Linaks Microelectronics Ltd Auditor Reports

<dhhead>INDEPENDENT AUDITOR’S REPORT</dhhead>

To the Members of LINAKS MICRO ELECTRONICS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of LINAKS MICRO ELECTRONICS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the 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 (Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, and its profit and total comprehensive income, changes in equity and its cash flows for the year then ended.

Basis for Opinion

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 Auditor’s 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 (ICAI) 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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. We describe the matters below, along with the key audit procedures we performed to address those matters. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

? Revenue recognition for complex contracts: The Company recognises revenue from long-term supply and service contracts. Revenue recognition requires judgment about the identification of performance obligations, measurement of progress (percentage of completion), and assessment of contract costs to fulfil.

? Principal audit procedures performed: We evaluated management’s contract identification and revenue recognition policies for compliance with Ind AS 115, tested a sample of contracts including contract terms, milestones and deliverables; recalculated revenue recognised based on supporting documents; assessed the reasonableness of estimates of costs to complete and reviewed subsequent cash receipts and contract modifications.

? Valuation of inventory and obsolescence provisioning: The Company holds raw materials, work-in-progress and finished goods with specialised electronic components that can become obsolete or impaired.

? Principal audit procedures performed: We tested costing methodology and physical inventory counts, reviewed provision calculations for slow-moving and obsolete items, examined sales forecasts and subsequent usage, and evaluated reasonableness of net realisable value assumptions.

? Recoverability of trade receivables and credit risk: Significant trade receivables exist at year-end and management’s assessment of expected credit losses requires judgement about debtors’ ability to pay and forward-looking information.

? Principal audit procedures performed: We reviewed and tested management’s credit assessment and ageing analysis, tested post year-end receipts, correspondence with customers and any legal collection actions, and evaluated the methodology used to calculate expected credit loss allowance.

Other Information

The Company’s Board of Directors is responsible for the Other Information. The Other Information comprises the Director’s Report, Management Discussion & Analysis, Corporate Governance Report and other statutory reports included in the Annual Report but does not include the financial statements and our auditor’s 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.

Board of Directors’ Responsibilities for the Financial Statements

The Company’s Board of Directors is responsible for the preparation of these standalone financial statements in terms of the provisions of the Companies Act, 2013 that give a true and fair view of the financial position, financial performance, cash flows and changes in equity of the Company in accordance with the Ind AS and accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company, prevention and detection of 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 Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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.

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 financial statements, whether due to fraud or error; design and perform audit procedures responsive to those risks; obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

? Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. When assessing the effectiveness of internal financial controls, we evaluate the design and implementation of controls and test their operating effectiveness if we intend to rely on them.

? 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.

? 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 ("CARO 2020") issued by the Central Government in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure 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 Companies Act, 2013, based on the verification of the books and records and according to the information and explanations given to us, we report that:

i. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii. 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.

iii. 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 books of account.

iv. In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Companies Act, 2013.

v. On the basis of written representations received from the directors as on March 31, 2026, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026, from being appointed as a director in terms of Section 164(2) of the Companies Act, 2013.

vi. 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 the separate paragraph below.

vii. 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, as amended, to the extent applicable, we report that: the Company has disclosed the impact of pending litigations on its financial position in its financial statements. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts. There were no amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year.

viii. Proviso to Rule 3 (1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the company with effect from April 1, 2023, and accordingly, reporting under Rule 11 (g) of Companies (Audit and Auditors) Rules, 2014 is applicable for the financial year ended March 31, 2026

Emphasis of Matter

We draw attention that Company did not conduct any business operations during the reporting year. Our opinion is not modified in respect of this matter.

Internal Financial Controls over Financial Reporting

Opinion on Internal Financial Controls

We have audited the internal financial controls over financial reporting of LINAKS MICRO ELECTRONICS LIMITED as of March 31, 2026, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting and such internal financial controls were operating effectively as at March 31, 2026, based on the 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.

Other Matter — Compliance with SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015

As required under Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we have carried out the audit procedures on consolidated / standalone financial results and records. Based on our audit and review, nothing has come to our notice that causes us to believe that the Company has not complied with the applicable requirements of the SEBI LODR Regulations, 2015 in respect of the matters we audited. For full compliance assertions and disclosures, refer to the Company’s Compliance Report included in the Annual Report and Management representation on related party transactions, corporate governance disclosures and financial results.

Annexure — CARO 2020

The Annexure referred to in paragraph Report on Other Legal and Regulatory Requirements of our report to the members of LINAKS MICRO ELECTRONICS LIMITED for the year ended March 31, 2026.

1. Fixed assets: (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment. (b) As explained to us, the physical verification of property, plant and equipment was conducted by management during the year and no material discrepancies were noticed on such verification. (c) According to information and explanations given to us and on the basis of our examination of the records of the Company, there is no title dispute in respect of immovable properties held by the Company.

