L.K.Mehta Polymers Ltd Auditor Reports

(As required by Section 26 of Companies Act, 2013 read with Rule 4 of Companies (Prospectus and Allotment of

Securities) Rules, 2014)

To the Board of Directors of L.K.Mehta Polymer Limited

1103/2, Mhow-Neemuch Road,

Ratlam, Madhya Pradesh, India, 457001

Dear Sir/Ma‘am,

1. We have examined the attached Restated Financial Statement along with the Significant Accounting Policies and related notes of L.K.Mehta Polymer Limited (the “Company”) as at and for the period/year ended on June 30^th, 2024, March 31, 2024, 2023 and 2022 annexed to this report and prepared by the Company for the purpose of inclusion in the Draft Prospectus/Prospectus (being collectively referred as “Offer Document”) in connection with its proposed Initial Public Offer (“IPO”) on the SME Platform of the BSE Limited (“BSE”).

2. The said Restated Financial Statements and other Financial Information have been prepared in accordance with the requirements of:

i. Section 26 of Part I of Chapter III to the Companies Act, 2013 (“the Act”) read with Companies (Prospectus and Allotment of Securities) Rules 2014;

ii. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 (“ICDR Regulations”) issued by the Securities and Exchange Board of India (“SEBI”) in pursuance to Section 11 of the Securities and Exchange Board of India Act, 1992 and related amendments / clarifications from time to time;

iii. The terms of reference to our engagements with the Company requesting us to carry out the assignment, in connection with the Offer Document being issued by the Company for its proposed IPO of equity shares on SME Platform of the BSE Limited (“BSE”); and

iv. The Guidance Note on Reports in Company Prospectus (Revised 2019) issued by the Institute of Chartered Accountants of India (“Guidance Note”).

3. We have examined the accompanied ‘Restated Statement of Profit and Loss (Part - II) for the period/year ended on June 30^th, 2024, March 31, 2024, 2023 and 2022 and the ‘Restated Statement of Assets and Liabilities (Part - I) as on above dates, forming Part of the ‘Financial Information dealt with by this Report, detailed below. Both read together with the Significant Accounting Policies and Notes to Accounts thereon, which are the responsibility of the Company‘s management. The information has been extracted from the financial statements for the period/year ended on June 30^th, 2024, March 31^st, 2024, 2023 and 2022 is audited by us, being the Statutory Auditor of the Company for the period ended on June 30^th, 2024, which is approved by the Board of Directors as on that date and upon which we have placed our reliance while reporting.

4. In terms of Schedule VI (Part A) (11) (II) (i) of the SEBI (ICDR) Regulations, 2018 and other provisions relating to accounts of L.K.Mehta Polymers Limited, we, M/s. DCJ & Associates, Chartered Accountants, have been subjected to the peer review process of the Institute of Chartered Accountants of India (ICAI) and hold a valid certificate issued by the Peer Review Board of the ICAI.

5. Based on our examination, we further report that:

a. “The Restated Financial Statement of Assets and Liabilities” as set out in Part - I to this report, of the Company for the period/year ended on June 30^th, 2024, March 31^st, 2024, 2023 and 2022 is prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Assets and Liabilities have been arrived at after making such adjustments and regroupings to the financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to this Report.

b. “The Restated Financial Statement of Profit and Loss” as set out in Part - II to this report, of the Company for the period/year ended on June 30^th, 2024, March 31^st, 2024, 2023 and 2022 is prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Profit and Loss have been arrived at after making such adjustments and regroupings to the financial statements of the Company, as in our opinion

were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts to this Report.

c. “The Restated Financial Statement of Cash Flows” as set out in Annexure III to this report, of the Company fo r the period/year ended on June 30^th, 2024, March 31^st, 2024, 2023 and 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 financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts to this Report.

d. The Restated Financial Statements have been made after incorporating adjustments for:

i. The changes, if any, in accounting policies retrospectively in respective financial years to reflect the same accounting treatment as per the changed accounting policy for all the reporting period/years;

ii. Prior period and other material amount in the respective financial years to which they relate;

iii. Extra-ordinary items that need to be disclosed separately in the accounts requiring adjustments, which are stated in the Notes to Accounts as set out in this Report.

e. There were no qualifications in the Audit Reports issued by Statutory Auditor(s) for the period/year ended on June 30^th, 2024, March 31^st, 2024, 2023 and 2022 which would require adjustments in this Restated Financial Statements of the Company.

