Solvex Edibles Ltd Auditor Reports

To,

The Board of Directors,

Solvex Edibles Limited

(Formerly known as Solvex Edibles Private Limited)

Rampur, Uttar Pradesh-244921

Dear Sir/Madam,

I. Report on Restated Financial Statements:

We have examined the Restated Standalone Financial Statements of M/s. SOLVEX EDIBLES LIMITED {Formerly known as Solvex Edibles Private Limited) (hereinailer referred to as "the Company), the summarized statements of which annexed to this report have been prepared in accordance with the requirements of:

a) Section 26 of Companies Act, 2013 (hereinafter referred to as the "Act"), read with the applicable provisions within Rules- 4 to 6 ofC ompanies (Prospectus and Allotment of Securities) Rules, 2014, as amended;

b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("the Regulation") ("SEBIICDR Regulations") issued by the Securities and Exchange Board of India (SEB1) and amendments made thereto from time to time;

c) The terms of reference to our engagements with the Company requesting us to examine standalone financial statements referred to above and proposed to be included in the Draft Prospectus. Prospectus being issued by the Company for its proposed Initial Public Offering of equity shares in SME Platform of BSE ("IPO" or "SME IPO");

d) The (Revised) Guidance Note on Reports in Company Prospectus issued by the Institute of Chartered Accountants of India riCAl"): and

e) In terms of Schedule VIII of the SEBI (ICDR) Regulations. 2018, and other provisions relating to accounts, we, M/s Arora Gupta & Co., Chartered Accountants, have been subjected to the peer review process of the Institute of Chartered Accountants oflndia (ICAI) and hold a valid Certificate issued by the "Peer Review Board" of the ICAI,

2. The Restated Standalone Statements and Financial information of the Company have been extracted; prepared by the management from the Standalone Audited Financial Statements of the Company for the period and financial years ended on August 31,2024; March 3 L 2024; March 31, 2023, & March 31,2022, which have been approved by the Board of Directors,

3. Financial Statements for the financial years ended March 31, 2023 and March 31, 2022 have been audited by Kathuria Maheshwari & Associates and accordingly, reliance has been placed on the financial information examined by them for the said years. The Financial Report included for these years is based solely on the report submitted by them.

4. The Companys Board of Directors is responsible for the preparation of the Restated Standalone Financial Information for the purpose of inclusion in the Draft Prospectus / Prospectus to be tiled with Securities and Exchange Board of India. Registrar of Companies, Uttar Pradesh and the relevant stock exchange in connection with the proposed SME IPO. The Restated Standalone Financial Information have been prepared by the management of the Company on the basis of preparation stated in Annexure IV to the Restated Standalone Financial Information. The Board of Directors responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Standalone Financial Information. The Board of Directors are also responsible for identify ing and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.

5. Financial Information as per Audited Financial Statements:

1) We have examined:

V The attached Restated Standalone Statement of Assets and Liabilities of the Company as at August 31, 2024; March 31.2024; March 31,2023; March 31, 2022, (Annexure I);

y The attached Restated Standalone Statement of Profit and Losses of the Company for the period/financ ial year ended on August 31,2024; March 31,2024; March 3 l, 2023; March 31,2022; (Annexure 11);

y The attached Restated Standalone Statement of Cash Flows of the Company lor the period/financ ial year ended on August 31 2024; March 31.2024; March 31,2023; March 31.2022; (Annexure 111);

*- The Significant Accounting Policies adopted by the Company and notes to the Restated Standalone Financial Statements along with adjustments on account of audit qua! i Ileal ions adjustments r regroupings. (Annexure IV);

(Collectively hereinafter referred as "Restated Standalone Financial Statements" or "Restated Summary Statements")

