Forge Auto International Ltd Auditor Reports

INDEPENDENT AUDITORS EXAMINATION REPORT ON RESTATED FINANCIAL INFORMATION

1. Section 26 of Part I of Chapter III of the Companies Act, 2013 as amended (the "Act");
2. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 as amended ("ICDR Regulations"); and
3. The Guidance Note on Reports in Company Prospectuses (Revised 2020) issued by the Institute of Chartered Accountants of India as amended from time to time. ("The Guidance Note")

1. The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated 13^th June, 2024 in connection with the proposed SME-IPO of equity shares of the Company;
2. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI;
3. Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Financial Statements; and
4. 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 SME-IPO.

1. During the period of restatement up to period 31^st March, 2024, since the company was having Partnership structure prior to conversion, therefore Audited financial statements of the Partnership Firm drawn as per generally accepted accounting policies in India (India GAAP) and as per the relevant provision of the Partnership Act, 1932 and after conversion into private limited company as per the relevant provision of the Companies Act, 2013.
2. The financial statement for the period ended March 31, 2024 has been Audited by M/s Jasminder Singh & Associates vide their Audit Report dated 02^nd September, 2024 and for year ended on March 31, 2023, has been Audited by M/s Harpriya Garg

1. For the purpose of the restated financial, the Audited financial were prepared 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;
2. The Restated Financial Statement have been made after incorporating adjustments for the changes in accounting policies retrospectively in respective financial period/years to reflect the same accounting treatment as per the changed accounting policy for all reporting periods, if any;
3. The Restated Financial Statement have been made after incorporating adjustments for prior period and other material amounts in the respective financial year to which they relate;
4. Extra-ordinary items that need to be disclosed separately in the accounts has been disclosed wherever required;
5. 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 Annexure IV to this report; Depreciation was recalculated since beginning as per the schedule II of the Companies Act, 2013.
6. Adjustments in Restated Financial Statement have been made in accordance with the correct accounting policies,
7. There was no change in accounting policies, which needs to be adjusted in the Restated Financial Statement, except -:
1. Accounting of retirement benefits was not accounted during the Partnership phase which was not as per AS-15 (Revised) "Employee benefits", however during the restatement Company has accounted such retirement benefits basis actuarial valuation certificate.
2. Depreciation has been recalculated since beginning as per the schedule II of the Companies Act, 2013 instead of Depreciation which was earlier charged as per Section 32 of Income Tax Act 1961
3. Deferred Tax assets/liabilities has been recorded in the books as per the requirement of the Accounting Standard 22 "Accounting for Taxes on Income"
8. There are no revaluation reserves, which need to be disclosed separately in the Restated Financial Statement,
9. The company has not paid any dividend during the financial years

1. The "Restated Statement of Assets and Liabilities" as set out in Annexure I to this report, of the Company as at March 31, 2024, March 31, 2023 and March 31, 2022 is prepared by the Company and approved by the Board of Directors. These 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 Annexure 4 IV to this Report.
2. The "Restated Statement of Profit and Loss" as set out in Annexure II to this report, of the Company for Financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 is prepared by the Company and approved by the Board of Directors. These 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 Annexure IV to this Report.
3. The "Restated Statement of Cash Flow" as set out in Annexure III to this report, of the Company for Financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 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 Annexure IV to this Report.

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 Financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 proposed to be included in the Offer Document for the proposed SME-IPO.

Restated Statement of Share Capital, Reserves and Surplus	Note – 3 and 4
Restated Statement of Long Term and Short - Term Borrowings/ Statement of principle Term of Secured loan and Assets charges as security and Statement of term & Condition of unsecured Loans.	Note-5, 5(A) and 5(B)
Restated Statement of Deferred Tax (Assets) / Liabilities	Note-6
Restated Statement of Other long-term liabilities	Note-7
Restated Statement of long-term provisions	Note-8
Restated statement of short-term borrowings	Note-9
Restated Statement of Trade Payables	Note-10
Restated Statement of Other Current Liabilities and short-term Provisions	Note-11 and 8
Restated Statement of Property, Plant and Equipment and Intangible Assets	Note-12 and 13
Restated Statement of Non-Current Investments	Note-14
Restated Statement of Long-Term Loans and Advances	Note-15
Restated statement of other non-current assets	Note-16
Restated Statement of Inventory	Note-17
Restated Statement of Trade Receivables	Note-18
Restated Statement of Cash & Cash Equivalents	Note-19
Restated Statement of Short-Term Loans and Advances	Note-20
Restated Statement of Other Current Assets	Note-21
Restated Statement of Turnover	Note-22
Restated Statement of Other Income	Note-23
Restated Statement of Cost of Material Consumed	Note-24
Restated Statement of Change in Inventories	Note-25 and 26
Restated Statement of Employee Benefits Expenses	Note-27
Restated Statement of Finance Cost	Note-28
Restated Statement of Depreciation & Amortization	Note-29
Restated Statement of Other Expenses	Note-30
Restated Statement of Contingent Liabilities	Note-31
Restated Statement of Mandatory Financial Ratio	Note-32
Restated Statement of Related Party Transaction	Note-33
Restated Statement of Other Accounting Ratios	Note-34
Restated Statement of Capitalization	Note-35
Restated Statement of Tax Shelter	Note-36
Restated Statement of Other Notes	Note-37 to 49
Significant Accounting Policy and Notes to The Restated financial Statements	Annexure IV

In our opinion and to the best of information and explanation provided to us, the Restated Financial Statement of the Company, read with significant accounting policies and notes to accounts as appearing in Annexure IV are prepared after providing appropriate adjustments and regroupings as considered appropriate.

We, M/s. Jasminder Singh & Associates, Chartered Accountants have been subjected to the peer review process of the Institute of Chartered Accountants of India (ICAI) and our peer Review Certificate is valid as on the date of signing of this report.

The preparation and presentation of the Financial Statements referred to above are based on the Audited financial statements of the Company and are in accordance with the provisions of the Act and ICDR Regulations. The Financial Statements and information referred to above is the responsibility of the management of the Company.

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 any other Firm of Chartered Accountants nor should this report be construed as a new opinion on any of the financial statements referred to therein.

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

In our opinion, the above Financial Statements along with Notes 1 to 49 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 Companies Act, ICDR Regulations, Engagement Letter and Guidance Note issued by ICAI.

Our report is intended solely for use of the management and for inclusion in the Offer Document in connection with the Proposed SME-IPO of Equity Shares of the Company and our report should not be used, referred to or distributed for any other purpose without our prior consent in writing.

For Jasminder Singh & Associates Chartered Accountants

FRN: - 016192N

CA. Ashish Jindal Partner

M. No. 559899

Place: Ludhiana Date: 06.09.2024

UDIN: 24559899BKAEUF7357