

The application of the new standard on recognition of revenue involves
significant judgment and estimates made by the management which includes
identification of performance obligations contained in contracts,
determination of the most appropriate method for recognition of revenue
relating to the identified performance obligations, assessment of transaction
price and allocation of the assessed price to the individual performance
obligations.

Audit procedure involved review of the Company’s Ind AS 11 5
implementation process and key judgments made by management,

evaluation of customer contracts in light of Ind AS 115 on sample basis
and comparison of the same with management’s evaluation and assessment
of design and operating effectiveness of internal controls relating to
revenue recognition.

Based on the procedures performed, it is concluded that management’s
judgments with respect to recognition and measurement of revenue in light
of IND AS 115 is appropriate.

Furthermore, the appropriateness of the disclosures made in Note No.22&
1.5 to the financialstatements was assessed.

b) Existence and impairment of Trade Receivables

Trade Receivables are significant to the Company’s financial statements.
The Collectability of trade receivables is a key element of the Company’s
working capital management, which is managed on an ongoing basis by its
management. Due to the nature of the Business and the requirements of
customers, various contract terms are in place which impacts the timing of
revenue recognition. Given the magnitude and judgment involved in the
impairment assessment of trade receivables, we have identified this as a
key audit matter.

We performed audit procedures on existence of trade receivables, which
included substantive testing of revenue transactions, obtaining trade
receivable external confirmations and testing the subsequent payments
received. Assessing the impact of trade receivables requires judgment and
we evaluated management’s assumptions in determining the provision for
impairment of trade receivables, by analyzing the ageing of receivables,
assessing significant overdue individual trade receivables and specific local
risks, combined with the legal documentations, where applicable.

In calculating the Expected Credit Loss as per Ind AS 109 - “Financial
Instruments”, the Company has also considered the estimation of probable
future customer default.

We tested the timing of revenue and trade receivables recognition based
on the terms agreed with the customers. We also reviewed, on a sample
basis, terms of the contract with the customers, invoices raised, etc., as a
part of our audit procedures.

Furthermore, we assessed the appropriateness of the disclosures made in
Note No. 1.17 to the financial statements.

c) Assessment of Provisions for taxation, litigations and claims: As at

March 31,2025 Celebrity Fashions Limited had a provision in respect of
possible or actual taxation disputes, litigation and claims to the tune of Rs.

0.29 crores.These provisions are estimated using a significant degree of
management judgment in interpreting the various relevant rules, regulations
and practices and in considering precedents in various forums

The Audit addressed this Key Audit Matter by assessing the adequacy of
tax Provisions by reviewing correspondence with tax Authorities

Discussing significant litigations and claims with the Company’s Internal
Legal Counsel

Obtaining Letters from Celebrity Fashions External Advisors including their
views regarding the likely outcome and magnitude of and exposure to the
relevant litigation and claims

Reviewing previous judgments made by relevant tax Authorities and opinions
given by Company’s advisors.

Assessing the reliability of the past estimates of the management.

Based on the procedures performed, it is concluded that the management’s
assessment of the outcome of pending litigations and claims is appropriate.

Furthermore, the appropriateness of the disclosures made in Note No. 40to
the financial statements was assessed.

d) Accuracy on valuation of Inventory

Management judgment is required to establish the carrying value of inventory
particularly in relation to determining the appropriate level of provisions in
relation to obsolete and Surplus items.

The judgment reflects that inventory is held to support Company’s
operations which results in the Company holding inventory for extended
periods before utilization.

Audit procedures include testing the inventory provisions, we assessed
the management control and estimation of inventory provisions and their
appropriateness. The future salability of inventory was assessed based on
past track records.

e) Adoption of IND AS 116 - Leases

As described in Note No.2(B)to the financial statements, the Company has
adopted Ind AS 116 - Leases (Ind AS 116). The application to this accounting
standard is complex and is an area of focus in our audit.

Ind AS 116 introduces a new lease accounting model, wherein lessees are
required to recognize a right-of-use (ROU) asset and a lease liability arising
from a lease on the balance sheet. The lease liabilities are initially measured
by discounting future lease payments during the lease term as per the
contract/ arrangement. Adoption of the standard involves significant
judgements and estimates including, determination of the discount rates
and the lease term. Refer Note No. 2(B)& 1.23 to the financial statements.

Our audit procedures on adoption of Ind AS 116 include:

• Assessed and tested new processes and controls in respect of the
lease accounting standard (Ind AS 116).

• Assessed the Company’s evaluation on the identification of leases
based on the contractual agreements and our knowledge of the
business;

• Evaluated the reasonableness of the discount rates applied in
determining the lease liabilities.

On a statistical sample, we performed the following procedures:

• Assessed the key terms and conditions of each lease with the underlying
lease contracts; and

• Evaluated computation of lease liabilities and challenged the key
estimates such as, discount rates and the lease term.

• Assessed and tested the presentation and disclosures relating to Ind
AS 116 including, disclosures.

Information Other than the Standalone Financial Statements and Auditors’
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 Reportbut does not include the Standalone Financial
Statements and our report thereon.

Our opinion on the Standalone Financial Statements does not cover the other
information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the StandaloneFinancial Statements, our
responsibility is to read the other information 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.

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 Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 (“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, total comprehensive loss, changes in
equity and cash flows of the Company in accordance withthe accounting principles
generally accepted in India, including the accounting Standards specified under
section 133 of the Act, read with the rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 as amended.

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 implementation and maintenance of
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 statement that give a true and fair view and are free
from material misstatement, whether due to fraud or error.

In preparing the StandaloneFinancial 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.

Those 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 FinancialStatements.

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 Companies Act, 2013, 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.

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, issued by
the Central Government of India in terms of sub-section (11) of section 143
of the Companies Act, 2013, (herein after referred to as the “Order”), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, 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, 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
ouraudit.

(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 Loss), Statement of changes in the equity and the Cash
Flow Statement 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 IND AS specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts Standards) Rules, 2014.

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

(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 “AnnexureB”.

(g) With respect to the other matters to be included in the Auditors’ Report in
accordance with the requirements ofSection 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,
as amended, 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 as referred to in Note No. 40to the Standalone Financial
Statements;

ii. 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

iii. There were no amounts required to be transferred to the Investor
Education and Protection Fund by the Company for the year ended
March 31,2025.

iv. (a) Management has represented that, to the best of its knowledge and
belief, other than as disclosed in the 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 person(s) or entity(is), 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. (Refer Note.49(L) to the Standalone
Financial Statements)

(b) Management has represented that, to the best of its knowledge and
belief, other than as disclosed in the notes to the 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, 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 (Refer
Note.49(M) to the Standalone Financial Statements), and

(c) Based on the audit procedures adopted by us, nothing has come to
our notice that has caused us to believe that the representations made
by the Management under sub clause (a) and (b) above, contain any
material misstatement.

v. The Company has not declared or paid any Dividend during the year

vi. Based on our examination which included test checks, the Company,
in respect of financial year ended March 31, 2025, 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 didnot come
across any instance of the audit trailfeature being tampered with and
the audit trailhas been preserved by the Company as per thestatutory
requirements for record retention.

For SRSV & Associates

Chartered Accountants

Firm Regn. No. 015041S

R Subburaman

Partner

Membership No.: 020562

UDIN:25020562BNUKHW6053

Place : Chennai
Date : May 27, 2025