FINANCIAL INFORMATION OF THE COMPANY
INDEPENDENT AUDITORS EXAMINATION REPORT ON RESTATED FINANCIAL INFORMATION
To
The Board of Directors
Shri Hare- Krishna Sponge Iron Limited
Flat no. 2-D , 2nd Floor, Tower no. 1
Dakshindari Road, VIP Road
Kolkata, West Bengal, India - 700048
Dear Sir/Maam,
1. We have examined the attached Restated Financial Information of Shri Hare- Krishna Sponge Iron Limited (the Company or the Issuer), comprising the Restated Statement of Assets and Liabilities as at March 31, 2025, 2024 and 2023, the Restated Statements of Profit and Loss, the Restated Cash Flow Statement for the years ended March 31, 2025, 2024 and 2023, 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 at their meeting held on 7th June 2025 for the purpose of inclusion in the Draft Red Herring Prospectus/Red Herring Prospectus/ Prospectus (DRHP/RHP/Prospectus) prepared by the Company in connection with its proposed SME Initial Public Offer of equity shares (IPO) prepared in terms of:
a) sub-clauses (i) and (iii) of clause (b) of sub-section (1) of section 26 of part I of chapter III of the Companies Act, 2013 including Rules thereon, as amended (the Act) read with Companies (Prospectus and Allotment of Securities) Rules 2014;
b) 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)
c) The terms of reference to our engagements with the Company letter dated 31st May 2025 requesting us to carry out the assignment, in connection with the Draft 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); and
d) The Guidance Note on Reports in Company Prospectus (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, relevant stock exchanges and Registrar of Companies, of relevant state in connection with the proposed SME IPO. The Restated Financial Information have been prepared by the management of the Company on the basis of preparation stated in Annexure 4 to the Restated Financial Information. The Board of Directors 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, M/s A.C. Bhuteria & Co., Chartered Accountants have been subjected to the peer review process of the Institute of Chartered Accountants of India (ICAI) and hold the peer review certificate dated 18th January, 2024 valid till 31st March, 2027.
4. 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 31st May 2025 in connection with the proposed SME IPO of equity shares of the 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 youin meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO.
5. For the purpose of our examination, we have relied on:
a) Auditors reports issued by us dated 22nd May 2025 & 30th August , 2024 on the financial statements of the Company as at and for the year ended March 31, 2025 and March 2024 respectively ; and
b) Auditors Report issued by the Previous Auditor dated 20th July, 2023 on the financial statements of the Company as at and for the year ended March 31, 2023 and
The Restated Financial Information did not require any adjustments for the modifications (please refer paragraph 7);
The audit for the financial year ended March 31,2023 was conducted by the Companys previous auditors, Bhandari B.C. & Co. and Kala Singhi respectively, (the Previous Auditors), and accordingly reliance has been placed on the restated statement of assets and liabilities and the restated statement of profit and loss and cash flow statement, the Summary Statement of Significant Accounting Policies, and other explanatory information examined by them for the said year. The examination report included for the said year is based solely on the report submitted by the Previous Auditors.
6. In accordance with the requirements of the Act including the rules made there under, ICDR Regulations, Guidance Note and Engagement Letter, we report that:
i. The Restated Summary Statement Of Asset And Liabilities of the Company as at March 31, 2025, March 31, 2024, and March 31, 2023 examined by us, as set out in Annexure I to this report read with Significant Accounting Policy and Notes to the Restated Financial Statement in Annexure IV has been arrived at after making such adjustments and regroupings to the audited financial statements of the Company, as in our opinion were appropriate and more fully described in Notes To The Restated Financial Statements to this report.
ii. The Restated Statement Of Profit And Loss of the Company for the year ended on March 31, 2025, March 31, 2024, and March 31, 2023 examined by us, as set out in Annexure II to this report read with Significant Accounting Policy and Notes to the Restated Financial Statement in Annexure IV has been arrived at after making such adjustments and regroupings to the audited financial statements of the Company, as in our opinion were appropriate and more fully described in Notes To The Restated Financial Statements to this report.
iii. The Restated Statement Of Cash Flows of the Company for the year ended on March 31, 2025, March 31, 2024, and March 31, 2023 examined by us, as set out in Annexure III to this report read with Significant Accounting Policy and Notes to the Restated Financial Statement in Annexure IV has been arrived at after making such adjustments and regroupings to the audited financial statements of the Company, as in our opinion were appropriate and more fully described in Notes To The Restated Financial Statements to this report.
The 2023 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(s) ended March 31, 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the years ended March 31, 2024 and March 31, 2025;
b) do not require any adjustments for the modifications (please refer paragraph 7); 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 the Previous Auditor for the year ended March 31, 2023, and the audit report issued by us for the year ended March 31, 2024 did not include any modifications.
8. Based on our examination and according to the information and explanations given to us, and also as per the reliance placed on the reports submitted by the Previous Auditors for the year ended March 31, 2023, we report that the Restated Financial Information:
a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financialyear ended March 31, 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the years ended March 31, 2024 and March 31, 2025;
b) do not require any adjustments for the modifications (please refer paragraph 7)
c) have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
9. 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 5 above.
10. This report should not in any way be construed as a reissuance or re-dating of any of the previous audit reports issued by 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 the Securities and Exchange Board of India, relevant stock exchange and Registrar of Companies, West Bengal, 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.
