CSM Technologies Ltd Auditor Reports

To

Plot No - E/56, Infocity-1,

Chandrasekharpur, PS: Chandrasekharpur,

Dist.: Khordha, Bhubaneswar,

Orissa, India, 751024

Dear Sirs/ Madams,

1) We SRB & Associates, Chartered Accountants, (FRN: 310009E), have examined, the attached Restated Consolidated Financial Information of CSM Technologies Limited (formerly known as “CSM Technologies Private Limited”) (the "Company" or the "Holding company" or the “Issuer") and its subsidiaries (the Company and its subsidiaries collectively referred to as the "Group"), comprising the Restated Consolidated Balance Sheet as at 31st March 2025, 31st March 2024, and 31st March 2023, the Restated Consolidated Statements of Profit and Loss (including Other Comprehensive Income), the Restated Consolidated Statement of Changes in Equity and the Restated Consolidated Statement of Cash Flows for the year ended March 31, 2025, March 31, 2024 and March 31, 2023, the summary statement of material accounting policies read together with the notes thereto (collectively, the Restated Consolidated Financial Information"), as approved by the Board of Directors of the Company at their meeting held on September 16, 2025 for the purpose of inclusion in the Draft Red Herring Prospectus ("DRHP)/ Red Herring Prospectus ("RHP) / Prospectus (collectively referred to as "Offer Documents") to be prepared by the Company in connection with its proposed initial public offer of equity shares ("IPO").

The Restated Consolidated Financial Information prepared in terms of the requirements of:

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

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

2) The Companys Board of Directors is responsible for the preparation of the Restated Consolidated Financial Information for the purpose of inclusion in Draft Red Herring Prospectus ("DRHP)/ Red Herring Prospectus ("RHP) / Prospectus to be filed with Securities and Exchange Board of India (‘SEBI), BSE Limited (‘BSE) and National Stock Exchange of India Limited (‘NSE) (collectively, the ‘Stock Exchanges) where the equity shares are proposed to be listed and also to be filed with the Registrar of Companies, Cuttack (“ROC”) in connection with the IPO. The Restated Consolidated Financial Information has been prepared by the management of the Company; the basis of preparation has been stated in Note no. 1A.2 to the Restated Consolidated Financial Information. The respective Board of Directors of the companies included in the Group are responsible for designing, implementing and maintaining adequate internal controls relevant to the preparation and presentation of respective Restated Financial Information. The respective Board of Directors of the companies are also responsible for identifying and ensuring that the Group complies with the Act, the ICDR Regulations and the Guidance Note issued ICAI.

3) We have examined such Restated Consolidated 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 July 31, 2025, in connection with the proposed IPO of equity shares of CSM Technologies Limited;

b. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India.

c. Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Consolidated 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.

4) These Restated Consolidated Financial Information have been compiled by the management from:

a. The audited consolidated financial statements of CSM Technologies Limited and its wholly-owned subsidiaries as at and for the year ended March 31, 2025, March 31, 2024 and March 31,2023 prepared in accordance with Indian Accounting Standards (Referred to as IND AS) as prescribed under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules 2015, as amended and other accounting principles generally accepted in India (Collectively, the Consolidated Ind AS Financial Statement).

b. Pursuant to the Companies (Indian Accounting Standard) Second Amendment Rules, 2015 (as amended from time to time), the Group voluntarily adopted Ind-AS during the year 2024-25 and consequently April 01, 2022 as the transition date for preparation of its statutory financial statements as at March 31, 2023. The financial statements as at and for the year ended March 31, 2023, were the first financials, prepared in accordance with Ind-AS for the purpose of inclusion in the Draft Red Herring Prospectus (“DRHP”).

Audited Consolidated Financial Statements of the Group as at and for the years ended March 31, 2024 and March 31, 2023 prepared by making Ind AS adjustments to the audited consolidated financial statements of the company as at and for the years ended March 31, 2024 and March 31, 2023 prepared in accordance with the Accounting Standards notified under the section 133 of the Act (“Indian GAAP”).

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

a. Auditors reports issued by us dated August 26, 2025 on the consolidated financial statements of CSM Technologies Limited and its wholly-owned subsidiaries as at and for the year ended March 31,2025, as referred in paragraph 4 above; and

b. Auditors reports dated September 16, 2024 and July 17, 2023 issued by the previous auditor on the consolidated financial statements of CSM Technologies Limited and its wholly-owned subsidiaries as at and for the year ended March 31, 2024 and March 31,2023 as referred in Paragraph 4 above.

The audit for the year ended March 31, 2024 and March 31, 2023 was conducted by the Companys Previous Auditor, A.K. Sabat & Co. (the "Previous Auditor") and accordingly reliance has been placed on the audited consolidated balance sheet, the audited consolidated statement of profit and loss (including comprehensive income), the audited consolidated statement of changes in equity, the audited consolidated statement of cash flows and Significant Accounting Policies and other explanatory information audited by them for the said period. The examination report on the restated consolidated financial statements included for the said period issued by us is based solely on the report submitted by the Previous Auditor.

