We have audited the standalone financial statements
of Kay Power and Paper Limited (“the Company”),
which comprise the balance sheet as at 31st
March 2025, and the statement of Profit and Loss,
Statement of changes in equity and Statement of
Cash Flows for the year then ended, and notes to
the financial statements, including a summary of
material 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
aforesaid standalone financial statements give the
information required by the Companies Act, 2013
in the manner so required and give a true and fair
view in conformity with the accounting principles
generally accepted in India, of the state of affairs of
the Company as at March 31, 2025, and its profit,
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. 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 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 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 determined that there are no key audit
matters to communicate in our report

OTHER INFORMATION

The Company's Board of Directors is responsible
for the other information. The other information
comprises the information included in the Directors
Report to the members and Annexures thereto,
Report on Corporate Governance, Management
Discussion and Analysis, but does not include the
Standalone Financial Statements and our auditor's
report thereon. Our opinion on Standalone 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 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 in the audit or
otherwise appear 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.

MANAGEMENT'S RESPONSIBILITY FOR THE
STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible
for the matters stated in section 134(5) of the
Companies Act, 2013 (“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, (changes in equity) and
cash flows of the Company in accordance with
the accounting principles generally accepted in
India, including the accounting Standards 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 financial
statement 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.

Those Board of Directors are also responsible
for overseeing the Company's financial reporting
process.

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 skepticism 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 control
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under section 143(3)(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.

• 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.

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.

REPORT ON OTHER LEGAL AND REGULATORY

REQUIREMENTS

1. As required by the Companies (Auditor's
Report) Order, 2020 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, 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 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 appears from our
examination of those books;

(c) The Balance Sheet, Statement of Profit
and Loss, the Cash Flow Statement and
the Statement of Changes in Equity dealt
with by this Report are in agreement with
the books of account;

(d) In our opinion, financial statements comply
with the Indian Accounting Standards
specified under Section 133 of the Act
except Ind AS 19 regarding 'Employee
Benefits' on account of non-provision
for liability towards post-employment
defined benefit plans like gratuity payable
to employees as described in the Note 2(k)
of Notes to accounts.

(e) On the basis of written representations
received from the directors as on March
31,2025 and taken on record by the Board
of Directors, none of the directors is
disqualified as on March 31, 2025 from
being appointed as a director in terms of
sub-section (2) of Section 164 of the
Companies Act, 2013

(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;

(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, as amended, 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 of 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 did not have any pending
litigation as on March 31, 2025 having
material impact on its financial position.

ii. The Company did not have any long¬
term contracts including derivative
contracts for which there were any material
foreseeable losses as on March 31,2025.

iii. There were no amounts which were
required to be transferred to the Investor
Education and Protection Fund by the
Company during the year ended on March
31, 2025.

iv. a. The management has represented

that, to the best of their knowledge
and belief, 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 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 the company (“Ultimate
Beneficiaries”) or provide any
guarantee, security, or the like on
behalf of the Ultimate Beneficiaries.

b. The management has represented
that, to the best of its knowledge and
belief, no funds have been received by
the company from any person or entity
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,

c. Based on such audit procedures
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 (iv)(a) and (iv)(b)
above contain any material
misstatement.

v. There are no events of dividend declared
and paid by the Company during the year
until the date of this report, hence
compliance with provisions of section 123
of the Companies Act, 2013 is not required.

vi. Based on the information and explanations
given to us and based on our examination
which included test checks, the company
has used an accounting software for
maintaining its books of account which
does not have a working feature of
recording audit trail (edit log) facility. We
report that during the course of our audit we
found that the audit trail has not been
preserved by the company.

For R Y Kulkarni & Associates

Chartered Accountants

Place : Satara R Y Kulkarni

Date : 30th May 2025 Proprietor

Mem. No.036596
FRN : 105437W
UDIN:- 25036596BMIKNO8140