We have audited the accompanying standalone financial
statements of M/S. NANDAN DENIM LIMITED (“the
Company”), which comprises the Balance Sheet as at 31^st
March, 2025, the Statement of Profit and Loss (including
Other Comprehensive Income), the statement of Changes in
Equity and Cash Flow Statement for the year ended on that
date, and a summary of significant 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 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) Rule, 2015, as amended (“Ind AS”) and other
accounting principles generally accepted in India, of the
state of affairs of the Company as at 31st March, 2025 and
its profit & total Comprehensive Income, Changes in equity
and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) the Companies

Act, 2013. Our responsibilities under those Standards are
further described in the Auditor's Responsibilities for the
Audit of the 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 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.

Emphasis of Matter

As described in Note 48 to the Financial Statement, the
Income Tax Department had carried out the search at the
company's business premises from July 20, 2022 to July 26,
2022. The assessments for the period covered by search
are pending for some of the years. The management of the
Company does not expect any material additional liability as a
result of the search and hence no provision for the additional
income tax liability has been made by the Company.

Our opinion is not modified in respect of the above matters.

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 period.

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.

Key audit matter identified in our audit is on assessment of Existence & Recoverability of Trade Receivable as follows:

The company has trade receivables (net) outstanding

of '51,052.81 Lakhs after deducting the provision for Our audit procedures included the following:

impairment of '2,883.28 Lakhs at the end of reporting • Reviewing the accounting policy with respect to

period.

This represents 40% of the total assets of the company.

These balances are receivable in relation to the revenue
recognized in accordance with the requirements of Ind AS
115 “Revenue from Contracts with Customers”.

The recoverability 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, the requirements of customers
and various contract terms that are in place, there is a risk
that the carrying values may not reflect the recoverable
amounts as at the reporting date.

Therefore, the assessment of existence & recoverability
of trade receivables is a key audit matters due to its size,
and inherent uncertainty involved in the Management
judgement.

Refer note 2.1.1 to material accounting policies and note 9 &
9.3 and note 34.3.3 to the standalone Financial statements.

recognition of revenue & its appropriateness in
accordance with Ind AS 115: Revenue from Contract
with Customers;

Appropriateness of Recognition, Measurement and
Impairment of Trade Receivables in accordance with
Ind AS 109: Financial Instruments.

Evaluating the design & implementation of internal
controls in relation to recovery of Trade receivables,
calculation of allowance for impaired trade receivable
along with testing its operating effectiveness on sample
basis.

Obtaining the external balance confirmations
on samples basis to ascertain the existence &
completeness of trade receivables.

Verified the subsequent receipts of trade receivables
for selected samples to ascertain its existence as on
balance sheet date.

Obtaining an understanding of the processes for
evaluating the recoverability of the trade receivables
including the collection process & allowances for
impaired trade receivables.

Verifying the ageing analysis of Trade receivables,
long outstanding & overdue balances, latest
correspondences with customers for recovery of dues
& evaluating its impact on provisioning & impairment.
Assessing the adequacy of the disclosures as required
by the statute.

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

The Company's Board of Directors is responsible for the other information. The other information comprises the information
included in the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business
Responsibility & Sustainability Report, Corporate Governance and Shareholder's Information, but does not include the
standalone financial statements and our auditor's report thereon. The other information 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 do 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 and, in
doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

Responsibility of Management and Those Charged with Governance for the 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 and presentation of these standalone financial statements that give a true and fair view
of the financial position, financial performance 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, read with Rule 7
of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of 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 judgements and estimates that
are responsible 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 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 Financial
Statement

Our objectives are to obtain reasonable assurance abou
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, bu
is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when i
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 financia
statements.

A further description of the auditor's responsibilities for the
audit of the financial statements is included in Annexure A
This description forms part of our auditor's report.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order
2020 (“the Order”) issued by the Central Governmen
of India in terms of sub-section (11) of section 143 o
the Act, we give in the Annexure B, 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 ou
knowledge and belief were necessary for the
purpose of our audit.

b) In our opinion proper books of account as required
by law have been kept by the Company so far a;
appears from our examination of those books;

c) The Standalone Balance sheet, the statement o
Standalone Profit and loss, other comprehensive
Income, Statement of changes in Equity and the
Standalone Cash Flow Statement dealt with by
this Report are in agreement with the book
of account;

d) I n our opinion, the aforesaid standalone financia
statements comply with the Indian Accounting
Standards specified under Section 133 of the Act

e) On the basis of written representations received
from the directors as on 31^st March, 2025 taker
on record by the Board of Directors, none of the

directors is disqualified as on 31st March, 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 over financial reporting of the
Company and the operating effectiveness of such
controls, refer to our separate Report in “Annexure
C”. Our report expresses an unmodified opinion
on the adequacy and operating effectiveness of
the Company's internal financial controls over
financial reporting.

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:

I n 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 of
pending litigations on its financial position in
its standalone financial statements.

ii) The Company was not required to recognise
a provision as at 31st March, 2025 under the
applicable law or accounting standards, as
it does not have any material foreseeable
losses on long term contracts. The company
did not have any derivative contracts as on
31st March, 2025.

iii) There has been no delay in transferring
amounts required to be transferred, to
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 (which are material
either individually or in the aggregate)
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 or entity, including

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
(a) and (b) above, contain any material
misstatement.

v) The company has not declared or paid any
dividend during the year in contravention
of the provisions of section 123 of the
Companies Act, 2013.

vi) The reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014
is applicable from 1 April 2024. Based on
our examination which included test checks,
the Company has used 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.

As per our Report of Even Date

For, Nahta Jain & Associates

Chartered Accountants
Firm Reg. No. 106801W

Gaurav Nahta

Partner

Place: Ahmedabad M.No. 116735

Date: 23.05.2025 UDIN: 25116735BMJEOB5037