ఆడిటర్ నివేదిక AVG Logistics Ltd.

Mar 31, 2025

We have audited the accompanying standalone financial
statements of AVG Logistics Limited ("the Company"),
which comprise the Balance Sheet as at March 31,
2025, 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 material
accounting policy information and other explanatory
information (hereinafter referred to as the "standalone
financial statements").

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone 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 Indian Accounting Standards prescribed under section
133 of the Act read with Companies (Indian Accounting
Standards) Rules, 2015, as amended ("Ind AS") and other
accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2025, and
its profit including other comprehensive income, changes
in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial
statements in accordance with the Standards on
Auditing (SAs) 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. 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 of
the standalone 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 obtained by us is sufficient and appropriate
to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements for the year ended March
31, 2025. 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. We have determined
the matters described below to be the key audit matters to
be communicated in our report:

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
1	Revenue recognition Revenue from the Contracts with Customers (as described in note 3(b) of the standalone financial statements): Revenue from these contracts are recognized in accordance with the requirements of Ind AS 115. The Company has long term contracts with customers, as at the year end, for all incomplete sales orders, revenue is recognized by evaluating the conditions required as per contractual terms i.e., provision of service to customer and acknowledgement of invoice. Further, revenue is recognised for the completed performance obligation which are part of the incomplete sales orders.	Our audit procedures in respect of this area include but are not limited to: 1. Obtained an understanding of the systems, processes and controls implemented by management for recording and computing revenue, associated unbilled revenue, unearned revenue and deferred revenue balances; 2. Assessed the appropriateness of Company''s accounting policies with respect to Revenue recognition in accordance with IND AS 115 "Revenue from Contracts with Customers"; 3. Verified accuracy of the revenue recognition by selecting samples on test check basis and checking the underlying contract terms and conditions;

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
	The criteria for identification of the specific performance obligations covered by the sales order and the allocation of the transaction price to each performance obligation requires specific attention due to the judgement involved in identifying the specific performance obligation and determination of whether the agreed provision of services to customer are completed in regard to each of these obligations, as acknowledged by the customers. There is also estimation uncertainty in assessing the incomplete sales orders at the year end and identifying the completed portions of the performance obligations from these sales orders. Considering this we have determined Revenue Recognition to be a Key Audit Matter.	4. For samples selected evaluated, as to whether performance obligation for revenue recognition is completed as and when the service is rendered to the customer and acknowledged. Further, performed verification of proof of delivery of services completed; 5. Verification of the ageing of the unbilled revenue and testing for the subsequent acknowledgement from the customers; and 6. Verified the completeness and adequacy of disclosure in the standalone financial statements in compliance with Ind AS 115.
2	Allowance for credit impaired trade receivables (Refer to note 17 to the standalone financial statements with respect to the disclosures of trade receivables): The Company has trade receivables as at March 31, 2025, amounting to '' 22,062.23 lakhs against which the Company has recorded allowance for trade receivables of '' 1676.33 lakhs (PY 1,701.68 lakhs). Management creates allowance for credit impaired trade receivables based on the expected credit loss model. Additionally, the Company assesses the recoverability of all the debit balances including ageing on case-to-case basis considering the facts and circumstances to decide on adhoc provision required. We have determined this matter to be key audit matter considering the materiality of the amounts and significant judgements and estimates involved regarding the allowances for trade receivables.	Our audit procedures in respect of this are included but not limited to: 1. Obtained an understanding of the process from the management of the Company and tested design implementation and operating effectiveness of controls over for development and consistency of methodology for the computation of allowance for trade receivables, tested the completeness and accuracy of information used in estimation of the probability of default, loss given default and other key estimates; 2. Recomputed the ageing of the trade receivables on sample basis and traced their balances to standalone financial statements; 3. Verified subsequent recovery of trade receivables by tracing them in the books of accounts and bank statement on test check basis; 4. Tested the management computations arising out of expected credit loss model; 5. Analysing significant judgements and estimates involved around the expected credit loss model including examining the class of receivables on which certain % based on historic trends are applied, and further assessed the adequacy of provisions made for any possible non recoveries ascertaining the risk of recoverability or delayed payments, etc.; 6. Assessed the basis of management''s judgement regarding specific allowance made against aged balances which are considered to be unrecoverable; and 7. Verified the completeness and adequacy of disclosure in accordance with the requirements of the relevant Ind AS.

