We have audited the accompanying financial
statements of SHAHLON SILK INDUSTRIES LIMITED
("the Company") which comprises the Balance Sheet
as on 31st March, 2025, the Statement of Profit and
Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of
Cash Flow for the year ended on that date and the
notes to the financial statements including a summary
of significant 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 Indian Accounting Standards ("Ind AS")
prescribed under section 133 of the Act read with
Companies (Indian Accounting Standard) Rules 2015,
as amended, and other accounting principles generally
accepted in India, of the state of affairs of the Company
as on 31st March, 2025, and its Profit (financial
performance including other comprehensive income),
changes in equity and its cash flows for the year ended
on that date.

2. Basis for Opinion

We conducted our audit of the financial statements in
accordance with the Standards on Auditing (SAs)
issued by the Institute of Chartered Accountants of
India ("ICAI") and 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 ICAI together with
the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the
Act and the Rules made 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 obtained by us is
sufficient and appropriate to provide a basis for our
opinion on the Financial Statements.

3. 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
year. 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. In the audit of the
current period, we do not have observed any key audit
matters required to be reported separately.

4. Information other than the 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
Annual 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 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
during the course of our 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.

5. Responsibility 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, change in equity and cash
flows of the Company in accordance with the
accounting principles generally accepted in India,
including the Ind AS specified under Section 133 of the

Act, read with rule 7 of companies (Accounts) Rules,
2014 and 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 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, 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.

The Company's Board of Directors is also responsible
for overseeing the company's financial reporting
process.

6. 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 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 with reference to the 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 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.

Materiality is the magnitude of the misstatements in
the Financial Statements that, individually or in
aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the

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 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 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.

7. 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 to the extent applicable, we
give in the "Annexure A", a statement on the
matters specified in the paragraph 3 & 4 of the
order.

2. As required by section 143(3) of the Act based on
our audit of financial statement, 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.

c) The Balance Sheet, the Statement of Profit
and Loss including Other Comprehensive
Income, the Statement of Changes in Equity
and the statement of Cash Flow 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 Rule 7 of the
Companies (Accounts) Rules 2014,
Companies (Indian Accounting Standard)
Rules, 2015, as amended.

e) On the basis of written representations
received from the directors as on 31st March,
2025 taken on record by the Board of
Directors, none of the directors is disqualified
as on 31st March, 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 un¬
modified opinion on the adequacy and
operating effectiveness of the company's
internal financial control with reference to the
financial statements

g) With respect to 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
Point No. II (O) in notes to accounts
regarding Contingent liabilities to the
financial statements.

ii. The company did not have any long-term
contracts including derivative contracts
for which they were any material
foreseeable losses under the applicable
law or accounting standards.

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

that, to the best of its knowledge and
belief, as disclosed in Note No. 29.9
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 persons or entities,
including foreign entities
("Intermediaries"), with the
understanding, whether recorded in
writing or otherwise, that the
Intermediary shall:

• directly or indirectly lend or
invest in other persons or
entities identified in any manner
whatsoever by or on behalf of
the Company or any of such
subsidiaries ("Ultimate
Beneficiaries") or

• provide any guarantee, security
or the like to or on behalf of the
Ultimate Beneficiaries.

b) The management has represented,
that, to the best of its knowledge and
belief, as disclosed in Note No. 29.10
to the accounts, no funds have been
received by the Company from any
persons or entities, including foreign
entities ("Funding Parties"), with the
understanding, whether recorded in
writing or otherwise, that the
Company shall:

• directly or indirectly, lend or
invest in other persons or
entities identified in any manner