EP Biocomposites Ltd Auditor Reports

To,

The Board of Directors,

EP Biocomposites Limited

D2/12, Bicholim Industrial Estate,

Bicholim, Goa- 403529

Dear Sir/Ma’am,

1. We have examined the attached Restated Financial Statement along with the Significant Accounting Policies and related notes of EP Biocomposites Limited (the Company) as at and for the period ended on March 31, 2022, March 31, 2021 and March 31, 2020 annexed to this report and prepared by the Company for the purpose of inclusion in the Draft Prospectus / Prospectus (being collectively referred as "Offer Document") in connection with its proposed Initial Public Offer ("IPO") on the SME Platform of the BSE Limited ("BSE").

2. The said Restated Financial Statements and other Financial Information have been prepared in accordance with the requirements of:

i) Section 26 of Part I of Chapter III to the Companies Act, 2013("the Act") read with Companies (Prospectus and Allotment of Securities) Rules 2014;

ii) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 ("ICDR Regulations") issued by the Securities and Exchange Board of India ("SEBI") in pursuance to Section 11 of the Securities and Exchange Board of India Act, 1992 and related amendments / clarifications from time to time;

iii) The tenns of reference to our engagements with the Company requesting us to carry out the assignment, in connection with the Offer Document being issued by the Company for its proposed IPO of equity shares on SME Platform of the BSE Limited ("BSE"); and

iv) The Guidance Note on Reports in Company Prospectus (Revised 2019) issued by the Institute of Chartered Accountants of India ("Guidance Note").

3. We have examined the accompanied ‘Restated Statement of Profit and Loss’ (Annexure - II) for the financial years ended on March 31, 2022, March 31, 2021 and March 31 2020 and the ‘Restated Statement of Assets and Liabilities ‘ (Annexure-I) as on above dates, forming Part of the ‘Financial Information’ dealt with by this Report, detailed below. Both read together with the Significant Accounting Policies and Notes to Accounts (Annexure - IV & V) thereon, which are the responsibility of the Company’s management. The information has been extracted from the financial statements for the financial years ended on March 31, 2022, March 31, 2021 and March 31, 2020. The Financial Statements for the financial year ended on March 31, 2022 is audited by us, M/s. S.P. Bhandare & Associates, Chartered Accountant, being the Statutory Auditor of the Company for the respective period, which are all approved by the Board of Directors as on that date and upon which we have placed our reliance while reporting. The Financial Statements for the year ended March 31, 2021 and 2020 was audited by Gupta Agarwal & Associates, Chartered Accountants, being the then Statutory Auditor of the Company, which are all approved by the Board of Directors as on that date and upon which we have placed our reliance while reporting.

4. In tenns of Schedule VI (Part A) (11) (II) (i) of the SEBI (ICDR) Regulations, 2018 and other provisions relating to accounts of EP Biocomposites Limited, we, M/s. S.P. Bhandare & Associates., Chartered Accountants, have been subjected to the peer review process of the Institute of Chartered Accountants of India (ICAI) and hold a valid certificate issued by the Peer Review Board of the ICAI.

5. Based on our examination, we further report that:

a. The "Restated Summary Statement of Assets and Liabilities" as set out in Annexure I to this report, of the Company as at March 31, 2022, March 31, 2021 and March 31, 2020 is prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Assets and Liabilities, have been arrived at after making such adjustments and regroupings to the 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 IV & V to this Report.

b. The "Restated Summary Statement of Profit and Loss" as set out in Annexure II to this report, of the Company for the financial years ended on March 31, 2022, March 31, 2021 and March 31, 2020 is prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Profit and Loss have been arrived at after making such adjustments and regroupings to the 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 IV & V to this Report.

c. The "Restated Summary Statement of Cash Flow" as set out in Annexure III to this report, of the Company for the financial years ended on March 31, 2022, March 31, 2021 and March 31, 2020 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 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 IV & V to this Report.

d. The Restated Financial Statements have been made after incorporating adjustments for:

i. The changes, if any, in accounting policies retrospectively in respective financial years to reflect the same accounting treatment as per the changed accounting policy for all the reporting period /years.

ii. Prior period and other material amount in the respective financial years to which they relate.

iii. Extra-ordinary items that need to be disclosed separately in the accounts requiring adjustments. which are stated in the Notes to Accounts as set out in Annexure V:

e. There were no qualifications in the Audit Reports issued by Statutory Auditor(s) for the financial years ended on March 31, 2022, March 31, 2021 and March 31, 2020 which would require adjustments in this Restated Financial Statements of the Company.

6. At the request of the company, we have also examined the following financial information ("Other Financial Information") proposed to be included in the offer document prepared by the management and approved by the board of directors of the company and annexed to this report:

Annexure of Restated Financial Statements of the Company:-

i. Statement of Share Capital, as restated (Annexure - VI)

ii. Statement of Reserves & Surplus, as restated (Annexure - VII)

iii. Statement of Long Term Borrowings, as restated (Annexure- VIII)

iv. Statement of Short Term Borrowings, as restated (Annexure- IX)

v. Statement of Trade Payables, as restated (Annexure- X)

vi. Statement of Other Current Liabilities, as restated (Annexure- XI)

vii. Statement of Short Term Provisions, as restated (Annexure- XII)

viii. Statement of Fixed Assets, as restated (Annexure- XIII)

ix. Statement of Other Non-Current Assets, as restated (Annexure- XIV)

x. Statement of Inventories, as restated (Annexure- XV)

xi. Statement of Trade Receivables, as restated (Annexure - XVI)

xii. Statement of Cash and Bank Balances, as restated (Annexure - XVII)

xiii. Statement of Short Term Loans and advances, as restated (Annexure- XVIII)

xiv. Statement of Other Current Assets, as restated (Annexure - XIX)

xv. Statement of Revenue from Operations, as restated (Annexure - XX)

xvi. Statement of Other Income, as restated (Annexure - XXI)

xvii. Statement of Statement Of Raw Materials Consumed, as restated (Annexure - XXII)

xviii. Statement of Changes In Inventories, as restated (Annexure - XXIII)

xix. Statement of Employee Benefit Expenses, as restated (Annexure - XXIV)

xx. Statement of Financial Cost, as restated (Annexure - XXV)

xxi. Statement of Depreciation And Amortization, as restated (Annexure - XXVI)

xxii. Statement of Contingent Liabilities, as restated (Annexure XXVII)

xxiii. Statement of Dividend Declared, as restated (Annexure XXVIII)

xxiv. Statement of Related Party Transactions, as restated (Annexure - XXIX)

xxv. Statement of Tax Shelter, as restated (Annexure - XXX)

xxvi. Statement of Capitalization, as restated ( Annexure - XXXI)

7. In our opinion, the Restated Financial Statements and the other Financial Information set forth in Annexure I to XXXI read with the significant accounting policies and notes to the restated financial statements have been prepared in accordance with section 26 of Companies Act, 2013 and the SEBI Regulations and the Guidance Note on the reports in Company Prospectus (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI).

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

8. 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 any other Finn of Chartered Accountants nor should this report be construed as a new opinion on any of the financial statements referred to therein.

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

10. This report is intended solely for your infonnation and for inclusion in the Offer document in connection with the Companys proposed IPO of equity shares and is not to be used, referred to or distributed for any other purpose without our prior written consent.

For M/s. S.P. Bhandare & Associates,

Chartered Accountants

FRN: 101157W

S. P. Bhandare

Proprietor

Membership No: 035615

Place: Goa

Date: 06* June, 2022

UDIN: 22035615AKTDYN4O30

Email: sandip.bhandare@gmail.com