ATC Energies System Ltd Auditor Reports

To, The Board of Directors ATC Energies System Limited

(formerly known as ATC Energies System Private Limited) Unit No 3, Plot No 33, New India Industrial Estate, Mahad IN AR, Off MC Road, Andheri East, Mumbai 400093, Maharashtra, India

Independent Auditors Examination Report on the Restated Financial Information prepared in connection with the proposed issue of equity shares of 10 each pursuant to the initial public offering by ATC Energies System Limited.

Dear Sirs,

1. We have examined the attached Restated Financial Information of ATC Energies System Limited (formerly known as ATC Energies System Private Limited) (the "Company") which comprises of the Restated

Statement of Assets and Liabilities as at September 30, 2024, March 31 2024, 2023 and 2022, the Restated Statements of Profit and Loss and the Restated Cash Flow Statement for the period ended September 30, 2024 and for the years ended March 31 2024, 2023 and 2022, the Summary Statement of Significant Accounting Policies, and other explanatory information (collectively referred to as, the "Restated Financial Information"), as approved by the Board of Directors of the Company at their meeting held on March 17,

2025 for the purpose of inclusion in the Red Herring Prospectus ("RHP") prepared by the Company in connection with its proposed Initial Public Offering ("IPO") of equity shares on the NSE SME platform of

National Stock Exchange of India Limited ("NSE) .

The Restated Financial Statement have been prepared in terms of the requirements of:

a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act");

b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations"); and

c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (the "ICAI"), as amended from time to time (the "Guidance Note").

2. The Companys Board of Directors are responsible for the preparation of the Restated Financial Information for the purpose of inclusion in the RHP to be filed with NSE and Registrar of Companies, Mumbai in connection with the proposed IPO. The Restated Financial Information have been prepared by the management of the Company on the basis of preparation stated in Note 1 to the Restated Financial Information. The responsibilities of the Board of Directors of the company includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Financial Information. The Board of Directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.

3. We have examined such Restated Financial Information taking into consideration:

a) The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated January 23, 2024 connection with the proposed IPO of equity shares of the Company on NSE;

b) The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI;

c) Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Financial Information; and

d) Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO.

4. These Restated Financial Information have been compiled by the management from the Audited Financial Statements for the period ended September 30, 2024 and for the years ended on March 31, 2024, March 31, 2023 and March 31, 2022 prepared in accordance with Accounting Standards as prescribed under section 133 of the Act and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meetings held on March 17, 2025, August 24, 2024, September 9, 2023 and September 5, 2022 respectively.

5. Audited Financial Statements as referred to in paragraph 4 above, have been audited by us for the period ended September 30, 2024 and year ended March 31, 2024 and by M/s Subhash Soni & Co, Chartered accountants for the year ended March 31, 2023 and March 31, 2022 which issued unmodified opinion read with the emphasis of matters stated therein; vide reports dated March 17, 2025, August 24, 2024, September 9, 2023 and 5^th September 2022 respectively. Further, there were no qualifications in the Audit Reports issued by us and M/s Subhash Soni & Co, Chartered Accountants as at and for the period ended September 30, 2024 and for the years ended on March 31, 2024, 2023 and 2022, which would require adjustments in this restated financial information of the Company.

6. As indicated in our audit reports on Financial Statements for the period ended September 30, 2024 and for the years ended March 31, 2024, 2023 and 2022 referred above,

a) there are no changes in accounting policies for the period ended September 30, 2024 and for the years ended March 31, 2024, 2023 and 2022 that will require adjustment to financial statements of other reporting period except Change in Useful life of Computer Equipment including mobile phones reduced from eight years to three years wef 1^st April 2023.

b) The Restated Financial Information do not require any adjustments for the matter(s) giving rise to modifications, since there are no modifications as

c) The Restated Financial Information have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.

d) The Restated Financial Information have been made after incorporating adjustments, if any, for material errors and regrouping/ reclassifications in the are no qualifications which require adjustments;

e) There was no change in accounting policies, which needed to be adjusted in the Restated Financial Information except as mentioned in Clause 6(a) above. Classification of certain disclosure line items have been changed in other reporting periods to bring them in line with financials statements of period ended September 30, 2024. These, however, have no impact on the overall net profit / loss of the Company for the respective years

7. We have also examined the following other financial information relating to the Company prepared by the Management and as approved by the Board of Directors of the Company in the meeting held on March 17, 2025 and annexed to this report relating to the Company as at September 30, 2024 and for the years ended on March 31, 2024, 2023 and 2022 proposed to be included in the RHP.

Particulars

1 Restated Statement of Assets & Liabilities

2 Restated Statement of Profit & Loss

3 Restated Cash Flow Statement

4 Summary statement of Significant Accounting Policies and Notes forming part of Restated Financial Statement

5 Restated Statement of Share Capital

6 Restated Statement of Reserves & Surplus

7 Restated Statement of Long Term Borrowings

8 Restated Statement of Deferred Tax Liabilities

9 Restated Statement of Long Term Provisions

10 Restated Statement of Short Term Borrowings

11 Restated Statement of Trade Payables

12 Restated Statement of Other Current Liabilities

13 Restated Statement of Short Term Provisions

14 Restated Statement of Property, Plant & Equipments

15 Restated Statement of Long Term Loans & Advances

16 Restated Statement of Inventories

17 Restated Statement of Trade Receivables

18 Restated Statement of Cash and bank balance

19 Restated Statement of Other Current Assets

20 Restated Statement of Revenue from Operations

21 Restated Statement of Other Income

22 Restated Statement of Cost of Material Consumed

23 Restated Statement of Changes in Inventory of finished goods

24 Restated Statement of Employee Benefit Expenses

25 Restated Statement of Finance Cost

26 Restated Statement of Other Expenses

27 Restated Statement of Dues to MSMEs

28 Restated Statement of Transaction in Foreign Currency

29 Restated Statement of Disclosure of Related Parties

30 Restated Statement of Employee Benefits

31 Restated Statement of Corporate Social Responsibility Expenses

32 Restated Statement of Adjustments in the financial statements

33 Restated Statement of Reconciliation of Equity and Reserves

34 Restated Statement of Earnings Per Share

35 Restated Statement of Loans or advances granted to Promoters, directors, KMPs and the related parties.

36 Restated Statement of borrowings from banks/ FI on the basis of Current Assets.

37 Restated Statement of Registration or Satisfaction of Charges with Registrar of Companies.

38 Restated Statement of Important Ratios

8. We, A Kasliwal & Company, Chartered Accountants have been subjected to the peer review process of the ICAI and hold a valid peer review certificate issued by the "Peer Review Board" of the ICAI.

9. The Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the reports on the Audited Financial Statements mentioned in paragraph 6 above.

10. This report should not in any way be construed as a reissuance or re-dating of any of the previous audit reports issued by us, nor should this report be construed as a new opinion on any of the financial statements referred to herein.

11. We have no responsibility to update our report for events and circumstances occurring after the date of the report.

12. Our report is intended solely for use of the Board of Directors for inclusion in the RHP to be filed with

Securities and Exchange Board of India, the stock exchanges and Registrar of Companies, Mumbai in connection with the proposed IPO. Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.

For A KASLIWAL & COMPANY

Chartered Accountants

Firm Regd No 011727C

(Ambar Kasliwal)

Proprietor

Membership No 402210

UDIN: 25402210BMMMLH8232

Place: Mumbai

Dated: 17th March 2025