We have audited the accompanying standalone financial statements of
MALU PAPER MILLS LIMITED (“the Company”), which comprise the
Balance Sheet as at 31st March 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 the 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 31st March, 2025, the loss
and total comprehensive loss, changes in equity and its cash flows for the
year ended on that date.

We conducted our audit of standalone financial statements 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 Standalone 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 (“ICAI”) together with the independence requirements
that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules thereunder, 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 we have obtained is
sufficient and appropriate to provide a basis for our opinion on the
standalone financial statements.

Key audit matters

Key audit matters are those matters that, in our professional judgement,
were of most significance in our audit of the standalone financial statements
of the 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.

We draw attention to Note No. 39 of the financial statements, the Company
has reported a net loss of ?1,212.65 lakhs for the year ended 31st March,
2025, resulting in a negative net worth of ?572.17 lakhs as at the end of the
financial year. This adverse financial position is primarily attributable to the
prolonged challenging economic and market conditions prevailing across the
paper industry during the year.

In response, the Management has initiated several strategic measures,
including a shift in product mix, with a focus on cost optimization, improved
operational efficiency, and revenue enhancement. The Management’s
comprehensive turnaround strategy, coupled with the promoter’s intention
to infuse additional funds, reflects a strong commitment to restoring
profitability and enhancing stakeholder value.

In the opinion of the management, these initiatives are expected to
significantly improve the Company’s operational and financial performance
in the foreseeable future. Accordingly, the financial statements have been
prepared on a going concern basis.

Our Opinion is not modified in this Regard.

Other Information

The Company’s management and Board of Directors are responsible for the
preparation of other information. The other information comprises the
information included in the Director’s Report but does not include the
financial statements and our auditor’s report thereon.

Our opinion on the 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 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 financial
statements or our knowledge obtained in 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 on the even date.

Responsibilities of Management for the Standalone financial
statements

The Company’s management and 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 Ind AS and other accounting principles generally accepted in India.

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 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 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 statements process.

Auditor’s Responsibilities for the Audit of the Standalone 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 relation

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 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 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 the Management 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 are 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.

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 Companies Act, 2013, we give in the
Annexure “A”, a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.

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, Statement of change in Equity and the
Statement of Cash Flow dealt with by this Report are in agreement
with the relevant books of account of the company.

(d) In our opinion, the aforesaid standalone financial statements
comply with the Indian Accounting Standards specified under Section
133 of the Act, read with the Companies (Indian Accounting
Standards) Rules, 2015.

(e) On the basis of the 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
with reference to financial statements 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 Company has not
paid any remuneration to its directors during the year.

(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 (Refer Note 32(iv) to the Standalone Financial
Statements).

(ii) The company has made provision, as required under the
applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including
derivative contracts.

(iii) There was no requirement of transfer of funds to Investor
Education and Protection Fund by the Company during the
year.

(iv) a) The Management has represented that, to the best of its
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) (Refer Note
38e to the Standalone Financial Statements) 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 (“Ultimate
Beneficiaries”) by or on behalf of the Company 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 (Refer Note 38f to the Standalone Financial
Statements) 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 whatsoever (“Ultimate
Beneficiaries”) by or on behalf of the Funding Parties or
provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

c) Based on the audit procedures performed that we
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 (i) and (ii) of Rule
11(e), as provided under (a) and (b) above, contain any
material mis-statement.

(v) The Company has not declared and paid dividend during the
current year and previous year and as such compliance with
section 123 of the Act is not applicable.

(vi) Based on our examination, which included test checks, the
company has used accounting software for maintaining its
books of accounts for the financial year ended March 31,

2025 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 audit we did not come across any
instance of the audit trail feature being tampered with

FOR DEMBLE RAMANI & CO.

CHARTERED ACCOUNTANTS

CA ASHOK RAMANI
PARTNER
MEM NO.: 030537

PLACE: NAGPUR FRN :102259W

DATE: 23-05-2025 UDIN: 25030537BMMLZN1022