2) In accordance with the requirements of sub-clauses (f) and (iii) of clause (b) of sub-section (I) of section 26 of the Companies Act 2013 read with Rule 4 of Companies (Prospectus and Allotment of Securities) Rules, 2014. the SF.BI Regulations, the Revised Guidance Note on Reports in Company Prospectus and Guidance Note on Audit Reports/Ccrtifi cates on Standalone Financial Information in Oder Documents issued by the Institute of Chartered Accountants of India (the "ICAI") and the terms of our engagement agreed with you, we report that:

a) The "Restated Standalone Statement of Assets and Liabilities" as set out in Annexure I to this report, of the as at August 31, 2024; March 31, 2024; March 31. 2023; March 31, 2022 are prepared by the Company and approved by the Board of Directors, This standalone Statement of Assets and Liabilities, as restated 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 Accounling Policies and Notes to the Restated Summary Statements as set out in Annexure IV to this Report

b) The "Restated Standalone Statement of Profit and Loss" as scl out in Annexure II to this report, of the Company for the period/fmancial years ended on August 31, 2024; March 31. 2024; March 31, 2023, & March 31, 2022 are prepared by the Company and approved by the Board of Directors, This standalone Statement of Profit and Loss, as restated 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 and Notes to the Restated Summary Statements as sel out in Annexure IV to this Report.

c) The "Restated Standalone Statement of Cash Flow as sel oul in Annexure III to this report, ot the Company for the period/financial years ended on August 31, 2024; March 31, 2024; March 31, 2023 & March 31, 2022 are prepared by the Company and approved by the Board of Directors. Hits Standalone Statement of Cash Flow, as restated, 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 and Notes to Restated Summary Statements as set out in Annexure IV ro this Report,

Based on the above and also as per the reliance placed by us on the audited financial statements of the company and Auditors Report thereon which have been prepared by Statutory Auditor of the Company for the period/financ ial years ended on August 31, 2024; March 31, 2024; March 31, 2023 & March 31, 2022, we are of the opinion that "Restated Standalone Financial Statements" or "Restated Summary Statements" have been made after incorporating:

(i) Adjustments for any material amounts in the respective financial years have been made to which they relate; and

(ii) There are no Extra-ordinary items except as shown in the Restated Standalone Profit JL Loss Statement of that need to be disclosed separately in the Restated Summary Statements.

(iii) Adjustments on account of the statutory audit qualifications, if any, have been adjusted and regrouped to the individual financial statements of the Company, as in our opinion were appropriate and more folly described in Significant Accounling Policies and Notes to the Restated Summary Statements as set out in Annexure IV to this Report.

(iv) Adjustments in Financial Statements have been made in accordance with the correct accounting!policies as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes Khthe Restated Summary Statements as sel oul in Annexure IV to this Report,

(v> There are no revaluation reserves, which need to be disclosed separately in the "Restated Standalone Financial Statements".

(vi) The Company has not paid any dividend on its equity shares during the financial year ended March 31.2024

6. Other Financial Information:

I) We have also examined the following financial information as set out in the annexure prepared by the Management and as approved by the Board of Directors of the Company for the periochfmancial years ended on August 31, 2024; March 31, 2024; March 31,2023 & March 31,2022.

Restated Statement of Share Capital, Reserves, and Surplus	Annexure A
Restated Statement of Long-Term Borrowings	Annexure B
Restated Statement of Details of Deferred l ax Liabilities / Assets	Annexure C
Restated Statement of Short-Term Borrow ings	Annexure D
Restated Statement of Trade Payables &. Other Current Liabilities and Provisions	Annexure E
Restated Statement of Property Plant & Equipment	Annexure F
Restated Statement of Other Non-Current Assets	Annexure G
Restated Statement of Inventories	Annexure H
Restated Statement of Trade Receivables	Annexure 1
Restated Statement of Cash & Cash Equivalents	Annexure J
Restated Statement of Short-Term Loans and Advances and Other Current Assets	Annexure K.
Restated Statement of Revenue from Operations	Annexure L
Restated Statement of Other Income	Annexure M
Restated Statement of Purchase of Goods	Annexure N
Restated Statement of Changes in Inventories	Annexure O
Restated Statement of Employee Benefit Expenses	Annexure P
Restated Statement of Finance Cost	Annexure Q
Restated Statement of Operational & Other Expenses	Annexure R
Restated Statement of Mandatory Accounting Ratios	Annexure S
Restated Statement of Capitalization	Annexure T
Restated Statement of Related Party Transactions	Annex ure U .
Restated Statement of Tax Shelters	Annexure V

