Hello,
No, the marks of prelims and 1st term school exams aren't counted in the final report card. The final report card is based only on the board exam that you give. The prelims and the school exams are for the practice of the student so that they know at what position they are in. You don't need to worry if you scored less in your prelims and school exams.
I hope this helps,
All the best
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