We have audited the standalone financial statements of Prashant India Limited (“the Company”),
which comprises of the Balance Sheet as at 31st March 2025, and the Statement of Profit and Loss
(including other Comprehensive Income), the Statement of Changes in Equity and the Statement of
Cash Flows for the year then ended, and notes to the standalone financial statements, including a
summary of significant 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 standalone financial statements give the information required by the Companies Act 2013
(“Act”)in the manner so required and subject to our notes in Qualified Report, give a true and fan-
view in conformity with the accounting principles generally accepted in India including Indian
Accounting Standards (“Ind AS”) specified under section 133 of the Act, of the state of affairs of the
Company as at March 31, 2025 and its profit/loss, total comprehensive income, the changes in equity
and 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) of 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.

Qualified Report

• Material Uncertainty Related to Going Concern

We draw attention to Note No. 1(b) on Going Concern, which states inter alia that

a. the Company has incurred net loss after tax of Rs. 20.02 lakhs during the year ending
on 31st March, 2025 and has been incurring net losses / cash losses since past several
years

b. the accumulated losses of the Company have far exceeded its entire capital plus
reserves. Net Worth of the Company has been negative since the year ending on 31^st
March, 1998.

c. the Company’s current liabilities exceeded its current assets by Rs. 3382.01 lakhs as on
31^st March, 2025 indicating the state of financial distress and reflecting its almost
inability in meeting with its financial obligations

d. the company has not made provisions on account of liabilities and doubtful assets to
the extent of Rs. 11223.26 lacs

e. the operations of Agro division of the company have stood suspended since the year
1998. The Company has sold all the plant and machineries of Agro division as scrap
during the financial year 2018-19 and has been in the process of selling land and
building of the said Division.

f. the operations of Textile Division of the Company are closed since July 2023, due to
issues like unavailability of job work, unaffordable pricing, machineries obsolete
technology, etc.

g. there is not full captive consumption of wind power generation by Wind Power
division of the Company resulting into partly sale of power to DGVCL at predefined
rate, which is significantly lower than the billing rate. Though the Agreement with
GETCO for the wheeling of power generated by Wind Power division is valid till 30^th
Sept., 2025, the Gujarat Renewable Energy Policy, 2023 demands scrapping off of all
wind turbines of the Company having completed 25 years of life.

h. the Company has entered into an Agreement for Sale with one of the Secured
Creditors of the Company for the sale of factory land and building of Textile Division
and execution of sale deed is pending subject to the approval of members in the
General Meeting.

i. The Company has invited bids / offers for the sale of all its plant & machineries of
Textile Division on “as is where is basis” and shall dispose of said plant & machineries.

j. the Company has invited bids / offers for the sale of all its plant & machineries of Wind
Power Division on “as is where is basis” and shall dispose of said plant & machineries

All these collectively indicate that a material uncertainty exists that may cast significant

doubt on the Company’s ability to continue as “Going Concern

Management’s perspective:

The Management’s plan is to get rid of all the debts and making the Company debt free by
disposing of the existing assets of the Company, negotiating with secured creditors for waiver
of debt against settlement of dues and thereafter to launch a new project finding out new
investors.

Auditor’s view point Management’s perspective

We have our own reservations about Management’s plans and hence, our opinion is Modified
(Qualified) in respect of the aforesaid Matter.

• Non provision of liabilities -

We draw attention to Note No 20(b) on Provisions and Contingent Liabilities. In this
regulatory environment, there is an inherent risk of litigations and claims. Consequently,
provisions and contingent liabilities disclosures may arise from tax proceedings, legal
proceedings including regulatory and other government / department proceedings as well as
investigations by authorities and other financial obligatory positions. As at March 31, 2025,
the Company has not provided for liabilities and assets to the extent of Rs. 11223.26 lakhs.
Management applies significant judgement in estimating the likelihood of the future outcome
in each case when to consider- whether, and how much, to provide or in determining the
required disclosure for the potential exposure of each matter. This is due to the highly
complex nature and magnitude of the legal matters involved along with the fact that resolution
of tax and legal proceedings may span over multiple years, and may involve protracted
negotiation or litigation. These estimates could change substantially over time as new facts
emerge and each legal case progresses. In our Audit approach, we found that recording of the
outstanding litigations against the Company for consistency with the previous years, enquire
and obtain explanations for movement during the year, need development for those matters
where management concluded that no provisions should be recognised, considering the
adequacy and completeness of the Company’s disclosures.

