Vikran Engineering Ltd Auditor Reports

The Board of Directors

401, Odyssey IT Park,

Road No. 9, Wagle Industrial Estate,

Thane - 400 604,

Maharashtra - India

Dear Sirs,

1. We have examined the attached Restated Financial Information of Vikran Engineering Limited (formerly, Vikran Engineering Private Limited) (the "Company" or the "Issuer"), comprising the Restated Statement of Assets and Liabilities as at 31 March 2025, 31 March 2024 and 31 March 2023, the Restated Statement of Profit and Loss (including other comprehensive income), the Restated Statement of Changes in Equity, the Restated Statement of Cash Flows for the years ended 31 March 2025, 31 March 2024 and 31 March 2023, and Notes to the Restated Financial Information including material accounting policies and other explanatory information (collectively, the "Restated Financial Information"), as approved by the Board of Directors of the Company at their meeting held on 18 July 2025, for the purpose of inclusion in the Red Herring Prospectus ("RHP") and the Prospectus to be filed by the Company in connection with its proposed Initial Public Offer of equity shares ("IPO"), prepared in terms of the requirements of:

a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act");

b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations"); and

c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").

2. The Companys Board of Directors is responsible for the preparation of the Restated Financial Information for the purpose of inclusion in the RHP and Prospectus to be filed with Securities and Exchange Board of India, National Stock Exchange of India Limited (‘NSE Limited) and BSE Limited (collectively "stock exchanges") and Registrar of Companies, Mumbai (‘ROC) in connection with the proposed IPO. The Restated Financial Information have been prepared by the management of the Company on the basis of preparation stated in Note 1 to the Restated Financial Information. The Board of Directors of the Companys responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Financial Information. The Board of Directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.

3. We have examined such Restated Financial Information taking into consideration:

a) The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated 08 August 2024 along with addendums dated 17 September 2024 and 01 July 2025 thereto, in connection with the proposed IPO of equity shares of the Company;

b) The Guidance Note. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI;

c) Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Financial Information; and

d) The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the proposed IPO.

4. These Restated Financial Information have been compiled by the management from:

a) Audited Financial Statements of the Company as at and for the years ended 31 March 2025 and 31 March 2024, prepared in accordance with the Indian Accounting Standard ("Ind AS"), as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, which have been approved by the Board of Directors at their meetings held on 09 June 2025 and 07 August 2024 respectively; and

b) As at and for the year ended 31 March 2023:

i. Audited Special Purpose Financial Statements of the Company as at and for the year ended 31 March 2023 (hereinafter referred to as ‘2023 financial statements) prepared in accordance with the basis of preparation, as set out in Note 1 to the Restated Financial Information, which has been approved by the Board of Directors at their meeting held on 18 July 2025.

The 2023 financial statements have been prepared by the Company in accordance with the Ind AS for the limited purpose of complying with E-mail dated 28 October 2021 from Securities and Exchange Board of India ("SEBI") to Association of Investment Bankers of India, instructing lead managers to ensure that companies provide financial statements prepared in accordance with Ind-AS for all the three years (hereinafter referred to as the "the SEBI communication") and the requirement of getting its financial statements audited by an audit firm holding a valid peer review certificate issued by the "Peer Review Board" of the ICAI as required by ICDR Regulations in relation to proposed IPO. This 2023 financial statements have been audited by M/s Pramodkumar Dad & Associates, Chartered Accountants ("Other Auditor") on which they have issued audit report dated 18 July 2025 to the Board of Directors who have approved these in their meeting held on 18 July 2025.

ii. From the audited financial statements of the Company as at and for the year ended 31 March 2023 prepared in accordance with the Accounting Standards prescribed under Section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2021 (Previous GAAP) which were approved by the Board of Directors in their meeting held on 28 August 2023.

5. For the purpose of our examination, we have relied on:

a) Auditors reports issued by us dated 09 June 2025 and 07 August 2024 on the audited financial statements of the Company as at and for the years ended 31 March 2025 and 31 March 2024 respectively, as referred in Paragraph 4(a) above.

Our reports on the financial statements of the Company for the years ended 31 March 2025 and 31 March 2024 express an unmodified opinion and includes emphasis of matter paragraphs which are reproduced as follows:

For the year ended 31 March 2025:

Recoverability of Trade Receivables:

"We draw attention to Note 14.1 to the accompanying financial statements, which describe an uncertainty to the outcome of an ongoing litigation with a customer on recoverability of balance amounting to INR 2,929 lakhs due from such customer, which is currently pending in the Commercial Court, Jaipur. The management based on their internal evaluation and legal advice as obtained, is of the view that the aforesaid amount receivable is good and recoverable and no liability is likely to arise on the aforesaid matter, and accordingly, no adjustments have been made to the financial statements in this respect. Our opinion is not modified in respect of this matter."

For the year ended 31 March 2024:

Recoverability of Trade Receivables:

"We draw attention to Note 13.1 to the accompanying financial statements, which describe an uncertainty to the outcome of an ongoing litigation with a customer on recoverability of balance amounting to INR 2,929 lakhs due from such customer, which is currently pending in the Commercial Court, Jaipur. The management based on their internal evaluation and legal advice as obtained, is of the view that the aforesaid amount receivable is good and recoverable and no liability is likely to arise on the aforesaid matter, and accordingly, no adjustments have been made to the financial statements in this respect. Our opinion is not modified in respect of this matter."

b) Auditors Report issued by Other Auditor dated 18 July 2025 on the Special Purpose Financial Statements of the Company as at and for the year ended 31 March 2023, as referred in Paragraph 4(b)(i) above.

