Shri Kanha Stainless Ltd Auditor Reports

ON RESTATED FINANCIAL INFORMATION

Report of Independent Auditor on the Statement of Assets and Liabilities as on March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statement of Profit and Loss and the Restated Statement of Cash Flows for the years ended March 31 2025, March 31 2024 and March 31 2023 along with the Restated Statement of Significant Accounting Policies and other explanatory information of Shri Kanha Stainless Limited (Formerly known as "Shri Kanha Stainless Private Limited") and in the periods applicable (hereinafter collectively, the "Restated Financial Statements")

The Board of Directors

Shri Kanha Stainless Limited (Formerly known as "Shri Kanha Stainless Private Limited")

Plot no. 70-B, Unit no.401-402,

4th Floor, Trimurty Prime Tower, Nirwaroo Road, Jhotwara, Jaipur, Rajasthan, India, 302012

Dear Sirs/ Madams,

1. We have examined the attached Restated Financial Statements of Shri Kanha Stainless Limited (Formerly known as "Shri Kanha Stainless Private Limited") (the "Company") comprising the Restated Statement of Assets and Liabilities as at March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statement of Profit and Loss, and the Restated Statement of Cash Flows for the years ended March 31, 2025, March 31, 2024 and March 31, 2023 and the Statement of Significant Accounting Policies, and other explanatory information relating to such financial periods (collectively, the "Restated Financial Statements"), as approved by the Board of Directors of the Company at their meeting held on July 07, 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 Initial Public Offer of equity shares ("IPO") prepared in terms of the requirements of: a) the Sub-section (1) of 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 (the "SEBI ICDR Regulations"); and c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) (as amended) issued by the Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").

Managements Responsibility for the Restated Financial Statements

2. The Companys Board of Directors is responsible for the preparation of Restated Financial Statements for the purpose of inclusion in the DRHP/RHP/Prospectus to be filed with the Securities and Exchange Board of India, EMERGE Platform of the National Stock Exchange of India Limited ("NSE") and Registrar of Companies, Jaipur, Rajasthan in connection with the proposed IPO. The Restated Financial Statements have been prepared by the management of the Company in accordance with the basis of preparation stated in Annexure IX to the Restated Financial Statements. The responsibility of Board of Directors of the Company 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 Companies Act, the SEBI ICDR Regulations and the Guidance Note.

Auditors Responsibilities

3. We have examined the Restated Financial Statements taking into consideration:

a) the terms of reference and terms of our engagement agreed upon with Company in accordance with our engagement letter dated May 12, 2025, in connection with the proposed IPO of the equity shares of the Company. b) the Guidance Note, which also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI; c) the 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 SEBI ICDR Regulations. e) Our work was performed solely to assist you in meeting your responsibilities in relation to compliance with the Act, the SEBI ICDR Regulations and the Guidance Note in connection with the IPO.

4. These Restated Financial Information have been compiled by the Management from:

Audited Financial Statements of the Company for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 prepared in accordance with Accounting Standard and other accounting principles generally accepted in India, (the "Audited Financial Statements"), which have been approved by the Board of Directors at their meetings held on May 26, 2025, September 24, 2024 and September 02, 2023 respectively.

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

Independent Auditors report issued by "Bhojak Lunawat and Company" Chartered Accountants ("Firm") on the Financial Statements of the Company as at March 31 2025, "M/s P.K.S. Co." Chartered Accountants ("Firm") on the Financial Statements of the Company as at March 31, 2024 and "M/s Ravi Sharma & Co." Chartered Accountants ("Firm") on the Financial Statements of the Company as at March 31, 2023 respectively as referred in Para 4(a) above.

