Kavveri Defence & Wireless Technologies Ltd Auditor Reports

KAVVERI DEFENCE S WIRELESS TECHNOLOGIES LIMITED : BANGALORE

(Formerly Kavveri telecom products limited)

CIN: L85110KA1996PLC019627

Report on the Audit of Financial Statements Opinion

We have audited the accompanying financial statements of M/s.KAWERI DEFENCE S WIRELESS TECHNOLOGIES LIMITED, BANGALORE (the Company), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including other comprehensive Income), Statement of changes in Equity and the Statement of Cash flows for the year ended on that date, and notes to the financial statements, including a summary of material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for the matters described in Basis for qualified opinion paragraph of our report 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 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, 2026, the profit, Total Comprehensive Income, Changes in Equity and its Cash flows for the year ended on that date.

Basis of Qualified Opinion

1. As stated in Note 4 to the standalone financial statements, the Company carries investments in certain subsidiaries

at a value of Rs2834.07 lakhs as at March 31,2026. These subsidiaries have been consistently incurring losses and, in some cases, the net worth of such subsidiaries has been fully or substantially eroded. The management has not carried out a fair valuation of these investments. In the absence of a fair valuation or any other independent and verifiable evidence supporting the recoverability of the carrying value of these investments, we are unable to determine whether any impairment loss is required to be recognised in accordance with Indian Accounting Standard (Ind AS) 36 - Impairment of Assets. Consequently, we are unable to ascertain the extent to which the carrying value of investments aggregating to Rs2834.07 lakhs may require impairment, and the resultant impact, if any, on the net profit for the year and the net worth of the Company as at March 31, 2026.

2. The company has not reinstated the forex balances in respect of few receivables and payables including the related

parties balances which is not in conformity with IND AS 21-The effect of changes in foreign exchange rates, we are unable to comment the possible effects on the financial statements as the details were not made available to us.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 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 we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter Paragraph

Without qualifying our opinion, we draw attention to the below -

1. We draw attention to Note 7 to the financial statements regarding trade receivables amounting to Rs.22.80 Lakhs

recoverable from Bharat Sanchar Nigam Limited (BSNL), outstanding since 1 November 2003. The Company has obtained favourable orders from the Arbitrator dated 14 December 2005 and from the Honble Court of the V Addl. City Civil Judge dated 29 January 2016, along with interest at 18% per annum from 1 November 2003. Based on the management s assessment of recoverability, no provision has been considered necessary in respect of the said amount. Our opinion is not modified in respect of this matter.

2. We draw attention to Note 7 to the financial statements regarding trade receivables Amount receivable from the related parties. Based on the management s assessment of recoverability and expected realization in the subsequent financial year, no provision has been considered necessary against the said receivables. Our opinion is not modified in respect of this matter.

3. We draw attention to Note 13 to the financial statements regarding unpaid dividend pertaining to the financial year

2008-09, which has not been transferred to the Investor Education and Protection Fund (IEPF), as investor-wise dividend details are yet to be made available by State Bank of India. Consequently, the related liability continues to be reflected in the books of account, though the same has remained unpaid for more than seven years. Our opinion is not modified in respect of this matter.

4. We draw attention to the Note 11 that the provision for gratuity and leave encashment has been recognized based on

the actuarial valuation report issued by a registered actuary for the year ended March 31, 2026. Further, the Government of Karnataka has notified the Karnataka Compulsory Gratuity Insurance Rules, 2024 vide Notification No. LD 397 LET 2023, requiring every existing employer to obtain a valid gratuity insurance policy within 60 days from the date of commencement of the said rules. The management has represented that the Company proposes to obtain the required gratuity insurance policy during the financial year 2026-27. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements, and in forming our opinion thereon; we do not provide a separate opinion on these matters. We have nothing to report in this regard.

Information other than the Financial Statements and Auditors Report thereon

The Company s Board of Directors are responsible for the other information. The other information comprises the information included in the Director s Report but does not include the financial statements and our auditors report thereon.

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

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

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibility of the Management for the Financial Statements

The Company s Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows and changes in equity in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is 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 management 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 Company s financial reporting process.

Auditor s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements 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 Standards on Auditing (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 based on these financial statements.

