We have audited the accompanying Standalone
Ind AS financial statements of Akar Auto Industries
Limited ("the Company") which comprises the
Balance Sheet as at March 31, 2025, the Statement
of Profit and Loss (including the Statement of Other
Comprehensive Income), the Statement of Cash
Flows and the Statement of Changes in Equity, for
the year then ended and notes to the Standalone
Ind AS 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 Ind AS 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 and other accounting
principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2025, and
its profit (including other comprehensive income),
its cash flows and the changes in equity for the year
ended on that date.

2 Basis for Opinion

We conducted our audit of the Standalone Ind
AS financial statements in accordance with the
Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are
further described in the Auditor's Responsibilities
for the Audit of the Standalone Ind AS 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 Ind AS financial statements under
the provisions of the Companies Act, 2013 and the
Rules made 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 Ind AS financial
statements.

3 Key Audit Matter

Key audit matters are those matters that, in our
professional judgement, were of most significant 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 the matters
described below to be the key audit matters to be
communicated in our report;

Foreign exchange fluctuation and export policies of
the Government of India and other countries are
considered to be Key Audit Matters. A significant
portion of revenue is generated through export of
products of the company. Any change in the duty
structure, import and export policy has significant
bearing on revenue realisation of the Company.
Fluctuation in exchange rate of Indian currency has
significant bearing on profitability of the company.

How our audit addressed the audit matter:

Our audit approach includes verification of balances
outstanding (Debits and Credits) on account of
foreign currencies; as at the end of the year and to
assure that the same is adjusted to a value at the
exchange rate that is prevailing at the close of last
day of the current year.

4 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 the information included in the
Management Discussion and Analysis, Board's
Report including Annexures to Board's Report,
Business Responsibility and Sustainability Report,
Corporate Governance and Shareholder's
Information, but does not include the consolidated
financial statements, Standalone Ind AS financial
statements and our auditor's report thereon.

Our opinion on the Standalone Ind AS financial
statements does not cover the other information
and we do not express any form of assurance or
conclusion thereon.

In connection with our audit of the Standalone
Ind AS 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 Ind AS financial
statements or our knowledge obtained during the
course of our 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.

5 Management's Responsibility 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 Standalone Ind AS 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 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 implementation and maintenance
of 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
Ind AS financial statement that give a true and
fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the Standalone Ind AS financial
statements, management and 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.

Those Board of Directors are also responsible for
overseeing the company's financial reporting
process.

6 Auditor's Responsibilities for the Audit of the
Financial Statements

Our objectives are to obtain reasonable assurance
about whether the Standalone Ind AS 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 Ind AS financial statements.

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

a Identify and assess the risks of material
misstatement of the Standalone Ind AS
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.

b 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
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.

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

d 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 Ind AS 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.

e Evaluate the overall presentation, structure
and content of the Standalone Ind AS financial
statements, including the disclosures, and
whether the Standalone Ind AS financial
statements represent the underlying
transactions and events in a manner that
achieves fair presentation.

Materiality is the magnitude of misstatements
in the Standalone Ind AS financial statements
that, individually or in aggregate, makes it
probable that the economic decisions of
a reasonably knowledgeable user of the
Standalone Ind AS 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 Ind AS 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 financial
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 Ind AS 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.

7 Report on Other Legal and

Regulatory Requirements

01) 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, we give in "Annexure-A”

a statement on the matters specified in

paragraphs 3 and 4 of the Order.

02) 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 appears from our
examination of those books.

c) The Balance 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 opinion, the aforesaid standalone
financial statements comply with the Ind
AS specified under Section 133 of the
Act.

e) On the basis of written representations
received from the directors as on March
31, 2025, and taken on record by the
Board of Directors, none of the directors
are disqualified as on March 31, 2025,
from being appointed as a director in
terms of section 164(2) of the Companies
Act, 2013.

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'; and

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"

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 has disclosed
pending litigations in Note No. 33
of its Standalone Ind AS financial
statements.

ii) The Company did not have any long¬
term contracts including derivative
contracts for which there were any
material foreseeable losses.

iii) There are no such amounts which
are required to be transferred to
Investor Education and Protection
Fund in accordance with the relevant
provisions of the Companies Act,
2013 and rules made there under.

iv) (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 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, 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),
as provided under (a) and (b)
above, contain any material
misstatement.

v) Dividend has been declared and paid

during the year by the company