Raksan Transformers Ltd Auditor Reports

To the Members of Raksan Transformers Limited (formerly known as Raksan
Transformers Private Limited)

Report on the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of Raksan Transformers
Limited (formerly known as Raksan Transformers Private Limited) (hereinafter referred to
as "the Holding Company") and its subsidiary entity i.e. partnership firm (the holding company and
its subsidiary entity together referred to as "the Group"), which comprising the consolidated
balance sheet as at 31 March 2025, the consolidated statement of profit and loss and consolidated
cash flow statement, for the year then ended, and 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 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 Accounting
Standards prescribed under the Act read with Companies Accounting Standard Rules, 2021 and
other accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31 March 2025, its consolidated profit and consolidated cash flows for the year ended on
that date.

We conducted our audit in accordance with 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 Consolidated Financial Statements
section of our report. We are independent of the Group, 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 consolidated financial statements under the provisions of the
Companies Act, 2013 and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on the consolidated financial
statements.

Managements Responsibility for the Consolidated Financial Statements

The Holding Companys Board of Directors is responsible for the matters stated in section 134(5)
of the Companies Act, 2013 ("the Act") with respect to the preparation of these consolidated
financial statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the accounting principles generally accepted in
India, including the accounting Standards specified under section 133 of the Act, read with Rule 7
_f 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 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 designing, 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 consolidated financial
statement that give a true and fair view and are free from material misstatement, whether due to
fraud or error.

In preparing the consolidated financial statements, the respective management and board of
directors of the holding company and its subsidiary entity included in the group 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 management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the holding company and partners of the subsidiary entity
included in the Group are also responsible for overseeing the financial reporting process of Group.

Auditors Responsibility for the Audit of Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements 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 these consolidated financial statements.

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 consolidated 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 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 responsible for expressing our opinion on whether the holding company and
subsidiary entity 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 managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists

. relalcdjj??<fvents or conditions that may cast significant doubt on the ability of the Group

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
consolidated 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 Group to cease to
continue as a going concern.

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

Materiality is the magnitude of misstatements in the consolidated financial statements that, individually
or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the
consolidated financial statements may be influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the consolidated financial statements.

We communicate with those charged with governance of the holding company and such other entity
included in the consolidated financial statements of which we are independent auditors 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. (A) As required by Section 143 (3) of the Act, we report that:

(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 of the aforesaid consolidated
financial statements.

(b) in our opinion proper books of account as required by law relating to preparation of the aforesaid
consolidated financial statements have been kept by the so far as it appears from our examination
of those books;

(c) the consolidated balance sheet, the consolidated statement of profit and loss and the consolidated
cash flow statement dealt with by this report are in agreement with the relevant books of
accounts maintained for the purpose of preparation of consolidated financial statements.

(d) in our opinion, the aforesaid consolidated 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 of holding company, as
on 31 March 2025 taken on record by the board of directors of holding company none of the
directors is disqualified as on 31 March 2025 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 financial
statements of the holding company, its subsidiary entity and the operating effectiveness of such
controls, refer to our separate report in "Annexure A." And

(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:

a) the consolidated financial statements disclosed the impact of pending litigation on the
consolidated financial position of the Group. Refer note 34 (e) of the consolidated financial
statements.

b) the holding company and its subsidiary entity 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 Holding company and its subsidiary entity.

d) (i) The management of the Holding Company, its subsidiary entity has represented to us to the
best of its knowledge and belief, other than as disclosed in the notes to accounts, 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 Holding Company or any of such subsidiary entity to or in any
other persons or entities, 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
("Ultimate Beneficiaries") by or on behalf of Holding Company or any of such subsidiary entity
or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(ii) The management of the Holding Company, its subsidiary entity has represented to us, to the
best of its knowledge and belief, other than as disclosed in the notes to accounts, no funds have
been received by the holding company, its subsidiary from any person(s) or entity(es), including
foreign entities ("Funding parties") with the understanding, whether recorded in writing or
otherwise, that the holding company or any of such subsidiary entity shall 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; and

(iii) Based on such audit procedures that have been considered reasonable and appropriate in
the circumstances performed by us whose financial statement have been audited under the Act,
nothing has come to our notice that has caused us to believe that the representations under sub-
clause (d) (i) and (d) (ii) contain any material misstatement.

e) The holding company has not paid any dividend during the year. However, as stated in note
number 35 to the consolidated financial statements, the board of director of the holding

company has proposed final dividend for the year which is subject to the approval of the
members at the ensuing general meeting.

0 Based on our examination which included test checks, the holding company, and its subsidiary
entity has used an accounting software for maintaining its books of account which has a feature
of recording audit trail (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 trail feature being tampered with and the audit trail has been
preserved by the company as per the statutoiy requirements for record retention.

2. With respect to the matters as specified in clause (xxi) of paragraph (3) and paragraph 4 of the
Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government in
terms of section 143 (11) of the Act, according to the information and explanation given to us,
and based on the CARO reports issued by us, we report that there is no qualification or adverse
remarks in the respective CARO report and in case of subsidiary entity included in the
consolidated financial statements we further report that reporting requirements under CARO is
not applicable to that entity.

Annexure A to the Independent Auditors Report on the Consolidated Financial Statements
of Raksan Transformers Limited (formerly known as Raksan Transformers Private Limited)
for the year ended March 31,2025

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 Raksan Transformers
Limited (formerly known as Raksan Transformers Private Limited ("the Holding Company")
and its subsidiary entity as of March 31, 2025 in conjunction with our audit of the consolidated
financial statements of the company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The respective holding companys and subsidiary entitys management and the board of directors
are responsible for establishing and maintaining internal financial control based on the internal
control over financial reporting criteria established by the respective companies 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. 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 companys policies, the safe -guarding of its assets, the prevention and
detection of fraud sand 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 holding companys internal financial controls over
financial reporting based on our audit. We conducted our auditing accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and
the Standards on Auditing, issued by ICAI 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 procedure selected depends on the auditors judgment, including the assessment
of the risks of material misstatement of the consolidated 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 holding company and its subsidiary 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
consolidated 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 consolidated 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
companys assets that could have a material effect on the consolidated 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 at the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the holding company, its subsidiary entity has generally, an adequate internal
financial controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at March 31,2025 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.