United Drilling Tools Ltd Auditor Reports

To

The Members of

United Drilling Tools Limited

Report on the audit of the Standalone Financial Statements Opinion

1) We have audited the accompanying standalone nancial statements of United Drilling Tools Limited ("the Company"), which comprise the standalone balance sheet as at March 31, 2025, and the standalone statement of Prot and Loss (including Other Comprehensive Income), the standalone statement of changes in equity and the standalone statement of cash ows for the year then ended, and notes to the standalone nancial statements, including material accounting policies and other explanatory information for the year ended on that date. (hereinafter referred to as "the standalone nancial statement").

2) In our opinion and to the best of our information and according to the explanations given to us, the aforesaid nancial 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 prescribed 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 aairs of the Company as at March 31, 2025, the prot and total comprehensive income, changes in equity and its cash ows for the year ended on that date.

Basis for Opinion

3) We conducted our audit of the standalone Financial Statements in accordance with the Standards on Auditing (SAs) as specied under section 143(10) of the Act. Our responsibilities under those Standards are further described in the "Auditors Responsibilities for the Audit of the standalone 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 independence requirements that are relevant to our audit of the standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fullled 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 sucient and appropriate to provide a basis for our audit opinion on the standalone Financial Statements.

Key audit matters

4) Key audit matters (KAM) are those matters that, in our professional judgement, were of most signicance in our audit of the standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the standalone 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 the matters described below to be the key audit matters to be communicated in our report: -

Sr. No. Description of Key Audit Matter	How our audit addressed the key audit matters
1. Recognition and Measurement of R&D Assets	Our audit approach consisted testing of the design and
The Company is a manufacturer of high tech products	operating eectiveness of the internal controls and substantive
and therefore carry out Research & Development (R&D)	testing as follows:
activities of various products, this include continuous	A. We have reviewed the Company\u2019s process for assessing
improvements of existing and new products, which further	whether the R&D Assets meet the criteria for capitalization
get registered as patents in favour of the Company. Such	under Ind AS 38, particularly focusing on the stages of
development takes years to develop and get registered as	development. We evaluated the technical feasibility of
a patent for design and technology.	the projects and the Company\u2019s intention to complete the
These R&D assets, which are being capitalized as intangible	development and to use it for the purpose of the business.
assets, are subject to a set of complex judgments and	B. We have tested a sample of the R&D expenses incurred
estimates, particularly regarding whether the development	during the year to verify that they were appropriately
phase has met the criteria for capitalization as prescribed	capitalized in accordance with the requirements of the
by Indian accounting standards (such as Ind AS 38 -	accounting standards. This involved reviewing the nature
Intangible Assets).	of the expenses and considering whether they related to
Given the complexity and the potential impact on the	research or development activities.
standalone nancial statements, we identied this as a Key	Based on the audit procedures performed as stated above, we
Audit Matter.	have concluded that the recognition and measurement of R&D
	assets are appropriate and in accordance with the Ind AS 38.

Sr. No. Description of Key Audit Matter How our audit addressed the key audit matters

2. Useful life of Technology Assets and R&D Assets as We have performed the following audit procedure:

referred in Note No. 4 to the standalone nancial A. Reviewed supporting documentation and technical

statements justications provided by management, including

The Company has signicant Technology Assets and R&D expected future use.

Assets as at March 31, 2025. The Management has exercised B. Assessed whether the 26-years useful life for Technology

judgment in estimating the useful life of these assets. The Assets and amortisation rate of R&D Assets @5% p.a. is

management has estimated a useful life of 26 years for reasonable based on the nature of the assets, historical

Technology Assets and amortised R&D Assets @5% p.a. usage patterns, and technical advice obtained from the

Determining the useful life of such assets involves independent consultant.

signicant management judgment, particularly in C. Evaluated whether appropriate disclosures have been

assessing the nature of the technology, expected made in the standalone nancial statements.

technological obsolescence, future economic benets, and

Based on the audit procedures performed, we found the

the planned usage of the asset over time.

managements estimate to be supported by reasonable

Due to the signicance of the matters described above and assumptions and appropriately disclosed in the standalone

complexities in estimating the useful life, this matter was nancial statements.

considered to be of signicant importance in our audit of

the standalone nancial statements

Information Other than the Financial Statements and Auditors Report thereon

5) The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone nancial statements and our auditors report thereon. Our opinion on the standalone nancial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

6) In connection with our audit of the standalone nancial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone nancial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and those charged with Governance for the Standalone Financial Statements

7) The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone nancial statements that give a true and fair view of the nancial position, nancial performance, total comprehensive income, changes in equity and cash ows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting

Standards (Ind AS) specied 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 nancial controls, that were operating eectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

8) In preparing the standalone nancial 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.

