Patel Chem Specialities Ltd Auditor Reports

To,

The Board of Directors Patel Chem Specialties Limited

Formally known as Patel Chem Specialties Private Limited Plot No. 272/4-5, Phase -II, Vatva GIDC, Vatva, Ahmedabad 382445 Gujarat, India.

Dear Sirs,

1. We have examined the attached Restated Financial Information of Patel Chem Specialties Limited (Formerly known as Patel Chem Specialties Private Limited) (the "Company" [or the "Issuer"]) comprising the Restated Statement of Assets and Liabilities as at June 30, 2024, March 31, 2024, 2023 and 2022, the Restated Statements of Profit and Loss (including other comprehensive income), the Restated Statement of Changes in Equity, the Restated Cash Flow Statement for the three month period ended June 30, 2024 and for the years ended March 31, 2024, 2023 and 2022, the Summary Statement of Significant Accounting Policies, and other explanatory information (collectively, the "Restated Financial Information"), as approved by the Board of Directors of the Company for the purpose of inclusion in the Draft Red Herring Prospectus/Red Herring Prospectus/ Prospect us (DRHP/RHP/Prospectus") prepared by the Company in connection with its proposed Initial Public Offer of equity shares ("IPO") prepared in terms of the requirements of: a) Section 26 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 Information for the purpose of inclusion in the DRHP/RHP/Prospectus to be filed with Securities and Exchange Board of India, BSE SME and Registrar of Companies, Gujarat in connection with the proposed IPO. The Restated Financial Information have been prepared by the management of the Company on the basis of preparation stated in note 2 to the Restated Financial Information. The Board of Directors of the Company responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Financial Information. The Board of Directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.

3. We have examined such Restated 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 November 25, 2024 in connection with the proposed IPO of equity shares of the Issuer/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 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 Financial Information have been compiled by the management from: a) Audited interim financial statements of the as at and for the three month period ended June 30, 2024 prepared in accordance with Accounting Standards specified under section 133 of the Act and other accounting principles generally accepted in India which have been approved by the Board of Directors. b) Audited financial statements of the Company as at and for the years ended March 31, 2024, 2023 and 2022 prepared in accordance with the Accounting Standards as prescribed under Section 133 of the Act as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors.

5. Parikh Shah & Associates have audited the special purpose financial information of the Company for the period ended June 30, 2024 and year ended March 31, 2024 prepared by the Company in accordance with the Accounting Standards 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. Parikh

Shah & Associates have issued our report dated November 18, 2024 on these special purpose financial information to the Board of Directors who have approved these in their meeting held on November 18, 2024.

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

a) Auditors reports issued by Parikh Shah & Associates dated November 18, 2024 on the financial statements of the Company as at and for the three month period ended June 30, 2024 and as at and for the year ended March 31, 2024 as referred in Paragraph 5 above;

b) Auditors Report issued by the Previous Auditors dated August 17, 2023, June 6, 2024 and August 05, 2024 on the financial statements of the Company as at and for the years ended March 31, 2023, 2024 and period ended June 30, 2024, as referred in Paragraph 4 above. The audits for the financial years ended March 31, 2023 and 2022 were conducted by the Companys previous auditors, Belsara & Associates, (the "Previous Auditors"), and accordingly reliance has been placed on the restated statement of assets and liabilities and the restated statements of profit and loss (including other comprehensive income), statements of changes in equity and cash flow statements, the Summary Statement of Significant Accounting Policies, and other explanatory information and (collectively, the "2023 and 2022 Restated Financial Information") examined by them for the said years. The examination report included for the said years is based solely on the report submitted by the Previous Auditors. They have also confirmed that the 2023 and 2022 Restated Financial Information:

a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial year ended March 31, 2022, March 31, 2023 and March 31, 2024 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the three month period ended June 30, 2024;

b)do not require any adjustments for the matter(s) giving rise to modifications mentioned in paragraph 7 below; and

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

7. The audit reports on the financial statements issued by Us/Previous Auditors were not modified and did not include following matter(s) giving rise to modifications on the financial statements as at and for the period ended June 30, 2024 and years ended March 31, 2024, 2023 and 2022:

8. 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	Annexure No.
Basis of Preparation and Significant Accounting Policies	1
Restated Statement of Share Capital	2
Restated Statement of Reserve and Surplus	3
Restated Statement of Long Term Borrowing	4
Restated Statement of Deferred Tax Liabilities	5
Restated Statement of Short Term Borrowing	6
Restated Statement of Trade Payable	7
Restated Statement of Other Current Liabilities	8
Restated Statement of Short Term Provisions	9
Restated Statement of Property Plant and Equipment	10
Restated Statement of Non-Current Investment	11
Restated Statement of Long Term Loans & Advances	12
Restated Statement of Other Non-Current Assets	13
Restated Statement of Inventories	14
Restated Statement of Trade Receivable	15
Restated Statement of Cash and Cash Equivalent	16
Restated Statement of Short Term Loans & Advances	17
Restated Statement of Other Current Assets	18
Restated Statement of Revenue from Operations	19
Restated Statement of Other Income	20
Restated Statement of Cost of Material Consumed	21
Restated Statement of Changes in Inventories	22
Restated Statement of Employee Benefit Expenses	23
Restated Statement of Financial Cost	24
Restated Statement of Other Expenses	25
Restated Statement of Auditors Information	26
Restated Statement of Earnings per share from continuing operations	27
Restated Statement of Segment Reporting	28
Restated Statement of Foreign Currency Transaction	29
Restated Statement of Director Remuneration	30
Restated Statement of Related Party Transactions	31
Restated Statement of Ratios	32
Restated Statement of Capitalisation Statement	33
Restated Statement of Additional Disclosures	34
Restated Statement of Contingent liabilities, commitments, and litigations	35
Restated Statement of Reconciliation of Profit & Loss	36
Restated Statement of Statement of Tax Shelter	37
Restated Statement of Earning per share	38
Restated Statement of Disclosure in respect of Gratuity Liability	39
Restated Statement of Mandatory Accounting Ratios	40
Restated Statement of Other Disclosures in Relation to Restated Financial Statements	41

9. The Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the reports on the special purpose interim financial statements and audited financial statements mentioned in paragraph 4 above. 10. This report should not in any way be construed as reissuance or re-dating of any of the previous audit reports issued by us or the Previous 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 Securities and Exchange Board of India, BSE SME and Registrar of Companies, Ahmedabad, Gujarat in connection with the proposed 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 Ashok Rajpara & Co.

Chartered Accountants

Firms Registration Number: 153195W

Sd/-

Ashok Rajpara

Proprietor

Membership Number: 100559

UDIN: 24100559BKDFHC2367

Place: Surat

Date: December 24, 2024