Management’s perspective:

The Management’s plan is to get rid of all the debts and making the Company debt free by
disposing of the existing assets of the Company, negotiating with secured creditors for waiver
of debt against settlement of dues and thereafter to launch a new project finding out new
investors.

Auditor’s view point Management’s perspective

We have our own reservations about Management’s plans and hence, our opinion is Modified
(Qualified) in respect of the aforesaid Matter.

Emphasis of Matter

• We draw attention to Note No 17 on Employee Benefit Expenses (including transactions
related to provident fund, ESIC, profession tax, gratuity, leave encashment, bonus liability) for
the year ended on 31st March 2025. We perceived that the system of recording such expenses
needs advancement to ensure terminality, transaction trail and related documentary evidences.
Accordingly, we are impuissant to assess and quantify effect of aforesaid transactions on the
financial statements. However, according to management estimates, such
expenses/transactions are fairly stated in the financial statement and there are no material
deficiencies/ non provisions.

Our opinion is not modified in respect of the aforesaid Matter.

• We draw attention to Note No 20(c) on Confirmations/ Reconciliation of trade receivables,
trade and other payables (including micro and small enterprises and including capital
creditors) and loans and advances that are pending. The management is confident that on
confirmation/ reconciliation, there will not be any material impact on the financial statements.

Our opinion is not modified in respect of the aforesaid 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 renorts:

The Company’s Board of Directors is responsible for the preparation of the other information. The
other information comprises of the information included in the Management Discussion and Analysis,
Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s information, 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 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
standalone 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 observation, we are required to report that fact. We have nothing to report in this regard.

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
Companies Act, 2013 (“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 Indian Accounting
Standards (Ind AS), prescribed under Section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Rules 2016 as
amended from time to time and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records, with tracking of
changes, 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 statement 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.

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 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 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 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 Companies Act,
2013, we give in the “Annexure A”, a statement on the matters specified in paragraphs 3 and 4 of
the Order.

2. (A) 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, subject to our note regarding limited maintenance of edit log report,
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 Statement of Changes in Equity and the Cash Flow Statement dealt with by
this Report are in agreement with the books of accounts

d) In our opinion, subject to our qualification regarding viability of the Company as “Going
Concern”, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.

e) On the basis of the written representations received from the directors as on 31^st March,
2025 taken on record by the Board of Directors, none of the directors is disqualified as on
31^st 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, please refer to our separate
Report in “Annexure B”.

g) With respect to the matter to be included in the Auditor’s Report under section 197(16),
according to the information and explanations given to us, the Company has not paid
remuneration to its directors during the current year The Ministry of Corporate Affairs
has not prescribed other details under section 197(16), which are required to be
commented upon by us.

(B) 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:

a) The Company has disclosed the impact of pending litigations on its financial position in its
financial statements - Please refer Note 20 to the financial statements;

b) The Company has not made provisions as required under applicable Laws or Accounting
Standards for material foreseeable losses as mentioned in Note No. 20(b). The Company
did not have any long term contracts including derivative contracts for which there were
any material foreseeable losses.

c) There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.

d) The management has represented that to the best of its knowledge and belief that

(i) 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

(ii) 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 to or on behalf of the Ultimate
Beneficiaries and

(iii) 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 sub clause (d)(i) and (d)(ii) of Rule 11(e) above contain any
material misstatement.

e) The company has not declared or paid dividend during the year.

f) Based on our examination, which included test checks, the company has used Tally prime
Edit log accounting software in its standard form as supplied by the Vendor, for
maintaining its books of accounts, which has the feature of recording audit trail (edit log)
facility and that has operated throughout the year for all relevant transactions recorded in
the software except that the audit trail at database level contains only the modified value.
Further, during the course of our audit, we did not notice any instance of audit trail
feature being tampered with for the period the audit trail was enabled and the audit trail,
where enabled, has been preserved by the Company as per the Statutory requirements for
record retention.

For SONIJHAWAR & CO.
CHARTERED ACCOUNTANTS

Sd/-

Place : Surat. SATYANARAIN SONI

Date : 28-05-2025 PARTNER

M.No.: 071689

FRN. : 0110386W
UD1N :

25071689BMHUVJ3156