9) The Board of Directors are also responsible for overseeing the Companys nancial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

10) Our objectives are to obtain reasonable assurance about whether the standalone nancial 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.

11) 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 inuence the economic decisions of users taken on the basis of these standalone nancial statements.

12) As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

a) Identify and assess the risks of material misstatement of the standalone nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sucient 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.

b) 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 also responsible for expressing our opinion on whether the Company has adequate internal nancial controls system in place and the operating eectiveness of such controls.

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

d) 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 signicant doubt on the ability of the Company 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 standalone nancial 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.

e) Evaluate the overall presentation, structure and content of the standalone nancial statements, including the disclosures, and whether the standalone nancial statements represent the underlying transactions and events in a manner that achieves fair presentation.

f) Materiality is the magnitude of misstatements in the standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone Financial Statements may be inuenced. 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 eect of any identied misstatements in the standalone Financial Statements.

13) We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signicant audit ndings, including any signicant deciencies in internal control that we identify during our audit.

14) 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.

15) From the matters communicated with those charged with governance, we determine those matters that were of most signicance in the audit of the standalone nancial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benets of such communication.

Report on Other Legal and Regulatory Requirements

16) With respect to the matter to be included in the Auditors Report under section 197(16) of the Act, as amended:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act.

17) As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure A" a statement on the matters specied in paragraphs 3 and 4 of the Order, to the extent applicable.

18) With respect to the adequacy of the internal nancial controls over nancial reporting of the Company and the operating eectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodied opinion on the adequacy and operating eectiveness of the Companys internal nancial controls over nancial reporting.

19) As required by Section 143(3) of the Act, we report, to the extent applicable, 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.

b) In 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.

c) The standalone Balance Sheet, the Statement of standalone Prot and Loss including Other Comprehensive Income, standalone Statement of Changes in Equity and the standalone Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, the aforesaid standalone nancial statements comply with the Indian Accounting Standards specied under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Board of Directors, none of the directors is disqualied as on March 31, 2025 from being appointed as a director in terms of Section 164 (2) of the Act.

f) 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, as amended in our opinion and to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its nancial position in its standalone nancial statements.

ii) The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2025.

a) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the 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 Company to or in any other person or entity, including foreign entities ("Intermediaries"), except loans to wholly owned subsidiary company 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 identied in any manner whatsoever by or on behalf of the Company ("Ultimate Beneciaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneciaries (Refer Note 51 to the standalone Financial Statements);

b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been received by the Company from any person or entity, including foreign entities ("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 identied in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneciaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneciaries (Refer Note 56g to the standalone nancial statements); and

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

d) The dividend declared and paid by the Company during the year is in accordance with section 123 of the Act.

20) The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from April 01, 2023.

Based on our examination which included test checks, the company has used accounting software(s)/ for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software.

21) The Company has been paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

	For Sarupria Somani & Associates
	Chartered Accountants
	F R No. 010674C
	Sd/-
	CA Miral Bipinbhai Mehta
	Partner
Place - Noida	M. No. FCA - 145361
Date - 29/05/2025	UDIN - 25145361BMLKCA7291

Annexure A to Independent Auditors Report

Referred to Report on Other Legal and Regulatory Requirements section of our report of even date to the members of United Drilling Tools Limited as of and for the year ended March 31, 2025.

1. a) (i) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(ii) The Company is maintaining proper records showing full particulars of Intangible Assets.

b) Tb) The Property, Plant & Equipment have been physically veried by the management as per the regular programme of periodical physical verication in a phased manner and the same is reasonable in our opinion having regard to the size of the Company and nature of its assets. No material discrepancies have been noticed on such physical verication.

c) The title deeds of all the immovable properties, as discussed in Note No. 4 to the standalone Financial Statements, are held in the name of the Company.

d) The Company has not revalued its Property, Plant and Equipment or intangible assets or both during the year. Consequently, the question of our commenting on whether the revaluation is based on the valuation by a Registered Valuer, or specifying the amount of change, if the change is 10% or more in the aggregate of the net carrying value of each class of Property, Plant and Equipment or intangible assets does not arise.

e) Based on the information and explanations furnished to us no proceedings have been initiated or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) [formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)] and Rules made thereunder.

2. a) The physical verication of inventory has been conducted by the Management at reasonable intervals during the year. In our opinion the coverage and procedure of such verication by the Management is appropriate having regard to the size of the Company and the nature of its operations. The discrepancies noticed on such physical verication of inventory as compared to books records were not 10% or more in aggregate for each class of inventory.

b) During the year, according to the information and explanations given to us, the Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, from banks on the basis of security of current assets. The Company has led quarterly returns / statements with such bank, which are in agreement with the audited books of accounts. (Also refer note 56m to the standalone Financial Statements).

