Solve Plastic Products Ltd Auditor Reports

.Other Matters

1. The Financial Statements of the Company for the year ended March 31, 2024, were audited by
predecessor audit firm. The predecessor auditors report, dated July 22, 2024, expressed an
unmodified opinion on those financial statements.

Our opinion is not modified in respect of this matter.

2. Information other than the Financial Statements and Auditors Report thereon

The Companys Board of Directors is responsible for the Information other than the financial
statements and auditors report thereon. The said information comprises the information
included in the Directors Report (Other information), but does not include the financial
statements and our audit report thereon. The Other Information is expected to be made
available to us after the date of this auditors report

Our opinion on the financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information identified above when it becomes available, and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, otherwise appear to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance.

3.Responsibility of Management and Those Charged with Governance for the Standalone
Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles generally accepted
in India, including the accounting Standards specified under section 133 of the Act. 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 financial statement that give a true and fair view and
are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management 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 management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to
do so.

Those Board of Directors are also responsible for overseeing the companys financial reporting
process.

68

1. Auditors Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditors report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

?Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.

?Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.

?Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.

?Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Companys ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors report. However, future events or
conditions may cause the Company to cease to continue as a going concern.

?Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.

2. 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 Companies Act,
2013, we give in the Annexure A statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.

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

a. We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.

b. In our opinion, 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. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of account.

d. In our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.

e. On the basis of the written representations received from the directors taken on record by
the Board of Directors, none of the directors is disqualified as on 31^st March 2025 from being
appointed as a director in terms of Section 164(2) of the Act.

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.

g. The managerial remuneration for the year ended March 31, 2025, has been paid / provided
by the Company to its directors in accordance with the provisions of section 197 read with
Schedule V to the Companies Act, 2013.

(b) With respect to the other matters to be included in the Auditors Report in accordance with
Rule 11 of 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:

a. The Company does not have any pending litigations which would impact its financial
position except for as disclosed in Note 26.2 of the financial statements.

b. The Company did not have any long-term contracts, including derivative contracts, for which
there were any material foreseeable losses.

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

d. (i) The management, as explained in Note No.26.11.1 of the financial statements, has
represented that, to the best of its knowledge and belief, other than as disclosed in the notes
to the accounts, 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, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.

(ii) The management, as explained in Note No.26.11.2 of the financial statements, has
represented, that, to the best of its knowledge and belief, other than as disclosed in the notes
to 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, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries

Based on such audit procedures, that we 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) contain any material mis-statement.

e. The Company has not declared or paid any dividend during the year.

f. Based on our examination which included test checks, the company has used accounting
software for maintaining its books of accounts 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 to the accounting
software.Additionally, the audit trail has been preserved by the company as per the statutory
requirements for documentation retention.

(Referred to in paragraph 8(1) under Report on Other Legal and Regulatory Requirements section of our
report of even date)

i. ) Fixed Assets: In respect of the Companys Property, Plant and Equipment (PPE) and Intangible Assets:

(a) (A) The Company has maintained records showing particulars of fixed assets including quantitative
details and location. The Company is in the process of updating the same.

(b) The company has maintained records showing particulars of Intangible Assets.

(b) These Properties, Plant and Equipment have been physically verified by the management at
reasonable intervals.

(c) The title deeds to the immovable properties owned by the company are held in the name of the
company

(d) The company has not revalued its Property, Plant and Equipment during the year.

(e) As per the information and explanations furnished to us, no proceedings have been initiated or are
pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

ii. ) Inventories

(a) The inventories have been physically verified by the management during the year at reasonable
intervals. The discrepancies noticed on physical verification of stock were not material having regard to
the size of the operation of the company.

(b) The company has been sanctioned /renewed working capital limits in excess of five crore rupees, in
aggregate, from banks or financial institutions on the basis of security of current assets during the year. In
our opinion and according to the information and explanations furnished to us, the quarterly returns or
statements filed by the company with such banks or financial institutions are in agreement with the
books of accounts of the Company, except in the instances disclosed in Note No 7.2 to the financial
statements.

iii) Investments/Loans/Advances and Guarantees

During the year, the company has not made any investments in or provided any guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or any other parties other than those given in the normal course of business.
Accordingly, none of the sub-clauses under this heading are applicable.

iv) Compliance with Sec 185 and Sec 186

In our opinion and according to the information and explanations given to us, the company had not
granted any loans to parties to whom provisions of Sec 185 applies and consequently clauses relating to
terms and conditions of loan, payment of interest and repayment of principal and status of overdue are
not applicable.

In our opinion and according to the information and explanations given to us, the company has not
made any investments, guarantees during the year to which the provisions of Section 185 and 186 of the
Companies Act 2013 applies.

v. ) Deposits

In our opinion and according to the information and explanations given to us, the company has not
accepted any deposits to which the provisions of Section 73 to 76 of the Companies Act, 2013 and rules
made there under applies.

vi. ) Cost Records

In our opinion and according to the information and explanations given to us, the Central Government
has not prescribed the maintenance of cost records under Section 148(1) of the Companies Act, 2013, for
the company.

vii) Statutory Dues

(a) The company was generally regular in depositing with appropriate authorities undisputed statutory
dues towards Provident Fund, Employees State Insurance, Income Tax, Goods & Service Tax, duty of
customs, cess and other statutory dues, wherever applicable. There were no arrears of undisputed
statutory dues as on the last day of the financial year for a period of more than six months from the date
they became payable.

