Rapicut Carbides Limited

Report on the Audit ofihe Financial Statements

Opinion

We have audited the accompanying financial statements of Rapicut Carbides Limited ("the Company"), which comprise the Balance Sheet as at March 31.2024. the Statement of Profit and Loss including Other Comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of mortal accounting policies and other explanatory in formation (he re in after referred to as "the financial statements").

In our opinion and to the best of our rnformation and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fa ir view in conform ity wi th the Indian Acco u nti ng Stand ards s pecif i ed unde r section 13 3 of th e Act re ad w ith th e Co m pa n i es (Indian Accounting Standards) Rules, 2015, as amended, find AS") and other accounting principles generally accepted in India, of the stale of affairs of the Company as at March 31,2024, and total comprehensive income (comprising of profit and other 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 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 Auditors" Responsibilities for 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 ethical requirements that are relevant to our audit of the financial state m ents un d e r th e provisi on s of the Act a nd the Ru I es m ade the re u rider, a nd we h a ve f ulf 111 ed ou r other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evid en ce we have obta i n ed i s s ufficient a nd appropri ate to provi de a basis for ou r a ud it opin ion.

Key Audit Matters

Key a u dit ma tte rs a re those matte rs that, i n our p rof essi on at j u dg m e nt, we re of m ost s ign if ican ce in o u r audit of th ese financial statements of the current year These matters were addressed in the context of our audit of the financial statements as 3 whole, and in forming our opinion Ihereon, and we do not provide a separate opinion on these matters. We have determined th at the re are no key a u d it matte rs to be co m m un icated in o u r report.

Information Other than the Financial Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for preparation of the other information, The other information comprises the in forma (ion included in the Board's Report including Annexe res to Board's Report, Management Discussion and Analysis and Shareholder's Information but does not include the financial statements and our auditors' report thereon. The above-referred information is expected to be made available tousafterthe date of this audit report

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon,

I n con n ection with ou r a u d it of t h e fin ancia I state m ents, o u r responsi b ility i s to read the othe r i nforma tion i de ratified a bo ve whe n It becomes available and. in doing so, consider wheiher the olher information Is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materiaily misstated.

When we read the information, if we conclude that there is a material misstatement therein, we are required to communicate

the matter to ihuse charged with governance and take appropriate actions necessitated by the circumstances and the applicable laws and regulations.

Responsibilities of Management and Those Charged with Governance for the 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 financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind 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 tor preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonableand prudent: and design, implementation and maintenance of adequate internal financial controls, that were operating effectively lor ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial state moots I ha t g i ve a t rue and fa i r vi ew a n d a re free from ma te da I misstatement, who ther do e to fraud o r e rror

I n pre pa ring t h e f i na n ci al s tatements, m a n ag eme n t i s res po n s i bl e f or asse ssing t h e C om pany’s ability to conti nue as a g orng concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless mana ge m ent ei the r inte nds to liquid ate th e Co m pa n y or to cea se o perati on g, o r h as no realistic al tern ati ve b ut to d o so.

The Board of Directors is a I so responsible for overseeing the Company's financial reporting process.

Auditors' Responsibilities for the Audit of the Finarciaf Statements

?ur objectives are 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 auditors' report that includes our opinion, Reasonable assurance iso high level of assurance but is not a guaranies lhat an audit con ducted in accordance with SAs will always detecta 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 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 de ntify a nd assess the risk s of material miss ta temen t of the finencia I state ments, whethe r d ue to fraud or error, desig n 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, intentional omissions, misrepresentations, or the override of internal control.

* O btain a n lj n de rsta nd i ng of i n tern a! control re I evan t to the aud i t in ord er to d e$l g n aud i i proce du re s tha t a re a ppro pria te in th e circu m sta n ces. U nd er se ct:o n 143( 3 )(1) of the Act, we a re a I so re s pon sibl e for express i n g our op in i on on whethe r the Company has adequate internal financial controls with reference to financial sta tom on is in place and the operating effectiveness of such controls.

. Evaluate fh e ap propria i eness of a cco u riti ng policies used and the reason ah lenes $ a f a cco u nting esl i m ates and rel ated disclosures made by management.

