Clay Craft India Ltd Auditor Reports

INDEPENDENT AUDITORS EXAMINATION REPORT ON CONSOLIDATED RESTATED FINANCIAL

STATEMENT

To,

The Board of Directors, Clay Craft India Limited,

(Formerly known as Clay Craft India Private Limited) F-766 & F-766 A, Road No. 1-D, Vishwakarma Industrial Area, Jaipur, Rajasthan, India, 302013

Dear Sir,

Reference : Proposed public issue of Equity Shares of Clay Craft India Limited

1. We have examined the attached Consolidated Restated Financial Statements of Clay Craft India Limited (Formerly known as Clay Craft India Private Limited) comprising the Consolidated Restated Statement of Assets and Liabilities as at March 31, 2026, March 31, 2025 and standalone restated Statement of Assets and Liabilities) as at March 31, 2024, the Consolidated Restated Statements of Profit and Loss, the Consolidated Restated Cash Flow Statement for the period ended March 31, 2026, March 31, 2025 and the standalone Restated Statements of Profit and Loss, the standalone Restated Cash Flow Statement for the year ended March 31, 2024,the Summary Statement of Significant Accounting Policies, the Notes and Annexures as forming part of these Consolidated Restated Financial Statements (collectively, the Consolidated Restated Financial Statement), as approved by the Board of Directors of the Company at their meeting held on June 05, 2026 for the purpose of inclusion in the Red Herring Prospectus/ Prospectus (Red Herring Prospectus/Prospectus) prepared by the group in connection with its proposed SME 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);

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 (ICAI), as amended from time to time (the Guidance Note).

Managements Responsibility for the Restated Summary Statement

2. The groups Management is responsible for the preparation of the Consolidated Restated Financial Statement for the purpose of inclusion in the Red Herring Prospectus/ Prospectus to be filed with, relevant stock exchange, Securities and Exchange Board of India (SEBI) and Registrar of Companies, Jaipur in connection with the proposed SME IPO. The Consolidated Restated Financial Statement has been prepared by the management of the group on the basis of preparation stated in Note 1 of the Consolidated Restated Financial Statement. The managements responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Consolidated Restated Financial Statement. The management is also responsible for identifying and ensuring that the group complies with the Companies Act, (ICDR) Regulations and the Guidance Note.

Auditors Responsibility

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

a) The terms of reference and terms of our engagement agreed upon with you vide our engagement letter dated April 23 rd , 2026 in connection with the proposed SME-IPO of the group;

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 Consolidated Restated Financial Statement; and d) The requirements of Section 26 and 32 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibility in relation to your compliance with the Act, the SEBI ICDR Regulations and the Guidance Note in Connection with the SME-IPO.

4. These Consolidated Restated Financial Statement have been compiled by the management from the Audited Financial Statements of the group for the period ended March 31, 2026, March 31, 2025, March 31, 2024 which has been approved by the Board of Directors.

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

a) Auditors reports issued by statutory auditor dated 05.06.2026, 11.08.2025 on the consolidated financial statements of the group as at and for the year ended March 31,2026, March 31,2025 and by Temani & Associates (Statutory Auditor) dated 02-09-2024 on the standalone financial statements of the Company as at and for the year ended March 31,2024 as referred in Paragraph 4 above.

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

a) after incorporating adjustments for the changes in accounting policies and regrouping/reclassifications retrospectively, if any in the period ended March 31, 2026, March 31, 2025, March 31, 2024 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.

We state that, no qualification was there in statutory auditors report, thereof no modification in restated financial were carried out.

(a) For the purpose of the consolidated restated financial, the Audited financial were prepared on the basis of the schedule III requirement and as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended;

(b) The Consolidated Restated Financial Statement have been made after incorporating adjustments for the changes in accounting policies retrospectively in respective financial years to reflect the same accounting treatment as per the changed accounting policy for all reporting periods, if any;

(c) The Consolidated Restated Financial Statement have been made after incorporating adjustments for prior period and other material amounts, if any, in the respective financial year to which they relate;

(d) Extra-ordinary items that need to be disclosed separately in the accounts has been disclosed wherever required;

(e) Profits and losses have been arrived at after charging all expenses including depreciation and after making such adjustments/restatements and regroupings as in our opinion are appropriate and are to be read in accordance with the Significant Accounting Polices and Notes to Accounts as set out in Note 1 to this report;

(f) Adjustments in Consolidated Restated Financial Statement have been made in accordance with the correct accounting policies,

(g) There was no change in accounting policies, which needs to be adjusted in the Consolidated Restated Financial Statement, except:

i. Accounting of retirement benefits was not accounted during the period ended March 31, 2024 as per AS-15 (Revised) Employee Benefits, however during the restatement Company has accounted such retirement benefits basis actuarial valuation certificate.

ii. Deferred Tax assets/liabilities has been recorded in the books earlier as per the timing difference of depreciation calculated as per the Income Tax Act 1961 and the Companies Act 2013, but in Consolidated Restated Financial Statement the same has been calculated as the timing difference of WDV of Property, Plants and Equipment as per the Income Tax Act 1961 and the Companies Act 2013 and the effect of restatement of adjustments of employee benefits as stated above.

(h) There are no revaluation reserves, which need to be disclosed separately in the Consolidated Restated Financial Statement,

(i) The company has not paid any dividend during the financial years.

