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Key Audit Matters How the matter was addressed in our audit

No. ^y

We have audited the accompanying Standalone financial
statements of TAC INFOSEC LIMITED ("the Company"), which
comprise:

(a) The Balance Sheet as at March 31,2025,

(b) The Statement of Profit and Loss for the year ended on
March 31,2025 and

(_c) Cash Flow Statement for the year ended on March 31,
2025,

and notes to financial statements including summary of
significant accounting policies and other explanatory informa¬
tion (hereinafter referred to as 'Standalone Financial
Statements').

In our opinion and to the best of our information and accord¬
ing to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013, as amended ('The Act') in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31,2025, its profit
including, 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 Compa¬
nies Act, 2013. Our responsibilities under those Standards are
further described in the Auditor's Responsibilities for the
Audit of the 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 Companies Act, 2013 and the Rules there under, 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 standalone AS financial statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone AS Financial statements for the year ended March
31 2025. These matters were addressed in the context of our
audit of the Standalone AS financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.

2. Recoverability of Trade Receivables

(See Note 2.1(VIII) and 16 to standalone AS financial statements)

The Company's trade receivables represent a material
portion of the balance sheet. Given the nature of its
business—providing IT-enabled cybersecurity services—col¬
lection cycles can vary significantly depending on service
delivery milestones, contract terms, and client acceptance
procedures. A significant portion of these receivables
pertains to government and large enterprise clients where
delays in collection are common.

There is inherent judgment involved in assessing the
recoverability of outstanding balances, especially in light of
aged receivables, possible disputes, or lack of firm contractu¬
al evidence of delivery/acceptance. The risk of misstatement
arises if provisions for doubtful debts are not appropriately
recognized.

During the year, the Company has issued equity shares on a
Initial public offering to Public. The total amount raised and
the accounting treatment involves complex regulatory, legal,
and accounting considerations under applicable laws
including the Companies Act, 2013, SEBI (ICDR) Regulations,
and generally accepted accounting principles.

We considered this a key audit matter due to:

• The materiality of the transaction in the context of the
Company's financial position;

• The significant judgment involved in determining the fair
value of warrants and shares;

• Compliance requirements related to pricing guidelines,
allotment timelines, lock-in periods, and disclosure norms;
and

• The impact on share capital, securities premium, and
earnings per share.

Our procedures included:

Evaluating the Company's revenue recognition and
receivables collection policies;

Testing aging reports and reconciling them with underlying
accounting records;

Reviewing material contracts and delivery evidence to assess
the validity of the receivables;

Inquiring with management about long-pending balances and
assessing their responses;

Verifying subsequent collections and obtaining direct balance
confirmations from major customers;

Assessing the adequacy of provisioning policies in light of
historical collection trends and management estimates.

We found that the management's assessment of recoverabili¬
ty of trade receivables and related disclosures were, in all
material respects, consistent with the underlying documenta¬
tion and the applicable accounting framework as per
generally accepted accounting principles in India.

Our audit procedures included, among others:

• Obtained and reviewed the resolutions of the Board of
Directors and shareholders for issuance of equity shares
on Initial public offer basis.

• Verified compliance with relevant provisions of the

Companies Act, 2013 and SEBI (ICDR) Regulations, including

eligibility criteria, pricing, and disclosure requirements;

• Evaluated the accounting treatment adopted by the
management with reference to applicable AS along with
Issue expense incurred of Rs. 427.58 Lakhs adjusted
against security premium;

• Verified the receipt of consideration against equity shares
with bank statement of Special account opened by the
company for the purpose of issue;

• Assessed the adequacy and appropriateness of related
disclosures in the financial statements.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE
FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Management 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 AS financial statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the accounting principles generally accepted in India, including the
Accounting Standards (AS)

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 applica¬
tion 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 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 standalone AS 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.
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 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.

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

• Identify and assess the risks of material misstatement of the standalone 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 an error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

• Obtain an understanding of internal financial 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 made by management.

• 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 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 standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.

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 signifi¬
cance in the audit of the standalone financial statements of the current period and are therefore reported as 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

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
the "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 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 purpose 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. Insofar as the modification
on maintaining an audit trail in the accounting software is
concerned, refer paragraph 3 (f) below.

(c) The Balance Sheet, Statement of Profit and Loss, the Cash
Flow Statement dealt with by this Report are in agreement
with the books of account.

(d) In our opinion, the aforesaid standalone AS financial
statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Companies
(Accounts) Rules, 2014 issued there under.

(e) On the basis of written representations received from the
directors from 31 March 2025 to 18 April 2025 taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31,2025, from being appointed as
a director in terms of Section 164(2) of the Act.

(f) The modification arising from the maintenance of the audit
trail on the accounting software, comprising the application
and database are as stated in the paragraph 3 (f) below on
reporting under Rule 11(g);

(g) 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".

3. 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:

(a) The Company has disclosed the impact of pending
litigations on its financial position in its AS financial
statements - Refer Note No. 30(b) & 33 to the AS
financial statements.

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

(c) As company has not declared dividend since its
incorporation, there were no amounts which were
required to be transferred to the Investor Education
and Protection Fund by the Company.

(d) (a) The managements has represented to us that, to the
best of their knowledge and belief and read with note 37(xi)
to the standalone 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 or entity,
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 managements has represented to us that, to the best
of their knowledge and belief and read with note 37(xii) to
the standalone AS financial statements 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, 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 performed
by us on the Company whose financial statements have been
audited under the Act, 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.

(e) The Company has not proposed final dividend or provided
interim dividend for the year ended 31 March 2025 and 31
March 2024. Hence not commented upon by us on this
matter.

(f) For the financial year 2024-25, based on our examination
which included test checks and information given to us,
the Company has used cloud-based accounting software
for maintaining its books of account, which have a feature
of recording audit trail (edit log) facility and same was
operated throughout the year for all relevant transactions
recorded in the respective software (refer note 37(xiii) to the
standalone financial statements). Further during the course
of our audit, we did not come across any instance of audit
trail feature being tampered with in respect of accounting
software. Additionally, audit trail of relevant prior year has
not been preserved by the company as it was not enabled
and recorded in previous year as stated in note 37(xiii) to the
standalone financial statements.

4. 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 according to the information and explana¬
tions given to us, the managerial remuneration paid by the
Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act, read
with Schedule V of the Act. The remuneration paid to any
directors is according to the special resolution passed in
meeting dated October 24, 2023. The Ministry of Corporate
Affairs has not prescribed other details under Section 197(16)
which are required to be commented upon by us.

For Maharishi & Co.,

Chartered Accountants
ICAI Firm Registration No.

124872W

Kapil Sanghvi
Partner

Membership No. 141168
UDIN: 25141168BMJHWW3754
Date: April 28, 2025
Place : Jamnagar