Sati Poly Plast Ltd Auditor Reports

To

The Members of Sati Poly Plast Limited

(Formaly known as Sati Poly Plast Private Limited)

Bihar - 812002

Report on the Audit of the Financial Statements Disclaimer of Opinion

We were engaged to audit the accompanying financial statements of Sati Poly Plast Limited (Formaly known as Sati Poly Plast Private Limited) ("the Company"), which comprise the Balance Sheet as at 31^st March, 2025, and The Statement of Profit and Loss, The Statement of Changes in Equity and the Statement of Cash flows for the period ended 31^st March, 2025 and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information.

We do not express an opinion on aforesaid financial Statements because of the substantive nature of the matters stated in paragraph Basis for disclaimer of Opinion, below for which we have not been able to obtain sufficient and appropriate audit evidence. Further, we are unable to state whether the accompanying Statement has been prepared in accordance with the applicable accounting standards and other recognized accounting practices and policies or that the Statement discloses the information required to be disclosed in terms of Regulation 33 of the Listing Regulations including the manner in which it is to be disclosed, or that it contains any material misstatement.

Basis for Disclaimer of Opinion

We draw attention to the matters related, during the course of our audit, we were informed that a fire broke out at the Companys premises on 15^th February, 2025, resulting in the destruction of significant accounting records, supporting documents, Inventory and fixed assets. As a result, we were unable to verify the existence, valuation, and completeness of the fixed assets destroyed in the fire on account of that we were unable to obtain sufficient and appropriate audit evidence regarding the accounting treatment of the loss due to fire and any related insurance claim receivable. The extent of damage to inventory, plant and machinery, and relevant accounting records has significantly impaired our ability to conduct necessary audit procedures and Management has not been able to provide alternative audit evidence that we considered sufficient and appropriate for the purposes of our audit. Because of the significance of the matter described above, we have not been able to obtain sufficient appropriate audit evidences to provide a basis for an audit opinion.

Emphasis of Matter

We draw attention to Note 25 of the financial statements, which describes that a fire broke out at the Companys premises on 15^th February, 2025, resulting in the destruction of accounting records, supporting documents, Inventory and Fixed assets. The Company has recognized a provisional loss in respect of the damaged assets, and an insurance claim has been filed. We further note that the insurance company has in the process of determined the loss due to fire, which is currently pending completion as of the date of this report. The final outcome of the insurance claim, including the amount of compensation receivable, is contingent upon the completion of their survey/process and has not been fully determined at this stage.

Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the Statement

The Companys Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit / loss and other financial information of the Company in accordance with the accounting principles generally accepted in India, including Accounting Standard prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India, and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Companys financial reporting process Auditors Responsibilities for the Audit of the Statement

Our responsibility is to express an Opinion on the financial statements in accordance with Standards on Auditing. However, because of the matter described in the Paragraph "Basis for Disclaimer of Opinion" of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these Statement.

We are independent in accordance with the ethical requirements in accordance with the Code of ethics and provisions of the Act, that are relevant to our audit of the financial results and we have fulfilled our other ethical responsibilities in accordance with the code of ethics and the requirements under the Act.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central

Government of India in terms of sub-section (11) of section 143 of the Act, and except for the possible ffects, of the matter described in the Basis for Disclaimer of Opinion section, we give in the

"Annexure A", a statement on the matter specified in paragraphs 3 and 4 of the Order, to the extent pplicable.

2. As required by Section 143(3) of the Act, we report that:

a. As mentioned in Basis of disclaimer of opinion paragraph we were unable to obtain all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b. Due to the possible effect of the matter described in the Basis of Disclaimer of Opinion Paragraph we are unable to state whether, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

c. Due to these limitations, we are unable to state whether the Balance Sheet, Statement of Profit and Loss (including other comprehensive income), and Cash Flow Statement are in agreement with the books of account.

d. Due to the possible effects of the matters described above, we are unable to state whether the financial statements comply with the Accounting Standards specified under Section 133 of the Companies Act, read with the relevant Rules.

e. The matters described in the Basis for Disclaimer paragraph may have an adverse effect on the functioning of the Company.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and

g. With respect to the other matters to be included in the Auditors Report in accordance with Rule 11of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. As per explanation/information provided to us there are pending litigations on the company same is disclosed on note 26 of the financial statements.

ii. The Company has not made any provision, as required under the applicable law or accounting standards, for material foreseeable losses, as company does not have any long-term contracts including derivative contracts.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

iv.