Information Other than the Standalone Financial
Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the
other information. The other information comprises the
Director''s report, Management Discussion and Analysis,
Report on Corporate Governance and Financial Highlights
(hereinafter referred as "other information") but does
not include the standalone financial statements and our
auditor''s report thereon. The other information is expected
to be made available to us after the date of this auditor''s
report.

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

In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.

When we read the other information, if we conclude that
there is a material misstatement therein, we are required to
communicate the matter to those charged with governance
under SA 720 ''The Auditor''s responsibilities Relating to
Other Information''.

Responsibilities of Management and Those
Charged with Governance for the Standalone
Financial Statements

The Company''s Management and Board of Directors is
responsible for the matters stated in section 134(5) of the
Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the
financial position, financial performance, 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. 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 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 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 financial statements, the
Management and Board of Directors are 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 the Board of Directors 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
the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the
Standalone Financial Statements

Our objectives are to obtain reasonable assurance about
whether the standalone 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 standalone
financial statements.

We give in "Annexure A" a detailed description of Auditor''s
responsibilities for Audit of the Standalone Financial
Statements.

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 sub-section (11) of section 143 of
the Act, we give in "Annexure B" a statement on the
matters specified 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 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 the matters stated in the
paragraph 2(h) below on reporting under Rule
11(g).

d) The Balance Sheet, the Statement of Profit and
Loss including other comprehensive income, the
Statement of Changes in Equity and the Statement
of Cash Flow dealt with by this Report are in
agreement with the books of account.

e) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act.

g) On the basis of the written representations
received from the directors as on March 31,2025,
taken on record by the Board of Directors, none
of the directors are disqualified as on March 31,
2025, from being appointed as a director in terms
of Section 164 (2) of the Act.

h) The reservation relating to the maintenance of
accounts and other matters connected therewith
are as stated in paragraph 2(b) above on reporting
under Section 143(3)(b) and paragraph 2(j)(vI)
below on reporting under Rule 11(g).

i) With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure C".

j) 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 according to the explanations given to us:

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

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

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

Iv. a) The Management has represented that,
to the best of its knowledge and belief,
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 person or entity, 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, to the best of its knowledge and
belief, no funds have been received by
the Company from any person or entity,
including foreign entities (Funding
Parties), with the understanding, whether
recorded in writing or otherwise, as on
the date of this audit report, 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
performed that have been considered
reasonable and appropriate in the
circumstances, and according to the
information and explanations provided
to us by the Management in this
regard 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 mis¬
statement.

v. The final dividend paid by the Company during
the year in respect of the same declared
for the previous year is in accordance with
section 123 of the Companies Act 2013 to the
extent it applies to payment of dividend.

The Board of Directors of the Company have
proposed final dividend for the year which
is subject to the approval of the members
at the ensuing Annual General Meeting.
The dividend declared is in accordance with
section 123 of the Act to the extent it applies
to declaration of dividend. (Refer Note 57 to
the standalone financial statements).

vi. Based on our examination which included
test checks, the Company has used an
accounting software for maintaining its

books of accounts, which is managed and
maintained by a third-party software service
provider as explained in note 63 to the
standalone financial statements. However, in
absence of sufficient and appropriate audit
evidence including SOC report, we are unable
to comment on the statutory requirements
for record retention prescribed under Rule
11(g) of the Companies (Audit and Auditors)
Rules, 2014.

3. In our opinion, according to information, explanations
given to us, the remuneration paid by the Company to
its directors is within the limits laid prescribed under
Section 197 read with Schedule V of the Act and the
rules thereunder.

