We have audited the accompanying standalone Ind AS financial statements of Dhatre Udyog Limited
(Formerly, Narayani Steels Limited) [“the Company”], which comprise the Balance Sheet as at 31
March 2024, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of
Changes in Equity and Statement of Cash Flows 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, except
for the effects of the matters described in the ‘Basis for Qualified Opinion’ section of our report,

the aforesaid standalone Tnd AS financial statements give the information required by the Companies
Act, 2013, as amended (“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
March 31, 2024, its profit, total comprehensive income, the changes in equity and its cash flows for the
year ended on that date.

Basis for Qualified Opinion:

a. Balances under Trade receivables and Trade Payables are subject to confirmations and
adjustments, if any. In the absence of such pending confirmations and reconciliations,
consequential impact of the same on financial statements of the company could not be
ascertained.

b. Physical verification / valuation report for Property, Plant & Equipment including assets held
for sale of Rs.81.02 Lakhs is not available and in absence of verification / valuation report, we
are unable to ascertain the fair / realizable values of such items and its impact on the financials
of the company for the year under report.

We conducted our audit of the standalone financial statements in accordance with the Standards on
Auditing (SAs), as 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. Wc 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 standalone Ind AS financial statements under the provisions of the
Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with
the 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 audit 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:

(i) Non availability of Account Confirnations indicating weak Internal Financial Controls: The

non-availability of account confirmations in respect of Trade Payables & Trade receivables reflects
weakness in the internal financial control which we consider to be significant key matter, keeping in
view the nature and size of the operations of the Company.

Our procedures included the following: The issues relating to requirement of strengthening Internal
Financial Controls have been discussed with the management, who has assured necessary compliances
in the current fiscal year.

Information Other than the Standalone Financial Statements and Auditors’ 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 include the financial statements
and our auditor’s report thereon. The information included in the annual report is expected to be made
available to us after the date of the auditor’s report.

Our opinion on the Ind AS standalone financial statements docs not cover the other information and we
do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read
the other information and, in doing so, consider whether such other information is materially inconsistent
with the standalone Ind AS financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work wc 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 except for matters described in the ‘ Basis for Qualified Opinion’ para above.

Responsibilities of Management and Those Charged with Governance for the Standalone Ind AS
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 Ind AS 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
accounting principles generally accepted in India, including 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 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
the 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 Ind AS 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 Ind AS 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 Board of Directors is also responsible for overseeing theCompany ’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives arc to obtain reasonable assurance about w'hethcr the standalone 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 liigh level of assurance but is
not a guarantee that an audit conducted in accordance with Standards on Auditing (SAs) will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and arc
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 Ind AS 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 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 control relevant to the audit in order to design audit
procedures that are appropriate in tire 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 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, w'hether 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 lire required to draw attention in
our auditor's report to the related disclosures in the standalone 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 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 wwk and in evaluating the results of our work;
and (ii) to evaluate the effect of any identified misstatements in the standalone 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
interna] control that wc 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 drought 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 standalone financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditors’ 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, 2016 (“the Order”), issued by the Central

Government of India in terms of sub-section (11) of section 143 of the Act, we give in the

Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. (A) 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;

(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 except for matters described in the
‘Basis for Qualified Opinion’ para above.

(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income),
Statement of changes in equity and the Cash Flows dealt with by this Report are in agreement
with the books of account;

(d) In our opinion, the aforesaid standalone Ind AS 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 except for matters described in the ‘Basis for Qualified Opinion’
para above.

(e) On the basis of the written representations received from the directors as on March 31, 2024
taken on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2024 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 with reference to these standalone ind AS financial statements and the operating
effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;

(g) In our opinion, the managerial remuneration for the year ended March 31, 2024 has been paid /
provided by the Company to its directors in accordance with the provisions of section 197 of
the Act;

(B) 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:

a. Pursuant to the approval of the Resolution Plan by the Order dated 11 til January
2022 of the Hon’ble National Company Law Board (Kolkata Bench), all the pre¬
existing contingent liabilities have been extinguished together with the associated
pending litigations and hence, as per management, there is nothing to be disclosed
in its financial statements.

b. The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses;

c. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.

d. (i) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in notes to these Financial Statements, 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:

a) 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

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

(ii) The management has represented, that, to the best of its knowledge and belief,
other than as disclosed in notes to these financial statements, 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:

a) directly or indirectly, lend or invest in other persons or entities identified
in any maimer whatsoever (“Ultimate Beneficiaries”) by or on behalf
of the Funding Parties or

b) provide any guarantee, security or the like from or on behalf of the
Ultimate Beneficiaries.

(iii) Based on such audit procedures as 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 (d) (i) and (d) (ii) contain any material
misstatement.

e. No dividend has been declared or paid during the year by the Company.

f. Based on our examination which included test checks, 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 softw'are. Further, during the course of
our audit we did not come across any instance of audit trail feature being tampered
with.

For P, D. Rungta & Co.

Chartered Accountants

Firm Registration No.: 001150C

SD/-

CA RITESH KUMAR SHAW

Partner

Membership No.: 305929

UDIN: 24305929BKCTQZ2154

Place of Signature: Kolkata

Date: The 30^lh day of May, 2024