2. Inventories: As explained to us, inventories were physically verified by the management at reasonable intervals during the year and no material discrepancies were identified on reconciliation.

3. Loans, guarantees and security: The Company has not granted loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

4. Compliance with Section 185 and 186: The Company has complied with the provisions of Section 185 and Section 186 of the Companies Act, 2013, with respect to loans, investments, guarantees and security given, where applicable.

5. Deposits: The Company has not accepted any deposits during the year in terms of the directives issued by the Reserve Bank of India and provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder

6. Cost records: The Company is not required to maintain cost records under sub-section (1) of Section 148 of the Companies Act, 2013 for the activities of the Company

7. Statutory dues: (a) The Company has generally been regular in depositing undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees’ State Insurance, Income-tax, Customs Duty and other material statutory dues with the appropriate authorities. (b) There are no undisputed amounts payable in respect of Income Tax, Goods and Services Tax, Customs Duty, Excise Duty, Cess and other material statutory dues outstanding as at March 31, 2026 for a period of more than six months from the date they became payable.

8. Default in repayment of loans: The Company has not defaulted in repayment of loans or borrowings to banks, financial institutions or government or has not issued any debentures during the year.

9. Use of funds raised by public offer/private placement: The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year; money raised by way of term loans have been applied for the purpose for which they were obtained.

10. Fraud: Based on audit procedures and information and explanations provided to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.

11. Managerial remuneration: The Company is a not a Nidhi company. In respect of managerial remuneration, the provisions of section 197 read with Schedule V of the Companies Act, 2013 have been complied with.

12. Compliance with preferential allotment / private placement: The Company has not entered into any transactions covered by Section 42 and Section 62 of the Companies Act, 2013 during the year.

13. Charges or satisfaction with respect to registered securitisation: The Company has not dealt with any charges or satisfaction with respect to securitisation during the year.

14. Nidhi company rules: The Company is not a Nidhi company and therefore the provisions of paragraph 14 are not applicable.

15. Related party transactions: All transactions with related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013 and details have been disclosed in the financial statements as required by the applicable accounting standards.

16. Internal audit: The Company has an internal audit system commensurate with the size and nature of its business. The internal audit reports for the period under audit were considered by us.

17. Non-cash transactions with directors: The Company has not entered into any non-cash transactions with its directors or persons connected with them, in contravention of Section 192 of the Companies Act, 2013.

18. Registration under section 45-IA of RBI Act: The Company is not a non-banking financial company.

Recommendations and Best Practice Amendments

The auditor recommends the following corrective actions and best practice improvements which have been communicated to management and (where appropriate) been reflected in the final financial statements and disclosures:

? Revenue disclosures and contract accounting: Ensure contract terms, significant judgements (allocation of transaction price, performance obligations), and a reconciliation of contract balances (opening and closing contract assets / liabilities) are disclosed as required by Ind AS 115 and SEBI LODR disclosure expectations. Where percentage-of-completion or input methods are used, show sensitivity of profit to key assumptions.

? Inventory valuation and obsolescence: Strengthen the inventory roll-forward and ageing disclosure. Maintain documented rationale for net realisable value assumptions and formalise periodic obsolescence reviews with sign-off by senior operating management.

? Expected credit loss and receivables: Provide the methodology for ECL calculation, the forward-looking macro-economic factors used and sensitivity testing. Disclose rationale for any concentration of credit risk (top 5 customers) per SEBI best practice recommendations.

? Related party disclosures: Ensure completeness of disclosure: nature of relationships, amount and terms of transactions with related parties, outstanding balances and provision for doubtful debts where applicable, as required by Ind AS 24 and Schedule III to the Companies Act, 2013.

? Corporate governance disclosures: The provisions of Regulation 27(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Regulation 15 (2) (a) of Chapter IV of SEBI (LODR) Regulations, 2015 are not applicable to the for the financial year ended March 31, 2026.

? Taxation and contingencies: Reconcile tax liabilities and disclosures with the tax computation and ensure contingent liabilities are appropriately disclosed with estimated timing and amounts where determinable.

? Subsequent events: Verify post balance sheet transactions and ensure required disclosures are made per Ind AS 10. Disclose any events that may materially influence investor decisions.

Balance Sheet and Financial Statements References

The audited financial statements include detailed notes and the following schedules: Statement of Significant Accounting Policies, Notes to Accounts (including contingent liabilities and commitments), Segment Reporting, Related Party Transactions schedule, and Disclosure on Corporate Social Responsibility.

For R S J B & Associates

Chartered Accountants

ICAI Firm Registration Number 018712C

Sd/-

CA Prabhakar rai

Partner

Membership Number: 425889

Place of Signature: Lucknow

Date: 25.05.2026

UDIN: 26425889GEJGID5639