For M S K A & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Naresh Anand

Partner

Membership No. 503662

UDIN: 25503662BMLECJ8576

Place: Chandigarh

Date: May 30, 2025

---

Mar 31, 2024

We have audited the accompanying standalone financial statements of AVG Logistics Limited ("the Company"), which comprise the Balance Sheet as at March 31, 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 material accounting policy information and other explanatory information (hereinafter referred to as the "standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2024, and profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) 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. 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 of the standalone 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 obtained by us is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended March 31, 2024. 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. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
1	Revenue recognition Revenue from these contracts is recognized in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers (as described in note 3(b) of the standalone financial statements). The Company has long term contracts with customers, as at the year end, for all incomplete sales orders, revenue is recognized by evaluating the conditions required as per contractual terms i.e., provision of service to customer and acknowledgement of invoice. Further, revenue is recognised for the completed performance obligation which are part of the incomplete sales orders.	Our audit procedures in respect of this area include but are not limited to: 1. Obtained an understanding of the systems, processes and controls implemented by management for recording and computing revenue, and the associated unbilled revenue, unearned and deferred revenue balances; 2. Assessed the appropriateness of Company''s accounting policies with respect to Revenue recognition in accordance with IND AS 115 "Revenue from Contracts with Customers"; 3. Verified accuracy of the revenue recognition by selecting samples on test check basis and checking the underlying contract terms and conditions;

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
	The criteria for identification of the specific performance obligations covered by the sales order and the allocation of the transaction price to each performance obligation requires specific attention due to the judgement involved in identifying the specific performance obligation and determination of whether the agreed provision of services to customer are completed in regard to each of these obligations, as acknowledged by the customers. There is also estimation uncertainty in assessing the incomplete sales orders at the year end and identifying the completed portions of the performance obligations from these sales orders. Considering this we have determined Revenue Recognition to be a Key Audit Matter.	4. For samples selected on test check basis, evaluated, as to whether performance obligation for revenue recognition is completed as and when the service is rendered to the customer and acknowledged. Further, performed verification of proof of delivery of services completed; 5. Verification of the ageing of the unbilled revenue and testing for the subsequent acknowledgement from the customers; and 6. Verified the completeness and adequacy of disclosure in the standalone financial statements in compliance with Ind AS 115.
2	Allowance for trade receivables Refer to note 17 to the standalone financial statements with respect to the disclosure of trade receivables. The Company has trade receivables as at March 31, 2024 amounting to '' 17,861.20 lakhs against which the Company has recorded allowance for trade receivables of '' 1,701.68 lakhs. Management creates allowance for trade receivables based on the expected credit loss model. Additionally, the Company assesses the recoverability of all the debit balances including ageing on case-to-case basis considering the facts and circumstances to decide on adhoc provision required. We have determined this matter to be key audit matter considering the materiality of the amounts and significant judgements and estimates involved regarding the allowances for trade receivables.	Our audit procedures in respect of this are included but not limited to: 1. Obtained an understanding of the process from the management of the Company and tested design implementation and operating effectiveness of controls over for development and consistency of methodology for the computation of allowance for trade receivables, tested the completeness and accuracy of information used in estimation of the probability of default, loss given default and other key estimates; 2. Recomputed the ageing of the trade receivables on sample basis and traced their balances to standalone financial statements; 3. Verified subsequent recovery of trade receivables by tracing them in the books of accounts and bank statement on test check basis; 4. Tested the management computations arising out of expected credit loss model; 5. Analysing significant judgements and estimates involved around the expected credit loss model including examining the class of receivables on which certain % based on historic trends are applied, and further assessed the adequacy of provisions made for any possible non recoveries ascertaining the risk of recoverability or delayed payments, etc.; 6. Assessed the basis of management''s judgement regarding specific allowance made against aged balances which are considered to be unrecoverable; and 7. Verified the completeness and adequacy of disclosure in accordance with the requirements of the relevant Ind AS.

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
3	impairment of assets Refer to note 3(l) to the standalone financial statements. The Company has a warehouse at Agartala, Tripura having carrying value amounting to '' 967.31 lakhs as at March 31, 2024. This warehouse has been capitalised in the financial year 2020-21 and has not been operational since its capitalisation. Since the warehouse is not operational management would need to assess the impairment by using key estimates including useful life of the building, its fair value, and method of computation of the fair value. We have determined this matter to be key audit matter considering the materiality of the amounts and significant judgements and estimates involved regarding the impairment of the warehouse.	Our audit procedures in respect of this are included but not limited to: 1. Obtained an understanding of the systems, processes and control implemented by management for assessment and recording for impairment of assets; 2. Assessment of the Company''s accounting policies with respect to impairment in accordance with Ind AS 36 "Impairment of assets"; 3. Enquired into the reasons for non-operation of the warehouse since capitalization and assessed them for any impairment indicators; 4. Obtained the fair valuation report of the management''s expert for the fair valuation of the warehouse; 5. Involved auditor''s expert to assess the appropriateness of the key assumptions and estimates used by the valuers in determination of the fair value of warehouse (such as, useful life of the building, its fair value, and method of computation of the fair value, discount rates, etc.); and 6. Assessed the appropriateness of disclosures in accordance with the requirements of Ind AS 36 "Impairment of assets".

information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the Director''s report, Management Discussion and Analysis, Report on Corporate Governance and Financial Highlights but does not include the standalone financial statements and our auditor''s report thereon. The annual report is expected to be made available to us after the date of this auditor''s report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance under SA 720 ''The Auditor''s responsibilities Relating to Other Information''.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company''s Management and Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, 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. 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 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 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 financial statements, the Management and Board of Directors are 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Management and Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial statements.

