Recode Studios Ltd Auditor Reports

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<dhhead>Independent Auditor Examination Report</dhhead>

on Restated Financial Statements

To

The Board of Directors Recode Studios Limited

(Formerly known as Recode Studio Private Limited)

R-89, Phase V, Focal Point, Ludhiana, Punjab - 141010

Dear Sirs,

We have examined the attached Restated Financial Statements of RECODE STUDIOS LIMITED (formerly known as Recode Studios Private Limited) (hereinafter referred to as “the Company”) comprising the Restated Statement of Assets and Liabilities as at December 31, 2025, the Restated Statement of Assets and Liabilities as at March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statements of Profit and Loss for the nine months ended December 31, 2025, the Restated Statements of Profit and Loss for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 and the Restated Cash Flow Statement for the nine months ended December 31, 2025, the Restated Cash Flow Statement for the year ended March 31, 2025, March 31, 2024 and March 31, 2023, the Summary Statement of Significant Accounting Policies, the Notes and Annexures as forming part of these Restated Financial Statements (collectively, the “Restated Financial Information”), as approved by the Board of Directors of the Company at their meeting held on 15nd April, 2026, for the purpose of inclusion in the Draft Red Herring Prospectus/ Red Herring Prospectus/ Prospectus(“Draft Offer Document/Offer Document”) prepared by the Company in connection with its proposed SME Initial Public Offer.

1. The Restated financial Statements for offer of equity shares (“SME IPO”) prepared in accordance with the requirements of:

(i) Section 26 of Part I of Chapter III of the Companies Act, 2013 as amended (the “Act”).

(ii) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018, as amended (“ICDR Regulations”) and related amendments / clarifications from time to time issued by the Securities and Exchange Board of India (“SEBI”)

(iii) The Guidance Note on Reports in Company Prospectus (Revised 2022) issued by the Institute of Chartered Accountants of India (“ICAI”), as amended from time to time (the “Guidance Note”)

(i) The terms of reference to our engagements with the Company letter dated 14th November 2025 requesting us to carry out the assignment, in connection with the Draft Red Herring Prospectus/ Red Herring Prospectus/ Prospectus being issued by the Company for its proposed Initial Public Offering of equity shares in SME Platform of relevant stock Exchange. (“IPO” or “SME IPO”).

(ii) The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.

(iii) Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Financial Statements; and

(iv) 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 and the ICDR Regulations in connection with the IPO.

i) For the purpose of the Restated Financial Statement, 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.

ii) 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.

iii) 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.

iv) There are no extra-ordinary items that need to be disclosed separately in the accounts and qualifications requiring adjustments.

v) 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 4 to this report.

vi) There was no change in accounting policies, which needs to be adjusted in the Restated Financial Statement. vii) There are no revaluation reserves, which need to be disclosed separately in the Restated Financial Statement.

viii) There were no qualifications in the Audit Reports issued by the previous statutory auditors for the financial year ended on March 31, 2025, March 31, 2024, and March 31, 2023, which would require adjustments in this Restated Financial Statements of the Company.

(i) The “Restated Statement of Assets and Liabilities” as set out in Annexure 1 to this report, of the Company as at December 31, 2025, and the financial year ended March 31, 2025, March 31, 2024, and March 31, 2023, 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 to this report.

(ii) The “Restated Statement of Profit and Loss” as set out in Annexure 2 to this report, of the Company for the nine months period ended December 31, 2025, and the financial year ended March 31, 2025, March 31, 2024, and March 31, 2023, 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 4 to this Report.

(iii) The “Restated Statement of Cash Flow” as set out in Annexure 3 to this report, of the Company for the nine months period ended December 31, 2025, and the financial year ended March 31, 2025, March 31, 2024, and March 31, 2023, is prepared by the Company and approved by the Board of Directors. These Restated 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 Annexure 4 to this Report.

Annexure to Restated Financial Statements of the Company: -

9. Short term borrowings as restated as appearing in ANNEXURE 9 to this report;

10. Trade payables as restated as appearing in ANNEXURE 10 to this report;

11. Other current liabilities as restated as appearing in ANNEXURE 11 to this report;

12. Short term provisions as restated as appearing in ANNEXURE 12 to this report;

13. Property, plant & equipment as restated as appearing in ANNEXURE 13 to this report

14. Deferred Tax Assets as restated as appearing in ANNEXURE 14 to this report;

15. Long Term Loans and Advances as restated as appearing in ANNEXURE 15 to this report;

16. Non-current investments as restated as appearing in ANNEXURE 16 to this report;

17. Inventories as restated as appearing in ANNEXURE 17 to this report;

18. Trade receivables as restated as appearing in ANNEXURE 18 to this report;

19. Cash & cash equivalents as restated as appearing in ANNEXURE 19 to this report;

20. Short term loans & advances as restated as appearing in ANNEXURE 20 to this report;

21. Revenue from operations as restated as appearing in ANNEXURE 21 to this report;

22. Other income provided as restated as appearing in ANNEXURE 22 to this report;

23. Purchase of Stock in Trade as restated as appearing in ANNEXURE 23 to this report;

24. Changes in inventories of Stock in Trade and Goods in Transit as restated as appearing in ANNEXURE 24 to this report;

25. Employee benefits expense as restated as appearing in ANNEXURE 25 to this report; 26. Finance cost as restated as appearing in ANNEXURE 26 to this report;

27. Depreciation & Amortisation as restated as appearing in ANNEXURE 27 to this report;

28. Other Expenses as restated as appearing in ANNEXURE 28 to this report;

29. Tax Expenses as restated as appearing in ANNEXURE 29 to this report;

30. Contingent Liabilities and commitments as restated as appearing in ANNEXURE 30 to this report;

31. Tax shelter as restated as appearing in ANNEXURE 31 to this report;

32. Related party as restated as appearing in ANNEXURE 32 to this report;

33. Capitalisation statement as restated as appearing in ANNEXURE 33 to this report,

34. Accounting ratios & Additional regulatory information as restated as appearing in ANNEXURE 34 to this report.