3. The Company has made investments in one company (100% subsidiary), granted unsecured loans and advances in the nature of loans to this company and salary advances. The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to subsidiary, joint ventures and associates and to parties other than subsidiaries, joint ventures and associates are as per the table given below:

	Guarantees Security	Balance
	Loans Advances	outstanding at
	in nature of loans	a balance sheet
	Aggregate amount	date in respect
	granted/ provided	of the above
	during the year	case
	( In Lacs)	( In Lacs)
Subsidiaries	-	1,150.00
Joint Ventures	-	-
Associates	-	-
Others	-	-

(Also refer refer Note No. 51 to the standalone Financial Statements)

In respect of the aforesaid investments/loans/advances in nature of the loan, the terms and conditions under which such loans were granted/investments were made granted/ investments were made are not prejudicial to the Companys interest.

In respect of the aforesaid loans/advances in nature of loans, the schedule of repayment of principal and payment of interest has been stipulated, and the parties are repaying the principal amounts, as stipulated, and are also regular in payment of interest as applicable.

In respect of aforesaid loans/advances in nature of loans, there is no amount which is overdue for more than ninety days.

There were no loans/advances in nature of loans which fell due during the year and were renewed/extended. Further, no fresh loans were granted to same parties to settle the existing overdue loans/advances in nature of loan.

The loans/advances in nature of loans (in the nature of salary advances) granted during the year, including to related parties had stipulated the scheduled repayment of principal and where applicable payment of interest.

4. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of the Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made. The Company has not provided any guarantees and security to the parties covered under section 185 and 186 of the Companies Act, 2013.

5. According to the information and explanation given to us and on the basis of our examination of books of account, the company has not accepted deposits, hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under are not applicable. Accordingly the provisions of Clause v of the order are not applicable to the company.

6. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records under section 148(1) of the Act in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the said records with a view to determine whether they are accurate or complete.

7. a) According to the records of the company and information and explanations given to us the Company is generally been regular in depositing undisputed statutory dues including goods and services tax, provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues as applicable with the appropriate authorities.

b) According to the information and explanations given to us and the records of the Company examined by us, there were no undisputed statutory dues payable in respect of Goods and Service tax, Provident Fund,

Employees State Insurance, Income-tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, cess and other material statutory dues which have not been deposited on account of any dispute except for following:

Name of the statute	Nature of the dues	Amount ( in Lacs)	Period to which the amount relates	Forum where dispute is pending
The	Income Tax	790.30	Assessment	Commissioner
Income	(including		years 2017-	of Income tax
Tax Act,	interest and		18, 2018-19,	(Appeal)
1961	penalty) after		2020-21,
	adjusting		2023-24
	MAT

c) According to the information and explanations given to us and the records of the Company examined by us, there are no statutory dues of goods and services tax, provident fund, employees state insurance, income tax, cess, which have not been deposited on account of any dispute except as referred in Note 41

8. As per the information, explanations and records provided, there were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the year.

9. a) As per the information and records provided, in our opinion, the Company has not defaulted in the repayment of loans or other borrowings or in the payment of interest thereon to any lender during the year.

b) As per the information and explanations provided to us, during the year the Company has not been declared wilful defaulter by any bank or nancial institution or government or any government authority.

c) To the best of our knowledge and belief and in our opinion, term loans availed by the Company were applied by the Company during the year for the purposes for which the loans were obtained.

d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the standalone Financial Statements of the Company, we report that no funds raised on a short-term basis have been used for long-term purposes by the Company.

e) According to the information and explanations given to us on an overall examination of the standalone

nancial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates.

f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries.

10. a) The Company has not raised any money by way of initial public oer or further public oer (including debt instruments) during the year. Accordingly, the reporting under clause 3(x)(a) of the Order is not applicable to the Company.

b) The Company has not made any preferential allotment of equity shares during the year. Accordingly, the reporting under clause 3(x)(b) of the Order is not applicable to the Company.

11. a) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us we have neither come across any instance of material fraud by the Company nor has been noticed or reported during the year.

b) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, a report under Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 was not required to be led with the Central Government. Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the Company.

c) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, and as represented to us by the management, no whistle-blower complaints have been received during the year by the Company. Accordingly, the reporting under clause 3(xi)(c) of the Order is not applicable to the Company.

12. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporting under clause 3(xii) of the Order is not applicable to the Company.

154

13. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the standalone Financial Statements as required under Indian Accounting Standard 24 "Related Party Disclosures specied under Section 133 of the Act.

