In the context of a limited review engagement conducted under the requirements of the listing agreement for the quarter ending 31st December 2025,…

(a) Additional procedures are required under this SRE if the practitioner CA. S becomes aware of a matter that causes the practitioner to believe the financial statements may be materially misstated. The practitioner's response in undertaking additional procedures with respect to an item the practitioner has cause to believe may be materially misstated in the financial statements will vary, depending on the circumstances, and is a matter for the practitioner's professional judgment. Additional procedures focus on obtaining sufficient appropriate evidence to enable the practitioner to form a conclusion on matters that the practitioner believes may cause the financial statements to be materially misstated. The procedures may be: Additional inquiry or analytical procedures, for example, being performed in greater detail or being focused on the affected items (i.e. amounts or disclosures concerning the affected accounts or transactions as reflected in the financial statements); orOther types of procedures, for example, substantive test of details or external confirmations. In the given situation, during the course of performing analytical procedures for review, CA. S noted that XYZ Metal Industries Ltd. has identified obsolete and non-moving inventory item. This causes the practitioner CA. S to believe that the inventory balance in the financial statements may be materially misstated. If the practitioner determines that the financial statements are materially misstated, the practitioner shall express: (a) A qualified conclusion, when the practitioner concludes that the effects of the matter(s) giving rise to the modification are material, but not pervasive to the financial statements; or (b) An adverse conclusion, when the effects of the matter(s) giving rise to the modification are both material and pervasive to the financial statements. Inability to obtain sufficient and appropriate evidence: If the practitioner is unable to form a conclusion on the financial statements due to the inability to obtain sufficient appropriate and evidence, the practitioner shall: (a) Express a qualified conclusion if the practitioner concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive or (b) Disclaim a conclusion if the practitioner concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive.