Rapicut Carbides Ltd Auditor Reports

To the Members of

Rapicut Carbides Limited

Report on the Audit of the financial statements

Opinion

We have audited the accompanying financial statements of Rapicut Carbides 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 material accounting policies and other explanatory information (hereinafter referred to as "the financial statements").

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 Indian Accounting Standards specified under section 133 of the Act read with the 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, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. 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 ("ICAI") together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made 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 audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of these financial statements of the current year. 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. We have determined that there are no key audit matters to be communicated in our report.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for preparation of the other information. The other information comprises the information included in the Boards Report including Annexures to Boards Report, Management Discussion and Analysis and Shareholders Information but does not include the financial statements and our auditors report thereon. The above-referred information is expected to be made available to us after the date of this audit report.

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 identified above when it becomes available 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.

When we read the information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions necessitated by the circumstances and the applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Companys Management and Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. 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 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 and board of directors 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 is also responsible for overseeing the Companys financial reporting process.

Auditors 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 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 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 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, intentional omissions, misrepresentations, or the override of internal control.

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

-Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures 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 related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the 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.

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 relaonships and other ma_ers that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the ma_ers communicated with those charged with governance, we determine those ma_ers that were of most significance in the audit of the financial statements of the current period and are therefore the key audit ma_ers. We describe these ma_ers in our auditors report unless law or regulaon precludes public disclosure about the ma_ers or when, in extremely rare circumstances, we determine that a mafter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communicaon.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub-secon (11) of secon 143 of the Act, we give in "Annexure A", a statement on the ma_ers specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Secon 143(3) of the Act, we report that: a. We have sought and obtained all the informaon and explanaons which to the best of our knowledge and belief were necessary for the purposes of our audit.

b. In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examinaon of those books except for the ma_ers stated in the paragraph (i) (vi) below on reporng under rule 11(g);

c. The Balance Sheet, the Statement of Pro t 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;

d. In our opinion, the aforesaid financial statements comply with the Indian Accounng Standards (Ind AS) prescribed

under Secon 133 of the Act;

e. On the basis of the wri en representaons received from the directors as on March 31, 2026, 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 Secon 164(2) of the Act;

f. the observaons r elang t o the maintenance of accounts and other ma_ers connected therewith are as stated in the paragraph (b) above on reporng under Secon 143(3)(b) and par agraph (i) (vi) below on reporng under Rule 11(g).

g. With respect to the adequacy of the internal financial controls with reference to financial statements of the

Company and the operang e ecv eness of such controls, refer to our separate report in "Annexure B";

h. with respect to the other ma_ers to be included in the Auditors Report in accordance with the requirements of secon 197(16) of the Act, as amended: in our opinion and to the best of our informaon and according to the explanaons given to us, the remuneraon paid by the Company to its directors during the year is in accordance with the provisions of secon 197 read with Schedule V of the Act; and

I. With respect to the other ma_ers to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our informaon and according to the explanaons given to us: i. The Company does not have any pending lig aons which would impact on its financial posion;

ii. The Company did not have any long-term contracts including derivav e contracts as at March 31, 2026 for which

there were any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Educaon and

Protecon Fund by the Company.

iv. (a) The management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) 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 or enty , including foreign enes ("Intermediaries"), with the understanding, whether recorded in wring or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or enes iden ed in any manner whatsoever by or on behalf of the company ("Ulma te Bene ciaries") or provide any guarantee, security or the like on behalf of the Ulma te Bene ciaries;

(b) The management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or enty , including foreign enty ("Funding P ares"), with the under standing, whether recorded in wring or other wise, that the company shall, whether, directly or indirectly, lend or invest in other persons or enes iden ed in any manner whatsoever by or on behalf of the Funding Party ("Ulma te Bene ciaries") or provide any guarantee, security or the like on behalf of the Ulma te Bene ciaries;

(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our noce that has caused us to believe that the representaons under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and (b) above, contain any material misstatement.

v. The Company has not declared or paid any dividend during the year.

vi. Based on our examinaon which included test checks, the Company has used accounng sow are for maintaining its books of account which has a feature of recording audit trail (edit log) facility. The audit trail facility has operated throughout the year for all relevant transacons recorded in the sow are except in respect of sow are used for maintenance of Inventories records and Payroll records for which audit trail facility was not acv e/operaonal. Further, during the course of our audit we did not come across any instance of audit trail feature (except for Inventory and Payroll records as menoned above for which it was not acv e/operaonal) being tampered with. Furthermore, the audit trails generated by the accounng sow are have been preserved by the Company in accordance with the applicable statutory record retenon requirements.

For K C Mehta & Co LLP

Chartered Accountants

Firms Registra_on No. 106237W/W100829

Chhaya M. Dave Partner Membership No. 100434 UDIN: 26100434EEONOI7136 Place: Vadodara Date: May 30, 2026

"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT

The annexure referred to in our Independent Auditors Report to the members of Rapicut Carbides Limited ("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 parcular s, including quant av e details and situaon

of Property, Plant & Equipment.

