We have audited the accompanying standalone financial statements of BKV Industries Limited (the "Company"), which comprise the
Balance Sheet as at 31- March 2025 and the Statement of Profit and Loss (including the statement Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flow for the year then ended, and notes to the standalone financial
statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the afore said 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, (Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the
Company as at 31- March 2025 and its profit, total comprehensive profit, the changes in equity and its cash flows for the year ended on
that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under
section 143 (10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor's Responsibility for
the Audit of the Standalone Financial Statements 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 standalone financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. Key Audit
Maters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial
statements for the financial year ended 31-March 2025. 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. We have fulfilled the
responsibilities described in the auditors' responsibilities for the audit of the standalone financial statements section of our report,
including the relation to these matters. Accordingly, our audit included the performance of the procedures designed to respond to
our assessment of the risk of material misstatements of the standalone financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion, on the accompanying
standalone financial statements.

Auditor's Response to KAMS

Our audit procedures, among others, included the following obtained and evaluated management's assessment of the Company's
ability to continue as a going concern for at least twelve months from the balance sheet date.

Reviewed the financial projections viz, the Lease Income receipt, tested the key assumptions and compared them with historical
performance and available external data. Verified financing arrangements including Interest Free Loan(s) being received from the
Managing Director in the past and commitments. Assessed the adequacy of the disclosures made in the financial statements
regarding the going concern basis of accounting. Considered the potential impact of internal and external events (e.g., regulatory
changes, economic environment) on the entity's ability to continue operations.

Based on our procedures, we found the management's assessment of going concern to be reasonable. We did not identify any
material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern, and accordingly, the use
of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

The Company's Board of Directors is responsible for the other information. The other information comprises the information
included in the Annual Report, but does not included in the standalone financial statements and our auditors report thereon. Our
opinion on the standalone Ind AS financial statements does not cover the other information and does not express any form of
assurance conclusions there on.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing
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 on the work we have performed on the other information that we obtained prior to the date of this Auditors Report 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.

Management's Responsibility for Standalone 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 standalone financial statements that give a true and fair view of the financial position, financial performance including
comprehensive income (Profit), 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 the assets of the Company and for preventing and
detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgements 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 statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the standalone financial statements, management and 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 Board of Directors 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 Responsibility for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the stand alone Ind AS 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 standalone
financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the
audit.

We also:

• Identify and assess the risks of material misstatement of the standalone 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.

• Obtain an understanding of internal financial 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 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 the management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting in preparation of Standalone
Financial Statements 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 standalone financial
statements or, if such disclosures are in adequate, 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 statements, including the disclosures, and
whether the standalone financial statements 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 stand alone 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 safe guards.

• 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 for the financial year ended 31 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.

Emphasis of Matter

We draw attention to the following matters in the Notes to the financial Statements:

Note No.26 in the Standalone financial statements which indicates that the company has considerable accumulated losses, though
the company earned marginal net profit during the current year, and as at the Balance Sheet Date. These conditions indicate the
existence of material uncertainty that may cast significant about the company's ability to continue as a going concern. However, as
the company has consistent lease income and the company is able to meet its financial commitments from time to time and hence,
the accounts have been drawn up on going concern basis.

As more specifically explained in Note: 31(e) to the financial statements, the company has made a detailed assessment of its liquidity
position for the next year and the recoverability and carrying value of its assets comprising property, plant and equipment and other
assets. Based on current indicators of future economic conditions, the company expects to recover the carrying amount of these
assets.

The company will continue to closely monitor any material changes arising of future economic conditions and impact on its business.
Our opinion is not qualified in this matter.

1. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2020 (the "Order") issued by the Central Government in terms of Section 143
(11) of the Act, we give in "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, based on our audit 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.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income(Profit), the Statement of Changes
in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, the afore said standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

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 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 over financial reporting.

g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197
(16) of the Act, read with Schedule V to the Act. 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 directors during the year is in accordance with the
provisions of section 197 read with Schedule V of the Act.

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, as amended 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 has made provision, as required under the applicable law or accounting standards, for material foreseeable losses
on long- term contracts including derivative contracts.

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

iv. The management of the Company and associates which are companies incorporated in India whose financial statements have
been audited under the Act have represented to us and the other auditors of such associates respectively that, to the best of its
knowledge and belief,

a) 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 and by the associates to or in any other person or entity, 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 any of
such, associates ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

b) No funds have been received by the Company and respective associates from any person or entity, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company and any of such
associates 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; and

c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us
nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any
material mis-statement.

v. The company has not declared any final or interim dividend during the year from it's inception. Hence, the applicability of Section
123 of the Act to the extent it applies to the payment of dividend does not arise. The company do not have any Holding Companies
and it's subsidiary companies and joint venture companies. No associate companies have declared any interim and final dividend
for the year. Hence, the question of applicability of Sec 123 of the Act, to the extent it applies to declaration of dividend approval of
the members of the respective companies at the respective ensuing Annual General Meeting does not arise.

vi. Based on our examination, which included test checks, the Company has used accounting software systems for maintaining its
books of account for the financial year ended March 31, 2025 which have the feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all relevant transactions recorded in the software systems. Further, during the
course of our audit we did not come across any instance of the audit trail feature being tampered with and the audit trail has been
preserved by the Company as per the statutory requirements for record retention.

For Garlapati & Co,

Chartered Accountants
Firm Regn.No. 000892S

CA Garlapati Satyanarayana

M.No.: 022101
UDIN:25022101BMJLWU7776

Place: Guntur

Date : 28.05.2025