Avi Ansh Textile Ltd Auditor Reports

To,

The Board of Directors,

Avi Ansh Textile Limited

(Formerly known as Avi Ansh Textile Private Limited)

402, 4th floor, Aggarwal Cyber Plaza-1,

Netaji Subhash Place, Pitampura, India, 110034

Dear Sir

1. We have examined the attached Restated Statement of Assets and Liabilities of Avi Ansh Textile Limited (Formerly Known as Avi Ansh Textile Pvt Ltd) (the "company") as at 31^st March 2021, 31^st March 2022, 31^st March 2023, 31^st March 2024 and the related Restated Statement of profit & loss and Restated statement of Cash Flow for the period ended on 31^st March 2021, 31^st March 2022, 31^st March 2023, 31^st March 2024 annexed to this report for the purpose of inclusion in the offer document prepared by the company (collectively the "Restated Summary Statement" or "Restated Financial Statement"). These Restated Summary Statements have been prepared by the Company and approved by the Board of Directors of the Company at their meeting held on 3^rd September 2024 in connection with the Initial Public Offering (IPO) in SME Emerge Platform of National Stock Exchange of India Limited.

2. These Restated Summary Statements have been prepared in accordance with the requirements of:

I. Part I of chapter-lll to the companies Act, 2013("Act") read with companies (prospects and Allotment of securities)

Rules 2014;

II. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation 2018 ("ICDR Regulations") issued by the securities and exchange Board of India ("SEBI") in pursuance to section 11 of the Securities and exchange Board of India Act, 1992 and related amendments clarification from time to time;

III. The terms of reference to our engagements with the Company letter requesting us to carry out the assignment, in connection with the Prospectus/ Prospectus being issued by the Company for its proposed Initial Public Offering of equity shares in Emerge Platform of NSE. ("IPO" or "SME IPO"): and

IV. The Guidance Note on Reports in Company Prospectus (Revised) issued by the Institute of Chartered Accountants of India ("Guidance Note").

3. The company?s Board of Directors are responsible for the preparation of the Restated Financial Information for the purpose of inclusion in the Draft Offer Document/Offer Document to be filed with Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies, Delhi in connection with the proposed SME IPO. The Board of Directors responsibility 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 Companies Act, (ICDR) Regulations and the Guidance Note.

4. These Restated Financial Information have been complied by the management from Audited Financial Statements of the Company for the period/year ended on 31 March 2024, 31 March 2023, 31 March 2022, and 31 March 2021 prepared in accordance with Accounting Standard as prescribed under section 133 of the Act and other accounting principles generally accepted in India, which has been approved by the Board of Directors at their meeting held on 3^rd September 2024, 01 September 2023, 30 August 2022, and 30 October 2021 respectively.

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

a) terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter in connection with the proposed IPO 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 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.

6. Based on our examination and according to the information and explanations given to us, we report that the Restated Financial Information have been prepared:

a) after incorporating adjustments for the changes in accounting policies and regrouping/reclassifications retrospectively, if any in the financial years/period ended March 31, 2024, March 31, 2023, March 31, 2022, and March 31, 2021 to reflect the same accounting treatment as per the accounting policies and grouping/classifications; and

b) in accordance with the Act, ICDR Regulations and the Guidance Note.

7. We have also examined the following Notes to the Restated financial information of the Company set out in the Annexure, prepared by the management and approved by the Board of Directors on 3^rd September 2024, for the years/period ended March 31, 2024, March 31, 2023, March 31, 2022, and March 31, 2021.

Annexure of Restated Financial statements of the Company:

1. Restated statement of assets and liabilities in Annexure-A.

2. Restated statement of profit and loss in Annexure-B.

3. Restated statement of cash flows in Annexure -C.

4. Significant accounting policies and other information as restated in the Note 1 and 2.

5. Restated notes to statement of assets and liabilities and profit and loss from Note 3 to 36.

6. Details of Related Parties Transactions as Restated as appearing in Note-30 to this report.

7. Restated profit and equity as appearing in Note 37 to this report.

8. Statement of tax shelters as restated appearing in Note-38. .

9. Details of Terms & Condition of borrowings as restated as appearing in Note-36.

10. Details of Summary of ‘Other Financial Information? as Restated as appearing in Note-39.

11. Capitalization Statement as Restated as of 31 March 2024 as appearing in Note-40.

12. Details of Summary of Accounting Ratios Schedule III as Restated as appearing in Note-31.

8. 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.

9. We, M/s Kuldeep Sharma & Associates, Chartered Accountants have been subjected to the peer review process of the Institute of the Chartered Accountant Of India ("ICAI") and hold a valid peer review certificate issues by the "peer Review Board" of the ICAI.

10. 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 5 above.

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 Draft Offer Document/ Offer Document to be filed with Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies, Delhi 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.

13. In our opinion, the above financial information contained mentioned in the attached Annexure of this report read with the respective Significant Accounting Polices and Notes to Accounts are prepared after making adjustments and regrouping as considered appropriate and have been prepared in accordance with the Act, ICDR Regulations, Engagement Letter and Guidance Note and give a true and fair view in conformity with the accounting principles generally accepted in India, to the extent applicable.