Kalana Ispat Ltd Auditor Reports

To,

The Board of Directors of,

Kalana Ispat Limited (formerly known as Kalana Ispat Private Limited)

504, Ashwamegh Avenue,

5^th Floor, Nr. Mithakhali Under-bridge, Mithakhali, Ahmedabad - 380009 Gujarat

Dear Sir,

Reference: - Proposed Public Issue of Equity Shares of Kalana Ispat Limited

1. We have examined the attached Restated Financial Statements of Kalana Ispat Limited (formerly known as Kalana Ispat Private Limited) ("Company") comprising the Restated Standalone Financial Statements of the

Company constituting Restated Standalone Statement of Assets and Liabilities as at 31^st March 2024, 31^st March 2023 and 31^st March 2022, the Restated Standalone Statements of Profit and Loss and the Restated Standalone Cash Flow Statement for the Year ended 31st March 2024 and for the year ended 31^st March 2023 and 31^st March 2022 and the Summary Statement of Significant Accounting Policies, the Notes and Annexures as forming part of these Restated Financial Statements (collectively, the "Restated Standalone Financial Statement"), as approved by the Board of Directors of the Company at their meeting held on 6^th September,2024 for the purpose of inclusion in the Prospectus/Prospectus ("Draft Prospectus/Prospectus") prepared by the Company in connection with its proposed SME Initial Public Offer of equity shares ("SME IPO") prepared in terms of the requirements of:

a) Section 26 and 32 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").

2. The Companys Board of Directors is responsible for the preparation of the Restated financial statement for the purpose of inclusion in the Draft Prospectus/Prospectus to be filed with Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies, in connection with the proposed SME IPO. The Restated financial statement has been prepared by the management of the Company on the basis of preparation stated in Annexure IV of the Restated financial statement. The Board of Directors responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated financial statement. The Board of Directors is also responsible for identifying and ensuring that the Company complies with the Companies Act, (ICDR) Regulations and the Guidance Note.

3. We, DINESH R THAKKAR & Co. Chartered Accountants have been subjected to the peer review process of the

Institute of Chartered Accountants of India ("ICAI") and holds the peer review certificate dated 15/10/2020 valid till 30/09/2024.

4. We have examined such Restated standalone financial statement taking into consideration:

a) The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated 2nd September, 2024 in connection with the proposed SME IPO of equity shares of the Company;

b) The Guidance Note. 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 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 responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the SME IPO.

5. These Restated Standalone Financial Statement have been compiled by the management of the company from:

a) Audited standalone financial statements of the company as at and for the year ended 31^st March 2024, 31^st March 2023 and 31^st March 2022 prepared in accordance with Accounting Standard as specified under section 133 of the Act and other accounting principles generally accepted in India which have been approved by the Board of Directors at their meeting held on 6^th September,2024.

6. We have audited the standalone financial statements of the Company as at and for the year ended March 31, 2023 prepared in accordance with the Accounting Standard 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 6^th September,2024 on these standalone financial statement to the Board of Directors who have approved these in their meeting held on 6^th September,2024.

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

a) Auditors report issued by us on standalone financial statements of the company as at and for the year ended 31st March, 2024 and reaudited by us as at and for the year ended March 31, 2023.

b) Auditors Report issued by the Previous Auditors on the standalone financial statements of the company as at and for the years ended March 31, 2022.

8. Based on our examination and according to the information and explanations given to us, we report that the Restated standalone financial statement have been prepared:

a) after incorporating adjustments for the changes in accounting policies, material error and regrouping/reclassifications retrospectively, if any, as at 31st March 2024, 31st March 2023, 31st March 2022 and 31st March 2021 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the year ended 31st March, 2024; and

b) There are no qualifications in the auditors reports on the standalone financial statements of as at and for the year ended March 31, 2023, March 31, 2022 and March 31, 2021 and standalone financial statements of the company as at and for the year ended March 31, 2024, which require any adjustments to the Restated Standalone financial Statements.