6. Based on the above and according to the information and explanations given to us, we report that:

a) The Restated Financial Statements have been prepared after incorporating adjustments for the changes in accounting policies, any material errors and regroupings/ reclassifications retrospectively for the years ended March 31, 2025, March 31, 2024 and March 31, 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications. b) There are no qualifications in the auditors reports on the Audited Financial Statements as at and for the years ended March 31, 2025, March 31, 2024 and March 31, 2023 which require any adjustments to the Restated Financial Statements and c) The Restated Financial Statements have been prepared in accordance with the Act including the rules made there under, the SEBI ICDR Regulations, the Guidance Note and engagement letter, we report that:

a. The "Restated Summary Statement of Assets and Liabilities" as set out in Annexure I to this report, of the Company as at March 31, 2025, March 31, 2024 and March 31, 2023 are prepared by the Company and approved by the Board of Directors. These Restated Summary 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 as set out in Annexure IX and Notes to Accounts as set out in Annexure IV to this Report.

b. The "Restated Summary Statement of Profit and Loss" as set out in Annexure II to this report, of the Company for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 are prepared by the Company and approved by the Board of Directors. These Restated summary 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 as set out in Annexure IX and Notes to Accounts as set out in Annexure IV to this Report.

c. The "Restated Summary Statement of Cash Flow" as set out in Annexure III to this report, of the Company for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 are prepared by the Company and approved by the Board of Directors. These Restated summary Statement of Cash Flow 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 as set out in Annexure IX and Notes to Accounts as set out in

Annexure IV to this Report.

We have also examined the following other financial information relating to the Company prepared by the management and as approved by the board of directors of the Company and annexed to this report relating to the Company for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 proposed to be included in the Draft Prospectus/Prospectus ("Offer Document").

Annexure No.	Particulars
I	Restated Statement of Assets & Liabilities
I.1	Restated Statement of Share Capital
I.2	Restated Statement of Reserves & Surplus
I.3	Restated Statement of Long-Term Borrowings
I.4	Restated Statement of Other Long-Term Liabilities
I.5	Restated Statement of Long-Term Provision
I.6	Restated Statement of Deferred tax Liabilities (net)
I.7	Restated Statement of Short-Term Borrowings
I.8	Restated Statement of Trade Payables
I.9	Restated Statement of Other Current Liabilities
I.10	Restated Statement of Short-Term Provisions
I.11	Restated Statement of Property, Plant and Equipment
I.11	Restated Statement of Intangible Assets
I.12	Restated Statement of Long-Term Loans and advances
I.13	Restated Statement of Inventories
I.14	Restated Statement of Trade Receivables
I.15	Restated Statement of Investments
I.16	Restated Statement of Cash and cash equivalents
I.17	Restated Statement of Short-Term Loans and advances
I.18	Restated Statement of Other current assets
II	Restated Statement of Profit & Loss
II.1	Restated Statement of Revenue from operations
II.2	Restated Statement of Other Income
II.3	Restated Statement of Cost of Material Consumed
II.4	Restated Statement of (Increase)/Decrease in Stock-In-Trade
II.5	Restated Statement of Employee Benefit Expense
II.6	Restated Statement of Finance Costs
II.7	Restated Statement of Depreciation and Amortization Expense
II.8	Restated Statement of Other Expenses

 

Other Annexure:
III	Restated Statement of Cash Flow Statement
IV	Other notes to the Restated Financial Statements
V	Statement of Mandatory Accounting Ratios
VI	Statement of Restatement of Free Cash Flow to Equity (FCFE)
VII	Statement of Restatement of Adjustments to Audited Financial Statements
VIII	Statement of Capitalization Statement
IX	Significant Accounting Policies

7. We have complied with the relevant applicable requirements of the Standard in Quality Control (SQC) 1, Quality Control for Firms that perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

8. The Restated Financial Statements 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 4 above.

9. This report should not in any way be construed as a reissuance or re-auditing of any of the previous auditors 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.

10. We have no responsibility to update our report for events and circumstances occurring after the date of this report.

11. Our report is intended solely for use of the Board of Directors and for inclusion in the DRHP/RHP/Prospectus to be filed with the Securities and Exchange Board of India, EMERGE Platform of and the National Stock Exchange of India Limited ("NSE") and Registrar of Companies, Jaipur, Rajasthan, as applicable in connection with the proposed IPO of equity shares of the Company. Our report should not be used, referred to or distributed for any other purpose without prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care towards any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.

For Bhojak Lunawat and Company

Chartered Accountants

Firm Registration No. 027566C

Sd/-

Prafful Bhojak

Partner

Membership No.166845

UDIN: 25166845BMJQGZ7421

Place: Jaipur

Date: July 07, 2025