Snehaa Organics Ltd Auditor Reports

on the Restated Financial Statements of SNEHAA ORGANICS LIMITED (Formerly known as SNEHAA ORGANICS PRIVATE LIMITED)

Auditors Report on the Restated Statement of Assets and Liabilities as at 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July 2022, Statement of Profit & Loss and Cash Flow for the period/year ending at 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July 2022, of SNEHAA ORGANICS LIMITED

To,

The Board of Directors,

SNEHAA ORGANICS LIMITED

(Formerly known as SNEHAA ORGANICS PRIVATE LIMITED)

Plot No 290 & 291, Dulapally, Adjacent to IDA Jeedemetla,

Qutbullapur, Ranagreddi, Hyderabad,

Telangana, India, 500055

Dear Sirs / Madam,

1) We have examined the attached Restated Summary Statements and Other Financial Information of SNEHAA ORGANICS LIMITED (Formerly known as SNEHAA ORGANICS PRIVATE LIMITED) (The “Company” or the “Issuer”) for the period/year ended 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022, (collectively referred to as the "Restated Summary Statements" or "Restated Financial Statements") as duly approved by the Board of Directors of the Company.

2) The said Restated Financial Statements and other Financial Information have been examined and prepared for the purpose of inclusion in the Red Herring Prospectus and Prospectus (collectively hereinafter referred to as "Offer Documents") in connection with the proposed Initial Public Offering (IPO) on SME Platform of National Stock Exchange of India Limited ("EMERGE IPO") of the company.

3) These restated financial statements have been prepared in accordance with the requirements of:

• Section 26 and 32 of Part I of Chapter III of the Companies Act, 2013 ("the Act") read with Companies (Prospectus and Allotment of Securities) Rules 2014, as amended from time to time;

• The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements Regulations), 2018 (the SEBI ICDR Regulations), as amended from time to time in pursuance of Section 11 of the Securities and Exchange Board of India Act,1992;

• The Guidance Note on Reports in Company Draft Prospectus / Prospectus (Revised) issued by the Institute of Chartered Accountants of India ("ICAI") ("Guidance Note");

• The applicable regulation of SEBI (ICDR) Regulations, 2018, as amended, and as per Schedule VI (Part A) (11) (II) of the said Regulations; and

• The terms of reference of our engagement letter with the company, dated 16^th December, 2024, requesting us to carry out the assignment, in connection with the proposed Initial Public Offering of equity shares on EMERGE Platform (“IPO” or “EMERGE IPO”) of National Stock Exchange of India Limited (“NSE”).

4) These Restated Financial Information (included in Annexure I to XXXIX) have been extracted by the Management of the Company from:

The Companys Financial Statements for the period/year ended 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022, which the Board has approved of Directors at their meetings, and books of accounts underlying those financial statements and other records of the Company, to the extent considered necessary for the preparation of the Restated Financial Statements, are the responsibility of the Companys Management. The Financial Statements of the Company for the period/year ended 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022 have been audited by M/s. Sumalatha & Associates, Chartered Accountants, had issued unqualified reports for these years. However, for the year ended 31^st March, 2024, the Financial Statements have been re-audited by us (Phanindra & Associates) and for the year ended 31^st March, 2025 have been audited by us, being the Statutory Auditors of the Company.

5) In accordance with the requirement of Sections 26 and 32 of the Companies Act, 2013 read with Companies (Prospectus and Allotment of Securities) Rules 2014, the SEBI Regulations, the Guidance Note, as amended from time to time and in terms of our engagement agreed with you, we further report that:

(a) The Restated Statement of Assets and Liabilities for the period/year ended 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022, examined by us, as set out in Annexure I to this report, is prepared by the Company and approved by the Board of Directors. These Restated Summary statements of Assets and Liabilities have been arrived at after making such adjustments and regroupings of the financial statements, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to XXXIX to this Report.

(b) The Restated Statement of Profit and Loss of the Company for the period /year ended 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022, examined by us, as set out in Annexure II to this report, is prepared by the Company and approved by the Board of Directors, These Restated Summary statements of Profit and Loss, have been arrived at after making such adjustments and regroupings of the financial statements, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to XXXIX to this Report,

(c) The Restated Statement of Cash Flows of the Company for the period /year ended 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022, examined by us, as set out in Annexure III to this report, is prepared by the Company and approved by the Board of Directors, These Restated Summary Statement of Cash Flows, have been arrived at after making such adjustments and regroupings of the financial statements, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to XXXIX to this Report.