Annexures to the Restated Financial Information of the Company: -
a. Restated Summary Statement of Assets and Liabilities, as restated as appearing in ANNEXURE 1;
b. Restated Summary Statement of Profit and Loss, as restated as appearing in ANNEXURE 2;
c. Restated Summary Cash flow Statement as restated as appearing in ANNEXURE 3;
d. Significant accounting policy and Notes to the Restated Financial Statements as appearing in ANNEXURE 4;
e. Restatement adjustment, Material regrouping and Non-Adjusting Items appearing in ANNEXURE 5 to this report;
f. Restated Statement of Share capital as appearing in ANNEXURE 6 to this report;
g. Restated Statement of Reserve and Surplus as appearing in ANNEXURE 7 to this report;
h. Restated Statement of Long Term Borrowings as appearing in ANNEXURE 8 to this report;
i. Restated Statement of Long Term Provisions as appearing in ANNEXURE 9 to this report;
j. Restated Statement of Short Term Borrowings as appearing in ANNEXURE 10 to this report;
k. Restated Statement of Trade Payables as appearing in ANNEXURE 11 to this report;
l. Restated Statement of Other Current Liabilities as appearing in ANNEXURE 12 to this report;
m. Restated Statement of Short Term Provisions as appearing in ANNEXURE 13 to this report;
n. Restated Statement of Property Plant & Equipment and Intangible Assets as appearing in ANNEXURE 14 to this report;
o. Restated Statement of Non-Current Investments as appearing in ANNEXURE 15 to this report;
p. Restated Statement of Deferred Tax Assets as appearing in ANNEXURE 16 to this report;
q. Restated Statement of Long Term Loans & Advances as appearing in ANNEXURE 17 to this report;
r. Restated Statement of Other Non-Current Assets as appearing in ANNEXURE 18 to this report;
s. Restated Statement of Inventories as appearing in ANNEXURE 19 to this report;
t. Restated Statement of Trade Receivables as appearing in ANNEXURE 20 to this report;
u. Restated Statement of Cash and Bank Balances as appearing in ANNEXURE 21 to this report;
v. Restated Statement of Short Term Loans and Advances as appearing in ANNEXURE 22 to this report;
w. Restated Statement of Other Current Assets as appearing in ANNEXURE 23 to this report;
x. Restated Statement of Revenue from Operations as appearing in ANNEXURE 24 to this report;
y. Restated Statement of Other Income as appearing in ANNEXURE 25 to this report;
z. Restated Statement of Raw Material Consumed as appearing in ANNEXURE 26 to this report;
aa. Restated Statement of Changes in Inventories of Finished Goods as appearing in ANNEXURE 27 to this report;
bb. Restated Statement of Employee Benefits Expenses as appearing in ANNEXURE 28 to this report;
cc. Restated Statement of Finance Cost as appearing in ANNEXURE 29 to this report;
dd. Restated Statement of Other Expenses as appearing in ANNEXURE 30 to this report;
ee. Restated Statement of Earnings Per Share as appearing in ANNEXURE 31 to this report;
ff. Employee Benefits as restated as appearing in ANNEXURE 32 to this report;
gg. Restated Statement of Related Party Transactions as appearing in ANNEXURE 33 to this report;
hh. Details of Sales, Closing Stock & Opening Stock of Finished Goods / By Product as restated as appearing in ANNEXURE 34 to this report;
ii. Details relating to Impairment of Assets as appearing in ANNEXURE 35 to this report;
jj. Details relating to Segment Reporting as appearing in ANNEXURE 36 to this report;
kk. Details relating to regrouping/ rearranging figures wherever considered necessary as appearing in ANNEXURE 37 to this report;
ll. Details of Revenue Expenditure allocated to Property, Plant & Equipment and Capital Work-inProgress as appearing in ANNEXURE 38 to this report.
mm. Details of Expenditures incurred and Earnings made in Foreign Currency by the company
as appearing in ANNEXURE 39 to this report.
nn. Details of accounting for investment in associate as appearing in ANNEXURE 40 to this report. oo. Disclosure regarding reporting in lacs as appearing in ANNEXURE 41 to this report.
pp. Details relating to Contingent Liability as restated as appearing in ANNEXURE 42 to this report.
qq. Details relating to Capital Commitments as restated as appearing in ANNEXURE 43 to this report.
rr. Details relating to Raw Materials Consumed under broad heads as appearing in ANNEXURE 44 to this report.
ss. Disclosure of the amounts due to the The Micro and Small Enterprises as required by section 22 of Micro and Small Enterprises Act, 2006 under the chapter of delayed payments to Micro and Small Enterprises as stated in ANNEXURE 45 to this report.
tt. Disclosure as per AS-19 "Leases" as appearing in ANNEXURE 46 to this report.
uu. Restated Statement of Tax Shelter as appearing in ANNEXURE 47 to this report;
vv. Restated Statement of Capitalisation as appearing in ANNEXURE 48 to this report;
ww. Restated Statement of Mandatory Accounting Ratios as appearing in ANNEXURE 49 to this report;
xx. Details of Additional Regulatory Information as required by Para Y of Part - I to Schedule III to the Companies Act, 2013 as appearing in ANNEXURE 50 to this report.
yy. Details of Additional Regulatory Information as required by Para 5 (ix) to (xi) of Part - II to Schedule III to the Companies Act, 2013 as appearing in ANNEXURE 51 to this report.
zz. Restated Statement of Ratios as appearing in ANNEXURE 52 to this report;
For A. C. Bhuteria & Co.
Chartered Accountants
Firms Registration No. 303105E
Mahak Bhuteria
Partner
Membership No.314270
UDIN: 25314270BMOIDC6101
Place: Kolkata
Dated: 7th June 2025
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.