CRP RISK MANAGEMENT LIMITED

Report on the Standalone Financial Statements

1. Opinion

We have audited the accompanying Standalone Financial Statements of CRF' Risk
Management Limited (the "Company") which comprise the Balance Sheet as at March

31 2022 the Statement of Profit and Loss (Including Other Comprehensive Income), the

Cash Flow Statement for the year then ended, and 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 Financial Statements give the information required by t e
Companies Act, 2013 {"the Act") in the manner so required and give a true ^{and fa,r Vl}™
in conformity with the Accounting Standards prescribed under section 133 of the Act
read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accoun mg
principles generally accepted in India, of the state of affairs of the Company as at March
31, 2022, its profit, total comprehensive income and its cash flows for the year ende on

that date.

Basis of Opinion

We conducted our audit of the Financial Statements in accordance with the Standards
on Auditing ("SA"s) specified under section 143(10) of the Act (SAs). Our responsibiUt.es
under those Standards are further described in the Auditor's Responsibility for 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 (ICAI) together with the ethical requirements that are relevant to our audit o
the Financial Statements under the provisions of the Act and the Rules made
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
obtained by us is sufficient and appropriate to provide a basis for our audit opinion on

the Financial Statements.

Key Audit Matters

«• Ý

Key Audit matters ('KAM') are those matters that, in our professional judgment, were of
most significance in our audit of the Financial Statements of the current period. These
matters were addressed in the context of our audit of the 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 Financial Statements and Auditor's 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
Management Discussion and Analysis, Board's Report including Annexures to Board's
Report, Business Responsibility Report, Corporate Governance and Shareholder's
Information, but does not include the Financial Statements and our auditor's report
thereon.

Our opinion on the 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 Financial Statements, our responsibility is to read the
other information, 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.

2. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in the section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and
presentation of these 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 Accounting Standards specified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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 Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the financial statements, the respective Management and Board of
Directors are responsible for assessing the ability of company to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the respective Board of Directors either intends to
liquidate the company or to cease operations, or has no realistic alternative but to do
so.

The respective Board of Directors are also responsible for overseeing the financial
reporting process of company.

3. Auditor's Responsibility for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from materia! 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 scepticism 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 financial control relevant to the audit in
order to design audit procedures that are appropriate in the 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 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 the 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 ability of the Company 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 those charged with governance of the Company included in
the Financial Statements of which we are the independent auditors 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 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 consequence^ofcloing so would reasonably be expected to outweigh the
public interest benefits of such communication.

Basis for Qualified Opinion

1. The C5R amount required to be spent as per Section 135 of the companies Act, 2013 read
with Schedule VII thereof by the company during the year. The Company had made the
provision towards CSR expenditure; however, the CSR Expenses have not been incurred.
(Refer to Note No. 45)

2. It has been observed that, company has following statutory dues outstanding as on
31.03.0222. Following are the detail for the same:

Emphasis of matter

1. As per The Micro, Small and Medium Enterprises Development Act, 2006, the company
has to identify the vendors covered under the said act and have to pay dues to such
vendors within 45 days. It has been observed that the said has not been done. In the
absence of sufficient information, we are not in position to comment upon the
correctness of the provision made for Interest payable to MSME vendors.

2. There are advances paid to supplier amounting to Rs. 11.93 crores outstanding at the
end of the financial year.

3. There is inventory amounted to Rs. 2.44 crores which are slow moving or obsolete
inventory. Adequate provisions for diminution in value have not been passed.

4. The balances appearing in the income tax receivable / tax deducted at source are
subject to reconciliation with the tax records and there is an excess TDS booked / short
TDS reflected in tax records amounted to Rs. 0.41 lakhs.

4. Report on Other Legal and Regulatory Requirements

i. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by

the Central Government of India in terms of section (11) of section 143 of the
Companies Act,2015 we give in the "Annexure-A" a statement on the matters
specified in the paragraphs 3 and 4 of the Order, to the extent applicable.

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ii. As required by section 143(3) of the Act, \A46 report that: _:

a We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit of the afore

said Financial Statements; Ý

b In our opinion proper books of account as required by law relating to preparation
of the afore said Financial Statements have been kept by the Company so far as
appears from our examination of those books.

c The Balance Sheet, Statement of Profit and Loss including other comprehensive
Income Statement of changes in equity and Statement of Cash Flow dealt with
by this Report are in agreement with the relevant books of account maintained
for the purpose of preparation of the Financial Statements.

d In our opinion, the aforesaid Financial Statements comply with the Accounting
Standards specified under section 133 of the Act, read with the Rule 7 of the
Companies (Accounts) Rules, 2014.

e On the basis of written representations received from the directors as on March
31, 2022, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2022, 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 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 internal financial controls
over financial reporting of those companies.

a 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 remuneration paid by the Company to its directors
during the year is in accordance with the provisions of section 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, in
our opinion and to the best of our information and accordance to the explanation

given to us:

i The company does not have any pending litigations which.would impact its
financial position.

The company did not have any long term contracts including derivative

- / I3l|^w/ )t3 contracts for which there were any material foreseeable losses.

\Wooo83 JJ, J

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

iv. (a) The respective Managements of the Company, whose Financial Statements
have been audited under the Act, have represented to us that, to the best of
their 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 or in any other person or entity, including foreign entity
("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 or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(b) The respective Managements of the Company, whose Financial Statements

have been audited under the Act, have represented to us that, to the best of
their knowledge and belief, no funds (which are material either individually or
in the aggregate) have been received by the Company from any person or
entity, including foreign entity ("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. '

(c) Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances performed by us on the Company whose
Financial Statements have been audited under the Act, 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 misstatement.

V. In Our Opinion and according to the information and explanation given to us,
the company has not declared any dividend.

For, RAK Champs & Co. LLP

Chartered Accountants
(Registration No. 131094W)

AT/ Reg. No. \p\ b __r~

Date: 31^st December, 2022 pq numw/)m] 1/

Mumbai

Mr. Ramanath Shetty

Partner

₄₈ M. No.: 218600