INDEPENDENT AUDITORS’ REPORT

TO

THE BOARD OF DIRECTORS OF
EARUM PHARMACEUTICALS LIMITED
CIN : L24230GJ2012PLC071299

Report on the Financial Statements

We have audited the Financial Statements of EARUM PHARMACEUTICALS LIMITED
L24230GJ2012PLC071299 ("the Company"), which comprise the Balance Sheet as at 31st
March 2023, the Statement of Profit and Loss, Statement of Cash Flows for the year then ended
and notes to the financial statements, including a summary of significant accounting policies
and other explanatory information.

Auditor Opinion

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 Standards prescribed under section 133 of the Act and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2023, the
Profit 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
there under, 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. We have key audit
matter to communicate in our report as under

1. The company has outstanding State Bank of India loan of Rs. 8.73crores which are under
settlement with bank on dated 02/01/2023 ref no. SAMB/AHD/DKR/2022-23/1100. The
additional interest at the rate of 8.05% provided in books of account. As per settlement
letter the matter with DRT for obtaining consent decree is also pending.

2. The company has promoter share holding as on 31/03/2022 was 50.2% which was reduce
to 0%(zero) holding in September,2022(i.e. as on 31/03/2023). The company has proposed
right issue of total Rs. 49.34 crores on 02/05/2023 (after balance sheet date) which will be
closed on 31/05/2023. The control of the management of the company not left with
promoters.

3. The company has not paid income tax payable as per provision made in profit loss account
Rs. 76.52lacs for FY 2022-23 and Rs. 85.76lacs for FY 2021-22 excluding interest.

4. The company has demand in income tax portal of Rs.1.73crore for AY2020-21 & 2022-23.

5. No provisions for interest have been made on unsecured loan.

6. Company has advance Rs. 70.42lacs to creditors (Related party).

7. Further company has given Rs.3,60,65,759/- as advance to creditors mostly.

8. Turnover (purchases and sales) are mostly with related party.

9. The utilization of share holder fund together with other fund, utilized as per balance sheet.

10. Company has given loans to Atlantis Comtrade LLP Rs. 43,46,000/-, Meril Pharma Tech
Inc. Rs. 6,04,67,100/-(gross) OTP Tradex LLP Rs.11,00,000/-, SVS Ventures Ltd
Rs.1,35,07,000/-, Vijay and Co. Rs.4,02,083/- & Narendrakumar G. Patel Rs. 1,06,069/-.

11. In debtors accounts opening balance was 15.04crores and closing balance Rs.8.39crores.
However during the year debtors account debited to Rs.56.53crores and recovered
Rs.50.80crores i.e. Rs. 5.70crores are loan given to the debtors which are not according to
accounting standard. Further Rs. 8.39crores is outstanding out of opening balance and
unrecoverable more than one year old.

Information Other than the Standalone Financial Statements and Auditor's Report
Thereon

The Company's Board of Directors is responsible for the preparation of the other information.
The other information comprises the information included in the Management Discussion and
Analysis, Board's Report including Annexures to Board's Report, Business Responsibility
Report, Corporate Governance and Shareholder's Information, 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 of the financial statements, 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 except noted in key audit matter.

For, J M Patel & Bros.
Chartered Accountants
Reg. No. 107707W

Place: Ahmedabad CA JASWANT M PATEL

Date: 29/05/2023 (PROPERITOR)

UDIN: 23030161B GRRQV8934 Mem. No. 030161