As a result of these adjustments, the amounts reported in the above-mentioned statements are not necessarily the same as those appearing in the audited financial statements of the Company for the relevant financial years.

6) Based on the above, as per the reliance placed by us on the audited financial statements of the Company and report thereon given by the Statutory Auditor of the Company for the period/year ended 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022, and to the best of our information and according to the explanation given to us, we are of the opinion that Restated Financial Statement :

a) have been made after incorporating adjustments for the changes in accounting policies retrospectively in respective financial years to reflect the same accounting treatment as per the changed accounting policies for all the reporting periods based on the significant accounting policies adopted by the Company as at 31^st March, 2025, if any

b) have been made after incorporating adjustments for the prior period and other material amounts, if any, in the respective financial years to which they relate to;

c) do not contain any extraordinary items that need to be disclosed separately, other than those presented in the Restated Financial Statement, and do not contain any qualification requiring adjustments;

d) There were no qualifications in the Audit Reports issued by the Statutory Auditors for the period/year ended 31^st March, 2025, 31^st March, 2024, 31^st March, 2023 and 04^th July, 2022, which would require adjustments in these Restated Financial Statements of the Company;

e) Restated Summary Statement of Profits and Losses has 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 IV to XXXIX to this report;

f) Adjustments in Restated Summary Statements have been made in accordance with the correct accounting policies,

g) There was no change in accounting policies, which need to be adjusted in the Restated Summary Statements.

h) There are no revaluation reserves, which need to be disclosed separately in the Restated Financial Statements.

i) The Company has not paid a dividend during the financial years under review.

j) As disclosed in Note-9 and Annexure XI of the restated financial statements, Snehaa Organics Limited has stated: "The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Consequently, disclosures regarding amounts unpaid as at the year-end, along with interest paid or payable as required under the said Act, have not been provided."

Due to the absence of supplier confirmations regarding MSME status, the Company has not accounted for interest provisions as mandated by the MSMED Act, 2006. Additionally, the Company has entered into agreements with certain creditors allowing a contractual credit period exceeding the stipulated period under the MSMED Act, 2006. However, the Company is required to obtain confirmation from the creditors on their MSME status and account for interest liabilities as per the provisions of the MSMED Act, 2006. The non-recognition of such interest provisions has resulted in an overstatement of reported profits by the amount of interest payable under the MSMED Act, 2006.

k) The Company has mentioned in Note-29 of the restated financial statements that: “The closing balances of Debtors and Creditors are subject to Ledger Confirmations from the parties. ”

“The management has represented that they do not expect any material differences to arise upon receipt of such confirmations. As the auditors, we are unable to independently verify or quantify any potential adjustments that may arise from these confirmations, and consequently, we are unable to comment further on the accuracy of the balances with these parties. Our opinion is not modified in respect of this matter ”.

7) We have also examined the following other Restated Financial Information as set out in the respective Annexures to this report and forming part of the Restated Financial Statement, prepared by the management of the Company and approved by the Board of Directors of the company for the period/year ended 31st March, 2025, 31st March, 2024, 31st March, 2023 and 04th July, 2022 proposed to be included in the Red Hearing/Prospectus ("Offer Document") for the proposed IPO:

8) We, Phanindra & Associates, Chartered Accountants, hold a valid peer review certificate issued by the "Peer Review Board" of the Institute of Chartered Accountants of India ("ICAI"), valid till 31st October, 2026.

9) The preparation and presentation of the Financial Statements referred to above are based on the audited financial statements of the Company and are with the provisions of the Act and ICDR Regulations. The Financial Statements and information referred to above are the responsibility of the management of the Company.

10) This report should not in any way be construed as a re-issuance or re-dating of any of the previous audit reports issued by us, nor should this report be construed as an opinion on any of the Consolidated Financial Information referred to herein.

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

12) In our opinion, the above Restated Financial Statements contained in Annexure I to XXXIX to this report read along with the Significant Accounting Policies and Notes to the Financial Statements appearing in Annexure IV to XXXIX after making adjustments and regrouping/reclassification as considered appropriate and have been prepared in accordance with the provisions of Section 26 and 32 of the Companies Act, 2013 read with the Companies (Prospectus and Allotment of Securities) Rules 2014, to the extent applicable, the SEBI Regulations, the Guidance Note issued in this regard by the ICAI, as amended from time to time, and in terms of our engagement agreed with you.

13) Our report is intended solely for the use of the Management and for inclusion in the offer documents in connection with the proposed SME IPO of equity shares of the Company and is not to be used, referred to, or distributed for any other purpose except with our prior written consent.