(a) The management has represented that, to the best of its knowledge and belief as disclosed in Note 29 to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• Indirectly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(b) The management has represented, that, to the best of its knowledge and belief, as disclosed in the accounts, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

• directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

• Provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(c) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatements.

v. There dividend has not been declared or paid during the year by the Company. Hence Compliance of section 123 of the act is not applicable.

h. With respect to the matter to be included in the Auditors Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

i. Based on our examination which included test checks, the company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with in respect of the accounting software.

"Annexure A" Referred to in paragraph 1 of the Independent Auditors Report of even date to the members of Sati Poly Plast Limited (Formaly known as Sati Poly Plast Private Limited) on the Financial Statements for the period ended 31^st March, 2025.

In terms of the information and explanations sought by us and given by the company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:

i. Property, Plant, Equipment and intangible Assets:

a. We are unable to comment whether company has maintained proper records showing full particulars details of property plant and Equipment and intangible assets as disclosed in Note 25 to the financial Statements.

b. The Company has a program of verification Property, Plant, Equipment and intangible Assets so to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the program, Certain Property, Plant, Equipment physically verified by the management during the year According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in Favour of the lessee), as disclosed in Note 10 to the financial statements, are held in the name of the Company.

d. The Company has not revalued its Property, Plant, Equipment and intangible Assets during the period ended 31st March, 2025.

e. Based on the information and explanations furnished to us, no proceedings have been initiated on or are pending against the Company for holding Benami property under Benami Transactions (Prohibitions) Act, 1988(as amended in 2016) (formerly the Benami Transaction (Prohibition) Act, 1998(45 of 1988) and Rules made thereunder.

ii. Inventory:

a. As disclosed in Note 25 to the financial statements a fire occurred, which resulted in the destruction of significant accounting records, including inventory records. Due to this, we were unable to verify the inventory records or evaluate the results of any physical verification carried out by the management.

b. During the year, the Company has sanctioned working capital limits in excess of 5 Crores, in aggregate, from banks on the basis of security of current assets. Due to Fired occurred we are unable to verify whether Company has filed quarterly returns or statements with such banks are generally in agreement with the books of accounts of company.

iii. Loans given by the Company:

a) According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has not provided any security or granted advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnership or any other parties during the year.

b) According to the information and explanations given to us and based on the financial statements prepared by the management, in our opinion no investments has been made and guarantees provided during the year and the terms and conditions of the grant of loans and guarantees provided during the year are prima facie, not prejudicial to the interest of the Company.

c) According to the information and explanations given to us and based on the financial statements prepared by the management, in the case of loans given, in our opinion, the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular. Further, the Company has not given any advances in the nature of loans to any party during the year.

d) According to the information and based on the financial statements prepared by the management, there is no overdue amount for more than ninety days in respect of loans given. Further, the Company has not given any advances in the nature of loans to any party during the year.

e) According to the information and based on the financial statements prepared by the management,, there is no loan or advance in the nature of loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the over dues of existing loans given to same parties.

f) According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

However, due to a fire that occurred, significant accounting records were destroyed. In the absence of sufficient appropriate audit evidence, we are unable to comment independently on the completeness and accuracy of this representation.

iv) Loans to directors & Investment by the Company:

According to the information and explanations given to us, the Company has not granted any loans or provided any guarantees or security in respect to any parties covered under the Section 185 of the Act. The company has not given guarantees or provided security requiring compliance under section 185 or 186 of the Act, hence clause (iv) of paragraph 3 of the order is not applicable to the Company.

v) Deposits

The Company has not accepted any deposits or amounts which are deemed to be deposits within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified. Therefore, the clause (v) of paragraph 3 of the Order is not applicable to the Company

vi) Cost records:

Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Companies Act, 2013 in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii) Statutory Dues:

According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, employees state insurance, income tax, goods and services tax and labour welfare fund, though there were no delay in depositing undisputed statutory dues, including sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities.

