Sunlite Recycling Industries Ltd Auditor Reports

FINANCIAL INFORMATION OF THE COMPANY

We have examined the attached Restated Audited Financial Information of Sunlite Recycling Industries Limited (formerly known as Sunlite Alucop Private Limited) comprising the Restated Audited Statement of Assets and Liabilities as at 31^st December, 2023, 31^st March, 2023, 31^st March, 2022 and 31^st March, 2021, the Restated Audited Statement of Profit & Loss and the Restated Audited Cash Flow Statement for period ended on 31^st December, 2023 & for financial year ended on 31^st March, 2023, 31^st March, 2022 and 31^st March, 2021, the statement of Significant Accounting Policies and other explanatory Information (Collectively the Restated Financial Information) as approved by the Board of Directors in their meeting held on May 08, 2024 for the purpose of inclusion in the Draft Red Herring Prospectus/ Red Herring Prospectus/Prospectus("Offer Document") in connection with its proposed Initial Public Offering (IPO) of equity shares , prepared by the Company in connection with its Initial Public Offer of Equity Shares (IPO) and prepared in terms of the requirement of:

1. The Restated Financial Information or Restated Financial Statement have been made after incorporating adjustments for the changes in accounting policies retrospectively in respective financial period/years to reflect the same accounting treatment as per the changed accounting policy for all reporting periods, if any;
2. The Restated Financial Information or Restated Financial Statement have been made after incorporating adjustments for prior period and other material amounts in the respective financial years/period to which they relate and there are no qualifications which require adjustments;
3. Extra-ordinary items that needs to be disclosed separately in the accounts has been disclosed wherever required;
4. There are no qualifications in the Audit Reports issued by us for the period ended on 31st December, 2023 and no qualification is in the Audit Report issued by Gopal Shah & Co for financial year ended 31st March, 2023, as well as no qualifications in the Audit Reports issued by Rajmal Maliwal & Co., Chartered Accountants for the financial year ended on 31^st March, 2021, 31^st March, 2022 which would require adjustments in this Restated Financial Statements of the Company;
5. Profits and losses have 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 - D to this report;
6. Adjustments in Restated Financial Information or Restated Financial Statement have been made in accordance with the correct accounting policies;
7. There was no change in accounting policies, which needs to be adjusted in the Restated Financial Information or Restated Financial Statement;
8. The Company has valued its obligations related to Gratuity as per AS -15.
9. There are no revaluation reserves, which need to be disclosed separately in the Restated Financial Information or Restated Financial Statement;
10. The related party transaction for purchase & sales of Goods entered by the company are at arms length price;
11. The Company has not paid any dividend since its incorporation;

1. The "Restated Statement of Assets and Liabilities" as set out in ANNEXURE – A to this report, of the Company for the period ended on 31^st December, 2023, for financial year ended on 31^st March, 2023, 31^st March, 2022 and 31^st March, 2021 is prepared by the Company and approved by the Board of Directors. These Restated 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 and Notes to Accounts as set out in ANNEXURE – D to this Report.
2. The "Restated Statement of Profit and Loss" as set out in ANNEXURE – B to this report, for the period ended on 31^st December, 2023, for financial year ended on 31^st March, 2023, 31^st March, 2022 and 31^st March, 2021 is prepared by the Company and approved by the Board of Directors. These Restated 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 and Notes to Accounts as set out in ANNEXURE – D to this Report.
3. The "Restated Statement of Cash Flow" as set out in ANNEXURE – C to this report, the period ended on 31^st December, 2023, and for financial year ended on 31^st March, 2023, 31^st March, 2022 and 31^st March, 2021 is prepared by the Company and approved by the Board of Directors. These 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 Accounts as set out in ANNEXURE – D to this Report.

Audit for the period ended on 31st December, 2023 has conducted by us & Audit for the financial year ended on March 31, 2023 was conducted by Gopal Shah & Co; Chartered Accountants and Audit for the financial year ended on 31^st March, 2021, 31^st March, 2022 has conducted by Rajmal Maliwal & Co., Chartered Accountants and accordingly reliance has been placed on the financial statement examined by them for the said years. Financial Reports included for said years are solely based on report submitted by them.

