We have audited the accompanying standalone financial
statements of JTL DEFENCE LIMITED (Erstwhile RCI
INDUSTRIES & TECHNOLOGIES LIMITED) ("the
Company"), which comprise the Balance Sheet as at March
31, 2026, and the Statement of Profit and Loss, including
Other Comprehensive Income, Statement of Changes in
Equity and 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 (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 and fair view
in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with
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 profit/loss (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 of the standalone 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 '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 ("ICAI") 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 obtained by us is sufficient and
appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to the following matters in the Notes
to the Standalone financial statements:

a) Revaluation of Property, Plant and Equipment

We draw attention to Note 2 to the Standalone
Financial Statements, which describes that during
the year ended 31st March, 2026, the Company
has carried out a revaluation of its Land, Buildings
and Plant & Machinery. The resultant revaluation
surplus/deficit has been recognised and accounted
for in the financial statements in accordance with Ind
AS 16 - "Property, Plant and Equipment" and other
applicable accounting standards.

b) Recovery of Financial Assets

We draw attention to Note 7 and 10 to the Standalone
Financial Statements regarding certain financial assets
in the nature of trade receivables, debtors, securities
and other recoveries which were outstanding/due at
the time of the Insolvency Resolution Proceedings of
the Company. As informed to us, during the financial
year 2026-27, the management is actively following
up with the concerned debtors and other parties for
recovery of these dues. The management has further
represented that in the event such balances remain
unrecovered during the financial year 2026-27, the
Company shall take necessary actions in the books of
account, including appropriate adjustments, write¬
offs or provisions, as may be considered necessary at
that time. The ultimate realisation of these balances is,
accordingly, dependent upon the successful outcome
of the ongoing recovery efforts being undertaken by
the Company.

c) Settlement of Liabilities and Transfer to Capital
Reserve

We draw attention to Note 12 to the Standalone
Financial Statements, which describes that during the
year, the Company has settled certain outstanding
liabilities, and the resultant gain/balance arising
on such settlement has been transferred to
Capital Reserve, as considered appropriate by the
management. The accounting treatment adopted
by the management, including the classification
of such balance as Capital Reserve, is based on
the management's assessment of the nature of the
underlying transactions.

d) Notices from Taxation Authorities and Immunity
under NCLT Order

We further report that the Company has received
various notices from the Taxation Authorities
pertaining to periods prior to the issuance of the order
of the Hon'ble National Company Law Tribunal
(NCLT) approving the Resolution Plan of the
Company. As per the management's understanding,
such notices fall within the ambit of the immunity

granted under the said NCLT order, and the
Company will deal with these notices in accordance
with the law laid down in the said order.

We further draw attention to the fact that during the
Corporate Insolvency Resolution Process (CIRP),
which was completed on 8th December, 2025, the
Resolution Professional had responded to such
notices by invoking the moratorium imposed under
Section 14 of the Insolvency and Bankruptcy Code,
2016.

The eventual outcome of these matters and the
consequential impact, if any, on the financial
statements is presently not ascertainable and shall be
given effect to in the books of account as and when
the matters are concluded.

e) Long-Standing Investments — Pending
Confirmations and Recoverability

We draw attention to Note 3 to the Standalone
Financial Statements, which describes that the
Company (JTL Defence Limited) was under the
Corporate Insolvency Resolution Process (CIRP)
before the Hon'ble National Company Law Tribunal
(NCLT) during the previous financial year, pursuant
to which the operations of the Company had remained
substantially disrupted, and that consequent to the
successful conclusion of the resolution process, the
Company has resumed full operations during the
year under review.

In respect of the long-standing investments held
by the Company in the equity shares of Ace Matrix
Solutions Limited, Kay Kay Exim Private Limited, and
MetalRod Private Limited, aggregating to d,186.17
Lakhs as at 31st March, 2026, the management
has, owing to the prolonged disruption caused by
the CIRP and the consequent break in continuity
of communication with the investee companies,
not been able to obtain the latest audited financial
statements or balance/shareholding confirmations
from the said investee companies as at the reporting
date. Accordingly, these investments continue to be
carried at their existing book values in the financial
statements.

As represented by the management, now that the
Company is fully operational, the management
is actively in the process of re-establishing
communication with the investee companies,
obtaining balance/shareholding confirmations, and
taking steps to recover/realise the said amounts
during the financial year 2026-27. In the event
the management is unable to obtain satisfactory
confirmations or effect recovery, appropriate
necessary actions — including provision for
diminution in value / impairment / write-off of these

investments — shall be considered and accounted
for in accordance with the applicable Accounting
Standards in the year in which such determination is
made.

The ultimate impact, if any, on the carrying value of
these investments and consequently on the financial
statements, is presently not ascertainable.

Our opinion is not modified in respect of these
matter(s).

Key Audit Matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements for the 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.

We have determined that there are no key audit matters
to communicate in our report.

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

a. The Company's Board of Directors is responsible
for the other information. The other information
comprises the information included in Director's
Report but does not include the financial statements
and auditor's report thereon.

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

c. 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
during the course of our audit or otherwise appears
to be materially misstated.

d. 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.

Responsibilities of Management and Those Charged
with Governance 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 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 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 statement 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, the
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 the Board of Directors 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.

We give in "Annexure A" a detailed description of
Auditor's responsibilities for Audit of the Standalone
Financial Statements.

Other Matter:

1. Attention is drawn to the fact that the figures for the
quarter ended March 31, 2026 and corresponding
quarter ended in previous year as reported in these
standalone financial results are the balancing figures
between audited figures in respect of the full financial
year and published year-to-date figures upto the
end of the third quarter of the current and previous
financial year respectively. Also, the figures upto the
end of the third quarter for the current and previous
financial year had only been reviewed as required by
the Listing Regulations.

Our opinion is not modified in respect of the above matter.

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 "Annexure B" 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 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 including other comprehensive income,
the Statement of Changes in Equity and the
Statement of Cash Flow 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 Accounting
Standards specified under Section 133 of the Act.

(e) On the basis of the written representations
received from the directors as on March 31, 2026
taken on record by the Board of Directors, none
of the directors are 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 with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure C".

(g) 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 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 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

that, to the best of its 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
person(s) or entity(ies), including
foreign entities ("Intermediaries"), with
the understanding, whether recorded
in writing or otherwise, that the
Intermediary shall, 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 (Funding Parties), with the
understanding, whether recorded in
writing or otherwise, as on the date
of this audit report, that the Company
shall, 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
performed that have been considered
reasonable and appropriate in the
circumstances, and according to the
information and explanations provided
to us by the Management in this