Report of the Other Auditor on the Special Purpose Financial Statements for the year ended 31 March 2023 of the Company expresses an unmodified opinion and includes an emphasis of matter paragraph which is reproduced as follows:

Restriction on Distribution and Use

"We draw attention to Note 1 to the accompanying special purpose Ind AS financial statements which describe the basis of preparation used by the management for its preparation. These special purpose Ind AS financial statements have been prepared solely for the purpose as explained in the aforementioned note. This report is issued solely for the aforementioned purpose and for the use by the statutory auditors of the Company and accordingly, this report should not be used, referred to or distributed for any other purpose or to any other party without our prior written consent. To the fullest extent permitted by law, we do not accept or assume responsibility to any other person in whose hands our report may come without our prior consent in writing. Our opinion is not modified in respect of this matter."

c) Auditors Report issued by M/s Manish Kumar Agarwal & Co, Chartered Accountants (Predecessor Auditor) dated 28 August 2023 on the audited Previous GAAP financial statements of the Company as at and for the year ended 31 March 2023, as referred in Paragraph 4(b)(ii) above. As informed to us by the management, the Predecessor Auditor does not hold a valid peer review certificate as issued by the Peer Review Board of the Institute of Chartered Accountants of India and has therefore, expressed its inability to perform any work on the restated financial information for the aforesaid year. Accordingly, in accordance with ICDR Regulations and the Guidance Note, restated financial information for the year ended 31 March 2023 has been audited by Other Auditor.

6. The audit of 2023 financial statements was conducted by the Other Auditor, and accordingly reliance has been placed on the restated statement of assets and liabilities and the restated statement of profit and loss (including other comprehensive income), statement of changes in equity and statement of cash flows, the summary statement of material accounting policies, and other explanatory information (collectively "2023 Restated Financial Information") examined by Other Auditor for the year ended 31 March 2023. The examination report included for the said year is based solely on the examination report submitted by the Other Auditor. They have also confirmed that the 2023 Restated Financial Information:

a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial year ended 31 March 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the year ended 31 March 2025;

b) does not require any adjustment for the matters mentioned in paragraph 5(b) above and do not contain any modifications requiring adjustments. However, those qualifications/ observation remarks in the Companies (Auditors Report) Order, 2020 issued by the Central Government of India in terms of sub section (11) of section 143 of the Act and items relating to emphasis of matters, which do not require any corrective adjustments in the 2023 Restated Financial Information have been disposed in the 2023 Restated Financial Information; and

c) have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note. 7. Based on our examination and according to the information and explanations given to us and also as per the reliance placed on the examination report submitted by the Other Auditor on the 2023 Restated Financial Information, we report that the Restated Financial Information:

a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial year ended 31 March 2024 and 31 March 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the year ended 31 March 2025;

b) does not require any adjustment for the matters mentioned in paragraph 5 above and do not contain any modifications requiring adjustments. However, those qualifications/observations remarks in the Companies (Auditors Report) Order, 2020 issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended) and items relating to emphasis of matters, which do not require any corrective adjustments in the Restated Financial Information have been disclosed in Note 57(2) to the Restated Financial Information; and

c) have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note. 8. We had issued an examination report dated 24 September 2024 on the Restated Financial Information for the years ended 31 March 2024, 31 March 2023 and 31 March 2022, prepared for the purpose of inclusion in the Draft Red Herring Prospectus, which was compiled by the management from the Audited Special Purpose Ind AS financial statements of the Company prepared in accordance with the Ind AS as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India with transition date of 01 April 2021, which is different from the transition date of 01 April 2022 adopted by the Company at the time of first time transition to Ind AS, in accordance with the Companies Act, 2013. The aforesaid Audited Special Purpose Ind AS financial statements were approved by the Board of Directors at their meeting held on 24 September 2024 for the year ended 31 March 2024 and on 05 August 2024 for the years ended 31 March 2023 and 31 March 2022, on which we issued an unmodified opinion vide our report dated 24 September 2024 for the year ended 31 March 2024 and the Other Auditor issued unmodified opinion vide its report dated 05 August 2024 for the years ended on 31 March 2023 and 31 March 2022. Our opinion is not modified in respect of this matter.

9. The Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of approval of statutory purpose financial statements for the financial years ended 31 March 2025, 31 March 2024 and 31 March 2023 except for effects of the share split and issuance of the bonus shares as described in Note 1 to the Restated Financial Information.

10. This report should not in any way be construed as a reissuance or re-dating of any of the previous audit reports issued by us or by the Predecessor Auditor on the statutory purpose financial statements, nor should this report be construed as a new opinion on any of the financial statements referred to herein.

11. We have no responsibility to update our report for events and circumstances occurring after the date of this report.

12. Our report is intended solely for use of the Board of Directors for inclusion in the RHP and the Prospectus to be filed with SEBI, stock exchanges and ROC in connection with the proposed IPO. Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No.: 001076N/N500013

Partner

Membership No.: 109632

Place: Mumbai Date: 18 July 2025