Digikore Studios Ltd Auditor Reports

ON EXAMINATION OF RESTATED STANDALONE FINANCIAL INFORMTATION

(Formerly known as Digikore Studios Private Limited),

C/o Poona Bottling Co. Pvt. Ltd., 410/1, 411/2, Mumbai Pune Road Dapodi, Pune, Maharashtra- 411012

1. We have examined the attached restated standalone financial information of Digikore Studios Limited (Formerly known as Digikore Studios Private Limited) (hereinafter referred to as "the Company") comprising the restated statement of standalone assets and liabilities for June 30, 2023 and as at 31 March, 2023, 31 March 2022 & 31 March 2021 the restated statement of standalone profit &loss and the restated standalone cash flow statement for the period ended June 30, 2023 and on 31 March, 2023, 31 March 2022 & 31 March 2021, the standalone summary statement of significant accounting policies and other explanatory information (collectively the "restated standalone financial information"), as approved by the Board of Directors in their meeting held on 21 August 2023 and for the June 30, 2023 approved on 23 August, 2023 for the purpose of inclusion in the Draft Offer Document/Offer Document prepared by the Company in connection with its proposed initial public offer of equity shares ("IPO") on the SME platform of Stock Exchange. These restated summary statements have been prepared in accordance with the requirements of:
1. Section 26 of Part I of Chapter III of the Companies Act, 2013 as amended (the "Act");
2. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 ("ICDR Regulations") as amended (ICDR Regulations"); and related amendments / clarifications from time to time issued by the Securities and Exchange Board of India ("SEBI");
3. The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India as amended from time to time. ("The Guidance Note").
2. The Companys Board of Directors is responsible for the preparation of the restated standalone financial information for the purpose of inclusion in the Draft Offer Document/Offer Document ("Offer Document") to be filed with the Securities and Exchange Board of India, Stock Exchanges, and Registrar of Companies, Pune, in connection with the proposed IPO. The restated standalone financial information have been prepared by the management of the Company for the period ended June 30, 2023 and on 31 March, 2023, 31 March 2022 & 31 March 2021 on the basis of preparation stated in note 2 to the restated standalone financial information. The Board of Directors of the companys 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 identifying and ensuring that the company complies with the Act, ICDR Regulations and the Guidance Note.
3. We have examined such restated standalone financial information taking into consideration:
1. The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated 29 June2023 in connection with the proposed IPO of equity shares of the Company.
2. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
3. Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the restated standalone financial information; and,
4. The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO.
4. These restated standalone financial information have been compiled by the management from:
1. Audited standalone financial statements of the company for June 30, 2023 and as at and for the period ended on 31 March 2023, 31 March 2022 & 31 March 2021 (i.e. audited standalone for the period ended on 31 March 2021) prepared in accordance with the Accounting Standards as prescribed under Section 133 of the Act ("Indian GAAP"), read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended, and other accounting principles generally accepted in India which was approved by the Board of Directors at their meetings for respective years.
5. As indicated in our audit reports referred to above for the purpose of our examination, we have relied on:
1. Auditors report issued by the statutory auditor i.e. M/s. Palnitkar Patwardhan LLP, Chartered Accountant for the period ended 31 March 2023, 31 March 2022 & 31 March 2021 (i.e. audited standalone for the period ended on 31 March 2021). The audit were conducted by M/s. Palnitkar Patwardhan LLP, Chartered Accountant and accordingly reliance has been placed on the standalone audited financial statement examined by them for the said years. Financial reports included for the said years are solely based on reports submitted by them.
6. Based on our examination and according to the information and explanations given to us, we are of the opinion that the restated standalone financial information:
1. have been prepared after incorporating adjustments for the changes in accounting policies, material errors, and regrouping/reclassifications retrospectively in the financial period/year on June 30, 2023 and year ended ended on 31 March 2023, 31 March 2022, and 31 March 2021.
2. do not require any adjustment for modification as there is no modification in the underlying audit reports.
3. the preparation and presentation of the standalone financial information referred to above are based on the audited financial statements of the Company and are in accordance with the provisions of the Act, ICDR Regulations, and Guidance Note. The financial statements and information referred to above are the responsibility of the management of the Company.
7. The restated standalone financial information do not reflect the effects of events that occurred subsequent to the respective dates of the reports on the special purpose standalone IGAAP financial information and audited standalone financial information mentioned in paragraph [4] above.
8. In accordance with the requirements of Part I of Chapter III of the Act including rules made there under, ICDR Regulations, Guidance Note, and Engagement Letter, we report that:
1. The "restated statement of standalone assets and liabilities" as set out in the restated statement of assets and liabilities report, of the Company for the period ended June 30, 2023 and financial year on 31 March, 2023, 31 March 2022 and 31 March 2021 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 to the individual financial statements of the Company, as in our opinion were appropriate and more appropriately described in significant accounting policies and notes to accounts as set out in note2 to this report.
2. The "restated statement of standalone profit and loss" as set out in the restated statement of profit and loss report, of the Company for the period ended on June 30, 2023 and financial year ended 31 March, 2023, 31 March 2022 and 31 March 2021, 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 to the individual financial statements of the Company, as in our opinion was appropriate and appropriately described in significant accounting policies and notes to accounts as set out in note2 to this Report.

