Auditor Report of Spunweb Nonwoven Ltd.

Mar 31, 2024

1 We have audited the standalone financial statements of Spunweb Nonwoven Private
Limited ,Rajkot,(CIN: U17291GJ2015PTC084107), (hereinafter referred to as the
"Company''’) which comprise the balance sheet as at 31^st March 2024, and the statement
of Profit and Loss and 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.

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 Act 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 31 March, 2024 and its Profit and its cash flows for the year ended on
that date.

Basis for Opinion

1 We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013 (hereinafter referred to as the “Act”).
Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities tor 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 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.

Reporting of key audit matters as per SA 701, Key Audit Matters are not applicable to
the company as it is an unlisted company.

Information other than the financial statements and auditors, report thereon.

3 The Company''s board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Board''s
Report including Annexure to Board’s Report but does not include the financial
statements and our auditor''s report thereon.

4 Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.

5 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.

Responsibility of Management and those charged with Governance for the Standalone

Financial Statements

1 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,
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.

3 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

1 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.

2 Asa 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(3X0 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 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.

3 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.

Other Matters

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 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, 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
of the accompanying standalone financial statements.

(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 Company does not have any branch and therefore, this clause is not
applicable.

(d) The standalone financial statements dealt with by this Report are in agreement
with the books of account.

(e) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules, 2014.

(f) In our opinion, there are no observations or comments on financial transactions
or matters which have any adverse effect on the functioning of the Company;

(g) On the basis of the written representations received from the directors as on 31^st
March, 2024 taken on record by the Board of Directors, none of the directors is
disqualified as on 31^st March, 2024 from being appointed as a director in terms
of Section 164 (2) of the Act.

(h) In our opinion, there are no qualifications, reservations or adverse remarks
relating to the maintenance of accounts and other matters connected therewith,
except as mentioned as under

(i) 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 A.”

(j) 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:

(>) The Company does not have any pending litigations which

would impact its financial position in its 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, and

(hi) There were no amounts which were required to be transferred to

the Investor Education and Protection Fund by the Company.

(iv) The management has represented that, to the best of it’s
knowledge and belief, as disclosed in the Note No. 39 of the
financial statements attached herewith, 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/s or entity/ies including
foreign entity/ies (“Intermediaries”), with the understanding,
whether recoded in writing or otherwise, that the Intermediaries
shall, 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 the behalf of the Ultimate
Beneficiaries.

(v) The management has represented that, to the best of it’s
knowledge and belief, as disclosed in the Note No. 40 of the
financial statements attached herewith, no funds have been
received by the Company from any person/s or entity/ies
including foreign entity/ies (“Funding Party/ies”), with the
understanding, whether recoded in writing or otherwise, that the
Company shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party/ies (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on the behalf of the
Ultimate Beneficiaries.

(^v0 Based on the audits procedures performed that have been

considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that
representations under sub-clauses (i) and (ii) of clause (e) of Rule
11 contain any material mis-statement.

(vii) During the financial year under audit, no dividend has been
declared, or paid by the Company.

(viii) Based on our examination, except for the instances mentioned
below, the company has used an accounting software for
maintaining its books of account, 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 audit trail feature being tampered
with

For,Kaushal Dave & Associates.,
Chartered Accountants

Firm Registration No.l43936W|

''

(Kaushal V.Dave)

Partner

Date: 05^th September-2024 (Membership No.174550)

UDIN: 24174550BKAHRA2589