1. We have audited the accompanying financial statements of
Kennametal India Limited (“the Company”), which comprise the
Balance Sheet as at June 30, 2025, and the Statement of Profit and
Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year then
ended, and notes to the financial statements, including material
accounting policy information and other explanatory information.

2. In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 accounting principles generally accepted in India, of the state of
affairs of the Company as at June 30, 2025, and total
comprehensive income (comprising of profit and other
comprehensive income), changes in equity and its cash flows for the
year then ended.

3. 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 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.

Key audit matters

4. Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole and in
forming our opinion thereon, and we do not provide a separate
opinion on these matters.

Other Information

5. The Company's Board of Directors is responsible for the other
information. The other information comprises the information
included in the Board's report, Management Discussion and
Analysis report, Corporate Governance Report, and Business
Responsibility and Sustainability Reporting but does not include the
financial statements and our auditor's report thereon. Our opinion
on the 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 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 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.

Responsibilities of management and those charged with governance

for the 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 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 Indian 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or
error.

7. In preparing the financial statements, Board of Directors 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
Board of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

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

Auditor's responsibilities for the audit of the financial statements

9. Our objectives are to obtain reasonable assurance about whether
the 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.

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

Ý 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.

Ý 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 Act, we are also
responsible for expressing our opinion on whether the Company
has adequate internal financial controls with reference to financial
statements in place and the operating effectiveness of such
controls.

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

Ý 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.

Ý 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.

11. 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.

12. 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.

13. From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the 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.

Report on other legal and regulatory requirements

14. 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 B” a
statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.

15. 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, except that the backup of certain
books of account and other books and papers maintained in
electronic mode has not been maintained on a daily basis on
servers physically located in India during the year.

Also, refer to the matters stated in paragraph 15(h)(vi) below on
reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended) (“the Rules”).

(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 financial statements comply with
the Indian Accounting Standards specified under Section 133
of the Act.

(e) On the basis of the written representations received from the
directors as on June 30, 2025, taken on record by the Board of
Directors, none of the directors is disqualified as on June 30,
2025, from being appointed as a director in terms of Section
164(2) of the Act.

(f) With respect to the maintenance of accounts and other matters
connected therewith, reference is made to our remarks in
paragraph 15(b) above on reporting under Section 143(3)(b)
and paragraph 15(h)(vi) below on reporting under Rule 11(g) of
the Companies (Audit and Auditors) Rules, 2014 (as amended).

(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 A”.

(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 (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, if any, on its financial position in its financial
statements - Refer Note 29 to the financial statements.

ii. The Company was not required to recognise a provision as
at June 30, 2025 under the applicable law or Indian
Accounting Standards, as it does not have any material
foreseeable losses on long-term contract. The Company
did not have any derivative contracts as at June 30, 2025.

iii. There has been no delay in transferring amounts, required
to be transferred, to the Investor Education and Protection
Fund by the Company during the year.

iv. (a) The management has represented that, to the best of its

knowledge and belief, as disclosed in the notes to the
financial statements, 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, 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
[Refer Note 40(b)(vii)(A) to the financial statements];

(b) The management has represented that, to the best of its
knowledge and belief, as disclosed in the notes to the
financial statements, 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,
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
[Refer Note 40(b)(vii)(B) to the financial statements]; and

(c) Based on such 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 sub-clause (a) and
(b) contain any material misstatement.

v. The dividend declared and paid by the Company during the year
is in compliance with Section 123 of the Act.

vi. Based on our examination, which included test checks, the
Company has used an accounting software for maintaining its
books of account which has a feature of recording audit trail (edit
log) facility and that has operated throughout the year for all
relevant transactions recorded in the software, except that the
audit log is not maintained in case of modification by users with
specific access and for direct database changes. Further, the
Company has used an accounting software for payroll records,
which is operated by a third-party software service provider, for
maintaining its books of account and in the absence of audit trail
reporting in the service organisation auditor's report, we are
unable to comment whether the audit trail feature of the aforesaid
software was enabled. During the course of performing our
procedures, other than the aforesaid instances where the
question of our commenting whether the audit trail was
tampered with does not arise, we did not notice any instance of
the audit trail feature being tampered with. Further, the audit trail,
to the extent maintained in the prior year, has been preserved as
per the statutory requirements for record retention. (Refer Note
40A to the financial statements).

16. The Company has provided for managerial remuneration in
accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V to the Act.

For Price Waterhouse & Co Chartered Accountants LLP

Firm Registration Number: 304026E/E300009

Shivakumar Hegde

Partner

Membership Number: 204627

UDIN: 25204627BMOLIB1171

Bengaluru

August 13, 2025