We give in "Annexure A" a detailed description of Auditor''s responsibilities for Audit of the Standalone Financial Statements.

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 sub-section (11) of section 143 of the Act, we give in "Annexure B" a statement on the matters specified 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 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 the matters stated in the paragraph 2(h)(vi) below on reporting under Rule 11(g).

(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of accounts.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.

(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 are disqualified as on March 31, 2024, from being appointed as a director in terms of Section 164 (2) of the Act.

(f) The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 2(b) above on reporting under Section 143(3)(b) and paragraph 2(h)(vi) below on reporting under Rule 11(g).

(g) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C".

(h) The reservation relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 2(b) above on reporting under Section 143(3)(b) and paragraph 2h (vi) below on reporting under Rule 11(g).

(i) 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 according to the explanations given to us:

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

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

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

iv. a) The Management has represented that,

to the best of its knowledge and belief, 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 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, to the best of its knowledge and belief, 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, as on the date of this audit report, 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 performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard 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 (1) and (2) above, contain any material misstatement.

v. The dividend paid by the Company during the

year in respect of the same declared for the

previous year is in accordance with section

123 of the Companies Act 2013 to the extent it applies to payment of dividend.

vi. Based on our examination, the Company has used an accounting software for maintaining its books of account during the year ended March 31, 2024, which has a feature of recording audit trail (edit log) facility, except that no audit trail feature was enabled at the database level during the year ended March 31,2024 in respect of the software LogicsNext to log any direct data changes.

Further, the audit trail facility has been operated throughout the year for all relevant transactions recorded in the accounting software, except for the software at the database level as stated above, in respect of which the audit trail facility has not operated throughout the year for all relevant transactions recorded in this accounting software as it was not enabled.

Further, during the course of our examination, we did not come across any instance of audit trail feature being tampered with.

3. In our opinion, according to information, explanations given to us, the remuneration paid / provided by the Company to its directors is within the limits laid prescribed under Section 197 read with Schedule V of the Act and the rules thereunder.

For M S K A & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Naresh Anand

Partner

Membership No. 503662

UDIN: 24503662BKEJFA9796

Place: Chandigarh

Date: May 29, 2024

---

Mar 31, 2023

AVG Logistics Limited

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the accompanying standalone financial statements of AVG Logistics Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2023, 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, the aforesaid standalone 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 Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its profit (including other 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 (SAs) 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. 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 of the standalone 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 obtained by us is sufficient and appropriate to provide a basis for our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in

our audit of the standalone financial statements for the year ended March 31, 2023 (current year). 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.

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
1	Revenue Recognition Revenue from these contracts is recognized in	Our audit procedures in respect of this area include but are not limited to:
	accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers (as described in note 2.4 of the standalone financial statements). The Company has long term contracts with customers,	1.	Obtained an understanding of the systems, processes and controls implemented by management for recording and computing revenue, and the associated unbilled revenue, unearned and deferred revenue balances;
	as at the year end, for all incomplete sales orders, revenue is recognized by evaluating the conditions required as per contractual terms i.e., provision of service to customer and acknowledgement of invoice.	2.	Assessed the appropriateness of Company''s accounting policies with respect to Revenue recognition in accordance with IND AS 115 "Revenue from Contracts with Customers";
	Further, revenue is recognised for the completed performance obligation which are part of the incomplete sales orders.	3.	Verified accuracy of the revenue recognition by selecting samples on test check basis and checking the underlying contract terms and conditions;

