we hove audited the accompanying financial statements of M/s ROYAL ARC ELECTRODES LIMITED, (hereinafter referred to as the
'Company'). (CIN: L31100MH1996PLC096296) which comprises of the Balance Sheet as at March 31, 2025, and the Statement of Profit and
Loss and statement of cash flows for the period ended on that date, and the notes to the financial statements including a summary
of significant accounting policies and other explanatory information (hereinafter referred to as ‘the Financial Statements').

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements
gives the information required by the Companies Act, 2013 ("the Act") in the manner so required and gives a true and fair view in
conformity with the Accounting Standards prescribed under section 133 of the Act read with the Companies (Accounting Standards)
Rules, 2021, as amended, ("AS") and other accounting principles generally accepted In India, of the state of affairs of the Company as
at March 31, 2025, the Profit and loss 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 (SAs) specified under section 143(l0) of the Companies Act.
2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities tor the Audit of the Financial
Statements section of our report. We are independent of the Company In accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the independence requirements that are relevant to our audit of the financial
statements under the provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and 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 on the said financial statements.

Key Audit Matter

Key audit matters are those matters that, in our professional judgment were of most significant in our audit of the Financial Statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. Based on the examination of the books of accounts
and explanations provided to us, we are of the opinion that there are no key audit matters that requires disclosure in our report.

Information other than the Financial Statement and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the other information The other information comprises the
information included in the Management Discussion and Analysis and Board of Director's report including Annexure to the 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.

The Board of Director's Report including Annexure thereto, are expected to be made available to us. Any Material misstatement thereon
pertaining to it, will be reported thereon

In connection with our audit of the financial statements, our responsibility Is to read the other information and, In doing so, consider
whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.

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

Management's Responsibility for the preparation of Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act. 2013 (“the Act*) with
respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting
Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error;

In preparing the Financial statements, management is responsible for assessing the Company's ability to continue as a going concern,
disclosing, os 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 are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives ore to obtain reasonable assurance about whether the Financial Statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an 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 those Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgement 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 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 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 mode by the management;

• Conclude on the appropriateness of management and Board of Director'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 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 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.

We communicate with those charged with governance of the company 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 Financial Statements of the current period and are therefore the key audit matters. We describe these matters In our
auditor's report unless low 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

section 143(11) of the Act, we give in the 'Annexure A', a statement on the matters specified In paragraphs 3 and 4 of the Order.

2. 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 of the aforesaid Financial Statements;

B. In our opinion, proper books of account as required by law relating to preparation of the aforesaid Financial Statements have been
kept so far as it appears from our examination of those books;

C. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are In agreement with
the relevant books of account maintained for the purpose of preparation of the Financial Statements;

D. in our opinion, the aforesaid Financial statements comply with the Accounting Standards specified under Section 133 of the Act,
read with of the Companies (Accounts) Rules, 2021:

E. On the basis of the written representations received from the directors of the Company as on 31st March, 2025 taken on record by
the Management and Board of Directors, none of the directors of the Company companies Incorporated in India is disqualified as
on 31st March, 2025 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", Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the company's internal controls over the financial reporting.

G. With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of
the Act, as amended: In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act;
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, in our opinion and to the best of our Information and according to the explanations given to us

i) The company does not hove any pending litigation cases which would Impact its financial statements os of March 31,
2025;

ii) The company does not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses;

iii) There is no amount which is required to be transferred to the Investors 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
the accounts, no funds hove 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(s) or entity(ies), including foreign entities
(‘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, other than as disclosed in the notes to
the accounts, no funds (which are material either individually or in the aggregate)have been received by the Company
from any person(s) or entity(ies). 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
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; and

c) Based on audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come
to our notice that has caused us to believe that the presentation under sub clouse(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 and hence, compliance with section 123of the Act
is not applicable.

vi) 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 March 31,2025 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.

Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered
with. Additionally, as proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting
under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory
requirements for record retention is not applicable for the financial year ended March 31, 2025.

For, J.H. Gandhi & Co.

Chartered Accountants
FRN - 01I6513W

CA Jasmit H Gandhi
Proprietor

Membership Number 044844
Place^- Mumbai
Date: 28/05/2025
UDIN: 25044844BMLMLF68I4