(b) According to the records of the company, there were no unpaid disputed statutory dues outstanding
as on the date of balance sheet

viii) Undisclosed Income

In our opinion and according to the information and explanations given to us, there are no transactions
which are not recorded in the books of account which have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961.

ix) Repayment of Loans

In our opinion and according to the information and explanations given to us, the company has not
defaulted in repayment of interest and principal to banks and financial institutions.

(a) In our opinion and according to the information and explanations given to us, the company has not
defaulted in repayment of interest and principal to any lender.

(b) Based on the information and explanations given to us, the company has not been declared a wilful
defaulter by any bank or financial institution or any other lender;

(c) According to the information and explanations given to us, and the procedures performed by us, and
on an overall examination of the financial statements of the company, we report that no funds raised on
short-term basis have been used for long-term purposes by the company.

(d) According to the information and explanations given to us and on an overall examination of the
financial statements of the company, we report that 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.

(e) According to the information and explanations given to us and procedures performed by us, we report
that the company has not raised loans during the year on the pledge of securities held in its subsidiaries,
joint ventures or associate companies.

x) Application of funds raised

In our opinion and according to the information and explanations given to us, and based on our
examination of the records of the Company:

(a) The moneys raised by the Company through its Initial Public Offer on the Emerge Platform of the
National Stock Exchange (NSE) during the year (including the share premium collected) were
applied/ear-marked for the purposes for which they were raised, as detailed in the related prospectus.

(b) The Company has not made any preferential allotment or private placement of shares or convertible
debentures (fully, partially or optionally convertible) during the year that would require reporting under
this clause based on compliance with Section 42 and Section 62 of the Companies Act, 2013.

xi) Frauds

(a) According to the information and explanations given to us, no fraud, on or by the company, has been
noticed or reported during the year.

(b) As no fraud, on or by the company, has been noticed or reported during the year, reporting under this
clause as per section 143(12) is not applicable.

(c) As represented to us by the management, there are no whistle blower complaints received by the
company during the year.

xii) Managerial Remuneration

In our opinion and according to the information and explanations given to us, managerial remuneration
has been paid in accordance with section 197 read with Section II under Part II of Schedule V of the
Companies Act, 2013.

xiii) Nidhi Company

In our opinion and according to the information and explanations given to us, the company is not a Nidhi
company and hence this clause in not applicable to the company.

xiv) Related Party Transactions

In our opinion and according to the information and explanations given to us, all transactions with the
related parties are in compliance with Section 188 of the Companies Act, 2013 wherever applicable and
the details have been disclosed in the financial statements as required by the applicable accounting
standards.

In our opinion and according to the information and explanations given to us, all transactions with the
related parties are in compliance with section 177 and section 188 of the Companies Act, 2013, wherever
applicable and the details have been disclosed in the financial statements as required by the applicable
accounting standards.

xv) Internal Audit

(a) In our opinion and based on our examination, the company has an internal audit system
commensurate with the size and nature of its business.

(b) We have considered the internal audit report of the company issued for the quarter ended 31.12.2024,
which is the only report issued till date, for the period under audit.

xvi) Non-Cash Transactions

As explained to us, the company has not entered into any non-cash transactions with directors or other
persons during the year

xvii) Registration with RBI

The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934
and hence this clause is not applicable to the Company.

xviii) Cash Losses

The company has incurred cash losses of ^ 358.85 Lakhs during the financial year.

xix) Resignation of Auditor

According to the information and explanations given to us, there has been no resignation of the statutory
auditors during the year under audit. Consequently, the requirement to consider issues, objections or
concerns raised by outgoing auditors under clause 3(xix) of the Order does not arise.

xx) Going Concern

According to the information and explanations given to us and on the basis of the financial ratios, ageing
and expected dates of realization of financial assets and payment of financial liabilities, other information
accompanying the financial statements, our knowledge of the Board of Directors and management
plans as further detailed in Note 26.7 to the financial statements and based on our examination of the
evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that
any material uncertainty exists as on the date of the audit report that company is not capable of meeting
its liabilities existing at the date of balance sheet as and when they fall due within a period of one year
from the balance sheet date. We, however, state that this is not an assurance as to the future viability of
the company. We further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one
year from the balance sheet date, will get discharged by the company as and when they fall due.

xxi) Corporate Social Responsibility

The company was not required to spend any amount towards CSR and hence reporting under this clause
is not applicable

xxii) Observations by component auditors

The company does not have any subsidiaries/associates/joint ventures and hence reporting under this
clause is not applicable.

(Referred to in paragraph 8(2)(f) under Report on Other Legal and Regulatory Requirements section of
our report of even date)

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 Solve Plastic products Limited
("the Company") as of March 31, 2025, in conjunction with our audit of the standalone financial
statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management 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 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

Our responsibility is to express an opinion on the Companys internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over financial reporting
was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Companys internal financial controls system over financial reporting
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 authorisations 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.