The examination report on the Restated Consolidated Financial Information for the year ended March 31, 2025, March 31, 2024 and March 31, 2023, as applicable is so far as it relates to all the subsidiaries is based solely on the audit reports issued by other auditors on the standalone financial statements/ consolidated financial statements (as applicable) of these subsidiaries as set out in Annexure-A.

Based on our examination and according to the information and explanations given to us, and based on the reliance placed on auditors report as mentioned above, we report that the Restated Consolidated Financial Information:

i. have been prepared incorporating adjustments for the changes in accounting policies, material errors and regrouping and reclassifications retrospectively for the year ended March 31, 2024 and March 31, 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications.

ii. do not require any adjustments for modification as there is no modification in the underlying audit reports; and

iii. have been prepared in accordance with the Act, the ICDR Regulations and the Guidance Note.

6) As indicated in our audit reports referred above:

a. We did not audit the financial statements of the company for the year ended March 31, 2024 and March 31, 2023 whose share of total assets, total revenues and net cash inflows/(outflows) included in the consolidated financial statements for the relevant period/year is tabulated below which have been audited by other auditors as set out in Appendix A and whose reports have been furnished to us by the Companys management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of the other auditors:

b. All the subsidiaries of CSM Technologies Limited are located outside India, whose financial Statements for the year ended December 31, 2024, December 31, 2023 and December 31, 2022 have been prepared in accordance with the accounting principles generally accepted in that country and the companys management has converted the financial statement of those subsidiaries located outside India from accounting principles generally accepted in that country to accounting principles generally accepted in India.

i. We did not audit the financial statements of all the subsidiaries tabulated below for the period starting from January 01, 2025 to March 31, 2025, these financial statements were not audited by us or other independent auditors, and we have not performed any audit procedures on them. Our opinion on the consolidated financial statements, insofar as it relates to the amounts included for all the subsidiaries mentioned below, is based solely on the financial information provided to us by management. We draw attention the Annexure-B of the examination report where details of Audit Para/ Observations of other auditor for the period ended December 31, 2024 which needs attention of the reader has been mentioned.

Our opinion on the consolidated financial statements is not modified in respect of this matter.

ii. Further, we did not audit the financial statements of all its subsidiaries for the year ended December 31, 2024, December 31, 2023 and December 31, 2022 whose share of total assets, total revenues and net cash inflows / (outflows) included in the consolidated financial statements for the relevant period/ year is tabulated below. The financial statement of the subsidiaries has been audited by the other auditors, mentioned below, whose report have been furnished to us by the company management.

We draw attention to the fact that the accompanying consolidated financial statements include the financial statements of CSM Technologies Inc. (USA) and CSM Tech Corp. (Canada), which have been audited by P & G Associates, PLIC (the “Other Auditor”) for the period ended December 31, 2024, vide their report dated February 03, 2025. In the audit reports, the other auditor has a para on “substantial doubt about the entitys ability to continue as a going concern”. The details of the para given in Annexure-B.

Our opinion on the consolidated financial statements is not modified in respect of this matter.

iii. Our opinion in so far as it relates to the balances and affairs of such subsidiaries located outside India for the said year/period is based solely on the report on the other auditors and conversion adjustment prepared by the management of the company at closing rate for balance sheet items and average rate for profit and loss items for the relevant financial years.

Our opinion on the IND AS Financial Statements are not Modified in respect of these matters.

7) Based on our examination and according to the information and explanations given to us and also as per the reliance placed on the reports submitted by other auditors for the respective year/ period, we report that the Restated Consolidated Financial Information: a.

i. have been prepared after incorporating adjustments for the change in accounting policies, material errors and regrouping/ reclassifications retrospectively in the Financial Years ended March 31,2025, March 31, 2024 and March 31,2023.

ii. do not require any adjustment for modification as there is no modification in the underlying audit reports referred in paragraph 5 above: and

iii. includes certain observations appearing in the consolidated financial statements for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 which do not require any corrective adjustments in the Restated Consolidated Financial Information which have been disclosed in Annexure B to the examination report on the restated consolidated financial information.

b. Observations as per the companies (Auditors Report) Order, 2020 issued by the Central Government of India in terms of the subsection (11) of Section 143 of the Act, on the Internal Financial Controls over financial reporting, for the year ended March 31, 2025, March 31, 2024 and March 31, 2023; Refer Annexure B.

c. Observations in the Emphasis of Matter and Report on Other Legal and Regulatory Requirements paragraphs of audit reports for the year ended March 31, 2025, March 31,2024 and March 31,2023; Refer Annexure B and

d. have been prepared in accordance with the Act the ICDR Regulations and the Guidance Note.

8) We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC 1), Quality Control for Firms that perform Audits and Reviews of Historical Financial Information, other assurance and related services Engagements issued by ICAI.