In accordance with the requirements of Part I of Chapter III of Act including rules made there under, ICDR Regulations, Guidance Note and Engagement Letter, we report that 194

(a) The Consolidated Restated Statement of Assets and Liabilities as set out in Annexure I to this report, of the Company as at March 31, 2026, March 31 2025 and the standalone Restated Statement of Assets and Liabilities as set out in Annexure I to this report, of the Company as at March 31 2024 is prepared by the Company and approved by the Board of Directors. These Consolidated Restated Statement of Assets and Liabilities, have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Note 1 to this Report.

(b) The Consolidated Restated Statement of Profit and Loss as set out in Annexure II to this report, of the Company for the period ended March 31, 2026, March 31 2025 and the standalone Restated Statement of Profit and Loss as set out in Annexure II to this report, of the Company for the period ended March 31 2024 is prepared by the Company and approved by the Board of Directors. These Consolidated Restated Statement of Profit and Loss have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Note 1 to this Report.

(c) The Consolidated Restated Statement of Cash Flow as set out in Annexure III to this report, of the Company for financial period ended March 31, 2026, March 31 2025 and the standalone Restated Statement of Cash Flow as set out in Annexure III to this report, of the Company for financial period ended March 31 2024 is prepared by the Company and approved by the Board of Directors. These Statement of Cash Flow, as restated have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Note 1 to this Report.

7. We have also examined the following Notes to the Consolidated Restated Financial Statement of the group set out in the Annexure IV, prepared by the management and approved by the Board of Directors on June 05, 2026 for the period ended March 31, 2026, March 31, 2025, March 31 2024.

Annexure IV - Notes to the Restated Summary Financial Statement;

a) Restated Statement of Share Capital, Reserves and Surplus as appearing in Note 2 to this report; b) Restated Statement of Long-Term Borrowings as appearing in Note 3 to this report; c) Restated Statement of principal terms of Secured Loans and Assets charged as security as appearing in Note 3(A) to this report; d) Statement of terms & conditions of unsecured loans as appearing in Note 3(B) to this report; e) Restated statement of Long-Term Provisions as appearing in Note 6 to this report f) Restated Statement of Deferred Tax Liabilities (Net) as appearing in Note 4 to this report; g) Restated Statement of Other Long-Term Liabilities as appearing in Note 5 to this report; h) Restated Statement of Short-term borrowings as appearing in Note 7 to this report; i) Restated statement of principal terms of cash credits and overdraft as appearing in Note 7(A) to this report; j) Restated Statement of Trade Payables as appearing in Note 8 to this report; k) Restated Statement of Other Current Liabilities as appearing in Note 9 to this report; l) Restated Statement of Short-Term Provisions as appearing in Note 10 to this report; m) Restated Statement of Property plant and Equipment as appearing in Note 11 to this report; n) Restated Statement Non-Current Investment as appearing in Note 12 to this report; o) Restated Statement of Long-Term Loans and Advances as appearing in Note 13 to this report; p) Restated Statement of Other Non-Current Assets as appearing in Note 14 to this report; q) Restated Statement of Trade Receivables as appearing in Note 16 to this report; r) Restated Statement of Cash and Bank Balances as appearing in Note 17 to this report; s) Restated Statement of Inventories as appearing in Note 15 to this report; t) Restated Statement of Short-term Loans and Advances as restated as appearing in Note 18 to this report; u) Restated Statement of Other Current Assets as appearing in Note 19 to this report; v) Restated Statement of Revenue from Operations as appearing in Note 20 to this report; w) Restated Statement of Other Income as appearing in Note 21 to this report; x) Restated Statement of Cost of Material Consumed as appearing in Note 22 to this report; y) Restated Statement of Purchase of Stock in Trade as appearing in Note 23 to this report; z) Restated Statement of Change in Inventories as appearing in Note 24 to this report; aa) Restated Statement of Employee Benefit Expenses as appearing in Note 25 to this report; bb) Restated Statement of Finance Cost as appearing in Note 26 to this report; cc) Restated Statement of Depreciation & Amortization as appearing in Note 27 to this report; dd) Restated Statement of Other Expenses as appearing in Note 28 to this report; ee) Restated Statement of Related Party Transactions as appearing in Note 29 to this report; ff) Restated Statement of Contingent Liabilities as appearing in Note 30 to this report; gg) Restated Statement of Tax Shelter as appearing in Note 31 to this report; hh) Capitalisation Statement as appearing in Note 32 to this report; ii) Restated Statement of Mandatory Accounting Ratios as appearing in Note 33-34 to this report; 195 jj) Restated Statement of Other Accounting Ratios as appearing in Note 35 to this report; kk) Restated Statement of Other Disclosures as appearing in Note 36 to this report;

8. The Consolidated Restated Financial Statement 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 4 above.

9. 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.

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

11. Our report is intended solely for use of the Board of Directors for inclusion in the Red Herring Prospectus/ Prospectus to be filed with Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies, Jaipur in connection with the proposed SME-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.

12. In our opinion, the above financial Statement contained in Annexure I to Note 1 of this report read with the respective Significant Accounting Polices and Notes to Accounts as set out in Annexure IV 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.

PLACE: JAIPUR	For R Sogani & Associates LLP
DATE: - JUNE 05, 2026	Chartered Accountants
	FRN:- 018755C

	(Bharat Sonkhiya)
	Partner
UDIN:26403023IWJDXS8433	M. No.:- 403023