Precision Metaliks Ltd Auditor Reports

(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 Accounts 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 the 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.

(d) In o u r o p inion, the aforesaid Standalone Financial Statements comply with the Accounting Standards, specified under Section 133 of the Act, read with relevant Rules of the Companies (Accounts) Rules, 2014, issued thereunder.

(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 is disqualified as on March 31, 2024 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 the Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure-B" to this Report. (g) With respect to 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 explanations given to us, the Managerial Remuneration for the year ended March 31, 2024 has been paid / provided by the Company to its Directors, in accordance with the provisions of Section 197 read with Schedule-V to the Companies Act, 2013.

(h) 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:

a. The Company does not have any pending litigations which would impact its Financial Position.

b. The Company did not have any long-term contracts, including Derivative Contracts for which there were any material foreseeable losses.

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

d. (i) 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, whether, 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;

(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in aggregate) have been received by the Company from any Person(s) or Entity(ies), including Foreign Entity(ies) ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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.

(iii) Based on the Audit Procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to their notice that has caused them 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 misstatement.

e. The Company has not declared any Dividend and nor paid during the year.

f. Based on our examination which included Test Checks and further confirmations from the Software Provider, the Company has used an Accounting Software for maintaining its Books of Accounts for the Financial Year ended March 31, 2024 which has a feature of recording Audit Trail (Edit Log) Facility and the same has been operated throughout the year, for all the relevant transactions recorded in the Software. Further, during the course of our audit, we did not come across any instance of Audit Trail Feature being tampered with at transactions level.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules 2014 on preservation of Audit Trail as per statutory requirements for record retention is not applicable for the Financial Year ended March 31, 2024.

Annexure-A to the Independent Auditors Report

Annexure referred to in Paragraph-1 under the heading "Report on Other Legal and Regulatory Requirements" of our Report of Even Date

In terms of the information and explanations sought by us and given 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 state that:

(i) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment. b. The Property Plant and Equipment were physically verified in accordance with an annual plan of verified by the Management during the year, in accordance with the annual plan of verification, which in our opinion is reasonable having regard to the size of the Company and the nature of the Property, Plant and Equipment. According to the information and explanation given to us, no material discrepancies were noticed on such verification. c. Based on our examination of the records of the Company and according to the information and explanations given to us, the Company does not hold any immovable property and has not pledged any Fixed Assets with the Bank, as security for Credit Facilities.

d. Based on our examination of the records of the Company and according to the information and explanations given to us, the Company has not revalued any of its Property, Plant and Equipment during the year. e. Based on our examination of the records of the Company and according to the information and explanations given to us, there are no proceedings initiated or pending against the Company, as at March 31, 2024 for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988, as amended, and Rules made there under. (ii) a. According to the information and explanations given to us and the records examined by us, inventories have been physically verified by the management during the period. In our opinion, the frequency of such verification is reasonable. As explained to us, the discrepancies noticed on verification between the physical stocks and the Book Records were not material (10% or more in aggregate for each class of Inventory) and have been properly dealt with in the Books of Accounts of the Company. b. Based on our examination of the records of the Company and according to the information and explanations given to us, the Company has been sanctioned Working Capital limits in excess of Rupees Five Crores, in aggregate, from the Banks, during the year, on the basis of security of the Current Assets of the Company. The Monthly/Quarterly Returns/Statements filed by the Company, with such Banks, are in agreement with the Books of Accounts of the Company.

(iii) Based on our examination of records and according to the information and explanations given to us, the Company has not 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 any other parties. In our opinion and according to information and explanation given to us, the investments made during the year are not prejudicial to Interest of the company. Accordingly, reporting under Clause 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us, the Company has not granted any loan to its Directors, covered under Section 185 of Companies Act, 2013. Section 186 of the Companies Act, 2013 is not applicable to the Company for the year.

(v) Based on records and according to the information and explanation given to us, the Company has neither accepted any Public Deposits nor accepted any amount which is deemed to be Deposit within the meaning of Sections 73 to 76 of the Companies Act, 2013 and the Rules framed thereunder, to the extent applicable to the Company. Accordingly, the reporting under paragraph 3(v) of the Order is not applicable.

(vi) As per the requirement under Section 148(1) of Companies Act, 2013 the Central Government has not prescribed for the maintenance of the Cost Records for the Company. Hence, the requirement of reporting on Clause 3(vi) of the Order is not applicable. (vii) a. According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues as applicable with the appropriate authorities. Further, there were no undisputed amounts outstanding at year end for a period of more than six months from the date they became payable. b. According to the information and explanations given to us and the records of the Company examined by us, there are no statutory dues as stated in sub-clause (a) above which have not been deposited on account of any dispute.

(viii) According to the information and explanation given to us, the Company has not surrendered or disclosed any transaction, previously unrecorded in the Books of Accounts, in the Tax Assessments under the Income Tax Act, 1961, as Income during the year. Accordingly, reporting under Clause 3(viii) of the Order is not applicable.