11} The Restated Standalone Financial Information contains all the disclosures required by the SEBI 1CDR regulations and disclosures as required by Accounting Standards as specified in the Companies f Accounting Standards) Rules. 2006 read with Rule 7(1) of the Companies (Accounts) Rules. 2014 issued by the Ministry of Corporate Affairs in respect of section 133 of the Companies Act. 2013 #nd Income Computation Disclosure Standards (ICDS) I to X issued by CBDT, wherever applicable, unless contrary to the requirement of Accounting Standards prescribed under section 133 of the Act.

III) The preparation and presentation of the Financial Statements referred to above are based on the Audited financial statements of the Company in accordance with the provisions of the Act and the Financial Information relerred to above is the responsibility of the management of the Company.

IV) In our opinion, the above financial information contained in Annexure I to Annexure 111 and Note I to 3 of this report read along with the Restated Statement of Significant Accounting Policies and related Notes as set out in Annexure IV are prepared after making adjustments and regrouping as considered appropriate and have been prepared in accordance with Section 26 of the Act, read with the applicable provisions within Rule - 4 to 6 of Companies (Prospectus and Allotment of Securities) Rules. 2014, as amended, the SEBI Regulations, The Revised Guidance Note on Reports in Company Prospectus and Guidance Note on Audit Reports/Cerlificales on Financial Information in Offer Documents issued by the Institute of Chartered Accountants of India ("ICAl") to the extent applicable, as amended from time to lime, and in terms of our engagement as agreed with you. We did not perform audit tests for the purpose of expressing an opinion on individual balances of account or summaries of selected transactions, and accordingly, wc express no such opinion thereon.

V) Consequently, the standalone financial information has been prepared after making such regroupings and retrospective adjustments as were, in our opinion, considered appropriate to comply with the same. As a result of these regroupings and adjustments, the amount reported in the standalone financial information may not necessarily be same as those appearing in the respective audited financial statements for the relevant years,

VI) The report should not in any way be construed as a re-issuance or re-drafting of any of die previous audit reports, nor should this have been constructed as a new opinion on any of the financial statements referred to herein.

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

VIII) Our report is intended solely for use of the management and for inclusion in the Offer Document in connection with the SME-IPO for the Proposed Issue of Equity Shares of the Company and our report should not be used referred to or adjusted for any other purpose without our written consent.

7. Auditors Responsibility:

Our responsibility is to express an opinion on these restated standalone financial statements hased on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit io obtain reasonable assurance about whether the standalone financial statements arc free from material misstatement,

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Companys preparation and fair presentation of the standalone financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion:

In our opinion and to the best of our information and according to the explanations given to us, the restated standalone financial statements read together with the notes thereon, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, to the extent applicable;

a) In the case of Restated Standalone Statement of Assets and Liabilities of the Company as at August 31, 2024; March 31,2024; March 31,2023, March 31,2022;

b) In the case of the Restated Standalone Statement of Profit and Loss of the Company for the period/Financial Years ended on August 31,2024; March 31, 2024; March 31,2023 and March 31,2022;

d) In the case of the Restated Cash Flow Statement of the Company for the period/Financial Years ended on August 31, 2024; March 31, 2024; March 31,2023 and March 31,2022;

9, Emphasis of Matter

We draw attention to Annexure U of the Restated Standalone financial statements, which describes the disclosure of related party transactions. As stated in the note, the amount paidto the directors for Imprest/expense and any unspent amounts relumed have not been disclosed considering non-beneficial. Our opinion is not modified in respect of this matter.