6. At the request of the company, we have also examined the following financial information (“Other Financial Information”) proposed to be included in the offer document prepared by the management and approved by the board of directors of the company and annexed to this report:

Particulars	Note No.
RESTATED BALANCE SHEET	Part - I
RESTATED STATEMENT OF PROFIT AND LOSS	Part - II
RESTATED CASH FLOW STATEMENT	Annexure - III
Restated statement of Share Capital	Annexure - A
Restated statement of Reserves and Surplus	Annexure - B
Restated Statement of Long Term Borrowings	Annexure - C
Restated Statement of Deferred Tax Liabilities	Annexure - D
Restated Statement of Short Term Borrowings	Annexure - E
Restated Statement of Trade Payable	Annexure - F
Restated Statement of Other Current Liabilities	Annexure - G
Restated Statement Short Term Provisions	Annexure - H
Restated Statement of Property Plant & Equipment	Annexure - I
Restated Statement of Intangible Assets	Annexure - J
Restated Statement of Other Non-Current Assets	Annexure - K
Restated Statement of Inventories (Valued at Cost or NRV whichever is lower)	Annexure - L
Restated Statement of Trade receivables	Annexure - M
Restated Statement of Cash and Bank Balance	Annexure - N
Restated Statement of Short Term Loans And Advances	Annexure - O
Restated Statement of Other Current Assets	Annexure - P
Restated Statement of Revenue from operations	Annexure - Q
Restated Statement of Other income	Annexure - R
Restated statement of Cost of Material Consumed	Annexure - S
Restated Statement of Purchase of Trading Goods	Annexure - T
Restated Statement of Changes in Inventories of Stock in Trade and Finished goods	Annexure - U
Restated Statement of Employee benefits expense	Annexure - V
Restated Statement of Finance costs	Annexure - W
Restated Statement of Other expenses	Annexure - X
Statement of Accounting & Other Ratios, as restated	Annexure - Y
RESTATED STATEMENT OF RELATED PARTY TRANSACTION	Annexure - Z
MATERIAL ADJUSTMENTS (AS PER THE ICDR REGULATIONS)	Annexure - V
Statement of Capitalization	Annexure - AA
Restated Statement of Tax Shelter	Annexure - AB

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Particulars	Note No.
Contingent Liabilities	Annexure - AC
Restated Statement of Analytical Ratios	Annexure - AD

7. In our opinion, the Restated Financial Statements and the other Financial Information read with the significant accounting policies and notes to the restated financial statements have been prepared in accordance with section 26 of Companies Act, 2013 and the SEBI Regulations and the Guidance Note on the reports in Company Prospectus (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI).

Consequently the financial information has been prepared after making such regroupings and adjustments as were, in our opinion, considered appropriate to comply with the same. As a result of these regrouping and adjustments, the amount reported in the financial information may not necessarily be the same as those appearing in the respective audited financial statements for the relevant years.

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

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

10. This report is intended solely for your information and for inclusion in the Offer document in connection with the Companys proposed IPO of equity shares and is not to be used, referred to or distributed for any other purpose without our prior written consent.

For DCJ & Associates,

Chartered Accountants FRN: 015039C

CA Shashank Garg Partner

Membership No.: 410401

Place: Kota

Date: 02^nd August, 2024

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L.K MEHTA

M.MIMLTOl