3. The "restated standalone statement of cash flow" as set out in the restated statement of cash flow report, of the Company for the period ended on June 30, 2023 and Financial year ended 31 March, 2023, 31 March 2022 and 31 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 appropriately described in Significant Accounting Policies and Notes to Accounts as set out in Note2 to this Report.
9. We, M/s. Sharad Shah & Co., 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 as required by the ICDR Regulations in relation to the proposed IPO.
10. We have no responsibility to update our report for events and circumstances occurring after the date of the report.
11. In our opinion, the above financial information contained in note 1 to note 38 of this report read with the respective significant accounting policies and notes to accounts as set out in Note 2 are prepared after adjusting and regrouping as considered appropriate and have been prepared in accordance with the Companies Act, ICDR Regulations, Engagement Letter and Guidance Note.
12. 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 June 30, 2023 and financial year ended on 31 March, 2023, 31 March 2022 and 31 March 2021 proposed to be included in the Draft Offer Document/Offer Document for the proposed IPO.

Note 1	Corporate Information
Note 2	Statement Of Significant Accounting Policies and Notes To The Restated Financial Information
Note 3	Restated Statement of Share Capital
Note 4	Restated Statement of Reserves & Surplus
Note 5	Restated Statement of Long-Term Borrowings
Note 6	Restated Statement of Long-Term Provisions
Note 7	Restated Statement of Short-Term Borrowings
Note 8	Restated Statement of Other Current Liabilities
Note 9	Restated Statement of Short-Term Provisions
Note 10	Restated Statement of Property,Plant and Equipment
Note 11	Restated Statement of Intangible Assets
Note 12	Restated Statement of Capital Work-In-Progress
Note 13	Restated Statement of Non-Current Investments
Note 14	Restated Statement of Deferred Tax Asset (Net)
Note 15	Restated Statement of Long term Loans and Advances
Note 16	Restated Statement of Other Non-Current Assets
Note 17	Restated Statement of Trade Receivables (Current)
Note 18	Restated Statement of Cash and Bank Balances (Current)
Note 19	Restated Statement of Short term Loans and Advances
Note 20	Restated Statement of Other Current Assets
Note 21	Restated Statement of Revenue from Operations
Note 22	Restated Statement of Other Income
Note 23	Restated Statement of Employee Benefit Expenses
Note 24	Restated Statement of Finance Costs
Note 25	Restated Statement of Depreciation And Amortization Expense
Note 26	Restated Statement of Other Expenses
Note 27	Restated Statement Earnings Per Share (EPS)
Note 28	Restated Statement of Gratuity
Note 29	Restated Statement of Leases
Note 30	Restated Segment Information
Note 31	Restated Statement of Related Party Transactions
Note 32	Restated Statement of Contingent Liabilities
Note 33	Restated Statement of Details of dues to micro and small enterprises as defined under the MSMED Act, 2006
Note 34	Restated Statement of Earnings in Foreign Currency (accrual basis)
Note 37	Restated Statement of Ratio Analysis and Its Elements
Note 38	Restated Statement of Accounting and Other Ratios

13. 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 a new opinion on any of the financial statements referred to therein.
14. We have no responsibility to update our report for events and circumstances occurring after the date of the report.
15. Our report is intended solely for use of the Board of Directors for inclusion in the Draft Offer Document/Offer Document to be filed with Securities and Exchange Board of India, stock exchange and Registrar of Companies, Pune in connection with the proposed IPO. Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.

For Sharad Shah & Co. Chartered Accountants

Firm Registration No.: 109931W

Sunil S Kadam

Partner

Membership No: 042756

UDIN: 23042756BGVUYH2359

Date: 21 August 2023 Place: Pune