To

The Members of

Arihant Superstructures Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of ArihantSuperstructures Limited ("the Company") which comprise the Standalone BalanceSheet as at March 31 2022 the Standalone Statement of Profit and Loss (including OtherComprehensive Income) the Standalone Statement of Changes in Equity and the StandaloneStatement of Cash Flows for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (‘‘the Act??) in themanner so required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2022 its profit and othercomprehensive loss 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(SAs) specified under Section 143 (10) of the Act. Our responsibilities under those SAsare further described in the Auditors? Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements for currentperiod. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Other Information

The Company?s Management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany?s annual report but does not include the standalone financial statements andour auditors? report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management and Those charged with Governance forthe Standalone Financial Statements

The company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fairviewofthestateofaffairs(financialposition)profitorloss(financial performance includingOther Comprehensive Income) Changes In Equity and Cash Flows of the company in accordancewith the accounting principles generally accepted in India including the Ind AS specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements the Board of Directors isresponsible for assessing the company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing thecompany?s financial reporting process.

Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditors? report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to standalone financialstatements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management?s use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany?s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor?s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor?s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant de_ciencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors? report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 Section 143(11) of the Act we give in the "Annexure A" a statement on the mattersspecified 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Standalone Balance Sheet the Standalone Statement of Profitand Loss (including other Comprehensive Income) the Standalone Statement of Changes inEquity and the Standalone Statement of Cash Flow dealt with by this report are inagreement with the books of account;

(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards (Ind AS) specified under Section 133 of theAct;

(e) On the basis of the written representations received from thedirectors as of March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as of March 31 2022 from being appointed as a director interms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlswith reference to the standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B".

(g) With respect to the other matters to be included in theAuditor?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 accordingto the explanations given to us:

i. The company has to the extent ascertainable disclosed the impactof pending litigations on its financial position in its standalone financial statements– Refer Note 35 to the standalone financial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there can be any material foreseeable losses.

iii. The company is required to transfer Rs. 0.01Lakhs to the InvestorEducation and Protection Fund.

iv. (i) The Management has represented that to the best of itsknowledge and belief no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the company toor in any other person / entity including foreign entities (‘Intermediaries?)with the understanding whether recorded in writing or otherwise that the Intermediaryhas whether directly or indirectly lend or invest in other persons or entities identifiedin any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries;

(ii) The Management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any person/entity includingforeign entities with the understanding whether recorded in writing or otherwise as onthe date of this audit report that the company has directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(iii) Based on our audit procedures which we have considered reasonableand appropriate in the circumstances and according to the information and explanationsprovided to us by the Management in this regard nothing has come to the notice that hascaused us to believe that the representations made by the Management under sub-clause (1)and (2) contain any material misstatement.

v. The Company has neither declared nor paid any dividend during theyear.

3. As required by The Companies (Amendment) Act 2017 in our opinionaccording to information and explanations given to us the remuneration paid by theCompany to its directors is within the limits prescribed under Section 197 of the Act andthe rules thereunder.

to the Independent Auditors? Report

The Annexure referred to in the Independent Auditors? Report tothe members of the Company on the standalone financial statements for the year ended March31 2022 we report that:

(i) (a) A. The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment and Investment properties.

B. The Company has maintained proper records showing full particularsof intangible assets. (b) The Property Plant & Equipment of the company have beenphysically verified by the management during the year and no material discrepancies havebeen identified on such verification. In our opinion the frequency of verification isreasonable.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties (other than properties where the Company is the lessee and the lease agreementsare duly executed in favour of the lessee) as disclosed in Note No. 4 in the financialstatements are held in the name of the Company.

(d) The Company has not revalued any of its Properties Plant andEquipment (including right-of-use assets) and intangible assets during the year.

(e) According to the information and explanations given to us noproceeding has been initiated or pending against the Company for holding benami propertyunder the Benami Transactions (Prohibition) Act 1988 and rules made thereunder.Accordingly the provisions stated in clause 3(i) (e) of the Order are not applicable tothe Company.

(ii) (a) The company inventory includes construction work in progressaccordingly the requirement under paragraph 3(ii)(a) of the Order is not applicable forconstruction work in progress. The Inventory comprising of finished goods has beenphysically verified by the management during the year. In our opinion the frequency ofsuch verification is reasonable. No discrepancies were noticed on verification between thephysical stocks and the book records.

(b) The Company has not been sanctioned working capital limits inexcess of Rs. 5 crores in aggregate from Banks/ financial institutions on the basis ofsecurity of current assets. Accordingly the requirement under paragraph 3(ii)(b) of theOrder is not applicable to the company.

(iii) (a) According to the information explanation provided to us theCompany has provided loans or provided advances in the nature of loans given guaranteesor provided security to any other entity.

(A) The details of such loans or advances and guarantees or security tosubsidiaries Joint Ventures and Associates in accordance with provisions of theCompanies Act 2013 are as follows:

(B) The Company has provided loans or advances in the nature of loansamounting to Rs. 100.31/- Lakhs to any entity other than subsidiaries joint ventures andassociates during the year are as follows and hence reporting under clause 3(iii)(a)(B)of the Order is not applicable.

(b) According to the information and explanations given to us and basedon the audit procedures performed by us we are of the opinion that the terms andconditions in relation to investments made guarantee provided and security given are notprejudicial to the interest of the Company.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company in the case of unsecured loansgiven in our opinion the repayment of principal and payment of interest has not beenstipulated which is repayable on demand. As informed to us the Company has received thedemand amount as and when demanded along with interest during the year. Thus there hasbeen no default on the part of the party to whom the money has been lent.

