Indian Emulsifiers Ltd Auditor Reports

RESTATED FINANCIAL STATEMENTS AUDITORS REPORT

To,

The Board of Directors

INDIAN EMULSIFIERS LIMITED

Shop 206, Foor-2, Sumer Kendra, Shivram Seth Amrutwar Road Near Doordarshan Kendra, Off Pandurang Budhwar Marg, Worli, Mumbai 400 018, Maharashtra, India,

Dear Sirs/Madam,

1. Report on Restated Financial Statements:

We have examined the Restated Financial Statements of M/s. INDIAN EMULSIFIERS LIMITED (herein after referred 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 Rule - 4 to 6 of Companies (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”) (“SEBI ICDR Regulations”) issued by the Securities and Exchange Board of India (SEBI) and amendments made thereto from time to time;

c. The terms of reference to our engagements with the Company requesting us to examine 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 NSE (“IPO” or “SME IPO”);

d. The (Revised) Guidance Note on Reports in Company Prospectus issued by the Institute of Chartered Accountants of India (“ICAI”); and

e. In terms of Schedule VIII of the SEBI (ICDR) Regulations, 2018 and other provisions relating to accounts, we, M/s Dave & Dave, 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.

2. The Restated Summary Statements and Financial information of the Company have been extracted/ prepared by the management from the Audited Financial Statements of the Company for the period ended December 31, 2023 & financial years ended on March 31, 2023, March 31, 2022 & March 31, 2021 which have been approved by the Board of Directors.

3. Financial Statements for the period ended December 31, 2023 have been audited by us Dave & Dave and financial year ended March 31, 2023, for the year ended March 31, 2022 and for the year ended March 31, 2021 have been audited by M/s R Trivedi & Associates, reliance has been placed on the financial information examined by them for the said year. The Financial Report included for that year is based solely on the report submitted by them.

4. Financial Information as per Audited Financial Statements:

1) We have examined:

> The attached Restated Statement of Assets and Liabilities of the Company as at December 31, 2023, March 31, 2023, March 31, 2022 and March 31, 2021 (Annexure I);

> The attached Restated Statement of Profit and Losses of the Company for the period ended on December 31, 2023 & financial year ended on March 31, 2023, March 31, 2022 and March 31, 2021 (Annexure II);

> The attached Restated Statement of Cash Flows of the Company for the period ended on December 31, 2023 & financial year ended on ended on March 31, 2023, March 31, 2022 and March 31, 2021 (Annexure III);

> The Significant Accounting Policies adopted by the Company and notes to the Restated Financial Statements along with adjustments on account of audit qualifications / adjustments / regroupings. (Annexure IV);

(Collectively hereinafter referred as “Restated Financial Statements” or “Restated Summary Statements”)

2) In accordance with the requirements of sub-clauses (i) and (iii) of clause (b) of sub-section (1) of section 26 of the Companies Act, 2013 read with Rule 4 of Companies (Prospectus and Allotment of Securities) Rules, 2014, the SEBI Regulations, the Revised Guidance Note on Reports in Company Prospectus and Guidance Note on Audit Reports/Certificates on Financial Information in Offer 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 Statement of Assets and Liabilities” as set out in Annexure I to this report, of the Company for the period ended on December 31, 2023 & financial years ended on March 31, 2023, March 31, 2022 and March 31, 2021 are prepared by the Company and approved by the Board of Directors. This 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 Accounting Policies and Notes to the Restated Summary Statements as set out in Annexure IV to this Report.

b) The “Restated Statement of Profit and Loss” as set out in Annexure II to this report, of the Company for the period ended on December 31, 2023 & financial years ended on March 31, 2023, March 31, 2022 and March 31, 2021 are prepared by the Company and approved by the Board of Directors. This 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 set out in Annexure IV to this Report.

c) The “Restated Statement of Cash Flow” as set out in Annexure III to this report, of the Company for the period ended on December 31, 2023 & financial years ended on March 31, 2023, March 31, 2022 and March 31, 2021 are prepared by the Company and approved by the Board of Directors. This 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 to 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 ended on December 31, 2023 & financial year ended on March 31, 2023, March 31, 2022 and March 31, 2021, we are of the opinion that “Restated 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 Profit & Loss Statement of that need to be disclosed separately in the Restated Summary Statements.

i. There were no qualifications in the Audit Reports issued by the statutory auditors for the financial period/year ended on December 31,2023, March 31 ,2023, March 31,2022 and March 31,2021, which would require adjustments in this Restated Financial Statements of the Company.

ii. 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 to the Restated Summary Statements as set out in Annexure IV to this Report.

iii. There are no revaluation reserves, which need to be disclosed separately in the “Restated Financial Statements”.

iv. The Company has not paid any dividend on its equity shares during the period ended December 31, 2023 & financial year ended March 31, 2023, March 31, 2022 and March 31, 2021.

5. Other Financial Information:

We have also examined the following financial information as set out in annexure prepared by the Management and as approved by the Board of Directors of the Company for the period ended on December 31, 2023 & financial years ended on March 31, 2023, March 31, 2022 and March 31, 2021.

Restated Statement of Property Plant and Equipment	Annexure A
Restated Statement of Investments	Annexure B
Restated Statement of Non-current other Financial Assets	Annexure C
Restated Statement of Inventories	Annexure D
Restated Statement of Trade receivables	Annexure E
Restated Statement of Cash and cash equivalents	Annexure F
Restated Statement of Current other Financial Assets	Annexure G
Restated Statement of Other Current Assets	Annexure H
Restated Statement of Equity Share Capital & Other Equity	Annexure I
Restated Statement of Non-current Borrowings	Annexure J
Restated Statement of Deferred tax Liabilities	Annexure K
Restated Statement of Current Borrowings	Annexure L
Restated Statement of Trade Payable	Annexure M
Restated Statement of Other current financial Liabilities	Annexure N
Restated Statement of Current Liabilities	Annexure O
Restated Statement of Provisions	Annexure P
Restated Statement of Revenue from operations	Annexure Q
Restated Statement of Other Income	Annexure R
Restated Statement of Cost of Material Consumed	Annexure S
Restated Statement of Change in Inventories	Annexure T
Restated Statement of Employee Benefit Expense	Annexure U
Restated Statement of Other Expenses	Annexure V
Restated Statement of Accounting Ratios	Annexure W
Restated Statement of Capitalization	Annexure X
Restated Statement of Related Party Transactions	Annexure Y
Restated Statement of Tax Shelters	Annexure Z

6. Auditors Responsibility:

Our responsibility is to express an opinion on these restated financial statements based 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 to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 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 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.

7. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the restated 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 Statement of Assets and Liabilities of the Company as at December 31, 2023, March 31, 2023, March 31, 2022 and March 31, 2021;

b. In the case of the Restated Statement of Profit and Loss of the Company for the period ended on December 31, 2023 & Financial Years ended on March 31, 2023, March 31, 2022 and March 31, 2021;

c. In the case of the Restated Cash Flow Statement of the Company for the period ended on December 31, 2023 & Financial Years ended on March 31, 2023, March 31, 2022 and March 31, 2021.

For M/s. Dave & Dave Chartered Accountants Firms Registration No: 102163W

Sd/-

CA Lilashankar Dave Partner

Membership No. 042889 Place: Mumbai Date: February 09, 2024 UDIN: 24042889BKEMYX7445