We have audited the accompanying standalone Ind AS Financial Statements of M/s Aarvee Denims and Exports Limited ("the Company"), which comprise the Balance Sheet as at 31^st March, 2023, the Statement of Profit and Loss and the Cash Flow Statement, Statement of changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information. (Collectively referred to as 'standalone financial statements')

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 accounting principles generally accepted in India of the state of affairs of the Company as at 31^st March 2023, its loss, total comprehensive income, 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 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 Ind AS 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 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 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.

Emphasis of Matter: -

Attention is invited to Note No. 48 of the audited financial results regarding disclosures made under MSMED Act, 2006. We have relied upon and accepted the information/data prepared and submitted by the management as such.

Our opinion is not modified in respect of above matter.

Key audit matters: -

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS Financial Statements of the current period. These matters were addressed in the context of our audit of the Ind AS Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Information other than the Ind AS Financial Statements and auditors' report thereon: -

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 Annexures to Board's Report, Business Responsibility Report but does not include the Ind AS Financial Statements and our auditor's report thereon.

Our opinion on the Ind AS 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 Ind AS 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 Ind AS 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.

Management's Responsibility for the Standalone Ind AS Financial Statements: -

The Company's Board of Directors is responsible for the matters stated in Sectton 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparatton of these Ind AS Financial Statements that give a true and fair view of the financial positton, financial performance including other comprehensive income, cash flows, statement of changes in equity of the Company in accordance with the accounttng principles generally accepted in India, including the Indian Accounttng Standards (Ind AS) specified under Sectton 133 of the Act, read with the Companies (Indian Accounttng Standards) Rules, 2016, as amended. This responsibility also includes maintenance of adequate accounttng records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventtng and detecttng frauds and other irregularittes; selectton and applicatton of appropriate accounttng policies; making judgments and esttmates that are reasonable and prudent; and design, implementatton and maintenance of adequate internal financial controls, that were operattng effecttvely for ensuring the accuracy and completeness of the accounttng records, relevant to the preparatton and presentatton of the 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 Ind AS Financial Statements, management is responsible for assessing the Company's ability to conttnue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounttng unless management either intends to liquidate the Company or to cease operattons, or has no realisttc alternattve but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporttng process. Auditor's Responsibility for the audit of the Ind AS Financial Statements: -

Our objecttves are to obtain reasonable assurance about whether the 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 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 Ind AS Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepttcism throughout the audit. We also:

• Identtfy and assess the risks of material misstatement of the Ind AS Financial Statement, 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 detecttng a material misstatement resulttng from fraud is higher than for one resulttng from error, as fraud may involve collusion, forgery, intenttonal omissions, misrepresentattons, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedure that are appropriate in the circumstances. Under sectton 143(3)(i) of the Act, we are also responsible for expressing our opinion whether the Company has adequate internal financial controls system in place and the operattng effecttveness of such controls.

• Evaluate the appropriateness of accounttng policies used and the reasonableness of the accounttng esttmates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounttng and, based on the audit evidence obtained, whether a material uncertainty exists related to events or condittons that may cast significant doubt on the Company's ability to conttnue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attentton in our auditor's report to the related disclosures in the Ind AS 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 Ind AS Financial Statements, including the disclosures, and whether the Ind AS Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone Ind AS Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone Ind AS 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 works; and (ii) to evaluate the effect of any identified misstatements in the standalone Ind AS 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 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 Ind AS 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 circumstance, we determine that a matter should not be communicate 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 subsection 11 of section 143 of the Act, we give in the Annexure - A, a statement on the matter specified in the paragraph 3 and 4 of the Order.

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 changes in equity, and the cash flow statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the aforesaid Ind AS Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2016, as amended;

(e) On the basis of the written representations received from the directors as on 31^st March, 2023 taken on record by the Board of Directors, none of directors is disqualified the as on 31^st March,2023 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 and the operating effectiveness of such controls; refer to our separate report in Annexure - B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.

(g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of sectton 197(6) of the Act, as amended:

In our opinion and to the best of our informatton and according to the explanattons given to us, the remuneratton paid by the Company to its directors during the year is in accordance with the provisions of sectton 197 of the Act.

(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 informatton and according to the explanattons given to us:

i. The Company has no pending littgattons which can significantly impact its financial positton.

ii. The Company did not have any long-term contracts including derivattve contracts for which there were any material foreseeable losses.

iii. The company is not required to transfer any amount to the Investor Educatton and Protectton fund.

iv. a) The Management has represented that, to the best of its knowledge and belief, no

funds (which are material either individually or in the aggregate) 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 enttty, including foreign enttty ("Intermediaries"), with the understanding, whether recorded in writtng or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or enttttes identtfied in any manner whatsoever by or on behalf of the Company ("Ulttmate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ulttmate Beneficiaries;

b) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or enttty(ies), including foreign enttttes ("Funding Parttes"), with the understanding, whether recorded in writtng or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or enttttes identtfied in any manner whatsoever by or on behalf of the Funding Party ("Ulttmate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ulttmate Beneficiaries; and

c) Based on audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come to our nottce that has caused us to believe that the representattons under sub-clause (i) and (ii) contain any material mis-statement.

v. No dividend is declared or paid during this year by the company; hence requirement of this clause is not applicable to the company and hence not commented thereon.

For, M/s Pankaj R. Shah & Associates

Chartered Accountants (Registratton No. 107361W)

CA Nilesh Shah

Partner

Place: Ahmedabad (Membership No. 107414)

Date: 30-05-2023 UDIN: 23107414BGUYZQ6091