Sahasra Electronic Solutions Ltd Auditor Reports

INDEPENDENT AUDITORS EXAMINATION REPORT ON RESTATED FINANCIAL INFORMATION

1. We have examined the attached Restated Financial Statements of Sahasra Electronic Solutions Limited, comprising the Restated Statement of Assets and Liabilities as at March 31, 2024, March 31, 2023, the Restated Statements of Profit and Loss, the Restated Cash Flow Statement for the period 01.04.2023 to 31.03.2024 & 22.02.2023 to 31.03.2023, 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 11.06.2024 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 of equity shares ("SME IPO") prepared in terms of the requirements of:
1. Section 26 of Part I of Chapter III of the Companies Act, 2013 (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 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 are responsible for the preparation of the Restated Financial Information for the purpose of inclusion in the Draft Offer Document/ Offer Document to be filed with Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies, Delhi & Haryana in connection with the proposed SME IPO. The Restated Financial Information of the Company have been Prepared by the Management of the Company and approved by the Board of Directors on the basis of preparation stated in Annexure IV of the Restated Financial Information. Our responsibility is to examine the Restated Financial Information and confirm whether such Restated Financial Information comply with the requirements of the Act, the Rules, SEBI-ICDR Regulations and the Guidance Note.
3. We, M/s Kapoor Tandon & Co., Chartered Accountants, been subject to peer review process of the Institute of Chartered Accountants of India (ICAI) and hold a valid peer review certificate issued dated 05/01/2024 valid till 31/01/2027
4. We have examined these Restated Financial Information taking into consideration;
1. The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated 24.05.2024 in connection with the proposed SME IPO 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 Information; 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.
5. These Restated Financial Information have been compiled by the Management from the audited Financial Statements of the Company for the Fiscal year March 31, 2024 and period from February 22, 2023 to March 31, 2023 which have been approved by the Board of Directors of the Company. The financial statements of the Company for the Fiscal year March 31, 2024 have been audited by us and the financial statement for the period from February 22, 2023 to March 31, 2023 has been audited by Jain Pramod Jain & Co., Chartered Accountant
6. Based on our examination and according to the information and explanation given to us, we report that the Restated Financial Information have been prepared:
1. After incorporating adjustments for the changes in accounting policies and regrouping/reclassifications retrospectively, if any to reflect the same accounting treatment as per the accounting policies and grouping/classifications; and
2. in accordance with the Act, ICDR Regulations and the Guidance Note.
7. For the purpose of our examination, we have relied on:
8. Auditors reports issued by us on the financial statements of the Company as at and for the Fiscal year March 31, 2024 and the financial statements of the Company for the period from February 22, 2023 to March 31, 2023 has been audited by Jain Pramod Jain & Co., Chartered Accountant as referred in Paragraph 5 above;
9. We have also examined the following Notes to the Restated financial information of the Company set out in the Annexure V, prepared by the management and approved by the Board of Directors on June 11, 2024 for the fiscal March 31, 2024 and for the period February 22, 2023 to March 31, 2023.

1. Restated Statement of Share Capital, Reserves and Surplus as appearing in Note A to this report;
2. Restated Statement of Long-Term Borrowings as appearing in Note B to this report;
3. Restated Statement of principal terms of Secured Loans and Assets charged as security as appearing in Note B(A) to this report;
4. Restated Statement of terms & conditions of unsecured loans as appearing in Note B(B) to this report;
5. Restated Statement of Deferred Tax (Assets) / Liabilities as appearing in Note C to this report;
6. Restated Statement of Long-Term Provisions as appearing in Note D to this report;
7. Restated Statement of Short-Term Borrowings as appearing in Note E to this report;
8. Restated Statement of Trade Payables as appearing in Note F to this report;
9. Restated Statement of Other Current Liabilities as appearing in Note G to this report
10. Restated Statement of Short-Term Provisions as appearing in Note H to this report;
11. Restated Statement of Fixed Assets as appearing in Note I to this report;
12. Restated Statement of Non-Current Investments as appearing in Note J to this report
13. Restated Statement of Long-Term loans and advances as appearing in Note K to this report
14. Restated Statement of Other Non-Current Assets as appearing in Note L to this report
15. Restated Statement of Trade Receivables as appearing in Note M to this report;
16. Restated Statement of Cash and Cash Equivalents as appearing in Note N to this report;
17. Restated Statement of Inventories as appearing in Note O to this report;
18. Restated Statement of Short-Term Loans and Advances as restated as appearing in Note P to this report;
19. Restated Statement of Other Current Assets as appearing in Note Q to this report;
20. Restated Statement of Revenue from Operations as appearing in Note R to this report;
21. Restated Statement of Other Income as appearing in Note S to this report;
22. Restated Statement of Cost of Material Consumed as appearing in Note T to this report;
23. Restated Statement of Change in Inventories of Work in progress and finished goods as appearing in Note U to this report;
24. Restated Statement of Employee Benefit Expenses as appearing in Note V to this report;
25. Restated Statement of Finance Cost as appearing in Note W to this report;
26. Restated Statement of Depreciation & Amortization as appearing in Note I to this report;
27. Restated Statement of Other Expenses as appearing in Note X to this report;
28. Restated Statement of Related Party Transactions as appearing in Note Y to this report;
29. Restated Statement of Tax Shelter as appearing in Note Z to this report;
30. Capitalization Statement as appearing in Note ZA to this report;
31. Restated Statement of Mandatory Accounting Ratios as appearing in Note ZB to this report;
32. Restated Statement of Other Disclosures as per Schedule-III of the Companies Act 2013 as appearing in Note ZC to this report;
33. Restated Statement of Other Disclosures as appearing in Note ZD to this report;
34. Restated Statement of Contingent Liabilities as appearing in Note ZE to this report;

1. The Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the reports on the audited financial statements mentioned in paragraph 7 above.
2. 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 other auditors, nor should this report be construed as a new opinion on any of the financial statements referred to herein.
3. We have no responsibility to update our report for events and circumstances occurring after the date of the report.
4. Our report is intended solely for use of the Board of Directors for inclusion in the Draft Offer Document/Offer Document to be filed with Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies, Delhi & Haryana 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.
5. In our opinion, the above financial information contained in Annexure I to Annexure III 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 Act, ICDR Regulations, Engagement Letter and Guidance Note and give a true and fair view in conformity with the accounting principles generally accepted in India, to the extent applicable.