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
	The criteria for identification of the specific performance obligations covered by the sales order and the allocation of the transaction price to each performance obligation requires specific attention due to the judgement involved in identifying the specific performance obligation and determination of whether the agreed provision of services to customer are completed in regard to each of these obligations, as acknowledged by the customers. There is also estimation uncertainty in assessing the incomplete sales orders at the year end and identifying the completed portions of the performance obligations from these sales orders. Considering this we have determined Revenue Recognition to be a Key Audit Matter.	4. For samples selected on test check basis, evaluated, as to whether performance obligation for revenue recognition is completed as and when the service is rendered to the customer and acknowledged. Further, performed verification of proof of delivery of services completed; 5. Verification of the ageing of the unbilled revenue and testing for the subsequent acknowledgement from the customers; and 6. Verified the completeness and adequacy of disclosure in the standalone financial statements in compliance with Ind AS 115.
2	Allowance for trade receivables Refer to note 15 to the standalone financial statements with respect to the disclosures of trade receivables. The Company has trade receivables as at March 31, 2023 amounting to Rs. 13,938.03 lakhs against which the Company has recorded allowance for trade receivables of Rs. 1,624.80 lakhs (PY Rs. 1,427.38 lakhs). Management creates allowance for trade receivables based on the expected credit loss model. Additionally, the Company assesses the recoverability of all the debit balances including ageing on case to case basis considering the facts and circumstances to decide on adhoc provision required. We have determined this matter to be key audit matter considering the materiality of the amounts and significant judgements and estimates involved regarding the allowances for trade receivables.	Our audit procedures in respect of this are included but not limited to: 1. Obtained an understanding of the process from the management of the Company and tested design implementation and operating effectiveness of controls over for development and consistency of methodology for the computation of allowance for trade receivables, tested the completeness and accuracy of information used in estimation of the probability of default, loss given default and other key estimates; 2. Recomputed the ageing of the trade receivables on sample basis and traced their balances to standalone financial statements; 3. Verified subsequent recovery of trade receivables by tracing them in the books of accounts and bank statement on test check basis; 4. Tested the management computations arising out of expected credit loss model; 5. Analysing significant judgements and estimates involved around the expected credit loss model including examining the class of receivables on which certain % based on historic trends are applied, and further assessed the adequacy of provisions made for any possible non recoveries ascertaining the risk of recoverability or delayed payments, etc; 6. Assessed the basis of management''s judgement regarding specific allowance made against aged balances which are considered to be unrecoverable; and 7. Verified the completeness and adequacy of disclosure in accordance with the requirements of the relevant Ind AS.

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
3	Impairment of assets	Our audit procedures in respect of this are included but not
	Refer to note 2.13 to the standalone financial	limited to:
	statements.	1.	Obtained an understanding of the systems, processes
	The Company has a warehouse at Agartala, Tripura having carrying value amounting to Rs. 984.10 lakhs		and control implemented by management for assessment and recording for impairment of assets;
	as at March 31, 2023. This warehouse has been	2.	Assessment of the Company''s accounting policies with
	capitalised in the financial year 2020-21 and has not		respect to impairment in accordance with Ind AS 36
	been operational since its capitalisation.		"Impairment of assets";
	Since the warehouse is not operational management	3.	Enquired into the reasons for non-operation of the
	would need to assess the impairment by using key		warehouse since capitalization and assessed them for
	estimates including useful life of the building, its fair		any impairment indicators;
	value, and method of computation of the fair value. We have determined this matter to be key audit matter considering the materiality of the amounts	4.	Obtained the fair valuation report of the management''s expert for the fair valuation of the warehouse;
	and significant judgements and estimates involved	5.	Involved auditor''s expert to assess the appropriateness
	regarding the impairment of the warehouse.		of the key assumptions and estimates used by the valuers in determination of the fair value of warehouse (such as, useful life of the building, its fair value, and method of computation of the fair value, discount rates, etc.); and
		6.	Assessed the appropriateness of disclosures in accordance with the requirements of Ind AS 36 "Impairment of assets".
4	Lease accounting	Our audit procedures in respect of this area include but are
	Refer to note 2.5 and 48 to the standalone financial	not limited to:
	statements. The Company has taken certain premises	1.	Obtained an understanding of the processes and control
	for warehousing and other commercial purposes.		implemented by management in relation to accounting
	Pursuant to adoption of Ind AS, the Company w.e.f.		of leases;
	April 1, 2021 has used the retrospective approach for transition as per Ind AS 116 (leases), wherein the lease liability has been measured at present value of the remaining lease payments at the date of initial application (i.e., April 1, 2021) and discounted using the incremental borrowing rate at the date of initial application.	2.	Reviewed the management process in relation to application of key lease terms in lease contracts, reasonableness of the key assumptions used for the purpose of lease accounting, and assessed the appropriateness of the accounting policy in accordance with Ind AS 116 ''Leases'';
	As a result of such adoption, Company has recognized lease liability amounting to Rs. 15,322.48 lakhs and Right-of-use asset amounting to Rs. 12,877.70 lakhs as at March 31, 2023. Further during the year, Company has recognised rent expense of Rs. 3,550.97 lakhs, interest expense on lease liability Rs. 1,609.26 lakhs	3.	Verified the accuracy of the underlying lease data by agreeing a representative sample of leases to original contract or other supporting information, and verified the integrity and arithmetic accuracy of the calculations for each lease sampled through recalculation of the expected Ind AS 116 adjustment;
	and depreciation on Right-of-use assets Rs. 2,761.55	4.	Assessed the appropriateness of the assumptions
	lakhs in the statement of profit and loss for the year		applied to determine the discount rates for the lease
	ended March 31, 2023.		accounting;

