We have audited the accompanying standalone
financial statements of Hester Biosciences Limited
(the ‘Company') which comprise the Balance Sheet
as at 31 March 2026, 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 a summary of material
accounting policies and other explanatory information
(hereinafter referred to as “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 31
March 2026, its profit, total comprehensive income,
the changes in equity and its cash flows for the year
then 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 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 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 made thereunder, and we
have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI's
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 standalone financial
statements.

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. 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. For each matter below, our description
of how our audit addressed the matter is provided
in that context. We have fulfilled the responsibilities
described in the Auditor's responsibilities for the
audit of the standalone financial statements section
of our report, including in relation to these matters.
Accordingly, our audit included the performance of
procedures designed to respond to our assessment
of the risks of material misstatement of the standalone
financial statements. The results of our audit
procedures, including the procedures performed
to address the matters below, provide the basis for
our audit opinion on the accompanying standalone
financial statements.

Information Other than the Standalone 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 Board's
Report including Annexures to Board's Report and
Management Discussion & Analysis but does not
include the standalone financial statements and our
auditor's 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 standalone financial
statements, our responsibility is to read the other
information identified above 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 Information, we are required to report that fact.
We have nothing to report in this regard.

Management’s Responsibilities 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 including
other comprehensive income, changes in equity and
cash flows of the Company in accordance with the Ind
AS and 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 the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgement
and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate
internal financial controls, that were operating
effectively or ensuring 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,
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 aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of
these standalone 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 standalone 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 an 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 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 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.

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 auditors' 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, to
the extent applicable.

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 purpose of our audit.

b. In our opinion, proper books of account
as required by law have been kept by the

Company, in electronic mode on servers
physically located in India so far as it
appears from our examination of those
books, SOC Type I & II report and other
records and details provided to us.

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 Flow
dealt with by this Report are in agreement
with the books of account.

d. In our opinion, the aforesaid financial
statements comply with the Accounting
Standards specified under Section 133
of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015,
specified under section 133 of the Act.

e. On the basis of the written representations
received from the directors, taken on
record by the Board of Directors, none of
the directors is disqualified as on 31 March
2026, from being appointed as a director
in terms of Section 164(2) of the Act.

f. With respect to the adequacy of internal
financial controls over financial reporting
of the Company and the operating
effectiveness of such controls, refer to our
separate report in “Annexure B”.

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 according to the
information and explanation given to us by
the management, the remuneration paid/
provided during the Current Year by the
Company to its directors is in accordance
with the provisions of Section 197 read
with Schedule V of the Act.

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, as amended in our
opinion and to the best of our information and
according to the explanations given to us:

a. The Company has no pending litigations
having any material impact on its financial
position in its financial statements except
as stated in note 33 of the standalone
financial statements;

b. The Company did not have any long-term
contracts, including derivative contracts
for which there were any material
foreseeable losses.

c. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund
by the Company.

d. i. 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.

ii. 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.

iii. 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 (d) (i) and (ii) above,
contain any material misstatement.

e. i. The final 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.

ii. The Board of Directors of the
Company has proposed a final
dividend for the year which is subject
to the approval of the members at
the ensuing Annual General Meeting.
The amount of dividend proposed is
in accordance with section 123 of the
Act, as applicable.

f. Based on our examination which included
test checks and in accordance with
requirements of the Implementation
Guide on Reporting on Audit Trail under
Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014, we report that -

The company has used accounting
software for maintaining its books
of account which have a feature of
recording audit trail (edit log) facility and
based on the SOC Type I & II report for
such software provided to us, it can be
derived that the audit trail has operated
throughout the year for all relevant
transactions recorded in the software.
Further, during the course of our audit
we did not come across any instance
of audit trail feature being tampered
with. Additionally, the audit trail has
been preserved by the company as per
the statutory requirements for record
retention.

For, Chandulal M. Shah & Co.

Chartered Accountants
FRN 101698W

Irshad I. Mansuri Date 15 May 2026

Partner Place Ahmedabad

M. No. 135475

UDIN: 26135475IZJEMZ1459