(B) The Company has maintained proper records showing full parcular s of Intangible Assets.

b) The Company has a regular program of physical veri caon of property, plant and equipment which in our opinion is reasonable. The assets which were to be covered as per the said program have been physically veri ed by the management during the year. In our opinion, the discrepancies reported on such veri caon are not material and have been properly dealt with in the books of account.

c) According to the informaon and explanaons given to us and on the basis of our examinaon of records of the Company, the tle/ lease deeds of all the immovable properes disclosed in the financial statements are held in the name of the Company.

d) The Company has not revalued any of its Property, Plant and Equipment or intangible assets or both during the year

and therefore reporng under clause 3(i)(d) of the Order is not applicable to the Company.

e) No proceedings have been inia ted during the year or are pending against the Company as at March 31, 2026 for holding any benami property under the Benami Transacons (Prohibion) Act, 1988 (as amended in 2016) and rules made thereunder.

ii. a) The Inventories other than goods in transit and inventories lying with third pares, have been physically veri ed by the management during the year and in our opinion, the coverage and procedure of such veri caon by the management is appropriate. As explained to us, there were no discrepancies of 10% or more in aggregate for each class on physical veri caon of inventory as compared to the book records.

b) The company has been sanconed working capital limits in excess of ve crore rupees, in aggregate, from banks on the basis of security of current assets. We have observed differences/reconciliaon items in the quarterly returns or statements led by the Company with such banks as compared to the books of account maintained by the Company. However, we have not carried out a specific audit of such statements. The details of such differences/reconciliaon items are given in note no. 20 of the financial statements of the Company.

iii. In our opinion and according to the informaon and explanaons given to us, the Company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, rms, Limited Liability Partnerships or any other pares during the year, and therefore, reporng under Clause 3(iii)(a) to (f) of the Order is not applicable to the Company.

iv. The Company has not granted any loans or provided any guarantee or securies to the party covered under secon 185 of the Act. However, the Company has complied with the provisions of secon 186 of the Act in respect of the investment made.

v . The Company has not accepted any deposits or amounts which are considered to be deemed deposits during the year, hence direcv es issued by the Reserve Bank of India and the provisions of secons 73 to 76 or any other relevant provisions of the Companies Act and the rules made thereunder are not applicable to the Company. According to informaon and explanaons provided to us, no order has been passed by Company Law Board or Naonal Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.

vi. We have broadly reviewed the books of account maintained by the Company pursuant to the Companies (Cost Records and Audit) Amendments Rules 2014, as amended, prescribed by the Central Government for maintenance of cost records under secon 148 (1) of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained by the Company. We have, however, not made a detailed examinaon of the cost records with a view to determine whether they are accurate or complete.

vii. a) In our opinion, the Company has been regularly deposing with appropriate authories undisputed statutory dues, including Goods and Services Tax, provident fund, employees state insurance, income-tax, and other statutory dues applicable to it. Further, no undisputed amounts payable in respect of Goods and Services Tax, provident fund, employees state insurance, income tax, and any other statutory dues were in arrears, as at March 31, 2026, for a period of more than six months from the date they become payable.

b) According to the informaon and explanaons given to us and on the basis of our examinaon of the records of the Company, there are no statutory dues referred to in sub-clause (a) above which have not been deposited as on March 31, 2026 on account of disputes except the following: following:

Name of the statute	Nature of disputed dues	Amount (Rs. In lakhs)	Period to which amount relates	Forum where pending
Employees Provident Funds and Miscellaneous Provisions Act, 1952	Provident Fund dues	5.71	July 2018 to June 2019	Regional PF Commissioner -II

viii. There were no transacons relang to previously unrecorded income that have been surrendered or disclosed as

income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

ix.

a) The Company has not defaulted in repayment of loans or other borrowing or in the payment of interest to

any lender during the year.

b) The company has not been declared willful defaulter by any bank or financial instuon 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, and therefore reporng under clause 3 (ix)(c) of the Order is not applicable to the Company.

d) According to the informaon and explanaons given to us, and the procedures performed by us, and on an overall examinaon of the financial s tatements of the company, we report that no funds raised on short-term basis have been used for long-term purposes by the company. The Company does not have any subsidiaries, associates or joint ventures and therefore reporng under clause 3 (ix)(e) of the Order is not applicable to the Company. e) The Company has not raised any loans during the year and therefore reporng under clause 3 (ix)(f) of the

Order is not applicable.

x. (a) The Company has not raised any money by way of inial public offer or further public offer (including debt instruments) during the year, and therefore reporng under clause 3(x)(a) of the Order is not applicable to the Company.