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

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

- Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are

appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

- Conclude on the appropriateness of management s use of the going concern basis of accounting and, based on the

audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our 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 financial statements, including the disclosures, and

whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it

probable that the economic decisions of a reasonably knowledgeable user of the financial statement may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating results of our work; and (ii) to evaluate the effect of any identified misstatement in the financial statements.

We communicate with those charged with governance 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.

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 the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, based on our audit, we report, that:

(a) We have sought and obtained, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph and Emphasis of matter paragraph above, 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, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph and Emphasis of matter paragraph above, 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 (including Other Comprehensive Income), the Statement of Changes in Equity, and the Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of accounts.

(d) In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph and Emphasis of matter paragraph above, the aforesaid standalone 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 31st March, 2026 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2026 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B .

(g) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended.

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/provided by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.

B. With respect to the other matters to be included in the Auditors 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 has disclosed the details of pending litigations in contingent liabilities in Note 26 of financial statements.

(ii) According to the information and explanations given to us and based on our audit procedures, the Company did not have any long-term contracts including derivative contracts as at the reporting date for which their material foreseeable losses were requiring provisioning.

(iii) There has been delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company (Refer Note No.13 to Financial Statements).

(iv) (a) The management has represented in Note No.31(viii) that, to the best of it s knowledge and belief, that 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 Note No.31(viii) that, to the best of it s knowledge and belief that, no funds have been received by the Unit/Division from any person(s) or entity(ies), including foreign entities ( Funding Parties ), with the understanding, whether recorded in writing or otherwise, that the Unit/Division shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ( 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, 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 Para 2B(iv)(a) and 2B(iv)(b) above, contain any material misstatement.

(v) No dividend has been declared or paid during the year by the Company.

(vi) Based on our examination, which included test checks, the company has used an accounting software, for maintaining its books of accounts for the year ended March 31, 2026, which has a feature of audit trial (edit log) facility, and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trial being tampered with. Additionally, the company has preserved the audit trial as per the statutory requirements for record retention.

PLACE: Bengaluru	For RAJAGOPAL & BADRI NARAYANAN
DATE: 30.05.2026	Chartered Accountants
UDIN : 26020244OHMGXU2161 Firm Regn. No. 003024S	Sd/- M. S. RAJAGOPAL Partner Membership No. 020244 Firm Regn. No. 003024S

KAVVERI DEFENCE & WIRELESS TECHNOLOGIES LIMITED : BANGALORE Annexure - A to the Independent Auditors Report

The Annexure referred to in Independent Auditors Report to the members of the Company on the financial statements

for the year ended March 31, 2026, we report that:

(i) a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment for the current year and in respect of earlier years the fixed asset register is getting updated. Hence, we are unable to ascertain the details of quantity and situation of property, plant and Equipment.

(B) The Company has maintained proper records showing full particulars of Intangible Assets for current year.

b) As per the information and explanations provided by the management, the property, plant, and equipment have been

physically verified at reasonable intervals by the management.

c) According to the information and explanations given to us and on the basis of our examination of the records, the company does not own any immovable property other than the properties where the company is the lessee and lease agreements were duly executed in favour of lessee. Hence, reporting on clause 3(i) (c) of the Order is not applicable to the Company.

d) According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not revalued any of its property, plant and equipment during the year.

e) According to the information and explanations given to us and on the basis of our examination of the records of the

Company there are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

(ii) a) According to the information and explanations given to us and on the basis of our examination of the records of the company physical verification of inventory has been conducted at reasonable intervals by the management and In our opinion coverage and procedures and documentations for verification of Inventory needs to be strengthened.

b) According to the information and explanations provided to us and on our verification of the records, the Company has not availed any working capital facility from a Bank. Hence, reporting on clause 3(ii)(b) of the Order is not applicable to the Company.

(iii) The company has not made any investments in, provided any guarantee or security, or granted any loans or advances in the nature of loans, secured or unsecured to companies, firms, limited liability partnerships or other parties during the year under audit. Accordingly, reporting on clause 3{iii)(a), 3(lii)(b), 3(iii)(c), 3(iii)(d), 3(iii)(e) and 3(iii)(f) of the Order is not applicable.

(iv) According to the information and explanations given to us and based on our examination of the records of the company, during the year, the company has complied with the provisions of Section 185 and 186 of the Act in respect of loans granted. Investments made. Guarantees provided and securities given wherever applicable.

