ಅಡಿಟರ್ಸ್ ರಿಪೋರ್ಟ್KVS Castings Ltd.

Mar 31, 2026

KVS Castings Limited

(formerly known as KVS Castings Private Ltd)

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of KVS Castings Limited (formerly known as KVS Castings Private Ltd) ("the Company”), which comprise the Standalone Balance Sheet as at 31^st March, 2026, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), Standalone Statement of Cash Flows, the Standalone Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information, (hereinafter referred as "Standalone Financial Statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 section 133 of the Act read with Companies (Accounting Standards) Rules, 2015, as amended,and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2026, and its profit and loss (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SA”s) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s 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 ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters (''KAM’) are those matters that, in our professional judgment, were of most significance 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.

The Key Audit Matters	How our audit addressed the key audit matters
1. Utilisation of Initial Public Offer (IPO) Proceeds
As disclosed in Note 24(g) to the financial statements, the Company completed an Initial Public Offer ("IPO") during the year and raised gross proceeds of Rs. 2783.20 Lakhs. The proceeds of the IPO were earmarked for specific objects as set out in the Prospectus, including acquisition of plant and machinery, funding of working capital requirements and general corporate purposes. Considering the significance of the funds raised, the regulatory requirements governing the utilisation of IPO proceeds, and the need to ensure that the funds have been deployed only towards the approved objects of the issue, this area involved significant audit attention. Further, the determination of whether expenditures incurred were in accordance with the stated objects of the issue and the assessment of unutilised funds at the reporting date required detailed examination of underlying transactions and management''s monitoring controls. Accordingly, the utilisation of IPO proceeds was considered to be a key audit matter.	Our audit procedures, amongst others, included: 1. Obtaining an understanding and evaluating the design and implementation of controls established by the Company for monitoring and utilisation of IPO proceeds; 2. Examining the Prospectus, Board-approved fund utilisation plans and other relevant regulatory filings to understand the approved objects of the issue; 3. Reconciling the proceeds received from the IPO with the Company’s bank accounts and accounting records; Testing, on a sample basis, expenditures incurred against supporting documents including purchase orders, vendor invoices, contracts, payment records and bank statements; 4. Assessing whether the utilisation of funds during the year was in accordance with the objects stated in the Prospectus; 5. Verifying the amount of unutilised proceeds outstanding as at the reporting date and assessing whether such funds were maintained and invested in accordance with applicable regulatory requirements; 6. Evaluating the appropriateness and adequacy of disclosures relating to the utilisation and unutilised balance of IPO proceeds in the financial statements.

2. Capitalisation of Plant and Machinery and Capital Work-in-Progress

During the year, the Company incurred substantial capital expenditure towards acquisition, installation and commissioning of plant and machinery, a significant portion of which was funded through the proceeds of the IPO. As at 31 March 2026, the carrying value of Property, Plant and Equipment and Capital Work-in-Progress aggregated Rs. 6275.88 Lakhs. The accounting for such expenditure involves significant management judgment, particularly in determining whether costs incurred satisfy the recognition criteria under the applicable accounting standards, allocation of directly attributable costs, identification of expenditures to be capitalised versus expensed, and assessment of the date on which assets are available for their intended use. These judgments have a direct impact on the carrying value of fixed assets, depreciation charge and profit for the year. Accordingly, this matter was considered to be a key audit matter.

Our audit procedures, amongst others, included: 1. Obtaining an understanding of the Company’s process and controls relating to capital expenditure, capitalisation and transfer of assets from Capital Work-in-Progress to Property, Plant and Equipment; 2. Testing, on a sample basis, additions to plant and machinery with reference to vendor contracts, purchase orders, invoices, goods receipt records, installation certificates and payment documents; 3. Assessing whether the expenditures capitalised met the recognition criteria prescribed under the applicable financial reporting framework and whether any revenue expenditures had been inappropriately capitalised; 4. Evaluating the nature and appropriateness of directly attributable costs included in the cost of the assets; 5. Reviewing supporting documentation relating to commissioning and commencement of commercial operations to assess management’s determination of the date on which assets were available for intended use; 6. Verifying the appropriateness of transfers from Capital Work-inProgress to Property, Plant and Equipment during the year and the consequential commencement of depreciation; 7. Performing physical verification procedures on a sample basis and reviewing management’s records evidencing existence of significant capital assets; 8. Assessing the adequacy and appropriateness of disclosures relating to capital expenditure, Capital Work-in-Progress and Property, Plant and Equipment included in the financial statements.

Information Other than the Financial Statements and Auditor’s Report thereon

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report, but does not include the financial statements, and auditor’s report thereon.

The Company has informed us that the annual report containing the other information is expected to be made available to us after the date of this auditor’s 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 when it becomes available and, in doing so, consider whether such information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit, or otherwise appears to be materially misstated. Since the other information has not been made available to us up to the date of this auditor’s report, we are unable to report whether there is any material misstatement therein.

Management’s Responsibilities for the Standalone Financial Statements

The Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit / loss (including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards (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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, Board of Directors are responsible for assessing the Company’s 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 company’s financial reporting process.

Auditor’s Responsibilities for Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 standalone financial statements.

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

• I dentify and assess the risks of material misstatement of the standalone 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 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 the complete set of financial statements on whether the Company has adequate internal financial controls with reference to standalone 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 in the standalone financial statements made by management.

• Conclude on the appropriateness of management’s 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 Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone 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 auditor’s 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 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 standalone financial statements.

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s 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 benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 ("the Order”) issued by the Central Government of

India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, statement on the matters

specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. 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 purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. The Standalone Financial Statements dealt with by this Report are in agreement with the books of account;

d. In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.

e. On the basis of written representations received from the directors as on 31^st March, 2026, and taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2026, from being appointed as a director in terms of section 164 (2) of the Companies Act, 2013.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

g. In our opinion, the managerial remuneration for the year ended 31st March, 2026 has been paid / provided by the company to its directors in accordance with the provisions of Section 197 read with Schedule V of the Companies Act, 2013; and

h. With respect to the other matters to be included in the Auditor’s 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. there are no pending litigations as on date of financial statements, against the company as such there is no impact thereof to be considered;

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

iii. There is no amount which is required to be transferred, to the Investor Education and Protection 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 entity, including foreign entity ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(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 entity, including foreign entity ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(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 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. Further, no dividend has been proposed by the Board of Directors for the year ended 31 March 31, 2026. Accordingly, the requirements of Section 123 of the Companies Act, 2013 relating to declaration and payment of dividend are not applicable during the year.

vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from 1^st April, 2023.

Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended 31^st March, 2026 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’s. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with.

For Arora Gupta & Co.

Chartered Accountants Firm Registration No: 0021313C

Sd/-Amit Arora

Place: Rudrapur Partner

Dated: 30^th May, 2026 Membership No:- 514828

ICAI UDIN No: 26514828MJZYZC1113