(ix) a. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not defaulted in repayment of Loans or other Borrowings or in the payment of Interest thereon to any lender during the year. Accordingly, reporting under Clause 3(ix)(a) of the Order is not applicable.

b. According to the information and explanations given to us, the Company has not been declared Wilful Defaulter by any Bank or Financial Institution or Government or any Government Authority.

c. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not taken any Term Loan during the year. d. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not utilised the Funds raised on short term basis for long-term purposes.

e. According to the information and explanations given to us and on our examination of the records of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its Subsidiaries as the Company does not have any Subsidiary. Accordingly, reporting under Clause 3(ix)(e) of the Order is not applicable.

f. According to the information and explanations given to us, the Company has not raised loans during the year on the Pledge of Securities. Accordingly, reporting under Clause 3(ix)(f) of the Order is not applicable. (x) a. Based on the records and information and explanation given to us, the Company has not raised any money by way of the Initial Public Offer / Further Public Offer (including Debt Instruments) during the Financial Year under review. Accordingly, reporting under Clause 3(x)(a) of the Order is not applicable.

b. Based on records and information and explanations given to us, the Company has raised Rs.32.16 Crores by way of issue of 67,00,000 Equity Shares through the Preferential Allotment at Rs.48/- Per Share, during the year. The said Equity Shares are listed on the NSE SME Platform (NSE

EMERGE). The requirements as specified under Sections 23, 42, 62 and other applicable provisions of the Companies Act, 2013 have been complied with. (xi) a. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the Company or no fraud on the Company has been noticed or reported during the course of our Audit. b. During the year, no report under Sub-Section (12) of Section 143 of the Companies Act, 2013 has been filed in the Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.

c. As represented to us by the Management, no Whistle Blowers Complaints were received by the Company during the year.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as per provisions of the Companies Act, 2013. Accordingly, reporting under 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, all the transactions with the Related Parties are in compliance with the Sections 177 and 188 of the Companies Act, 2013, where applicable and the requisite details of such transactions have been disclosed in the Standalone Financial Statements, as required by the applicable Accounting Standards.

(xiv) a. In our opinion, the Company has an Internal Audit System commensurate with the size and nature of its business. b. The Internal Audit Reports of the Company issued till the date of the Audit Report, for the period under audit, have been considered by us.

(xv) 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 not entered into non-cash transactions with Directors or persons connected with its Directors. Accordingly, reporting under Clause 3(xv) of the Order is not applicable. (xvi) a. In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the requirement of reporting on Clause 3(xvi)(a) of the Order is not applicable. b. In our opinion, the Company has not conducted any Non-Banking Financial / Housing Finance Activities during the year. Hence, the requirement of reporting on Clause 3(xvi)(b) of the Order is not applicable. c. In our opinion, there is no Core Investment Company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly, the reporting under the Clause 3(xvi)(d) of the Order is not applicable.

(xvii) Based on our examination of the records of the Company, the Company has not incurred cash losses during the Current Year covered by our Audit, and in the immediately preceding Financial Year.

(xviii) There has been no resignation of the Statutory Auditors of the Company during the year.

Accordingly, the requirement of reporting on Clause 3(xviii) of the Order is not applicable.

(xix) According to the information and explanations given to us and on the basis of the Financial Ratios, ageing and expected dates of realization of Financial Assets and payment of Financial Liabilities, other information accompanying the Financial statements, our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the Audit Report that the Company is not capable of meeting its liabilities existing at the date of Balance Sheet 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. We further state that 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, will get discharged by the Company as and when they fall due.

(xx) a. During the year, the Company had transferred Rs.8.80 Lakhs to a separate account towards unspent amount for Corporate Social Responsibility, as specified in the Schedule-VII to the Companies Act, 2013 within period of six months of the expiry of the Financial Year compliance with second proviso to Sub-Section (5) of Section 135 of the said Act.

b. The Company has transferred the amount within the timelines in compliance with the provisions of Section 135 of the Companies Act, 2013.

(xxi) The reporting under Clause 3(xxi) of the Order is not applicable in respect of audit of Standalone Financial Statements. Accordingly, no comment in respect of the said Clause has been included in the Report.

Annexure-B to the Independent Auditors Report

Annexure referred to in Paragraph 2(f) under the heading "Report on Other Legal and Regulatory Requirements" in the Independent Auditors Report of Even Date to the Members of Precision Metaliks Limited on the Financial Statements for the year ended March 31, 2024

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 Precision Metaliks Limited ("the Company") as of March 31, 2024 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements and Board of Directors Responsibility for Internal Financial Controls

The Companys Management and the Board of Directors are responsible for establishing and maintaining the Internal Financial Controls based on the Internal Control Over Financial Reporting criteria established by the Company considering the essential components of the Internal Control, as stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute o f Chartered Accountants of India (‘ICAI). 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 the Companys Business, including adherence to the Companys 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 (the "Act")

Auditors Responsibility

Our responsibility is to express an opinion on the Companys Internal Financial Controls Over Financial Reporting, based on our Audit. We conducted our Audit in accordance with the Standards on Auditing (SAs), issued by the ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an Audit of the Internal Financial Controls Over Financial Reporting, and the Guidance Note issued by the ICAI. 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 were 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 Over Financial Reporting and their operating effectiveness. Our Audit of Internal Financial Controls Over Financial Reporting includes 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 the Internal Controls based on the assessed risk. The procedures selected depend on the Auditors 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 opinion on the Companys Internal Financial Controls Over Financial Reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Companys 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 the Generally Accepted Accounting Principles. The Companys Internal Financial Controls Over Financial Reporting include those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the Financial Statements in accordance with the Generally Accepted Accounting Principles and that Receipts and Expenditures of the Company are being made only in accordance with authorisations of Management and Directors of the Company; and

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys 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 the 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 Controls 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 and to the best of information and according to the explanations given to us, the Company, in all material respects, an adequate Internal Financial Controls Over Financial Reporting and such controls were operating effectively as of March 31, 2024 based on the ‘Internal Control Over Financial Reporting Criteria established by the Company, considering the essential components of Internal Control as stated in the Guidance Note of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.