(b) During the year, the Company has not made any preferenal allotment or private placement of shares or converble debentures (fully or partly or oponally), and therefore reporng under clause 3(x)(b) of the Order is not applicable to the Company.

xi. (a) During the course of our examinaon of the books and records of the Company, carried out in accordance with the generally accepted auding pracce in India, and according to the informaon and explanaons give to us, we have neither come across any instance of fraud by the Company or any fraud on the Company has been noced or reported during the year nor have we been informed of any such case by the Management of the Company.

(b) No report under sub-secon (12) of secon 143 of the Companies Act has been led in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this report;

(c) According to the informaon and explanaons given to us and procedures performed by us, the Company has

not received any whistle-blower complaints during the year.

xii. The Company is not a Nidhi company, and hence reporng under clause 3(xii) of the Order is not applicable to

the Company.

xiii. In our opinion, and according to the informaon and explanaons given to us and based on our examinaon of the records of the Company, all transacons with the related pares are in compliance with Secon 177 and 188 of the Act where applicable and the details have been disclosed in the financial statements as required by the applicable Ind AS.

xiv. (a) In our opinion and based on our examinaon, the Company has an internal audit system, however the company needs to enlarge scope and the coverage of the internal audit to make it more e ecv e and commensurate with size and operaons of the company;

(b) We have considered the internal audit reports of the company issued ll date, for the period under audit.

xv. In our opinion, during the year the company has not entered into any non-cash transacons with its directors or persons connected with its directors and hence provisions of secon 192 of the Companies Act, 2013 are not applicable to the Company.

xvi. (a) In our opinion, the Company is not required to be registered under secon 45-IA of the Reserve Bank of

India Act, 1934. Hence, reporng under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.

(b) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Direcons, 2016) and accordingly reporng under clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred cash losses during the current financial year. However, the Company incurred cash

losses amounng to 174.96 lakhs in the immediately preceding financial year.

xviii. There has been no resignaon of the statutory auditors during the year.

xix. On the basis of the financial raos, ageing and expected dates of realizaon of financial assets and payment of financial liabilies, other informaon accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examinaon of the evidence supporng the assumpons, nothing has come to our a_enon, which causes us to believe that any material uncertainty exists as on the date of the audit report that company is not capable of meeng its liabilies exisng 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 reporng is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilies 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. The Company is not required to spend any amount on CSR acvies during the year ended March 31, 2026 and

accordingly, reporng under clause (3)(xx)(a) &(b) of the Order is not applicable for the year.

xxi. The Company is not required to prepare consolidated financial statements and therefore, reporng under this clause

of the order is not applicable to the company.

For K C Mehta & Co LLP

Chartered Accountants

Firms Registra_on No. 106237W/W100829

Chhaya M. Dave Partner Membership No. 100434 UDIN: 26100434EEONOI7136 Place: Vadodara Date: May 30, 2026

ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(g) under Report on Other Legal and Regulatory Requirements secon of our report to the

Members of Rapicut Carbides Limited on the financial statements of even date)

Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-secron 3 of

Sec_on 143 of the Act.

We have audited the internal financial controls with reference to financial statements of Rapicut Carbides Limited ("the Company") as of March 31, 2026, in conjuncon with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporng criteria established by the Company considering the essenal components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporng issued by the Instut e of Chartered Accountants of India ("ICAI"). These responsibilies include the design, implementaon and maintenance of adequate internal financial controls that were operang e ecv ely for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevenon and detecon of frauds and errors, the accuracy and completeness of the accounng records, and the mely preparaon of reliable financial informaon, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporng (the, "Guidance note") and the Standards on Auding , issued by ICAI and deemed to be prescribed under secon 143(10) of the Companies Act, 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 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 with reference to financial statements were established and maintained and if such controls operated e ecv ely in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operang e ecv eness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and tesng and evaluang the design and operang e ecv eness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, 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 Companys internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A Companys internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporng and the preparaon of financial statements for external purposes in accordance with generally accepted accounng principles. A Companys internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transacons and disposions of the assets of the Company; (2) provide reasonable assurance that transacons are recorded as necessary to permit preparaon of financial statements in accordance with generally accepted accounng principles, and tha t receipts and expenditures of the Company are being made only in accordance with authorisaons of management and directors of the Company; and (3) provide reasonable assurance regarding prevenon or mely detecon of unauthorised acquision, use, or disposion of the Companys assets that could have a material effect on the financial statements.

Inherent Limita_ons of Internal Financial Controls with reference to financial statements

Because of the inherent limitaons of internal financial controls with reference to financial statements, 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, projecons of any evaluaon of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in condions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls with reference to financial statements were operang e ecv ely as at March 31, 2026, based on the internal control over financial reporng criteria established by the Company considering the essenal components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporng issued by the Instut e of Chartered Accountants of India.

For K C Mehta & Co LLP

Chartered Accountants

Firms Registra_on No. 106237W/W100829

Chhaya M. Dave Partner

Membership No. 100434

UDIN: 26100434EEONOI7136

Place: Vadodara Date: May 30, 2026