(v) The Company has not accepted any deposits from the public covered under Section 73 to 76 of the companies Act, 2013 and rules framed thereunder to the extent notified. Hence, reporting on Clause 3(v) of the Order is not applicable to the company.

(vi) The Company is not in the business of sale of any goods or provision of such services as prescribed by the Central Government under section 148(1) of the Act. Accordingly, the requirement to report on clause 3(vi) of the Order is not applicable to the Company.

(vii) a) According to the records of the company, undisputed statutory dues including goods and service tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, and any other statutory dues with the appropriate authorities, have generally been regularly deposited. Further, there were no statutory dues outstanding as at balance sheet date for a period of more than six months from the date they became payable.

b) According to the records of the company, there are statutory dues which have not been deposited with the appropriate authorities on account of any dispute. The details are as follows.

Name of the Statue	Nature of Dues	Amount (Rs. in Lakhs)	Date of Appeal	Period	Forum where dispute pending
income Tax Act, 1961	Income Tax	19.09	12.06.2013	A.Y 2005- 06	CIT (A), Bangalore
	Income Tax	133.37	12.06.2013	A.Y 2006- 07	CIT (A), Bangalore
	Income Tax	826.14	21.05.2013	A.Y 2008- 09	CIT (A), Bangalore
	income Tax	430.80	31.01.2012	A.Y 2009- 10	CIT (A), Bangalore
	income Tax	346.85	27.01.2018	A. Y 2010-11	CIT (A), Bangalore
	Income Tax	5,474.02	09.05.2014	A. Y 2011-12	CIT (A), Bangalore
	Income Tax	4,677.90	10.06.2016	A. Y 2012-13	CIT (A), Bangalore
	Income Tax	NIL	13.04.2016	A.Y 2013-14	CIT (A), Bangalore
	Income Tax	607.58	17.01.2017	A. Y 2014-15	CIT (A), Bangalore
	Income Tax	584.85	07.12.2017	A.Y 2015-16	CIT (A), Bangalore
	Income Tax	8,624.55	21.01.2020	A.Y 2017-18	CIT (A), Bangalore

Name of the Statue	Nature of Dues	Amount (Rs. In Lakhs)	Date of Appeal	Period	Forum where dispute pending
Tax Deducted at Source	TDS	7.54	NA	F.Y 2012-13	TDS CPC
	TDS	0.7	NA	F.Y 2016-17	TDSCPC
	TDS	0.74	NA	F.Y 2017-18	TDS CPC
	TDS	0.66	NA	F.Y 2022-23	TDS CPC
	TDS	0.05	NA	F.Y 2024-25	TDSCPC
Central Excise	Irregular availment of CENVAT Credit (Including penalty)	33.2	NA	F.Y 2010-11	Commissioner of customs and central excise (Appeals) Bangalore
	Irregular availment of CENVAT Credit (Including penalty)	1.27	NA	F.Y 2012-13	CESTAT Bangalore
	Irregular availment of CENVAT Credit (Including penalty)	2.58	NA	F.Y 2007-08	Commissioner of customs and central excise (Appeals) Bangalore
	Irregular availment of CENVAT Credit (Including penalty)	10.36	NA	F.Y 2007-08 S 2008-09	CESTAT Bangalore
	Irregular availment of CENVAT Credit (Including penalty)	7.92	NA	Jul 2012 to Mar 2013	Commissioner of customs and central excise (Appeals) Bangalore

(viii) According to the information and explanations given to us and based on our examination of the records of the company, during the year, the company did not surrender or disclose any transaction which was not recorded in the books of account as an income previously during the tax assessments under the Income Tax Act, 1961 (43 of 1961) and accordingly, reporting on clause 3(viii) of the Order is not applicable.

(ix) a) The Company has not taken any loans or other borrowings from any lender. Hence, reporting under Clause 3(ix) (a) of the Order is not applicable.

b) The Company has not been declared as wilful defaulter by any Financial Institutions, Bank or government or any government authority.

c) The Company has not taken any term loan during the year and there are no outstanding term loans at the beginning

of the year. Hence, reporting under Clause 3(ix) (c) of the Order is not applicable.

d) The company has not raised funds on short term basis.

e) The Company has not raised any loan to meet the obligation of its subsidiaries, associates or joint ventures during

the year.

f) The company has not raised any loan on pledge of securities held in its subsidiaries, associates or joint ventures

during the year.