Ý C on elude on the ap propriaten ess of ma nag ement's use of 1 h e go i n g concern basi s of accou nti ng a n d, based o n the a u dlt 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 ant) 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 regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control thatwe identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements re ga rd i ng i nd ep end en ce. and to commu meats with t h eim ait relat ionship s and ot h er matters that may reaso n ab ly be Eho u ght 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 s i gn if lean ce i n the a ud it of the fin an cia I state ments of th e c urre nt period a nd a re th erefore th e key a u dit in atters. We d escri be these matters in our auditors' report unless law or regulation precludes public disclosure abou- the matters or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse con se quence s of do i n g so wou Id reaso n ab I y be ex pected to outwei gh the public i nterest be net its of s uch co m m un icat io n.

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 142 of the Act, we give in "Annexure A", a statement on the matters specified in

paragrap h s 3 a nd 4 of the Ord e r, to the e xteht ap pi i cab le.

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 reguired by law ha ve been kepi by tha company so far as it appears from our examination of those books except for the matters stated in the paragraph (f) (vi) below on reporting under rule 11(3);

(c) the Bata nee Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account;

(d) In our o pi nion, the aforesa id financial staieme nts comp ly with the I nd i an Accounti n g Sta ndard s(lndAS) prescri bed under Section 133 of the Act;

(e) on the basis of the written representations received from the directors as on March 31,2024, taken on record by the Boa rd of D irectors, n on e of the di recto rs is d i s q ua I if ied as on Ma rch 31, 2024, f ro m b ei ng a ppornted as a d i re cto r i n terms of Section 164(2) of the Act,

(f) the observations relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph (b) above on reporting under Section 143(3}(b) and paragraph (i) (vi) below on reporting under Rule

11(g)-

(g) with re spect to the adeq uacy of the i nterna I f i n a n cia I co n trols wi th reference to finsneia I sta tern en ts of f he Compa ny and the op era ting effectiveness of such controls, refer to our separate report in "Annexure 8";

(h) with respect io 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 lo the bast of our information and according to the explanations given to us, the remuneration paid by the Company toils directors is in accordance with the provisions of saciion 197of the Act. as amended;

I. with respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 of the Companies (And it and Aud ito rs) Ru les. 2014, a s amc n de d Ý in ou r opin i on Eind to t h e best of our i nfo rmatio n a n d accord i ng lo the explanationsgiven to us:

I. the Company does not have any pending litigations which would impact its financial position;

ii. the Company did not have any long-term contacts including derivative contracts as at March 31,2024 for which there were any material foreseeable Josses;

iii. there has been no delay in transferring amounts, required to be transferred, to the investor Education end Protection Fund by the Company.

iy (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 advaneed or loaned or invested (oilher 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"), with the understanding, whether recorded in writing or otherwise, that the I nte rme d i a ry sha 11. wheth er, d i re etty or ind i re ctiy lend or in ve st i n oth er perso ns or e n tities ;d ent if i ed i n any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, s ecurity o r the I i ke on behalf of the U Itimate Be n eftciaries;

(b) The management has represented, that, to the best of its knowledge and belief, no funds (which are mate ria I e ither i nd ivid ua I ly or in the aggregate} ha ve been re cei ved by the Co m pa ny from a ny person or e ntity, including foreign entity {' Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend ormvest 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 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 Com pa ny ha s not d eel ar ed or pa i ri a ny d ividend d u ring the yea r.

vi Based on our examination which included test checks, the Comipany has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility, The audit trail facili ty has operated throug ho u 11 he ye ar for all releva nttra n sections record ed i n the soft wa re except i n res pect of software used for maintenance of Inventories records and Payroll records for which audit trail facility was not active/operational. Further, during the course of our audit we did not come across any instance of audit trail feature (except for Inventory and Payroll records as mentioned above for which it was not active/operational) being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules. 2014 is applicable from the period April 1,2023 reporting under Rule 11 (g) of the Companies Act (Audit and Auditors) Rules, 2014 on preservation of audit trail as pertho statutory requirements for record retention is not applicable for the financial year ending March 31, 2024.

For KC Mehta & Co LLP

Chartered Accountants

Firm's Registration No 106237W/W100829

Chhaya M- Dave Partner

Membership No. 100434 UDIN: 24100434BKBFUW1114 Place: Vadodara Date: May OG, 2024