Arco Leasing Ltd Auditor Reports

Report on the Audit of the Standalone Annual Financial Statements

To,

The Board of Directors of Arco Leasing Limited

Opinion

We have audited the accompanying standalone annual financial results of Arco Leasing Limited (hereinafter referred to as the Company) for the year ended March 31, 2026, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the Listing Regulations).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone annual financial results:

a. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and b. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (the Act) read with relevant rules issued thereunder and other accounting principles generally accepted in India, of the net profit/ (loss), other comprehensive income and other financial information of the Company for the year ended March 31, 2026.

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 SAs are further described in the Auditors Responsibilities for the Audit of the Standalone Annual Financial Results 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 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 on the standalone annual financial results.

Managements and Board of Directors Responsibilities for the Standalone Annual Financial Results

The standalone annual financial results have been prepared on the basis of the standalone annual financial statements. The Companys Management and the Board of Directors are responsible for the preparation and presentation of the standalone annual financial results that give a true and fair view of the net profit/(loss) and other comprehensive income of the

Company and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. 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 the 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 annual financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone annual financial results, the Management and the Board of Directors are responsible for assessing the Companys 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 are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Annual Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone annual financial results as a whole are free from material misstatement, whether due 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 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 the standalone annual financial results.

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

Identify and assess the risks of material misstatement of the standalone annual financial results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the standalone annual financial results made by the Management and Board of Directors.

Conclude on the appropriateness of the Managements and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone annual financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the standalone annual financial results, including the disclosures, and whether the standalone annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

We also performed procedures in accordance with SEBI Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

Other Matter

The standalone annual financial results include the results for the quarter ended March 31, 2026, being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2026 and the published unaudited year-to-date figures up to the end of the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For M.C.Jain & Co. LLP
Chartered Accountants

(C.A.Vatsal Gohil)
Partner
Membership no. 146059
Firm Registration no. 304012E
Mumbai, May 30, 2026
UDIN : 26146059UDQJYD1274

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements section of our report of even date to the members of ARCO LEASING LIMITED on the Standalone Financial Statements for the year ended March 31, 2026)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

(i) Property, Plant and Equipment and Intangible Assets

(a) The Company does not hold any Property, Plant and Equipment or intangible assets as at the balance sheet date. Accordingly, the requirement to report on maintenance of proper records of Property, Plant and Equipment [clause 3(i)(a)(A)] and of intangible assets [clause 3(i)(a)(B)] is not applicable.

(b) As the Company does not hold any Property, Plant and Equipment, the requirement to report on their physical verification is not applicable.

(c) The Company does not hold any immovable property. Accordingly, the requirement to report on whether title deeds are held in the name of the Company is not applicable.

(d) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use assets) or intangible assets during the year. Accordingly, clause 3(i)(d) is not applicable.

(e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2026 for holding any Benami property under the Prohibition of Benami Property Transactions Act, 1988 and the rules made thereunder. Accordingly, clause 3(i)(e) is not applicable.

(ii) Inventory and Working Capital Limits

(a) The Company is engaged in the business of investments and does not hold any inventory. Accordingly, the requirement to report on physical verification of inventory and discrepancies of 10% or more [clause 3(ii)(a)] is not applicable.

(b) The Company has not been sanctioned any working capital limits in excess of 5 crore, in aggregate, from banks or financial institutions on the basis of security of current assets at any point of time during the year. Accordingly, the requirement to report on filing of quarterly returns/statements with such banks or financial institutions [clause 3(ii)(b)] is not applicable.

(iii) Investments, Loans, Advances, Guarantees and Security

During the year the Company has made investments in its subsidiary and in mutual funds. The Company has not provided any guarantee or security and has not granted any loans or advances in the nature of loans to companies, firms, Limited Liability Partnerships or any other parties. Accordingly:

(a) the requirement to report on the aggregate amount and year-end balance of loans/advances in the nature of loans granted to subsidiaries/associates/joint ventures and to other parties is not applicable;

(b) in our opinion, the terms and conditions of the investments made during the year are, prima facie, not prejudicial to the interest of the Company;

(c) to (f) since the Company has not granted any loans or advances in the nature of loans, the requirements to report on stipulation of schedule of repayment and regularity thereof, overdue amounts exceeding 90 days, renewal/extension or fresh loans to settle overdue dues, and loans granted which are repayable on demand or without specifying terms, are not applicable.

(iv) Compliance with Sections 185 and 186

In our opinion and according to the information and explanations given to us, the Company has not granted any loans, or provided any guarantees or security, to which the provisions of section 185 of the Companies Act, 2013 apply. In respect of the investments made by the Company, the provisions of section 186 of the Companies Act, 2013 have been complied with.

(v) Deposits

The Company has not accepted any deposits or amounts which are deemed to be deposits from the public within the meaning of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder. The unsecured loan obtained by the Company during the year is from a body corporate and does not constitute a deposit. Accordingly, the requirement to report on compliance with directions of the Reserve Bank of India or any order passed by the Company Law Board / National Company Law Tribunal / Reserve Bank of India / any Court or other Tribunal is not applicable.

(vi) Cost Records

The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the activities carried on by the Company. Accordingly, clause 3(vi) is not applicable.

