We have audited the accompanying standalone financial statements of PAUL
MERCHANTS LIMITED ("the Company") which comprise the Balance Sheet as at
March 31, 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 ended on that date, and notes to standalone financial statements including a
summary of significant accounting policies and other explanatory information
(hereinafter referred to as the "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 March 31, 2025, the profit and total
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 Companies Act, 2013 (the Act). Our responsibilities under
those Standards are further described in the Auditor's Responsibilities for the Audit of
the Standalone Financial Results 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 results 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.

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 ended
March 31, 2025 (current period). 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.

Information Other than the Standalone Financials Statements and Auditor's
Report thereon (Other Information)

The Company's Board of Directors is responsible for the other information. The other
information comprises the information included in the Board's Report and other
connected reports forming part of the Annual Report of the Company but does not
include the standalone financial statements and our auditor's report thereon. The
reports containing the other information as above are expected to be made available to
us after the date of this auditor's 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 standalone 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 standalone financial
statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. When we read the reports containing 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 under SA 720 'The Auditor's
Responsibilities Relating to Other Information'. We have nothing to report in this
regard.

Responsibility of Management and Those Charged with Governance for the
Standalone Financial Results

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 accounting principles generally accepted in
India, including Indian Accounting Standards (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 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 standalone financial results that give a true and fair view and are
free from material misstatement, whether due to fraud or error.

In preparing the standalone financial results, the Board of Directors are 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 are also responsible for overseeing the Company's financial
reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone
financial results 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 standalone financial results.

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
results, 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 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.

• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors' 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 results 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 results, including the disclosures, and whether the financial results
represent the underlying transactions and events in a manner that achieves fair
presentation.

Materiality is the magnitude of misstatements in the standalone financial statements
that individually or in aggregate makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone 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 standalone
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 standalone 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.

Other Matters

a) We draw attention to amounts reported by the company as extraordinary items
in the statement of profit and loss for the year ended 31^st March 2025 out of
which Rs. 1,25,20,000/- relates to penalties levied under the Foreign Exchange
Management Act, 1999 (FEMA). As per facts, Directorate of Enforcement,
Chandigarh had issued a Show cause Notice dated 28.02.2024 in relation to
1138 overseas remittance transactions processed by certain branches of the
Company during the period from 06.09.2017 till 01.08.2018. In response, the
Company and its Principal Officer had filed separate compounding applications
with RBI on 16.04.2024. The compounding application filed by principal officer
was disposed vide compounding order dated January 17, 2025 as per which RBI
advised the principal officer to deposit compounding amount of Rs.11.40 Lakhs
and same was deposited by the company on 23.01.2025. Further, in response to
the compounding application filed by the Company, RBI advised that the
Company being an Authorised Person, the matter shall be dealt with under
Section 11(3) of FEMA, 1999. Accordingly, RBI vide its order dated 23.01.2025
had imposed a penalty of Rs. 1,13,80,000/- u/s 11(3) of FEMA and the same
was deposited by the company on 24.01.2025. As informed to us, after
deposition of such penalties, the company has submitted an application to the
Directorate of Enforcement, Chandigarh and prayed for dropping of the
Adjudicating proceedings since the matter in question stands adjudicated by RBI
with respect to both the Company as well its Principal Officer. However, such
application remains pending to be adjudicated upon by the Directorate of
Enforcement as of date of our report.

The above remarks are on the basis of explanations provided to us by the
management however our opinion on the accompanying financial results are not
qualified to this extent.

1. As required by the Companies Auditor's Report Order, 2020 ("the Order"), as
amended, 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.

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 purpose 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 and
proper returns adequate for the purpose of our audit have been received from
the branches not visited by us.

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, the aforesaid Standalone financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules, 2015.

e. On the basis of written representations received from the directors as on
March 31, 2025 taken on record by the Board of Directors, none of the
directors are 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 the operating effectiveness of such controls,

refer to our separate Report in "Annexure B". Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the
Company's internal financial controls with reference to Standalone Financial
Statements.

g. With respect to the other matters to be included in the Auditors' report in
accordance with section 197(16) of the Act, in our opinion and to the best of
our information and according to the explanations given to us, the
remuneration paid/provided by the Company to its directors during the year is
in accordance with the provisions of section 197 read with Schedule V to the
Act; and

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 standalone financial statements;

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

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

iv. 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 test
checks, we did not come across any instance of audit trail feature
being tampered with.

v. The management has represented that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, 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") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;

vi. The management has represented, that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, 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, 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;

vii. Based on such audit procedures that we have 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 (v) and (vi) above contain any material mis-statement.

viii. Based on the representations received by us and audit procedures
conducted by us, the company has not declared any dividend during
the year and the same is as per provisions of Section 123 of
Companies Act, 2013.

For RAJIV GOEL & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No.- 011106N

SD/-

CA ROHIT GOEL

Date: 26.05.2025 (PARTNER)

Place: CHANDIGARH M. No. 091756

UDIN: 25091756BMUKKJ9970