Report on the audit of the financial statements

Opinion

We have audited the accompanying Standalone fnd AS. financial statements of SAFFRON INDUSTRIES LIMITED, whim comprise me balance sneer 35 at March 31st, 2025 and the Statement of Profit and Loss and statement of cash flows for the year then ended, and notes to the fmanc-ai statements, 'ncfudrnq a sum nary o* significant accounting policies and other expranatory Information.

Tn 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 oy the Companies Act. 20 13 in the manner so required and give a true and fair view rn conformity with the accounting print pies gereraliy accepted in ndia, of the state of affairs of the Company as at March 3 I, 2025, its Profit and cash flows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the standards on auditing specified under section 143 (10) of the Companies Act, 2UI3. 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 ace independent of the Company in accordance with the code of ethics issued Oy the Institute of Chartered Accountants of India together with the ethica/ requirements that are relevant to our a unit of the financial statements under the provisions of the Act and the rules thereunder, ano we have fulfil led our other ethical msponsibilsties in accordance with tnese requirements and the code of ethics.

We believe that the audit evidence we nave obtained is sufficient and appropriate h> provide a basis for ouropmron.

Key audit matters:

Key audit matters are those matters that, in our professional judgment, were of most significance in our aud* of the financial statements of the current period. Tnese matters were addressed in the context of our audit of the financial statements as a whose, and informing our opinion thereon, and we do not provide a separate opinion on those matters.

We are of the opinion that there are no other key matters as per SA 701, to he reported for the ensuing year under audit.

Information other than the financial statements and auditors' report thereon:

The Company's board of directors is responsitjJe for the preparation of the other information, The other information somorises the nfbrmaticn included in the Board's deport including Annexure to Board's Report, Business Responsibility Report but does not include The financial statements and our auditor's report thereon.

Our opinion on the financial statements aoes net cover the other information arrd wo 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 corng 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 oh the work we have performed, we conclude that there is 3 material misstatement of this other Information, we are required to report that fact We have nothing to report in this regard

Management's responsibility for the financial statements:

The Company'! board of directors are responsible ior the matters stated n section 134 {5\ of the Act with respect tc rhe preparation oT these Finarrial siaiemenrs thai give a true and Farr view ot the financial ousiton. financial performance and cash flows of thfe Company in accordance with the accounting prrncijjios generally accepted in India, including the accounting standards specified under section 133 of rhe Act This responsibility afro includes maintenance of adequate sceountmg 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; scree bon and application of appropriate accounting policies; making judgments and estimates that are reasonable and crucent; 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 arc 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 gong concern and using the go,rig concern basis of accounting unless management either intends to liquidate the Cnmoany or to cease opera bon s. or has no realistic alternative but to do so.

The boards oF directors are also responsible for overseeing jhe Company's financial reporting process.

Auditor's responsibilities for the audit of :ne financial statements:

Our objectives are to obtain reasonable assurance about whether I he financial Statement as a whole are free from maleriai misstatement, whether due to fraud or error, and to issue an auditor's report that incJudes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit con duetto m accordance with SAs will always detect a materiaf misstatement when it exists Misstatements can arise from fraud or error and are considered material if, (individually or in the aggregate, they couid reasonably be expected to influence the economic decision? of users laken on the basis Of these financial Statements.

As part of an audit lo accordance with SAs. we exercise professional judgment and maintain professional skepticism throughout rhe 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 lo those risks, ard obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion The risk of noi defecting a material mis state men l resulting 'rom fraud is higher than for one resulting from error, as fraud may invtjive collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of interna,' cortro; re Want to the audit in order to design audit procedures that are appropriate In the circumstances, under section I43f3|[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

* Eoncfurie on the appropriateness of management's use of the going concern basis of accounting and. based on tine audit evidence obtained, whether a material uncertainty exists related to events or conditions that mfly cast significant doubt on the Company's a hi fry to continue as a going concern. ?f we conclude that a material uncertainty exsts, we are reported to draw attention in our auditor's report ro rho related disclosures in the financial statements or, if such disclosures a-e inadequate to modify our opinion. Our contusions are based on the audit evidence obtained up to the date of our audited? report. However, future events or conditions may cause the Company to cease to continue as a going concern

Ý Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent che underlying transactons and events in a manner that achieve: fair presentation.

* We communicate with those charged wirh governance regarding, among

other matters, the panned scone .T'o tint ng of the aud^;t and Significant audit Findings, including any significant beficcncies in internal control that we identify d u ring our a uclft. Q

* We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate wth them aJJ relationships and other matters that may reasonably he thaught to hear or ou independence, and where a upheave, related safeguards. From the matters communicated with Chose charged with governance, we determine those matters that were of most significance in the audit of the financial Statements Of the ament 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, ,n 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 :o ouewergh the pubNc interest benefits of such communicattori-

Report on other legal and regulatory requirements

As required by the Companies Auditors Report; Order, 2020 fthe Order j. issued by the Central Government of India in terms of sub-section (11) of section 143 of the Comoanrcs Act, 2013. we give in the Aoncxure TV, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

As required by Section 143(3) of the Act, we renon that

(a) We have sough! and obtained all the information and explanations whim 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 book;.

(c) The balance sheet, the statement o- profit and loss, and I he cash flow statement dealt win by this report are in agreement witn the books of account.

(d) In our opinion, the aforesaid Standalone ind AS financial statements comply with [he actounring standards specified u: der section 1 33 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 March 31. 2025 taken on record by the board or 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 internal financial controls over financial reporting of the company and the operating effectiveness of such controls refer our separate report in Anncxurc B, Our report expresses sn unmodified opinion or? the adequacy and operating effectiveness of the Company's internal financial controls Over financial reporting.

g) In respect to the other matters to fie included in the Auditor's Rcpon in accordance with Rule 11 of tht Companies | Aug it and Auditors! Rules. 2014, in our opinion and to the best of our information and a coord nq to the explanations given to us;

a. The company does not have any pending litigations which would impact its finanoal position. .,

ij TM: Company did not have any long-term contracts including der.vatiw contracts for which there were any material foreseeable losses; and

h) There has been no defay in transferring amounts, required to be transferred, ro i He investor Education and Protection Fund by the Company.

i) On the .basis of our examination of the books Of aaount of tne company and on the basis oj info.-motion and explanation provide to us. we report that the Company has used sortwar# lor maintaining res books or accounts* which do haw features of audit trail jedii fngj, put no report m this respect ws; available for verification.