We have audited the accompanying standalone
financial statements of Permanent Magnets Limited

("the Company"), which comprise the Balance Sheet as at
March 31, 2026 the Statement of Profit and Loss, including
Other Comprehensive Income, the Cash Flow Statement
and the Statement of Changes in Equity for the year then
ended, and notes to the financial statements, including
a summary of significant accounting policies and other
explanatory information.

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
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 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 affairs of the
Company as at March 31, 2026 the profit and loss total
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 standalone 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 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 together with the ethical requirements
that are relevant to our audit of the 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 Code of
Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion on the standalone financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
financial statements for the financial year ended March 31,
2026. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming
our opinion thereon, we do not provide a separate opinion
on these matters. There are no significant key audit matters
observed by us.

EMPHASIS OF MATTERS

We draw attention to the following matters in the Notes to
the Financial Statements:

a. We draw attention to Note no. 03 of notes to
accounts of the financial statement, which states that
Honorable Bombay High Court has given interim stay
order against the winding up order passed against the
Company dated April 15, 2015.

Honorable High Court of Bombay had passed a winding
up order dated April 15, 2015 for the Winding up of the
company on a petition filed by M/s. Savino Del Bene Freight
Forwarders (I) Pvt. Ltd., and the court had issued directions
for the appointment of an official liquidator in winding up
the order.

On the appeal against this order made by the company
before the Honorable Bombay High Court, the Honorable
Bombay High Court has given an interim stay order against
the winding up order passed (against the Company) dated
April 15, 2015. The company has deposited '0.19 crore with
interest as per the direction of the honorable Bombay High
Court. The matter is pending before Bombay High Court
and the next hearing in this matter shall come up as per the
listing of the court.

The financial statements of the company have been
prepared on a Going Concern Basis on reasons mentioned
in note no. 3 of notes of accounts.

INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR'S REPORT
THEREON

The Company's Board of Directors is responsible for the
other information. The other information comprises
information included in the Annual Report but does not
include the financial statements and our auditor's report
thereon. 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 standalone financial statements, our
responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the standalone financial 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.

RESPONSIBILITY OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR
THE STANDALONE FINANCIAL STATEMENTS

The Company's 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 financial position,
financial performance (including other comprehensive
income), cash flows and changes in equity of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards specified in the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) 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 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, the Board
of Directors is 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 the Board
of Directors 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 THE
AUDIT OF THE 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 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:

• 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, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company
has adequate internal financial controls system in
place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of 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 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 financial statements, including the disclosures,
and whether the 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 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 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
in terms of Section 143 (11) of the Act, applicable from
April 01, 2021 we give in "Annexure A" 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
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 examination of those
books.

c. The Balance Sheet, the Statement of Profit and
Loss (including other comprehensive income),
the Cash Flow Statement and Statement of
Changes in Equity 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 Indian Accounting
Standards prescribed under section 133 of the
Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.

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

f. With respect to the adequacy of the internal
financial controls over financial reporting of
the Company and the operating effectiveness
of such controls, refer to our separate report in
"Annexure B."

g. 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, 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 as at March 31, 2026
on its financial position in its standalone
financial statements - Refer Note No. 02
of Notes to Accounts to the standalone
financial statements.

ii. The Company did not have any long-term
contracts, including derivatives contracts for
which there were any material foreseeable
losses.

iii. There were no amounts which were 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, other than as disclosed in the
notes to accounts, no funds have
been advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind
of funds) by the Company to or in any
other persons or entities, including
foreign entities ("Intermediaries"), with
the understanding, whether recorded
in writing or otherwise, that the
Intermediary shall:

• directly or indirectly lend or invest in
other persons or entities identified
in any manner whatsoever
("Ultimate Beneficiaries") by or on
behalf of the Company; or

• provide any guarantee, security,
or the like to or on behalf of the
Ultimate Beneficiaries.

b. The management has represented,
that, to the best of its knowledge
and belief no funds have been
received by the Company from any
persons or entities, including foreign
entities ("Funding Parties"), with the
understanding, whether recorded in
writing or otherwise, that the Company
shall:

• directly or indirectly, lend or invest in
other persons or entities identified
in any manner whatsoever
("Ultimate Beneficiaries") by or on
behalf of the Funding Party; or

• provide any guarantee, security or
the like from or on behalf of the
Ultimate Beneficiaries.

c. Based on such audit procedures as
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 (iv) (a) and (iv) (b)
contain any material misstatement.

v. a. The Company has declared and paid

dividend during the year in compliance
with Section 123 of the Act.

b. As stated in Note No. 18 of the Notes to
Accounts, the Board of Directors of the

company has proposed final dividend
for the year, which is subject to approval
of the members in the ensuing Annual
General Meeting. The amount of
dividend declared is in accordance with
section 123 of the Act to the extent it
applies to declaration of dividend.

vi. Based on our examination which included
test checks, the Company has used
accounting software for maintaining its
books of account which has a feature of
recording audit trail (edit log) facility and the
same has been operated throughout the year
for all relevant transactions recorded in the
software. Further, during the course of our
audit we did not come across any instance
of the audit trail feature being tampered
with. Additionally, the audit trail of relevant
prior years has been preserved for record
retention to the extent it was enabled and

recorded in those respective years by the
Company as per the statutory requirements
for record retention.

c. With respect to the matter to be
included in the Auditor's Report
under Section 197(16) of the Act: 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. The
Ministry of Corporate Affairs has not
prescribed other details under Section
197(16) of the Act which are required to
be commented upon by us.

For Jayesh Sanghrajka & Co. LLP

Chartered Accountants

ICAI Firm Registration No. 104184W/W100075

Hemant Kumar Agrawal

Designated Partner
M. No.: 403143

UDIN: 26403143AOMGYW2687

Place: Mumbai
Date: May 13, 2026