Manjushree Technopack India Limited Unlisted Shares

Financial Report Summary

The following is a comprehensive summary of the provided Deloitte audit report for Manjushree Technopack Limited's financial statements as of March 31, 2024.

Independent Auditor's Report

• Opinion: The financial statements of Manjushree Technopack Limited present a true and fair view of the company's state of affairs as of March 31, 2024, and its profit, cash flows, and changes in equity for the year then ended, in conformity with Indian Accounting Standards (Ind AS) and the Companies Act, 2013.
• Basis for Opinion: The audit was conducted in accordance with Standards on Auditing (SAs) specified under the Companies Act, 2013. The auditors are independent of the Company, adhering to the ethical requirements of the Institute of Chartered Accountants of India (ICAI) and believe that the audit evidence obtained is sufficient to support the opinion.
• Emphasis of Matter: Attention is drawn to Note 1.E regarding the accounting for the business combination resulting from the Scheme of Amalgamation between Manjushree Technopack Limited and its former wholly-owned subsidiary, MTL New Initiatives Private Limited. The Scheme's appointed date was September 1, 2023, and it was approved by the Regional Director, Telangana. Comparative financial information has been restated. The auditor's opinion is not modified in respect of this matter.

Other Information & Responsibilities

• The Board of Directors is responsible for other information included in the annual report, excluding the financial statements and auditor's report. The auditor's opinion does not cover this other information. The auditor's responsibility is to read the other information and consider any material inconsistencies with the financial statements or knowledge obtained during the audit. There was nothing to report in this regard.
• The Board of Directors is responsible for preparing financial statements that give a true and fair view, maintaining adequate accounting records, selecting and applying appropriate accounting policies, making reasonable judgments and estimates, and designing, implementing, and maintaining adequate internal financial controls. They are also responsible for assessing the Company's ability to continue as a going concern.
• The auditor's objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement and to issue an auditor's report including their opinion. This includes identifying and assessing the risks of material misstatement, obtaining an understanding of internal controls, evaluating the appropriateness of accounting policies and reasonableness of accounting estimates, and concluding on the appropriateness of management's use of the going concern basis of accounting.

Report on Other Legal and Regulatory Requirements

1. Based on the audit, the report states:

   • All necessary information and explanations were obtained.
   • Proper books of account have been kept.
   • The Balance Sheet, Statement of Profit and Loss, Statement of Cash Flows, and Statement of Changes in Equity are in agreement with the books of account.
   • The financial statements comply with Ind AS specified under Section 133 of the Act.
   • None of the directors are disqualified from being appointed as a director.
   • Refer to Annexure A for the report on internal financial controls.
   • Remuneration paid to directors is in accordance with Section 197 of the Act.

2. Other matters to be included in the Auditor's Report:

   • The Company has disclosed the impact of pending litigations.
   • The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
   • There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
   • (a) The Management has represented that no funds have been advanced, 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 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 ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. (b) The Management has represented, that no funds have been received by the Company from any person(s) or entity(ies), 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 by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
   • Based on audit procedures considered reasonable, nothing has come to the auditor's attention to indicate that the representations regarding the use of funds contain any material misstatement.
   • The interim dividend declared and paid by the Company during the year is in accordance with section 123 of the Companies Act 2013.
   • Based on examination, the Company used accounting software(s) with an audit trail facility throughout the year. No instances of tampering with the audit trail were found.
   • As per the applicability of the rules regarding audit trail preservation, reporting under Rule 11 (g) on preservation of audit trail is not applicable for the financial year ended March 31, 2024.

3. A statement on matters specified in paragraphs 3 and 4 of the Companies (Auditor's Report) Order, 2020 ("the Order") is provided in "Annexure B".

Annexure A: Report on Internal Financial Controls

• Auditor's opinion expresses that the Company has adequate internal financial controls with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2024, based on the criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Annexure B: To the Independent Auditors' Report

In terms of the information and explanations sought by the auditor and given by the Company, and the books of account and records examined, the following is stated:

• (i)(a) A. The company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment, capital work-in-progress and relevant details of right-of-use assets. B. The company has maintained proper records showing full particulars of intangible assets.

• (b) The company has a program of verification of property, plant and equipment, capital work-in-progress and right-of-use assets.

• (c) The title deeds of all the immovable properties are held in the name of the Company based on the confirmations directly received from lenders.

• (d) The Company has not revalued any of its property, plant and equipment and intangible assets during the year.

• (e) No proceedings have been initiated during the year or are pending against the Company.

• (ii)(a) The inventories were physically verified during the year by the Management at reasonable intervals. No discrepancies of 10% or more in the aggregate for each class of inventories were noticed. (b) The Company has been sanctioned working capital limits in excess of Rs. 5 crores.

• (iii) The Company has made investments in, provided guarantee or security and granted loans or advances in the nature of loans, secured or unsecured. The Company has granted loans or provided advances in the nature of loans to employees, the schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and receipts of interest are regular as per stipulation. There is no overdue amount remaining outstanding.

• (iv) The Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of loans granted, investments made and guarantees and securities provided, as applicable.

• (v) The Company has not accepted any deposit or amounts which are deemed to be deposits.

• (vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. The Company has broadly reviewed the books of account maintained by the Company and is of the opinion that, prima facie, the prescribed cost records have been made and maintained by the Company.

• (vii)(a) Undisputed statutory dues, including Goods and Service tax, Provident Fund, Employees' State Insurance, Income-tax, Customs duty, cess and other material statutory dues applicable to the Company have generally been regularly deposited by it. Details of statutory dues which have not been deposited on account of disputes are given below.

• **(viii)**There were no transactions relating to previously unrecorded income.

• (ix)(a) The Company has not defaulted in the repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year. (b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority. (c) The term loans availed by the Company were, applied by the Company during the year for the purposes for which the loans were obtained. (d) Funds raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company. (e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary. (f) The Company has not raised loans during the year on the pledge of securities held in its subsidiary.

• (x)(a) The Company has not issued any of its securities. (b) During the year the Company has not made any preferential allotment or private placement of shares or convertible debentures.

• (xi)(a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year. (b) No report under sub-section (12) of section 143 of the Companies Act has been filed. (c) There were no whistle blower complaints received by the Company during the year.

• (xii) The Company is not a Nidhi Company

• (xiii) The Company is in compliance with Section 177 and 188 of the Companies Act for all transactions with the related parties.

• (xiv)(a) The Company has an adequate internal audit system. (b) The internal audit reports issued to the Company have been considered.

• (xv) The Company has not entered into any non-cash transactions with its directors or persons connected with its directors.

• (xvi)(a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. (d) The Group does not have any CIC as part of the group.

• (xvii) The Company has not incurred cash losses during the financial year covered by the audit and the immediately preceding financial year.

• (xviii) There has been no resignation of the statutory auditors of the Company during the year.

• (xix) Nothing has come to our attention indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

• (xx) The Company has fully spent the required amount towards Corporate Social Responsibility.

The report is signed by Monisha Parikh, Partner, Deloitte Haskins & Sells, Chartered Accountants.