Encompass Design India Ltd Auditor Reports

ON THE RESTATED FINANCIAL STATEMENTS OF ENCOMPASS DESIGN INDIA LIMITED

To,

The Board of Directors, Encompass

Design India Limited,

(Formerly Encompass Design India Private Limited),

A- 1, Virwani Industrial Estate,

Mumbai,400063.

1. We have examined the attached restated financial information of Encompass Design India Limited (Formerly Encompass Design India Private Limited) (hereinafter referred to as "the Company") comprising the restated statement of assets and liabilities as at March 31, 2025, 2024 and 2023, restated statement of profit and loss and restated cash flow statement for the financial Period ended on ended March 31, 2025, 2024 and 2023 and the summary statement of significant accounting policies and other explanatory information (collectively referred to as the "restated financial information or "Restated Financial Statements") annexed to this report and initialed by us for identification purposes. These Restated Financial Statements have been prepared by the management of the Company and approved by the board of directors at their meeting in connection with the proposed Initial Public Offering on EMERGE Platform ("IPO" or EMERGE IPO") of National Stock Exchange of India Limited ("NSE") of the company.

2. These restated summary statements have been prepared in accordance with the requirements of:

a. Section 26 of Part I of Chapter III of 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 ("ICDR Regulations") and related amendments / clarifications from time to time issued by the Securities and Exchange Board of India ("SEBI").

c. The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("Guidance Note").

3. The Companys Board of Directors is responsible for the preparation of the Restated Financial Statements for inclusion in the Draft Red Hearing Prospectus/ Red Hearing Prospectus /Prospectus ("Offer Document") to be filed with Securities and Exchange Board of India ("SEBI"), NSE and Registrar of Companies (Mumbai) in connection with the proposed IPO. The Restated Financial Statements have been prepared by the management of the Company on the basis of preparation stated in Note 1 to the Restated Financial Statements. responsibility 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 Statements. The board of directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.

4. We have examined such Restated Financial Statements taking into consideration:

a. The terms of reference and terms of our engagement letter requesting us to carry out the assignment, in connection with the proposed NSE - EMERGE IPO Platform,

b. The Guidance Note also requires that we comply with the ethical requirements Ethics issued by the ICAI.

c. Concepts of test checks and materiality to obtain reasonable assurance-based evidence supporting the Restated Financial Statements.

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.

5. The Restated Financial Statements of the Company have been compiled by the management from audited financial statements for the period ended on year ended March 31, 2025, 2024 and 2023. Which have been Approved by Board of Director at their meeting held on 07 May 2025, 02 Sep 2024 And 01 Sep 2023 respectively

6. We have audited the special purpose Restated financial information of the company for the period ended March 31, 2025 prepared by the Company in accordance with the IGAAP for the limited purpose of complying with the requirement of getting its financial statements audited by an audit firm holding a valid peer review certificate issued by the "Peer Review Board of the ICAI as required by ICDR Regulations in relation to proposed IPO. We have issued our report dated June 09, 2025, on this special purpose financial information to the Board of Directors who have approved these in their meeting held on June 09, 2025,

7. Based on our examination and according to information and explanations given to us, we are of the opinion that the Restated Financial Statements:

a) Have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the period ended on March 31, 2025, 2024 and 2023.

b) Do not require any adjustment for modification as there is no modification in the underlying audit reports.

c) Have no extraordinary items that need to be disclosed separately in the accounts and requiring adjustments.

d) Have been prepared in accordance with the Act, ICDR Regulations and Guidance Note.

8. 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 and annexed to this report relating to the Company for the period ended as at March 31, 2025, March 31, 2024, and 2023 proposed to be included in the Offer Document.

Annexure to Restated Financial Statements of the Company: -

Particulars	Note No.
Significant Accounting Policy and notes to the Restated Financial Statements	1
Restated Statement of Share Capital, Reserve and Surplus	2 & 3
Restated Statement of Long-term borrowings	4
Restated Statement of Long-term provisions	5
Restated Statement of Deferred Tax Liabilities/ Assets (net)	6
Restated Statement of Trade Payables	7
Restated Statement of Other Current Liabilities	8
Restated Statement of Short-term borrowings	9
Restated Statement of Short-Term Provisions	10
Restated Statement of Property, Plant & Equipment, Intangible Assets and Capital Work- In-Progress	11A & 11B
Restated Statement of Investment	12
Restated Statement of Long-Term Loans and Advances	13
Restated Statement of Trade Receivables	14
Restated Statement of Inventories	15
Restated Statement of Cash and Cash Equivalents	16
Restated Statement of Other Current Asset	17
Restated Statement of Revenue from Operations	18
Restated Statement of Other Income	19
Restated Statement of Cost of Material Consumed	20
Restated Statement of Changes in Inventories of Stock-In-Trade and Finished Goods		21
Restated Statement of Employee Benefit Expenses		22
Restated Statement of Finance Costs		23
Restated Statement of Depreciation and Amortization Expense		11
Restated Statement of Other Expenses		24
Restated Statement of dues of Small Enterprises and Micro Enterprises		25
Restated Statement of Expenditure in Foreign Currency during the financial year		26
Restated Statement of Related Party Transactions		27
Restated Statement of Earnings Per share		28
Restated Statement of corporate social responsibility (Sec 135 of Companies Act2013)		40
Restated Statement of Other Financial Notes		29 to 39, 41to
		44

9. Opinion

In accordance with the requirements of the Act including the rules made there under ICDR Regulations, Guidance Note and engagement letter, we report that:

The restated statement of assets and liabilities as at March 31, 2025, 2024, and 2023, the restated statement of profit and loss for the periods then ended, and the restated statement of cash flows for the same periods, read with the significant accounting policies in Note 1, have been examined by us. These restated statements have been made after making such adjustments and regroupings to the audited financial statements of the Company as, in our opinion, were appropriate and as more fully described in the notes to the restated summary statements.

10. The report should not in any way be construed as a re-issuance or re-dating of any of the previous audit reports issued by the firm of Charted Accountants nor should this report be construed as a new opinion on any of the financial statements referred to therein.

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

12. Restriction On Use.

Our report is intended solely for use of the board of directors for inclusion in the offer document to be filed with SEBI, NSE and Registrar of Companies (Mumbai) in connection with the proposed EMERGE 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 V. K. BESWAL & ASSOCIATES,

Chartered Accountants Firm Reg No. 101083

CA Kunal V Beswal.

Partner

Membership No. 131054

UDIN: 25131054BMHXPY7344 Certificate No: 2125

Place: Mumbai Date: 09.06.2025.