Sr. No	Key Audit Matter	How the Key Audit Matter was addressed in our audit
	Management has used several judgements like determination of leases, lease term, use of practical expedients and discount rates over each lease contract and have applied estimates during lease accounting. Considering the materiality of the amounts involved, and the significant judgements and estimates used by management in the lease recognition and accounting, this matter has been identified as a key audit matter.	5. Assessed the appropriateness of lease rentals and lease escalations used in computations of Right-of-use asset and corresponding lease liability for the entire lease tenure supported by the agreements with the lessor; 6. Assessed the appropriateness of leases excluded from the scope of Ind AS-116 being short term leases or leases for which underlying asset is of low value; 7. Ensured that the accounting treatment including the transition provisions adopted by the Company are in accordance with the provisions of Ind-AS 116; and 8. Assessed the adequacy and appropriateness of the disclosures made in the standalone financial statements is in accordance with the applicable Indian accounting standards.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR''S REPORT THEREON

The Company''s Board of Directors is responsible for the other information. The other information comprises the annual report but does not include the standalone financial statements and our auditor''s report thereon. The annual report is expected to be made available to us after the date of this auditor''s report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance under SA 720 ''The Auditor''s responsibilities Relating to Other Information''.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR STANDALONE FINANCIAL STATEMENTS

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements

that give a true and fair view of the financial position, financial performance, 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. 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 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 financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

AUDITOR''S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial statements.

We give in "Annexure A" a detailed description of Auditor''s responsibilities for audit of the standalone financial statements.

OTHER MATTER

The comparative financial information of the Company for the year ended March 31, 2022 and the transition date opening Balance Sheet as at April 1, 2021 included in these standalone financial statements are based on the previously issued standalone financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2021, specified under Section 133 and other relevant provisions of the Act for the year ended March 31,2022 and March 31, 2021 on which we issued an unmodified audit opinion vide our reports dated June 06, 2022 and October 27, 2021 respectively on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have also been audited by us.

Our opinion is not modified in respect of the above matter.

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 sub-section (11) of section 143 of the Act, we give in "Annexure B" a statement on the matters specified 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 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 that the Company has not maintained

daily back-up of books of accounts and other books and papers maintained in electronic mode in a server physically located in India.

(c) The balance sheet, the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the statement of cash flow dealt with by this report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 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 with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C".

(g) 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 according to the explanations given to us:

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

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

iii. There were no amounts which were required to be transferred to the investor education and protection fund by the Company.

iv. 1. The Management has represented that,

to the best of it''s knowledge and belief, 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, 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;

2. The Management has represented,

that, to the best of it''s knowledge and belief, 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, as on the date

of this audit report, 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; and

3. Based on the audit procedures

performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard

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 mis-statement.

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

vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.

3. In our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within the limits laid prescribed under Section 197 of the Act and the rules thereunder.

For MSKA & Associates

Chartered Accountants

ICAI Firm Registration No. 105047W

Naresh Anand

Partner

Membership No. 503662

UDIN: 23503662BGXWRU1571

Place: Chandigarh

Date: June 03, 2023

---

Mar 31, 2018

INDEPENDENT AUDITOR''S REPORT

TO THE MEMBERS OF AVG LOGISTICS LIMITED, NEW DELHI

Report on the Financial Statements

We have audited the accompanying financial statements of AVG LOGISTICS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the 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 financial fair view of the financial position, financial performance 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 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 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

Opinion

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 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 2018 and its Profit and its cash flows for the year ended on that date.