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 period ended on 31st December, 2023, and for financial year ended on 31st March, 2023, 31st March, 2022 and 31st March, 2021 proposed to be included in the Draft Red Herring Prospectus /Red Herring Prospectus/ Prospectus for the proposed IPO.

Restated Statement of Share Capital & Reserves and Surplus	Annexure – A.1 Annexure – A.2
Restated Statement of Long Term Borrowing	Annexure – A.3
Restated Statement of Long Term Provision	Annexure – A.4
Restated Statement of Deferred Tax (Assets) / Liabilities	Annexure – A.11
Restated Statement of Short Term Borrowing	Annexure – A.5
Restated Statement of Trade Payables	Annexure – A.6
Restated Statement of Other Current Liabilities And Short Term Provisions	Annexure – A.7 & A.8
Restated Statement of Fixed Assets	Annexure – A.9
Restated Statement of Non-Current Investments	Annexure – A.10
Restated Statement of Long-term loans and advances	Annexure – A.12
Restated Statement of Other Non-Current Assets	Annexure – A.13
Restated Statement of Inventories	Annexure – A.14
Restated Statement of Trade Receivables	Annexure – A.15
Restated Statement of Cash & Cash Equivalents	Annexure – A.16
Restated Statement of Short Term Loans & Advances	Annexure – A.17
Restated Statement of Other Current Assets	Annexure – A.18
Restated Statement of Revenue from Operations	Annexure – B.1
Restated Statement of Other Income	Annexure – B.2
Restated Statement of Cost of Material Consumed And Purchase of Stock-in-Trade	Annexure – B.3 & B 3.1
Restated Statement of Changes in Inventory of Finished Goods, WIP & Packing material	Annexure – B.4
Restated Statement of Employee Benefit Expenses	Annexure – B.5
Restated Statement of Finance Cost	Annexure – B.6
Restated Statement of Depreciation & Amortisation	Annexure – B.7
Restated Statement of Other Expenses	Annexure – B.8

Restated Statement of Deferred Tax Asset / Liabilities	Annexure – B.9
Restated Statement of Cash Flows	Annexure – C
Significant Accounting Policy and Notes to The Restated financial Statements	Annexure – D
Statement of Material Adjustment To The Restated Financial Statement	Annexure – E
Restated Statement of Tax shelter	Annexure – F
Restated Statement of Capitalization	Annexure – G
Restated Statement of Contingent Liabilities	Annexure – H
Restated Statement of Mandatory Accounting Ratios	Annexure – I
Restated Statement of Related Party Transaction	Annexure – J
Restated Statement of Other Financial Ratio	Annexure-K

In our opinion and to the best of information and explanation provided to us, the Restated Financial Information of the Company, read with significant accounting policies and notes to accounts as appearing in ANNEXURE – D are prepared after providing appropriate adjustments and regroupings as considered appropriate.

We, Abhishek Kumar & Associates, Chartered Accountants have been subjected to the peer review process of the Institute of Chartered Accountants of India ("ICAI") and hold a valid peer review certificate issued by the "Peer Review Board" of the ICAI.

The preparation and presentation of the Financial Statements referred to above are based on the Audited financial statements of the Company and are in accordance with the provisions of the Act and ICDR Regulations. The Financial Statements and information referred to above is the responsibility of the management of the Company.

The report should not in any way be construed as a re-issuance or re-dating of any of the previous audit reports issued by any other Firm of Chartered Accountants nor should this report be construed as a new opinion on any of the financial statements referred to therein.

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

In our opinion, the above financial information contained in ANNEXURE – A to K of this report read with the respective Significant Accounting Polices and Notes to Accounts as set out in ANNEXURE – D are prepared after making adjustments and regrouping as considered appropriate and have been prepared in accordance with the Companies Act, SEBI ICDR Regulations, Engagement Letter and Guidance Note issued by ICAI.

Our report is intended solely for use of the management and for inclusion in the offer Document in connection with the Proposed SME IPO of Equity Shares of the Company and our report should not be used, referred to or distributed for any other purpose without our prior consent in writing.

For, Abhishek Kumar & Associates Chartered Accountants

FRN: 130052W

Peer Review Certificate No: 011266

Sd/-

CA Abhishek Agrawal Proprietor

M. No.: 132305

Place: Ahmedabad

Date: May 08, 2024

UDIN: 24132305BKEYWA6804