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

9. We have also examined the following Notes to the Restated standalone financial statement of the company set out in the Annexure V and Annexure VI to XII, prepared by the management and approved by the Board of Directors on 6^th September,2024 for the year ended 31^st March, 2024 and for the year ended 31^st March 2023, 31^st March 2022 and 31^st March 2021.

Annexure V - Notes to the Restated Standalone Summary Financial Information;

a. Restated Statement of Share Capital as appearing in Annexure V, Note 1 to this report;

b. Restated Statement of Reserves and Surplus as appearing in Annexure V, Note 2 to this report;

c. Restated Statement of Deferred Tax (Assets) / Liabilities as appearing in Annexure V, Note 3 to this report;

d. Restated Statement of Long term provision as appearing in Annexure V, Note 4 to this report;

e. Restated Statement of Short term borrowings as appearing in Annexure V, Note 5 to this report;

f. Restated Statement of Trade Payables as appearing in Annexure V, Note 6 to this report;

g. Restated Statement of Other Current Liabilities as appearing in Annexure V, Note 7 to this report;

h. Restated Statement of Short Term Provisions as appearing in Annexure V, Note 8 to this report;

i. Restated Statement of Property, Plant and Equipment as appearing in Annexure V, Note 9 to this report;

j. Restated Statement of Inventories as appearing in Annexure V, Note 10 to this report;

k. Restated Statement of Trade Receivables as appearing in Annexure V, Note 11 to this report;

l. Restated Statement of Cash and Cash Equivalents as appearing in Annexure V, Note 12 to this report;

m. Restated Statement of Other Current Assets as appearing in Annexure V, Note 13 to this report;

n. Restated Statement of Revenue from Operations as appearing in Annexure V, Note 14 to this report;

o. Restated Statement of Other Income as appearing in Annexure V, Note 15 to this report;

p. Restated Statement of Cost of Material & Consumable Consumed & Purchases of Stock-in-Trade as appearing in Annexure V, Note 16 to this report;

q. Restated Statement of Change in Inventories as appearing in Annexure V, Note 17 to this report;

r. Restated Statement of Employee Benefit Expenses as appearing in Annexure V, Note 18 to this report;

s. Restated Statement of Finance Cost as appearing in Annexure V, Note 19 to this report;

t. Restated Statement of Depreciation Expenses as appearing in Annexure V, Note 20 to this report;

u. Restated Statement of Other Expenses as appearing in Annexure V, Note 21 to this report;

v. Restated Statement of Earnings per equity share as appearing in Annexure V, Note 22 to this report;

w. Restated Statement of Value of imports on CIF basis in respect of as appearing in Annexure V, Note 23 to this report;

x. Restated Statement of Contingent Liabilities as appearing in Annexure V, Note 24 to this report;

y. Restated Statement of Related Party Transactions as appearing in Annexure V, Note 25 to this report;

z. Restated Statement of Tax Shelter as appearing in Annexure XVII, Note 26 to this report;

aa. Restated Statement of Capitalisation Statement as appearing in Annexure XVI, Note 27 to this report;

bb. Restated Statement of Accounting Ratios as appearing in Annexure XV, Note 28 to this report;

10. We have not audited any financial statements of the company as of any date or for any period subsequent to 31^st March, 2024. Accordingly, we express no opinion on the financial position, results of operations, cash flows of the company as of any date or for any period subsequent to 31^st March, 2024.

11. 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 previous auditors, nor should this report be construed as a new opinion on any of the financial statements referred to herein.

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

13. Our report is intended solely for use of the Board of Directors for inclusion in the Draft Prospectus/ Prospectus to be filed with Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies 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.

PLACE	: AHMEDABAD	FOR, DINESH R THAKKAR & CO.
DATE	: 06.09.2024	CHARTERED ACCOUNTANTS
		FRN. 102612W
		DINESH R. THAKKAR
		(PARTNER)
		M.NO.038216
		Peer Review Certificate No.: 012422
		UDIN: 24038216BKEEMT2549