1. We have audited the accompanying Ind AS Financial
Statements of Vardhman Acrylics 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), the Statement of Changes in
Equity, the Statement of Cash flows for the year ended and
notes to the financial statements, including a summary
of the material accounting policies and other explanatory
information (hereinafter referred to as "the Ind AS Financial
Statements").

2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Ind AS Financial Statements give the information required
by the Companies Act, 2013 as amended (hereinafter
referred to as "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 31^st March, 2026, its
Profit including other comprehensive income, changes in
equity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the Ind AS 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 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 Ind AS 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 audit opinion on the
Ind AS Financial Statements.

Key Audit Matters

4. Key Audit Matters are those matters that, in our
professional judgement, were of most significance in our
audit of the Ind AS Financial Statements of the current
period. These matters were addressed in the context of
our audit of the Ind AS Financial Statements as a whole,
and in forming and 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.

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

5. The Company's Management and Board of Directors are responsible for the other information. The other information comprises
the information included in the Management Discussion and Analysis Report, Business Responsibility Report, Directors' Report
including annexures, if any, thereon, and Corporate Governance Report but does not include the Ind AS Financial Statements
and our auditor's report thereon. Our opinion on the Ind AS 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 Ind AS Financial Statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the Ind AS 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 of this other information, we are required to report that fact.
We have nothing to report in this regard.

Management's Responsibility for the Ind AS Financial Statements

6. 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 Ind AS Financial Statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, change in equity and cash flows of the Company in accordance with accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of
the Act , read with the Companies (Indian Accounting Standards), Rules, 2015 as amended. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 the 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 Ind AS Financial Statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.

In preparing the Ind AS 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 management either intends to liquidate the
Company or to cease operations, or has no realistic
alternative but to do so.

The Board of Directors are also responsible for overseeing
the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Ind ASFinancial Statements

7. Our objectives are to obtain reasonable assurance about
whether the 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 Standards on Auditing, specified under
section 143(10) of the Act, 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 Ind AS Financial Statements.

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

• Identify and assess the risks of material misstatement
of the 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.

• Obtain an understanding of internal controls 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.

• Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures in the Ind AS
Financial Statements made by the Management and
Board of Directors.

• Conclude on the appropriateness of the
Management and Board of Directors 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 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.

• Evaluate the overall presentation, structure and
content of the Ind AS Financial Statements,
including the disclosures, and whether the 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 Ind
AS Financial Statements that, individually or in aggregate,
makes it probable that the economic decisions of a
reasonably knowledgeable user of the 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 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 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 Ind AS Financial
Statements for the financial year ended March 31, 2026
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

9. 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-A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent
applicable.

10. As required by Section 143(3) of the Act, based on our
audit, 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 such books except
for the matters stated in paragraph 10 (h) (vi) below
on reporting under Rule 11 (g) of the Companies
(Audit and Auditors) Rules, 2014.

c) The Balance Sheet, the Statement of Profit and Loss
including the Statement of the 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 Ind AS Financial
Statements comply with the Indian Accounting
Standards specified under Section 133 of the Act,
read with the Companies (Indian Accounting
Standards) Rules, 2015 as amended.

e) On the basis of the written representations received
from the Directors as on 31^st March, 2026, taken
on record by the Board of Directors, none of the
Directors is disqualified as on 31^st March, 2026, from
being appointed as a Director in terms of under
sub-section (2) of Section 164 of the Act;

f) The Reservation relating to the maintenance of
accounts and other matters connected therewith, are
as stated in the Paragraph 10 (b) above on reporting
under Section 143(3) (b) of the Act and paragraph 10
(h) (vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.

g) 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".

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,
issued by the Central Government of India in terms
of clause (j) of sub-section (3) of section 143 of the
Act 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 financial statements. Refer Note 35 to the Ind
AS Financial Statement.

ii. The Company has made provision as required
under the applicable law or accounting
standards, for material foreseeable losses, if
any, on 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 that,

to the best of its knowledge and belief,
as disclosed in the Note No. 53 to the IND
AS Financial Statements, 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 (s) or entity (ies), 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 its knowledge and belief,
as disclosed in the Note No. 54 to the IND
AS Financial Statements, no funds (which
are material either individually or in the
aggregate) 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, 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 we
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representations under subclause (i) and (ii)
of Rule 11(e) of the Companies (Audit and
Auditors) Rules, 2014, as provided under
(a) and (b) above, contain any material
misstatement.

v. The dividend declared and paid during the year

by the Company is in compliance with Section

123 of the Act.

vi. Based on our examination which included test
checks and according to the information and
explanations given to us, the company has
used an accounting software for maintaining
its books of account for the financial year
ended 31^st March , 2026 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
except below:

(a) The audit trail facility in the software
"NOW" which was used till 30^th June, 2025
has been designed in such a way that it is
not possible to verify whether such facility
had been disabled at any point in time
during the year.

(b) We are unable to comment on audit
trail at database level due to absence
of adequate coverage in SOC report of
software " SAP S/4 HANA" which has been
using since 1^st July , 2025.

Further except as mentioned above, during the
course of 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.

11. 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 company
has paid/ provided for managerial remuneration to its
director during the year in accordance with the provisions
of section 197 of the Act read with Schedule V of the Act.

For SCV & Co. LLP

Chartered Accountants
Firm Regn. No. 000235N/N500089

Sunny Singh

Partner

^{Place: Noida} Membership No.: 516834

Dated: 02-May-2026 UDIN: 26516834WPOHWH7592