9) The Restated Consolidated Financial information does not reflect the effects of events that occurred subsequent to the respective dates of the audit reports on audited consolidated financial statements mentioned in paragraph 5 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 or the Previous Auditors or other auditors 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 DRHP/ RHP / Prospectus to be filed with SEBI, Stock Exchanges and Registrar of Companies, Odisha in connection with the 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.

The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As explained in Note 2 to the financial statements, the Company has suffered losses from current year operations USD 159,867 (equivalent to INR 136.81 Lakh) and accumulated losses of USD 287,247 (equivalent to INR 245.83 Lakh) and has a negative net worth USD 287,147 (equivalent to INR 245.74 Lakh). Managements evaluations of the events, conditions and future plans regarding these matters are also described in Note 2 of the Financial Statements. As described in Note 2, the Company has secured support from CSM Technologies Private Limited (Parent Entity) to honor its allshort-term obligation due within one year from the date of financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The conversion rate used is as 1 USD is equal to ? 85.5804 as on 31st December, 2024.

Our opinion is not modified in this matter.

The Company has incurred net losses USD 159,867 (equivalent to INR 136.81 Lakh) during the current year and has accumulated losses of USD 287,247 (equivalent to INR 245.83 Lakh) and has a negative net worth USD 287,147 (equivalent to INR 245.74 Lakh) as of for the year ended December 31, 2024. The company has cash available in hand and secure additional loan from its Parent entity for the year to support towards future liabilities and obligation and business operation of the entity to support its going concern. Management believes that and this cash parent entity support will sufficient to fund operation and meet its obligation as they come due within one year from the date of its financial statements are issued. The Company management is confident to successfully raise additional capital, Market towards existing services, increasing revenue and ultimately achieve profitable operations. The conversion rate used is as 1 USD is equal to ? 85.5804 as on 31st December, 2024.

Considering the above measures in place, the company is confident maintain adequate liquidity and solvency. Hence these financial statements are prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities in the Normal course of business.

The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As explained in Note 2 to the financial statements, the Company has suffered losses from current year operations CAD $ 131,945 (equivalent to INR 78.40 Lakh) and accumulated losses as of 31st December 2024 of CAD $ 143,296 (equivalent to INR 85.14 Lakh) and has a negative net worth CAD $ 143,196 (equivalent to INR 85.08 Lakh) as of 31st December, 2024. Managements evaluations of the events, conditions and future plans regarding these matters are also described in Note 2 of the Financial Statements. As described in Note 2, the Company has secured support from CSM Technologies Private Limited (Parent Entity) to honor its all-short-term obligation due within one year from the date of financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The conversion rate used is as 1 CAD is equal to ? 59.4165 as on 31st December, 2024.

Our opinion is not modified in this matter

The Company has incurred net losses CAD $ 131,945 (equivalent to INR 78.40 Lakh) during the current year and accumulated losses as of 31st December 2024 of CAD $ 143,296 (equivalent to INR 85.14 Lakh) and has a negative net worth CAD $ 143,196 (equivalent to INR 85.08 Lakh) as of 31 st December, 2024. The company has cash available in hand and secure additional loan from its Parent entity for the year to support towards future liabilities and obligation and business operation of the entity to support its going concern. Management believes that and this cash parent entity support will sufficient to fund operation and meet its obligation as they come due within one year from the date of its financial statements are issued. The Company management is confident to successfully raise additional capital, Market towards existing services, increasing revenue and ultimately achieve profitable operations. The conversion rate used is as 1 CAD is equal to ? 59.4165 as on 31 st December, 2024.

Though the company has no Revenue, considering the above measures in place, the company is confident maintain adequate liquidity and solvency. Hence these financial statements are prepared on a going concern basis which contemplates the realization of assets and satisfaction of liabilities in the Normal course of business.

We draw attention to Note 29.10 relating to Trade Receivables, which include 74.93 lakhs due for more than one year from foreign debtors. The company is in the process of complying all applicable laws pertaining realization.

Our opinion is not modified with respect to those matters.

We draw attention to Note 29.11 relating to Trade Receivables, which include 23.57 lakhs due for more than one year from foreign debtors. The company is in the process of complying all applicable laws pertaining realization.

Our opinion is not modified with respect to those matters.

We draw attention to Note 2.2 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Company to meet the requirements of the Reserve Bank of India. As a result, the financial statements may not be suitable for another purpose.

Our opinion is not modified in this matter.

Observation- During the audit, we noted that transactions near the reporting periods end December 31,2024 were not consistently recorder in the correct accounting period. This misstatement can impact accuracy of financial reporting, particularly with respect to revenue and expenses.

During the audit, we noted that transactions near the reporting periods end December 31,2024 were not consistently recorder in the correct accounting period. This misstatement can impact accuracy of financial reporting, particularly with respect to revenue and expenses.

According to the information and explanations given to the previous auditor and the records examined by the previous auditor and based on the examination of the registered sale deed provided to them, it has been reported that the title deeds of the following immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) which are freehold, are not in the name of the Company as at Balance Sheet date: