Austere Systems Ltd Auditor Reports

To,

The Board of Directors,

Austere Systems Limited

(Formerly known as “Austere Systems Private Limited”)

301-303, Sector26A Square Building,

Pune 411044

Dear Sir,

!, We have examined the attached Restated Financial Information of Austere Systems Limited (Formerly known as “Austere Systems Private Limited”) (hereunder referred to “the Company”, “Issuer”) comprising the Restated Statement of Asset and Liabilities as at 31 March 2024, 31 March 2023 and 31 March 2022, the Restated Statement of Profit & Loss and Restated Statement of Cash Flow for the year ended on 31 March 2024, 31 March 2023 and 31 March 2022, the summary statement of significant accounting policies, and other explanatory information (collectively, the “Restated Financial Information”), as approved by the Board of Directors in their meeting for the purpose of inclusion in the Draft Red Herring Prospectus/ Red Herring Prospectus/ Prospectus (“Offer Document”) prepared by the Company in connection with its proposed SME IPOon SME Platform of BSE.

2. Initial Public Offer of equity shares (“SME IPO”) prepared in terms of the requirements of:

a. Section 26 of Part I of Chapter III of the Companies Act, 2013 (the “Act") read with Companies (Prospectus and Allotment of Securities) Rules 2014;

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

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

3. The Companys Board of Directors is responsible for the preparation of the Restated Financial Information for the purpose of inclusion in the Draft Red Herring Prospectus/ Red Herring Prospectus/ Prospectus to be filed with the stock exchanges where the equity shares of the Company are proposed to be listed and Registrar of Companies, 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 Annexure-4 of the Restated Financial Information. The Board of Directors of the Company are responsibility for 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, SEBI (ICDR) Regulations and the Guidance Note.

4. 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 ourengagement letter in connection with the proposed SME IPO of equity shares of the Company;

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. The requirements of Section 26 of the Act and the SEBI (ICDR) Regulations. 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.

5. These Restated Financial Information have been compiled by the management from audited financial statements of the Company as at for the year ended 31 March 2024, 31 March 2023, and 31 March 2022 prepared in accordance with the Accounting Standards (referred to as “AS”) as prescribed under Section 133 of the Act, as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors.

6. For the purpose of our examination, we have relied on:

a. Auditors Report are issued by us dated 06 May 2024, 03 September 2023 and 01 September 2022 on the financial statements of the Company as at for the year ended 3 IMarch 2024, 31 March 2023 and 31 March 2022.

b. Financial Statements for the year ended 31 March 2024, 31 March 2023 and 31 March 2022 have been audited by us and accordingly reliance has been placed on the financial information examined for the said years. The Financial information included for these years is based solely on the report submitted by us.

7. Based on our examination and according to the information and explanations given to us and also as per the reliance placed for the respective years, we report that the Restated Financial Information:

a. have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial years ended 31 March 2024, 31 March 2023 and 3 IMarch 2022 to reflect the same accounting treatment as per the accounting policies and grouping/classifications.

b. does not contain any qualifications requiring adjustments.

c. have been prepared in accordance with the Act, the SEBI (ICDR) Regulations, 2018 and the Guidance Note.

8. The Restated Financial Information does not reflect the effects of events that occurred subsequent to the respective dates of the reports on the audited financial statements.

9. In accordance with the requirements of the Act including the rules made there under, ICDR Regulations,

Guidance Note and engagement letter, we report that:

a. The “restated Standalone statement of asset and liabilities” of the Company as at 31 March 2024,31 March 2023, and 31 March 2022 examined by us, as set out in Annexurel to thisreport read with significant accounting policies in Annexure 4 has been arrived at after makingsuch adjustments and regroupings to the audited financial statements of the Company, as in ouropinion were appropriate and more fully described in notes to the restated summary statementsto this report.

b. The “restated Standalone statement of profit and loss” of the Company for the financialyear/period ended 31 March 2024, 31 March 2023, and 31 March 2022 examined by us, asset out in Annexure 2 to this report read with significant accounting policies in Annexure 4has been arrived at after making such adjustments and regroupings to the audited financialstatements of the Company, as in our opinion were appropriate and more fully described in notesto the restated summary statements to this report.

c. The “restated Standalone statement of cash flows” of the Company for the financialyear/period ended 31 March 2024, 31 March 2023, and 31 March 2022 examined by us, asset out in Annexure 3 to this report read with significant accounting policies in Annexure 4has been arrived at after making such adjustments and regroupings to the audited financialstatements of the Company, as in our opinion were appropriate and more fully described in notesto restated summary statements to this report.

d. The Company has violated provisions of Section 185 in the financial years ended March 31, 2024, March 31, 2023 and March 31, 2022 as the company has given loans to related parties which are outstanding for the year ended March 31, 2024.

10. We have also examined the following other financial information relating to the Company prepared bythe management and as approved by the board of directors of the Company and annexed to this reportrelating to the Company for the financial year/period ended 31 March 2024, 31 March 2023, and 31 March 2022 proposed to be included in the Offer Document.

Annexure to Restated standalone financial statements of the Company: -

I. Standalone statement of assets and liabilities, as restated as appearing in ANNEXURE 1;

II. Standalone statement of profit and loss, as restated as appearing in ANNEXURE 2;

III. Standalone statement of cash flows as restated as appearing in ANNEXURE 3;

IV. Corporate Information, Significant accounting policies as restated and Notes to reconciliation offestated profits and net worth as appearing in ANNEXURE 4;

V. Details of share capital as restated as appearing in ANNEXURE 6 to this report;

VI. Details of reserves and surplus as restated as appearing in ANNEXURE 7 to this report;

VII. Details of long-term borrowings as restated as appearing in ANNEXURE 8 to this report;

VIII. Details of deferred tax assets (net) as appearing in ANNEXURE 9 to this report;

IX. Details of long-term provisions as restated as appearing in ANNEXURE 10 to this report;

X. Details of short-term borrowings as restated as appearing in ANNEXURE 8 to this report;

XI. Details of trade payables as restated as appearing in ANNEXURE 11 to this report;

XII. Details of other current liabilities as restated as appearing in ANNEXURE 12 to this report;

XIII. Details of short-term provisions as restated as appearing in ANNEXURE 13 to this report;

XIV. Details of property, plant & equipment and intangible assets as appearing in ANNEXURE 14 to this report;

XV. Details of other non-current assets as restated as appearing in ANNEXURE 15 to this report;

XVI. Details of long-term loans and advances as restated as appearing in ANNEXURE 16 to this report;

XVII. Details of trade receivables as restated as appearing in ANNEXURE 17to this report;

XVIII. Details of short-term loans and advances as restated as appearing in ANNEXURE 18 to this report;

XIX. Details of cash and bank balances as restated as appearing in ANNEXURE 19 to this report;

XX. Details of other current assets as restated as appearing in ANNEXURE 20 to this report;

XXI. Details of revenue from operations as restated as appearing in ANNEXURE 21 to this report;

XXII. Details of other income as restated as appearing in ANNEXURE 22 to this report;

XXIII. Details of Purchase of goods as restated as appearing in ANNEXURE 23 to this report;

XXIV. Details of changes in inventories as restated as appearing in ANNEXURE 24 to this report;

XXV. Details of Employee benefit expenses as restated as appearing in ANNEXURE 25 to this report;

XXVI. Details of Finance cost as restated as appearing in ANNEXURE 26 to this report;

XXVII. Details of Depreciation and Amortisation expenses as restated as appearing in ANNEXURE 27 to this report;

XXVIII. Details of other expenses as restated as appearing in ANNEXURE 28 to this report;

XXIX, Details of Tax Shelter as restated as appearing in ANNEXURE 29 to this report;

XXX. Details of Earning per share as restated as appearing in ANNEXURE 30 to this report;

XXXI. Details of Payment to auditor as restated as appearing in ANNEXURE 28(a) to this report;

XXXII. Details of Related party transactions as restated as appearing in ANNEXURE 31 to this report;

XXXIII. Details of Contingent Liabilities and capital commitments as restated as appearing in ANNEXURE 32 to this report;

XXXIV. Details of Earnings in foreign exchange (On accrual basis) as restated as appearing in ANNEXURE 33to this report;

XXXV. Disclosure under AS-15 as restated as appearing in ANNEXURE 34 to this report;

XXXVI. Segment Reporting under Accounting Standard 17 — “Segment Reporting” as restated as appearing in ANNEXURE 35 to this report;

YYYVTT Canitalisatinn statement as restated as annearins in ANNF.XlJRF..36 to this reDort:

XXXVIII. Summary of significant accounting ratios as restated as appearing in ANNEXURE 37 to this report;

XXXIX. Additional Regulatory Information as per Para Y of Schedule III to Companies Act, 2013 as restated as appearing in ANNEXURE 38 to this report;

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

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

13. Our report is intended solely for use of the Board of Directors for inclusion in the Draft Red Herring Prospectus/ Red Herring Prospectus/ Prospectus to be filed with BSE - SME Platform 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.