(vii) Statutory Dues

(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees State Insurance, Income-tax, Duty of Customs, Cess, Professional Tax and other material statutory dues, as applicable, with the appropriate authorities. There were no undisputed amounts payable in respect of the aforesaid dues in arrears as at March 31, 2026 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no statutory dues referred to in sub-clause (a) which have not been deposited with the appropriate authorities on account of any dispute.

(viii) Unrecorded Income

According to the information and explanations given to us, there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.

(ix) Repayment of Borrowings

(a) The Company has not defaulted in the repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year.

(b) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender.

(c) The Company has not obtained any term loans during the year. Accordingly, the requirement to report on application of term loans is not applicable.

(d) On an overall examination of the financial statements of the Company, no funds raised on short-term basis have been utilised for long-term purposes.

(e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiary. Accordingly, clause 3(ix)(e) is not applicable.

(f) The Company has not raised any loans during the year on the pledge of securities held in its subsidiary. Accordingly, clause 3(ix)(f) is not applicable.

(x) Money Raised by Public Offer / Preferential Allotment

(a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, clause 3(x)(a) is not applicable.

(b) The Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, clause 3(x)(b) is not applicable.

(xi) Fraud

(a) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given to us, no fraud by the Company or any fraud on the Company has been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act, 2013 has been filed by us in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government during the year and up to the date of this report.

(c) As represented to us by the management, there were no whistle-blower complaints received by the Company during the year.

(xii) Nidhi Company

The Company is not a Nidhi Company. Accordingly, clauses 3(xii)(a), 3(xii)(b) and 3(xii)(c) are not applicable.

(xiii) Related Party Transactions

In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with sections 177 and 188 of the Companies Act, 2013, where applicable, and the details of such transactions have been disclosed in the standalone financial statements as required by the applicable Indian Accounting Standards (Ind AS 24, Related Party Disclosures).

(xiv) Internal Audit System

(a) In our opinion and according to the information and explanations given to us, the Company did not have an internal audit system during the year commensurate with the size and nature of its business. We further report that, the Company being a listed company, an internal audit is required to be conducted under section 138 of the Companies Act, 2013 read with Rule 13 of the Companies (Accounts) Rules, 2014, and the Company has not complied with the said requirement during the year. (b) As the Company did not have an internal audit system and there were no internal audit reports for the year under audit, the requirement to report on consideration of such reports by us [clause 3(xiv)(b)] is not applicable.

(xv) Non-Cash Transactions with Directors

According to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with its directors. Accordingly, the provisions of section 192 of the Companies Act, 2013 are not applicable and clause 3(xv) is not applicable.

(xvi) Registration under Section 45-IA of the Reserve Bank of India Act, 1934

(a) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934, as it does not fulfil the principal business criteria (the 50-50 test) prescribed by the Reserve Bank of India for classification as a Non-Banking Financial Company. Accordingly, the Company has not obtained, and is not required to obtain, a Certificate of Registration (CoR) from the Reserve Bank of India.

(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities during the year requiring a valid Certificate of Registration from the Reserve Bank of India.

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

(d) According to the information and explanations given to us, the Group does not have any Core Investment Company. Accordingly, clause 3(xvi)(d) is not applicable.

(xvii) Cash Losses

The Company has incurred cash losses of 56.13 lakhs during the financial year covered by our audit and

11.24 lakhs in the immediately preceding financial year. (Cash loss is computed as the loss after tax; the Company has no depreciation, amortisation or impairment charges to be adjusted.)

(xviii) Resignation of Statutory Auditors

There has been no resignation of the statutory auditors of the Company during the year. Accordingly, the requirement to report on consideration of issues, objections or concerns raised by the outgoing auditors is not applicable.

(xix) Material Uncertainty on Meeting Liabilities

On the basis of the financial ratios, the ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the plans of the Board of Directors and Management and based on our examination of the evidence supporting the assumptions, we report that the Company has a negative net worth of 99.26 lakhs as at March 31, 2026 and its current liabilities exceed its current assets by 316.45 lakhs. We draw attention to Note 2.2 (Going Concern) to the standalone financial statements. The Companys ability to meet its liabilities existing as at the date of the balance sheet as and when they fall due within a period of one year from the balance sheet date is dependent upon the continued financial support confirmed by the promoters / promoter group. Subject to the aforesaid material uncertainty, and having regard to such support, nothing else has come to our attention that causes us to believe that the Company is not capable of meeting such liabilities as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company; our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date shall get discharged by the Company as and when they fall due.

(xx) Corporate Social Responsibility

In our opinion and according to the information and explanations given to us, the provisions of section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility are not applicable to the Company for the year, as the Company does not meet the thresholds prescribed thereunder. Accordingly, clauses 3(xx)(a) and 3(xx)(b) are not applicable.

(xxi) Qualifications / Adverse Remarks in CARO Reports of Group Companies

The reporting under clause 3(xxi) is applicable only in respect of the Auditors Report on the Consolidated Financial Statements. There are no qualifications or adverse remarks given by the respective auditors in the Companies (Auditors Report) Order (CARO) reports, hence this clause is not applicable to the company.

For M.C.Jain & Co. LLP
Chartered Accountants

(C.A.Vatsal Gohil)
Partner
Membership no. 146059
Firm Registration no. 304012E
Mumbai, May 30, 2026
UDIN : 26146059UDQJYD1274