To the Members of ARC FINANCE LTD

Opinion

We have audited tine financial statements of ARC FINANCE LTD ("the Company"), which comprise the balance sheet as at 3jij^st March 2024, and the statement, of Profit and Loss and statement of cash flows for the year then ended, and notes to the finaneial statements, including a summary of significant accounting policies and uLher ex plan a Lory information.

In our upinioti and Lo the best of uur information and according to the explanations given Lo us, the aforesaid financial statements give the information ret]uired by the Act in Line manner so required and give a true and fair view in conformity with tine accounting printriples generally accepted in India, of the state of affairs of the Company as at. 31st March, 2024, its profit and its cash flows for the year ended On that date

aj in the case of the ha I a nee sheet, of the state of a flairs of the company as at March SI. 202 4 h] fn the case of lhe Profit and Loss Account, fit the profit for the period ended on that daLe and

c] Jn the case of cash flow statement, for the cash flows for the year ended on that date

d) And the changes in equity for the year ended on that dale

Basis for Opinion

We cuuducLed uur audit in accordance with the Accounting Standards (AS) specified Linder section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Autiit of the Financial Statements section of our report. We are independent of tilt: Company in accordance with the Code of Ethics issued by the institute of Chartered Accountants of India Logeidler with the ethical requirements LhaL are relevanL to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have hi hi I led 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.

Key Audit Matters

Key audit maLLers are Ihose maLLers LhaL, 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 Lhe mat Lees described below Lo he the key EiudiL maLLers Lo be communicated in our report

Information other than the financial statements and auditors' 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 Board's Report ihduding AnnexureS to Boa rd's Report hut 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 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 duringthe course of our audit orotherwise appears to be materially misstated,

If, based on the work wc 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

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 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 (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 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, 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 altern ative but to do so.

Those 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 are Lo obtain reasonable assurance about whether Lhe 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 5As will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material it, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on Lhe basis of these financial statements.

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

* Identify and assess Lhe risks of material misstate mcnt of the financial statements, whether due to fraud ur error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate Lo provide a basis for our opinion. The risk of not deLecLing a material misstate me nL 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 LhaL are appropriate in Lhe circumstances. Under section 143(3){T) of the Companies Act, ^£>13, we are also responsible for expressing our opinion on whether Lhe company has adequate internal financial conLrols system in place and the operating effectiveness of such controls.

Ý Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures marie by m a mage men!

Ý Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on Lhe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may casL significant doubL on the Company's abiliLy Lo conLinue as a going concern. If wc conclude LhaL 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 concent.

* Evaluate Lite 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 Lhat achieves fair presentation.

Materiality is Lhe magnitude of misstaLemonLs in Lhe standalone financial statements LhaL, 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 fi) planning the scope of our audit work and in evaluating the results of our work; and (jig to evaluate the effect of any identified misstatements in Lhe standalone financial statements.

Wc communicate with those charged wiLh governance regarding, among oLher m a Iders, Lhe planned scope and Liming of Lhe audiL and significant audiL findings, including any significant deficiencies in intern,a I control that we identity¹ during our audit.

We also provide those charged with governance with a statement that we have complied cvjth relevant ethical requirements regarding independence, and to communicate with them ail relationships and other matters Lhat may reasonably be thought Lo bear on our independence, and where applicable, related safeguards^-.

Report on Other Legal and Regulatory Requirements

j; As required by Lhe Companies (Auditor's Report] Clrder, 2020 ('The Order"), issued by Lhe

CcnLral Government tjf Inditi in terms of suh-secLion [I l) of section 14^:| of the Companies

Act, 2013, we give in Lhc '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 A cl, we report L.haL:

a] We have sought and obtained ail the information and explanations which to the best ot our knowledge and belief were necessary for the purposes of our audit.

bj 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 Sheep the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In pur opinion, the aforesaid financial statements comply with ihe Accounting Standards (AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31st March, 2024 taken on record by the board of Directors, none ol the directors is disqualified as on 31st March, 2924 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in 'Annexure B‘.

g) With respect to Lhe maLLertobe included in the Auditor's ReporL under section 147(16), In our opinion and according to Lhe information and explanations given to us, Lhe remuneration paid by the Company to its directors during tire current year is in accordance with the provisions ol section 197 of the Act, The remuneration paid to any director is not in excess of the limit laid down under section 1.97 of the Act, The Ministry of Corporate Affairs has not prescribed other details under section 197(16) which are required to be commented upon by us,

h) With respecL Lo Lhe other matters Lo be included in Lhe Auditor's Report in accordance with Rule 11 of Lhe Companies (Audit and Auditors) Rules, 2014, in our opinion and Lo the best of our informalion and according Lo the explanations given Lo 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 contracts including derivative 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 bv the Company._

iv. [a) The management has represented that to the best of it's knowledge and belief, no funds have been advanced or loaned or invested [either fro nr borrowed funds or share premium or any other sources or kind of funds) by Lhe company Lo or in any other person(s) or enLityfies), including foreign entities ("Intermediaries”), with Lhe 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 have been received by the company from any person[s) or entity(ies), including foreign entities ("FundingParlies"), with the understanding, wheLher recorded in writing or otherwise, LhaLLhe company shall, whether, directly or indirectly, lend or invest in other persons or entities id en Li tied in any manner whatsoever by or on behalf of Lhe Funding ParLy ("Ultimate Beneficiaries”} or provide any guarantee, security⁷ or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on such audit procedures that have been considered reasonable and appropriate in Lhe dr cum stances, nothing has come to our notice that has caused us Lo believe that the rep resen La Lions under sub-diausc (i) and (ii) of ftule 11(e), as provided under (a) and (b) above, contain any material mis-statement.

v. No dividend have been declared or paid during lhe year by Lhe company.

vi. Based on our examination carried out, we report that the company has used accounting software for maintaining its books of account which has a feature of recording audit trait (edit log) facility and the same has operated throughout. Lhe year for all relevant transactions recorded in Lhe sofLware. FurLhtir, during Lhe course of our audit we did not come across any instance of audit trail feaLure being tampered with.

As per proviso to Rule 3(1] of The Companies (Accounts) Rules, 2014 is applicable from 1st April, 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 3'lst March, 2024,

For S5RV& ASSOCIATES.

Chartered Accountants Firm Regn No, 135901W

SdA

CA VISHNU KANT KABRA Partner

Membership No. 403437

Date: 39,05,2024

Place: Mumbai

UDIN: 24403437BKAJMN1541