However, as fire occurred, resulting in the destruction of significant accounting and statutory records. Due to this, we were unable to obtain sufficient appropriate audit evidence to verify the accuracy and completeness of statutory dues and related disclosures. Accordingly, we are unable to comment on the companys compliance with statutory dues and whether any undisputed or disputed amounts were outstanding as at the balance sheet date.

viii) Unrecorded income

According to the information and explanations given to us, there are no transactions in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

ix) Repayment of Loans:

a. According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest to any lender during the year.

b. According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has not been declared Willful Defaulter by any bank or financial institution or government or any government authority.

c. According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has applied term loans for the purpose for which the loans were obtained, hence reporting under clause 3(ix)(C) of the order is not applicable.

d. According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has not used funds raised on short-term basis for the long-term purposes.

e. According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

f. According to the information and explanations given to us and based on the financial statements prepared by the management, the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

x) Utilization of IPO & FPO and Private Placement and Preferential issues:

a. The Company has made an initial public offer (IPO) of 13,35,000 equity share of face value of Rs.10/- each fully paid up for cash at a price of Rs.130/- per equity share (including share premium of Rs.120 per equity share) aggregating to Rs.133.5/- lakhs. The aforementioned equity share of the company allotted as on 18^nd July, 2024 and got listed on NSE Emerge plateform on 22^nd July, 2024. Company has received Rs.133.5/- and utilized as per the object.

b. The company has not made preferential allotment or private placement of shares during the year and the requirement to report on clause 3(x)(b) of the order is not applicable to the company.

xi) Reporting of Fraud:

a. According to the information and explanations given to us, no fraud by the company or on the company has been noticed or reported during the year nor have we been informed of any such case by the Management.

b. According to the information and explanations given to us, no report under Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 has been filed with the Central Government. Accordingly, the reporting under Clause 3(xi)(b) of the Order is not applicable to the Company.

c. According to the information and explanations given to us, the Company has not received whistleblower complaints during the year.

xii) NIDHI Company:

As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporting under Clause 3(xii) of the Order is not applicable to the Company.

xiii) Related Party Transaction:

The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements note no 27 as required under Accounting Standard 18 "Related Party Disclosures" specified under Section 133 of the Act.

xiv) Internal Audit

a) According to the information and explanation given to us, the Company has not an internal audit system commensurate with the size and nature of its business.

b) The Provisions of Internal Audit under section 138 is applicable to the Company.

xv) Non-Cash Transaction:

The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the reporting on compliance with the provisions of Section 192 of the Act under Clause 3(xv) of the Order is not applicable to the Company.

xvi) Register under RBI Act, 1934:

a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the reporting under Clause 3(xvi)(a) of the Order is not applicable to the Company.

b) The Company has not conducted non-banking financial / housing finance activities during the year. Accordingly, the reporting under Clause 3(xvi)(b) of the Order is not applicable to the Company.

c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, the reporting under Clause 3(xvi)(c) of the Order is not applicable to the Company.

d) Based on the information and explanations provided by the management of the Company, the Group has six CICs as part of the Group. We have not, however, separately evaluated whether the information provided by the management is accurate and complete.

xvii) Cash Losses

The Company has incurred Cash losses of 1114.51 Lakhs in the Current financial year but not incurred cash losses in the immediately preceding financial year.

xviii) Auditors resignation

There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the order is not applicable.

xix) Financial Position

As disclosed in Note 25 to the financial statements, a fire occurred, resulting in the destruction of significant accounting records and supporting documentation. Due to the lack of sufficient appropriate audit evidence, we are unable to comment under clause 3(xix) of the Order on whether the company is capable of meeting its liabilities existing at the balance sheet date as and when they fall due within a period of one year from the balance sheet date.

xx) Corporate Social Responsibility

The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are not applicable to the Company during the year and hence reporting under this clause is not applicable.

"Annexure B" to the Independent Auditors Report of even date on the Financial Statements of Sati Poly Plast Limited (Formaly known as Sati Poly Plast Private Limited)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Sati Poly Plast Limited (Formaly known as Sati Poly Plast Private Limited) ("the Company") as of 31^st March, 2025 in conjunction with our audit of the financial statements of the Company for the period ended on that date.

Managements Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

We were unable to obtain sufficient appropriate audit evidence to determine whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at 31st March, 2025.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

Because of the significance of the matters described in the Basis for Disclaimer of Opinion section above, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an opinion. Accordingly, we do not express an opinion on whether the Company has in place adequate internal financial controls system over financial reporting or whether such internal financial controls were operating effectively as at 31st March, 2025.