14. a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.

b) The reports of the internal auditor for the period under audit have been considered by us.

15. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the reporting on compliance with the provisions of Section 192 of the Act under clause 3(xv) of the Order is not applicable to the Company.

16. a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the reporting under clause 3(xvi)(a) of the Order is not applicable to the Company.

b) The Company has not conducted non-banking nancial / housing nance activities during the year. Accordingly, the reporting under clause 3(xvi)(b) of the Order is not applicable to the Company.

c) The Company is not a Core Investment Company (CIC) as dened in the regulations made by the Reserve Bank of India. Accordingly, the reporting under clause 3 (xvi) (c) of the Order is not applicable to the Company.

d) Based on the information and explanations provided by the management of the Company, the Group does not have any CICs, which are part of the Group. We have not, however, separately evaluated whether the information provided by the management is accurate and complete. Accordingly, the reporting under clause 3(xvi)(d) of the Order is not applicable to the Company.

17. The Company has not incurred any cash losses in the nancial year or in the immediately preceding nancial year.

18. There has been no resignation of the statutory auditors during the year and accordingly the reporting under clause (xviii) is not applicable.

19. According to the information and explanations given to us and on the basis of the nancial ratios (Also refer Note 54 to the standalone Financial Statements), ageing and expected dates of realization of nancial assets and payment of nancial liabilities, other information accompanying the standalone 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 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.

20. a) The Company was not required to transfer the amount of Corporate Social Responsibility remaining unspent being nil under sub-section (5) of Section 135 of the Act in respect of "other than ongoing projects" to a Fund specied in Schedule VII to the Act within a period of six months of the expiry of the nancial year in compliance with second proviso to sub-section (5) of Section 135 of the Act.

b) There are no ongoing projects, as at balance sheet date, therefore, the Company does not have any amount remaining unspent under Section 135(5) of the Act. Accordingly, reporting under clause 3(xx)(b) of the Order is not applicable.

21. The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of the standalone Financial Statements. Accordingly, no comment in respect of the said clause has been included in this report.

For Sarupria Somani & Associates

Chartered Accountants F R No. 010674C

Sd/-

CA Miral Bipinbhai Mehta

Partner Place - Noida M. No. FCA - 145361 Date - 29/05/2025 UDIN - 25145361BMLKCA7291

Annexure B to Independent Auditors Report

Referred to in paragraph 18 of the Independent Auditors Report of even date to the members of United Drilling Tools Limited on the standalone nancial statements as of and for the year ended March 31, 2025. Report on the Internal Financial Controls with reference to the standalone Financial Statements under clause (i) of sub-section 3 of Section 143 of the Act.

We have audited the internal nancial controls with reference to the standalone Financial Statements of United Drilling Tools Limited ("the Company") as of March 31, 2025 in conjunction with our audit of the standalone nancial statements of the Company for the year ended on that date.

1. Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal nancial controls based on the internal control over nancial 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 ("the Guidance Note") issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal nancial controls that were operating eectively for ensuring the orderly and ecient conduct of its business, including adherence to 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 nancial information, as required under the Act.

2. Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal nancial controls with reference to the standalone Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal nancial controls, both applicable to an audit of internal nancial 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 nancial controls with reference to the standalone Financial Statements was established and maintained and if such controls operated eectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal nancial controls system with reference to the standalone Financial Statements and their operating eectiveness. Our audit of internal nancial controls with reference to the standalone Financial Statements included obtaining an understanding of internal nancial controls with reference to the standalone Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating eectiveness 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 standalone Financial Statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for our audit opinion on the Companys internal nancial controls system with reference to the standalone Financial Statements.

3. Meaning of Internal Financial Controls with reference to the standalone Financial Statements

A companys internal nancial controls with reference to the standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of nancial reporting and the preparation of the standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A companys internal nancial controls with reference to the standalone Financial Statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the standalone 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 unauthorised acquisition, use, or disposition of the companys assets that could have a material eect on the standalone Financial Statements.

4. Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal nancial controls with reference to the standalone 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, projections of any evaluation of the internal nancial controls with reference to the standalone Financial Statements to future periods are subject to the risk that the internal nancial controls with reference to the standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

5. Opinion

In our opinion, the Company has, in all material respects, an adequate internal nancial controls system with reference to the standalone Financial Statements and such internal nancial controls with reference to the standalone Financial Statements were operating eectively as at March 31, 2025, based on the internal control over nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by ICAI.

For Sarupria Somani & Associates

Chartered Accountants F R No. 010674C

Sd/-

CA Miral Bipinbhai Mehta

Partner Place - Noida M. No. FCA - 145361 Date - 29/05/2025 UDIN - 25145361BMLKCA7291