(d) There are no amounts overdue for more than ninety days as of thebalance sheet date other than those already provided for in respect of the loan granted toCompany/Firm/ LLP/ Other Parties.

(e) According to the information and explanation provided to us theloan or advance in the nature of the loan granted has not fallen due during the year.Hence the requirements under clause 3(iii)(e) of the Order are not applicable to theCompany.

(f) According to the information and explanations given to us and onthe basis of our examination of the records of the Company in our opinion the Company hasnot granted loans or advances in the nature of loans either repayable on demand or withoutspecifying any terms or period of repayment except for the following loans or advances inthe nature of loans to its Promoters and related parties as defined in clause (76) ofsection 2 of the Companies Act 2013 ("the Act"):

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct in respect of loans investments guarantees and security made. Further as theCompany is engaged in the business of providing infrastructural facilities the provisionsof section 186 [except for sub-section (1)] are not applicable to it.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof Sections 73 74 75 and 76 of the Act and the rules framed thereunder.

(vi) We have broadly reviewed the books of accounts maintained by theCompany pursuant to the rules prescribed by the Central Government for the maintenance ofcost records under Section 148(1) of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.

(vii) (a) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company is generallyregular in depositing undisputed statutory dues in respect of provident fund income taxsales tax value added tax duty of customs service tax goods and service tax cess andother material statutory dues though there has been a slight delay in few cases with theappropriate authorities.

According to the information and explanations are given to us noundisputed amounts payable in respect of provident fund income tax sales tax valueadded tax the duty of customs service tax goods and service tax cess and othermaterial statutory dues were in arrears as at March 31 2022 for a period of more thansix months from the date they became payable except as stated below.

(b) According to the information and explanations given to us and therecords of the Company examined by us the particulars of dues of income tax sales taxservice tax the duty of customs and duty of excise duty value added tax as at March 312022 which have not been deposited on account of a dispute are as follows:

(viii) According to the information and explanations given to us thereare no transactions which are not accounted for in the books of account which have beensurrendered or disclosed as income during the year in the Tax Assessment of the Company.Also there is no previously unrecorded income that has been now recorded in the books ofaccount. Hence the provision stated in clause 3(viii) of the Order is not applicable tothe Company.

(ix) (a) In our opinion and according to the information andexplanations given to us the Company has not obtained any term loans during the year.Accordingly clause 3(ix)(c) of the Order is not applicable.

(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declared awilful defaulter by any bank or financial institution or government or any governmentauthority.

(c) In our opinion and according to the information explanationprovided to us money raised by way of term loans during the year have been applied forthe purpose for which they were raised.

(d) According to the information and explanations given to us theprocedures performed by us and on an overall examination of the standalone financialstatements of the Company we report that no funds raised on a short-term basis have beenused for long-term purposes by the Company.

(e) According to the information explanation given to us and on anoverall examination of the standalone financial statements of the Company we report thatthe Company has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures.

(f) According to the information and explanations given to us andprocedures performed by us we report that the Company has not raised loans during theyear on the pledge of securities held in its subsidiaries joint ventures or associatecompanies.

(x) (a) The Company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) during the year and hencereporting under clause 3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not raised any fundthrough Qualified Institutional Placements (QIP) during the year. Further during theyear the Company did not make preferential allotment/ private placement of fully/ partlyconvertible debentures.

(xi) (a) During the course of our audit examination of the books andrecords of the Company carried out in accordance with the generally accepted auditingpractices in India and according to the information and explanations given to us we haveneither come across any instance of material fraud by the Company or on the Company.

(b) We have not come across of any instance of material fraud by theCompany or on the Company during the course of audit of the standalone financialstatements for the year ended March 31 2022 accordingly the provisions stated in clause3(xi)(b) of the Order is not applicable to the Company.

(c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year while determining the nature timing and extent ofaudit procedures.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly the provision stated inclause 3(xii) of the order are not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us and based on our examination of the records of the company the transactionswith related parties are in compliance with Sections 177 and 188 of the Companies Act2013 where applicable and the details of the related party transactions have beendisclosed in the standalone financial statements as required by the applicable IndianAccounting Standards

(xiv) (a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports of the Company issuedtill date for the period under audit

(xv) According to the information and explanations given to us in ouropinion during the year the Company has not entered into any non-cash transactions withits directors or persons connected with its directors and hence provisions of section 192of the Companies Act 2013 are not applicable to the Company.

(xvi) (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a) and 3(xvi)(b) of the Order is not applicable.

(b) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of theOrder is not applicable.

(c) According to the information and explanations provided to us duringthe course of the audit the Group does not have any CIC. Accordingly the requirements ofclause 3(xvi)(d) are not applicable.

(xvii) The Company has not incurred cash losses in current and in theimmediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors duringthe year. Accordingly clause 3(xviii) of the Order is not applicable.

(xix) According to information and explanation given to us and on thebasis of the financial ratios aging and expected dates of realization of financial assetsand payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of the balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) In our opinion and according to the information and explanationsgiven to us there is no unspent amount under sub-section (5) of Section 135 of theCompanies Act 2013 pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) ofthe Order are not applicable.

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") as referredto in paragraph 2(f) on "Report on Other Legal Regulatory requirement section.

We have audited the internal financial controls over financialreporting of Arihant Superstructures Limited ("the Company") as of March 312022 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management?s Responsibility for Internal Financial Controls

The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI?). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to thecompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors? Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company?s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company?s internal financial controlover financial reporting includes those policies and procedures that

(a) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(b) Provide reasonable assurance that transactions are recorded asnecessary to permit the preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(c) Provide reasonable assurance regarding the prevention or timelydetection of unauthorized acquisition use or disposition of the company?s assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.