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 A, a statement on the matters specified in the paragraph 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 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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

e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 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

g) 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 according to the explanations given to us:

• the Company has disclosed the impact of pending litigations on its financial position in its financial in notes on accounts.

• the Company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses.

• the company did not have any amount which were required to be transferred to the Investor Education and Protection fund during the year.

FOR PRAKASH K PRAKASH CHARTERED ACCOUNTANTS ICAI FIRM REGN NO 000415N

PRAKASH K GUPTA

PARTNER

MNO -080320 31.05.2018 New Delhi

Annexure A referred to in paragraph 1 under the heading "Report on other Legal and Regulatory Requirements" of our report of even date on the accounts for the year ended 31st March 2018.

(i) (a) As per the information and explanations

provided to us and on the basis of our verification, the Company has maintained proper records showing full particulars including quantitative details and situation of Property, Plant & Equipments.

(b) As per the information and explanations provided to us, all Property, Plant & Equipments have not been physically verified by the management of the company during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such verification.

(c) As per the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of company.

(ii) The management has conducted physical

verification of inventory at reasonable interval during the year and no material discrepancies were noticed on such verification.

(iii) As per the information and explanations provided to us, during the year the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.

(v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

(vi) As per the information and explanations provided to us and to best of our knowledge, provisions of Section 148 of the Act, are not applicable to the Company with regard to maintenance of Cost Records.

(vii) (a) According to records of the company and information and explanation given to us the company has generally been regular in depositing undisputed statutory dues including Provident fund, Employees'' State Insurance, TDS, GST and any other statutory dues with the appropriate authorities although there has been a delay in many cases.

(b) According to the information and explanation given to us, no un-disputed amounts payable in respect of provident fund, ESIC, GST & other material dues were outstanding at the year end, for a period of more than six months from the date they become payable. The provision relating to excise duty, Value added tax are not applicable on the company.

(c) According to the information and explanation given to us, there are no dues of income tax and other taxes including cess which have not been deposited on account of any dispute.

(viii) As per the information and explanations provided to us, the company has not defaulted in repayment of dues to any bank or financial institution at the balance sheet date. Further, there are no debenture holders as on date of Balance Sheet.

(ix) As per the information and explanations provided to us, the money raised from terms loans by the company are by and large applied for the purpose for which these were taken. Further, the company has not raised money by issue of Debentures or initial Public offer although the company was under process of raising money from public at the end of year.

(x) Based upon the audit procedure performed for the purpose of reporting the true & fair view of the financial statement and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of such case by the management.

(xi) According to the information and explanation given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of the section 197 read with Sch V of the companies Act, 2013.

(xii) In our opinion, the company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable and hence not commented upon.

(xiii) As per the information and explanations provided to us, the company has complied with section 177 & Section 188 of the companies Act, 2013 for all the transactions with related parties and the same has been disclosed in the financial statements.

(xiv) As per the information and explanations provided to us, the Company has made private placement of shares by issuing bonus shares during the year under review and has compiled with the section 42 of the companies Act,2013.

(xv) According to the information and explanations given to us, the Company has not entered into non-cash transactions with directors or persons connected with him as referred to in section 192 of the companies Act, 2013

(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable on the Company.

FOR PRAKASH K PRAKASH CHARTERED ACCOUNTANTS ICAI FIRM REGN NO000415N PRAKASH K GUPTA PARTNER MNO -080320 31.05.2018 New Delhi

Annexure B referred to the Independent Auditor''s Report to the Members of AVG LOGISTICS LIMITED being report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AVG LOGISTICS LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting bases on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial controls over Financial Reporting (the "Guidance Note") and the standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls systems over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting, assessing the risk that evaluating the design, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company''s internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:

1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the company.

2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditure of the company are being made only in accordance with authorizations of management and directors of the company.

3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

FOR PRAKASH K PRAKASH CHARTERED ACCOUNTANTS ICAI FIRM REGN NO 000415N PRAKASH KGUPTA PARTNER MNO- 080320 31.05.2018 New Delhi