We have audited the accompanying Financial Statements
of Bafna Pharmaceuticals Limited ("the Company"), which
comprise 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 the
Statement of Cash Flows for the year then ended, and notes
to the Financial Statements, including a summary of material
accounting policies and other explanatory information
(hereinafter referred to as "the Financial Statements").

In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Financial
Statements give the information required by the Companies
Act, 2013, as amended ('the Act') in the manner so required
and give a true and fair view in conformity with accounting
principles generally accepted in India including the Indian
Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended ("Ind AS"), of the state of affairs of
the Company as at 31^st March 2025, its profit (including other
comprehensive income), its changes in equity and its cash
flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in
accordance with the Standards on Auditing ("SAs") specified
under Section 143(10) of the Act. Our responsibilities under
those SAs 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 ("ICAI'") together with the ethical requirements that are
relevant to our audit of the 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 we have obtained is sufficient and appropriate
to provide a basis for our opinion on the Financial Statements.

Emphasis of Matters

Attention is invited to:

a. the non-receipt of the foreign currency receivables as on
31^st March 2025 aggregating to INR 120 Lakhs (as on
31^st March 2024 - INR 174 Lakhs), which are outstanding
beyond the stipulated time period permitted under the RBI
Master Direction on Export of Goods and Services vide
FED Master Direction No. 16/2015-16 dated 1^st January,
2016 (as amended), issued by the Reserve Bank of
India ("RBI"). The management of the Company is in the
process of obtaining approval towards extension of time
limits for realization or write off of the balances. Pending
such confirmation, no adjustment is envisaged in the
books of accounts as on 31^st March 2025.

b. the adjustment of Income Tax Refund pertaining to
previous Assessment Years amounting to INR 45.17
Lakhs. The Income Tax Department has issued the refund
order on various dates for respective assessment years;
however, such refunds have been adjusted against the
outstanding demands through Centralized Processing
Centre ("CPC"). As represented by the management, the
Company has filed a writ petition with Honourable Madras
High Court against the adjustment of refund issued with
the outstanding demand.

c. Note No. 36 to the Financial Statement regarding the
non-compliance with various statutory compliances
under Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations,
2015 and Securities Contracts (Regulations) Rules,
1957, as amended with respect to the Minimum Public
Shareholding, appointment of Compliance Officer and
submission of certain prescribed information to the
Stock Exchanges during the previous reporting periods.
The Company has received the communication from BSE
Limited and National Stock Exchange of India Limited
in respect to such non-compliance and appropriate
provision has been accounted in the books of accounts as
on reporting date. However, the management is perusing
with the Stock Exchanges for waiver of such penalties
since the Company has complied with the Minimum
Public Shareholding threshold.

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

KEY AUDIT MATTERS

Key Audit Matters are those matters that, in our professional judgement, were of the most significance in our audit of the Financial
Statements of the financial year ended 31^st March 2025. 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 following matters as Key Audit Matters to be communicated in our report:

Other Information

The Company's Board of Directors is responsible for the
preparation of the other information. The other information
comprises the information included in the Company's Annual
Report, but does not include the Financial Statements, and our
auditor's report thereon. The other information is expected to
be made available to us after the date of auditor's report. Thus,
our report does not deal with matters mentioned under other
information in Annual Report.

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 identified
above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with
the Financial Statements or our knowledge obtained during
the course of our audit or otherwise appears to be materially
misstated.

When we read the other information, if we conclude that
there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.

Management's Responsibilities for the 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 Financial Statements that give a true and
fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of
the Company in accordance with the accounting principles
generally accepted in India, including the Ind AS 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 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, Board of Directors 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 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 is also responsible for overseeing the
Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial
Statements

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:

a) 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.

b) 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 Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal
financial controls with reference to Financial Statements
in place and the operating effectiveness of such controls.

c) Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the management.

d) 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.

e) 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.

Materiality is the magnitude of misstatements in the
Financial Statements that, individually or in aggregate,
makes it probable that the economic decisions of
a reasonably knowledgeable user of the 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 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 Financial Statements of the
financial year ended 31^st March 2025 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 Act, 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 our audit
of the aforesaid Financial Statements.

b. In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
Financial Statements 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 3(f) below on reporting under Rule 11(g)

of the Companies (Audit and Auditors) Rules, 2014,
as amended.

c. The Balance Sheet, the Statement of Profit and Loss
(including Other Comprehensive Income), 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 Financial Statements
comply with the Ind AS specified under Section 133
of the Act read with Companies (Indian Accounting
Standard) Rules, 2015 as amended.

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. The modifications relating to the maintenance of
accounts and other matters connected therewith are
as stated in the paragraph 2(b) above on reporting
under Section 143(3)(b) of the Act and paragraph
3(f) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014, as
amended.

g. With respect to the adequacy of the internal financial
controls with reference to Financial Statements
of the Company and the operating effectiveness
of such controls, refer to our separate Report in
"Annexure B" to this report.

3. 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 disclosed the impact of pending
litigations on its financial position in its Financial
Statements. Refer Note: 35 to the 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 are no amounts which are 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
(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(s)
or entity(ies), including foreign entity(ies)
("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
(which are material either individually or in the
aggregate) have been received by the Company
from any person(s) or entity(ies), including
foreign entity ("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;

(iii) Based on the audit procedures that have been
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 (i) and (ii) of
Rule 11(e), as provided under (i) and (ii) above,
contain any material misstatement.

(e) The Company has not declared, paid interim dividend
during the year or proposed final dividend for the
year.

(f) Based on our examination which included test
checks and information given to us, the Company
has used accounting software for maintaining its
books of account, which does not have a feature of
recording audit trail (edit log) facility, and the same
did not operate throughout the year for all relevant
transactions recorded in the respective software.

Additionally, the preservation of audit trail is not
applicable for the previous year as the accounting
software did not have the feature of recording of
audit trail.

4. With respect to the other matters to be included in the
Auditor's Report in accordance with requirement of
section 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 director during the year is in
accordance with the provision of section 197 of the Act.
The remuneration paid to directors is not in excess of the
limit laid down under section 197(16) which are required
to be commented upon by us.

For Brahmayya & Co.,

Chartered Accountants
Firm Registration No. 000511S

Lokesh Vasudevan

Partner

Place : Chennai Membership No. 222320

Date : 26^th May 2025 UDIN: 25222320BMIKTW2187