We have audited the accompanying Standalone Financial Statements

of REC Limited ("the Company”) which comprise the Balance Sheet as
at 31^st March, 2026, and the Statement of Profit and Loss (including
Other Comprehensive Income) and the Statement of Change in Equity
and the Statement of Cash Flows 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
to as "the 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 & 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 the affairs of the Company as at 31^st March 2026, and its Profit
(including other comprehensive income), changes in equity and its cash
flow 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 (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 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 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.

Emphasis of Matter

We draw your attention to Note No. 68 of the Standalone Financial
Statements with respect to constitution of audit committee and adoption
of Standalone Financial Statements.

Our opinion is not modified in respect of this matter.

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 year. These matters were addressed in
the context of our audit of the Standalone Financial Statements as a whole,
and in forming our opinion thereon, 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.

Information Other than the Standalone Financial Statements
and Auditor's Report thereon

The Company's Board of Directors are responsible for the preparation of
the other information. The other information comprises the information
included in the Company's Annual Report but does not include the
Standalone Financial Statements and our report thereon. Such other
information is expected to be made available to us after the date of this
Auditor's Report.

Our opinion on the Standalone 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 identified above when it
becomes available 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 therein, we are required to communicate the matter
to those charged with governance.

Responsibilities of the Management and Those Charged with
Governance for the Standalone Financial Statements

The Company's Board of Directors are 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), changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including Indian
Accounting Standards prescribed under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind
AS”). 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 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 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:

• Identify 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 controls relevant to
the audit in order to design audit procedure that are appropriate in
the circumstances. Under Section 143(3)(i) of the Act, 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 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, a
statement on the matters specified in paragraph 3 and 4 of the Order.

2. On the basis of information and explanations given to us by the
company we are enclosing our report in Annexure-B on the
directions/sub-directions issued by Comptroller and Auditor General
of India in terms of Section 143(5) of the Act.

3. 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 Standalone Balance Sheet, the Standalone Statement of
Profit and Loss (including other comprehensive income), the
Standalone Statement of Changes in Equity and the Standalone
Statement of Cash Flow dealt with by this Report are in
agreement with the books of accounts.

d) In our opinion, the aforesaid Standalone Financial Statements
comply with the Ind AS specified under Section 133 of the Act
read with Companies (Indian Accounting Standards) Rules,
2015 as amended.

e) The Notification number G.S.R. 463(E) dated 5^th June, 2015
issued by Ministry of Corporate Affairs, Section 164(2) of the Act
regarding the disqualifications of Directors is not applicable to
the Company, since it is a Government Company.

f) With respect to the adequacy of the internal financial controls
over financial reporting with respect to Standalone Financial
Statements of the company and operative effectiveness of such
controls, refer to our separate report in "Annexure-C”;

g) As per Notification no. G.S.R. 463(E) dated 5^th June 2015 issued
by the Ministry of Corporate Affairs, provisions of Section
197 of the Act are not applicable to the company, since it is a
Government Company; 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) The Company has disclosed the impact of pending
litigations on its financial position in its Standalone
Financial Statements - Refer Note 44 to the Standalone
Financial Statements.

(ii) According to information and explanation given to us the
Company did not have any long-term contracts including
derivative contracts.

(iii) There has been no delay in transferring amounts,
required to be transferred, to the Investor Education and
Protection Fund by the Company.

(iv) (a) The Management has represented (Refer Note 10.5)

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 (Refer Note 22.4),
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 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) of the
Companies (Audit and Auditors) Rules, 2014 as
amended and provided under (a) and (b) above,
contain any material misstatement.

(v) The dividend declared, paid and proposed by the
Company during the year is in accordance with Section
123 of the Companies Act, 2013.

(vi) Based on our examination which included test checks,
the company has used an accounting software for
maintaining its books of account 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 audit
trail feature being tampered with and the audit trail has
been preserved by the Company as per the statutory
requirements for record retention.

Kailash Chand Jain & Co. M/s SCV & Co. LLP

Chartered Accountants, Chartered Accountants,

ICAI Firm Registration: 112318W ICAI Firm Registration:000235N/N500089

Saurabh Chouhan Abhinav Khosla

Partner Partner

Membership Number: 167453 Membership Number: 087010

UDIN: 26167453WSUFHT2660 UDIN: 26087010TEQKGF3975

Place: Delhi
Date: 28^th April 2026