We have audited the accompanying standalone financial
statements of IRM Energy Limited (“the Company”), which
comprise the standalone balance sheet as at March 31,
2026, the standalone statement of Profit and Loss (including
other comprehensive income), the standalone statement
of changes in equity and the standalone statement of cash
flows for the year then ended, and notes to the standalone
financial statements, including material accounting policy
information 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 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 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 affairs of the
Company as at March 31, 2026, and its profit (including
other comprehensive income), changes in equity 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(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 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.

a) We draw attention to Note no. 60 to the accompanying
financial result, in relation to investment of
' 37.35 million held by the company in the redeemable
preference share capital of its joint venture i.e Venuka
Polymers Private Limited (“VPPL”). Of the said amount,
' 22.35 million together with the dividend due thereon
of ' 4.70 million was due for redemption during the
year. However, the said amounts remain outstanding
as at the reporting date. Based on the plan shared by
the management, the redeemable preference share
capital are under extension of tenor.

b) We draw attention to Note no. 61 to the accompanying
financial result, in relation to investment of
' 44.50 million held by the company in the redeemable
preference share capital of its associate Company i.e
Farm Gas Private Limited (“FGPL”). Of the said amount,
' 15.90 million together with the dividend due thereon
of ' 3.34 million was due for redemption during the year.
However, the said amounts remain outstanding as at
the reporting date. The management has represented
that the amounts are expected to be received in due
course, considering the financial commitment and
support from the majority shareholder of FGPL.
Accordingly, no adjustment has been made to the
carrying amount of the aforesaid investment and
dividend due thereon.

c) We draw attention to Note No. 56 to the accompanying
financial results, which describes that the Company
has recognized an impairment loss of ' 50.94 million
on loans, interest, and other receivables from its joint
venture, Ni-Hon Cylinders Pvt. Ltd., due to uncertainty
regarding recoverability of the outstanding balances.
The joint venture has not carried out any business
operations during the last three years and its net
worth is negative. The financial statements of the
joint venture, however, have been prepared on a going
concern basis. The impairment assessment has been
carried out based on management’s evaluation of the
financial position, operational performance and other
relevant factors relating to the joint venture.

Our report on the Statement is not modified in respect of

above matters.

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
standalone financial statements for the financial year ended March 31, 2026. 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. For each matter below, our description of how our audit addressed the matter is
provided in that context.

We have determined the matters described below to be the key audit matters to be communicated in our report. We have
fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone financial statements
section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the standalone financial statements.
The results of our audit procedures, including the procedures performed to address the matters below, provide the basis
for our audit opinion on the accompanying standalone financial statements.

Information Other than the Standalone 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 Board’s Report and Other
Relevant Information contained therein, but does not
include the standalone financial statements and our
auditor’s report thereon.

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 and, in doing so, consider whether the other
information is materially inconsistent with the 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.

Management’s Responsibility for the Standalone
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 and presentation of these standalone
financial statements that give a true and fair view of the
financial position, financial performance, 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 financial statement 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 alternative 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
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 financial
statements.

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

a) 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.

b) Obtain an understanding of internal 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.

c) Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by 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 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 financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in a
manner that achieves fair presentation.

f) Obtain sufficient appropriate audit evidence regarding
the financial information of the Company to express an
opinion on the Standalone Financial Statements.

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

Report on Other Legal and Regulatory Requirements

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 paragraphs 3 and 4 of the Order, to the extent
applicable.

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 Balance Sheet, the Statement of Profit and Loss,
the Cash Flow Statement and Statement of Changes in
Equity dealt with by this Report are in agreement with
the books of account.

d) In our opinion, the aforesaid standalone financial
statements comply with Indian Accounting Standards
specified under section 133 of the Act, read with

Companies (Indian Accounting Standards) Rules,
2015, as amended.

e) On the basis of the written representations received
from the directors as on March 31, 2026 and taken on
record by the Board of Directors, none of the directors
is disqualified as on March 31, 2026 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” where we have
expressed an unmodified opinion.

g) With respect to the other matters to be included in the
Auditors’ 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 the impact of
pending litigation on its financial position in its
financial statement.

ii. The Company has made provision as required
under the applicable law or accounting standard,
on material foreseeable losses, if any on long¬
term derivative contracts.

iii. There are no amounts which are required to be
transferred to Investor Education and Protection
Fund by the company during the year ended
March 31, 2026.

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 from borrowed funds
or share premium or any other sources
or kind of funds) by the company to or in
any other persons or entities, 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 it’s knowledge and belief, no
funds have been received by the company
from any persons or entities, 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 such audit procedures that we have
considered reasonable and appropriate in
the circumstances, nothing has come to

our notice that has caused us to believe that
the representations given under (a) and (b)
above, contain any material mis-statement.

v. The final dividend proposed in the previous year,
declared and paid by the Company during the year, is in
accordance with Section 123 of the Act, as applicable.

vi. Based on the representation and explanation provided
by the Company and based on our examination,
which included test checks, the Company has used
accounting software for maintaining its books of
account that has a feature of recording an audit trail
(edit log) facility and the same has operated throughout
the year. Further, during the course of our audit, we did
not come across any instance of the audit trail feature
being tampered with, and the audit trail has been
preserved by the Company in accordance with the
statutory requirements for record retention.

For Mukesh M. Shah & Co.,

Chartered Accountants
Firm Registration No.: 106625W

Harsh P. Kejriwal

Partner

Place: Ahmedabad Membership No.: 128670

Date : May 8, 2026 UDIN: 26128670WGCJHT4326