(x) a) The company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year and accordingly, the clause pertaining to application of money raised for the purpose for which they were raised as per the clause 3(x)(a) of the Order is not applicable.

b) During the year, the Company has allotted equity shares pursuant to conversion of convertible share warrants issued during the previous year. The balance consideration amount receivable on such warrants was received during the year prior to conversion. In our opinion and according to the information and explanations given to us, the Company has complied with the requirements of Sections 42 and 62 of the Act in respect of such allotment and the funds so raised have been used for the purposes for which they were raised.

(xi) a) According to the information and explanations given to us and based on our examination of the records of the company, no fraud by the company or no fraud on the company has been noticed or reported during the year.

b) No report under sub-section (12) of Section 143 of the Act has been filed 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 upto the date of this report.

c) According to the information and explanations given to us, the company has not received any whistle blower complaints during the year.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, reporting on clause 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with section 188 of the Act wherever applicable and details of such transactions have been disclosed in the financial statements as per the requirement of the accounting standards.

(xiv) The company has an internal audit system commensurate with the size and nature of its business and we have considered the reports of the internal auditors for the period under audit.

(xv) According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with him/ her. Accordingly, reporting under clause 3(xv) of the Order towards compliance of section 192 by company under the is not applicable.

(xvi) a) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under the clause 3(xvf) (a) of the Order requiring the company to obtain registration is not applicable.

b) According to the information and explanations given to us and based on our examination of the records of the company, the company has not conducted any Non-banking Financial or Housing Finance activities without a valid Certificate of Registration from the Reserve Bank of India as per the Reserve Bank of India Act, 1934;

c) According to the information and explanations given to us and based on our examination of the records of the company, the company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, reporting under the clause 3(xvi)(c) of the Order in respect of whether the company fulfil the criteria to continue as a CIC and clause 3(xvi)(d) of the Order in respect of whether the Group has more than one CIC as part of the Group is not applicable.

(xvii) The company has not incurred cash losses during the financial year covered by audit and in the previous year. Hence, reporting under Clause 3 (xvii) of the order is not applicable.

(xviii) During the year, there was a resignation of the statutory auditors of the company and No Objections and concerns raised by the outgoing auditors in connection with their resignation, to the extent relevant to the audit procedures performed by us.

(xix) According to the information and explanations given to us and based on our examination of the records of the company, the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the board of directors and management plans, in our opinion, no material uncertainty exists as on the date of the audit report that the company is capable of meeting its liabilities existing at the date of the balance sheet as and when they fall due within one year from the balance sheet date.

(xx) According to the information and explanation given to us and based on our examination of the records of the company, compliance under section 135(5) and 135(6) of Companies Act 2013, are not applicable. Hence reporting under Clause 3(xx) (a) and 3(xx) (b) of the Order is not applicable to the Company.

(xxi) This report is being issued on the standalone financial statements of the company and accordingly, reporting under the clause 3(xxi) of the Order in respect of disclosing the details of the companies and the clause numbers of the CARO report containing the qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports of the companies included in the consolidated financial statements is not applicable to the Company.

PLACE: Bengaluru	For RAJAGOPAL & BADRI NARAYANAN
DATE: 30.05.2026	Chartered Accountants
UDIN : 26020244OHMGXU2161 Firm Regn. No. 003024S	Sd/- M. S. RAJAGOPAL Partner Membership No. 020244 Firm Regn. No. 003024S

KAVVERI DEFENCE & WIRELESS TECHNOLOGIES LIMITED : BANGALORE Annexure - B to the Auditors Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)

We have audited the Internal Financial Controls over financial reporting of M/s.KAWERI DEFENCE S WIRELESS TECHNOLOGIES LIMITED (The Company ), as of March 31, 2026 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 Companys 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 control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ( ICAP). 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 units 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 based 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 ICAl 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 system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 units internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control 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 companys 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

dispositions 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 expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the units 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 controls over financial reporting to future periods are subject to the risk that 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 & based on the reports of other auditors 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 of March 31, 2026, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

PLACE: Bengaluru	For RAJAGOPAL D BADRI NARAYANAN
DATE: 30.05.2026	Chartered Accountants
UDIN : 26020244OHMGXU2161 Firm Regn. No. 003024S	Sd/- M. S. RAJAGOPAL Partner Membership No. 020244 Firm Regn. No. 003024S