We have audited Financial Statements of Synergy
Green Industries Limited (“the Company”), which
comprise the Balance Sheet as at March 31, 2025,
and 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 Financial Statements,
including a summary of Material Accounting Policies
and other explanatory information (hereinafter referred
to as “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 (‘the Act’) in the manner so
required and give a true and fair view in conformity with
the accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31,
2025, and its profits (including Other 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) of the Act. 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 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.

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.

Following is the Key Audit Matter identified which is of
most significance:

A. Capitalisation and useful life of property, plant
and equipment & Capital Work in Progress

During the year ended March 31, 2025, the
Company has capitalized property, plant and
equipment to the tune of 2,641.28 Lakhs on various
projects included in capital work in progress.
Company is under expansion and is in process
of establishing second unit with new machining
capacity for which company has raised funds
through right issue and will be borrowings funds
to tune of 9,500 Lakhs.

Out of the total capitalization Rs. 1,051.63 Lakhs
relates to plant and machinery, building Rs.
850.86 Lakhs and Dies and patterns Rs. 523.08
Lakhs. Property, Plant and Equipment comprise
and Capital work in progress consist of 36.58%
of Total Assets. Further, items of property, plant
and equipment that are ready for its intended
use as determined by the management have
been capitalised in the current year. Judgement
is involved to determine that the aforesaid
capitalisation meet the recognition requirement
under Ind AS specifically in relation to
determination of whether the criteria for intended
use of the management has been met.

Assessment of useful life of plant and machinery
involves management judgement, technical
assessment, consideration of historical
experiences, anticipated technological changes,
etc

Accordingly, the above has been determined as a
key audit matter.

Our audit procedures included and were not
limited to the following:

1. Examined the management assessment of
the assumptions considered in estimation of
useful life.

2. Examined the useful economic lives with
reference to the Company’s historical
experience and technical evaluation by
third party and a specialist appointed by
management.

3. Assessed the objectivity and competence of
the Company’s external specialists involved
in the process.

4. Assessed the nature of the additions made
to property, plant and equipment, capital
work-in-progress on a test check basis to test
whether they meet the recognition criteria as
set out in para 16 to 22 of Ind AS 16 - Property,
Plant and Equipment, including intended use
of management.

5. Examined and verified ageing of capital work
in progress.

6. Ensured correctness of borrowing cost and
associated income capitalization.

B. Right Issue of Equity Shares

During the year, the company undertook a right
issue of 14.13 Lakhs right equity shares of face
value of Rs. 10 each issued at a premium of Rs.
315 per share total price of Rs 325 per share and
raises Rs. 4592.25 lakhs through issuance of equity
shares to existing shareholders.

We identified this transaction as a key audit
matter due to the significance of the amount
involved in the right issue, the need for accurate
accounting treatment as per Ind AS, compliance
with applicable legal & regulatory requirements,
the adequacy of disclosures in the financial
statements.

Our audit procedures included and were not
limited to the following:

1. Obtained and reviewed the board resolution,
offer letter and shareholder approval related
to right issue.

2. Verified allotment and receipt of fund through
bank statements and share application form.

3. Examined compliance with SEBI and
Companies act provisions.

4. Assessed adequacy and accuracy of
disclosures in the notes to financial
statements.

Other Information

The Company’s Board of Directors is responsible for
the other information. The other information comprises
the information in the Directors Report 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 ofthe FinancialStatements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the 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.

Responsibilities 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 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, changes in equity and cash flows of the
Company in accordance with the accounting
principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under
section 133 of the Act read with 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 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
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, the
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
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
scepticism throughout the audit.

We also:

• Identify and assess the risks of material
misstatement of the FinancialStatements, 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.

• Obtainan understanding ofinternal controlrelevant
to the audit in order to design audit procedures

that are appropriate in the circumstances. Under
section I43(3)(i) of the Act 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 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.

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 except for the
matters stated in the paragraph 2(h)(vi) below
on reporting under Rule 11(g).

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 account.

d) In our opinion, the aforesaid Financial
Statements comply with the Indian
Accounting Standards specified under
Section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as
amended.

e) On the basis of the written representations
received from the directors as on March
31, 2025, 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 the Act.

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

g) As required by section 197 (16) of the Act; in
our opinion and according to information and
explanation provided to us, the remuneration
paid by the company to its directors is in
accordance with the provisions of section
197 and Schedule V of the Act read with
Companies (Appointment and Managerial
Personnel) Rules, 2014 and remuneration paid
to directors is in accordance with provisions
of this section read with Schedule V.

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 Financial Statements -
Refer Note 34 to the 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
- Refer Note 18 to the Financials
Statements;

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

(iv) (a) The management has represented to

us that, to the best of its knowledge and
belief, other than as disclosed in the
notes to the accounts to the financial
statements, if any, 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, 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”)

(v) The dividend proposed in the previous
year, declared and paid by the Company
and dividend proposed during the year is in
accordance with Section 123 of the Act, as
applicable.

(vi) Based on our examination which included
test checks, the company, 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 did not note
any instance of the audit trail (edit log) feature
being tampered with on accounting software
where this feature has been enabled.

The company has maintained an audit trail in
accordance with statutory record retention
requirements from 08^th January 2025.

For M/s D A B & ASSOCIATES

Chartered Accountants
Firm Registration No. 101119W

Guruprasad Bobhate

Partner

Membership No.198670
UDIN: 25198670BMIJYO5094

Place: Kolhapur
Date: 09^th May 2025