Kontor Space Ltd Auditor Reports

<dhhead>INDEPENDENT AUDITORS REPORT ON THE RESTATED FINANCIAL STATEMENTS </dhhead>

Auditor?s Report on the Restated Statement of Assets and Liabilities as on March 31, 2023, March 31, 2022 and March 31, 2021, Statement of Profit & Loss and Cash Flow for the financial years ending on March 31, 2023, 2022 and 2021 of KONTOR SPACE LIMITED.

To,

The Board of Directors,

 

KONTOR SPACE LIMITED Office No A1 & B1, 9^th Floor, Ashar IT Park, Road No 16 Z, Wagle Industrial Estate, Thane 400604

Dear Sirs,

1) We have examined the attached Restated Summary Statements and Other Financial Information of KONTOR SPACE LIMITED, for the financial year ended on March 31, 2023, 2022 and 2021 (collectively referred to as the "Restated Summary Statements" or "Restated Financial Statements") as duly approved by the Board of Directors of the Company.

2) The said Restated Financial Statements and other Financial Information have been examined and prepared for the purpose of inclusion in the Draft Prospectus (collectively hereinafter referred to as "Offer Document") in connection with the proposed Initial Public Offering (IPO) on SME Platform of NSE Limited ("NSE SME") of the company taking into consideration the followings and in accordance with the following requirements of:

Section 26 and 32 of Part I of Chapter III to the Companies Act, 2013 ("the Act") read with Companies

(Prospectus and Allotment of Securities) Rules 2014, as amended from time to time;

The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements

Regulations), 2018 (the ‘SEBI ICDR Regulations) as amended from time to time in pursuance of

Section 11 of the Securities and Exchange Board of India Act,1992;

The Guidance Note on Reports in Company Draft Prospectus / Prospectus (Revised) issued by the

Institute of Chartered Accountants of India ("ICAI") ("Guidance Note");

The applicable regulation of SEBI (ICDR) Regulations, 2018, as amended, and as per Schedule VI (Part A) (11) (II) of the said Regulations.

3) These Restated Financial Information (included in Annexure I to XXXV) have been extracted by the Management of the Company from:

The Company?s Financial Statements for the financial year ended March 31, 2023, 2022 and 2021 which have been approved by the Board of Directors at their meeting respectively and books of accounts underlying those financial statements and other records of the Company, to the extent considered necessary for the preparation of the Restated Financial Statements, are the responsibility of the Company?s Management. The

Financial Statement of the Company for the financial year ended on March 31, 2023 has been audited by us being the Statutory Auditors of the Company and from the financial year ended March 31, 2022 and 2021 has been audited by M/s. Vishwajeet Manish & Associates, Chartered Accountants and had issued unqualified reports for these years.

4) In accordance with the requirement of Section 26 and 32 of the Companies Act, 2013 read with Companies (Prospectus and Allotment of Securities) Rules 2014, the SEBI Regulations, the Guidance Note, as amended from time to time and in terms of our engagement agreed with you, we further report that:

(a) The Restated Statement of Assets and Liabilities for the financial year ended on March 31, 2023, 2022 and 2021 examined by us, as set out in Annexure I to this report, 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 of the financial statements, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to XXXV to this Report.

(b) The Restated Statement of Profit and Loss of the Company for the financial year ended on March 31, 2023, 2022 and 2021 examined by us, as set out in Annexure II to this report, 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 of the financial statements, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to XXXV to this Report.

(c) The Restated Statement of Cash Flows of the Company for the financial year ended on March 31, 2023, 2022 and 2021, examined by us, as set out in Annexure III to this report, is prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Cash Flows, have been arrived at after making such adjustments and regroupings of the financial statements, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to XXXV to this Report.

As a result of these adjustments, the amounts reporting in the above-mentioned statements are not necessarily the same as those appearing in the audited financial statements of the Company for the relevant financial years.

5) Based on the above, as per the reliance placed by us on the audited financial statements of the Company and report thereon given by the Statutory Auditor of the Company for the financial year ended on March 31, 2023, 2022 and 2021, and to the best of our information and according to the explanation given to us, we are of the opinion that Restated Financial Statement:

1. have been made after incorporating adjustments for the changes in accounting policies retrospectively in respective financial years to reflect the same accounting treatment as per the changed accounting policies for all the reporting periods based on the significant accounting policies adopted by the Company as at March 31, 2023.
2. have been made after incorporating adjustments for prior period and other material amounts, if any, in the respective financial years to which they relate to;
3. do not contain any extra ordinary items that need to be disclosed separately other than those presented in the Restated Financial Statement and do not contain any qualification requiring adjustments
4. There were no qualifications in the Audit Reports issued by the Statutory Auditors for the financial year ended March 31, 2023, 2022 and 2021 which would require adjustments in this Restated Financial Statements of the Company;
5. Restated Summary Statement of 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 IV to XXXV to this report;
6. Adjustments in Restated Summary Statements 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 Summary Statements;
8. There are no revaluation reserves, which need to be disclosed separately in the Restated Financial Statements;
9. The Company has paid dividend for the financial year ended on March 31, 2023, 2022 and 2021.

6) We have also examined the following other Restated Financial Information as set out in the respective Annexure?s to this report and forming part of the Restated Financial Statement, prepared by the management of the Company and approved by the Board of Directors of the company for the year ended on March 31, 2023, 2022 and 2021 proposed to be included in the Draft Red Hearing/Red Hearing/Prospectus ("Offer Document") for the proposed IPO.

1. Statement of Share Capital, as restated in Annexure V to this report.

2. Statement of Reserves & Surplus, as restated in Annexure VI to this report

3. Statement of Long-Term Borrowings, as restated in Annexure VII to this report.

4. Statement of Deferred Tax Liabilities, as restated in Annexure VIII to this report.

5. Statement of Long-Term Provisions, as restated in Annexure IX to this report

6. Statement of Short-Term Borrowing as restated in Annexure X to this report.

7. Statement of Trade Payables as restated in Annexure XI to this report.

8. Statement of Other Current Liabilities as restated in Annexure XII to this report.

9. Statement of Short-Term Provisions as restated in Annexure XIII to this report.

11. Statement of Plant, Property & Equipment and Intangible Assets, as restated in Annexure XIV to this report.

(i) Statement of Non-Current Assets as restated in Annexure XV to this report.

12. Statement of Trade Receivables as restated in Annexure XVI to this report.

13. Statement of Cash and Cash Equivalents as restated in Annexure XVII to this report. 14. Statement of Short-Term Loans and Advances as restated in Annexure XVIII to this report. 15. Statement of Other Current Assets as restated in Annexure XIX to this report.

16. Statement of Revenue from Operations as restated in Annexure XX to this report.

17. Statement of Other Income as restated in Annexure XXI to this report.

18. Statement of Employee Benefit Expenses as restated in Annexure XXII to this report.

19. Statement of Finance Cost as restated in Annexure XXIII to this report.

20. Statement of Depreciation & Amortization as restated in Annexure XXIV to this report.

21. Statement of Other Expenses as restated in Annexure XXV to this report.

22. Statement of Post Employment Benefits as restated in Annexure XXVI to this report

23. Statement of Provisions, Contingent Liabilities and Contingent Assets as restated in Annexure XXVII to this report.

24. Statement of Earnings Per Share (EPS) as restated in Annexure XXVIII to this report. 25. Statement of Related Party Transactions as restated in Annexure XXIX to this report. 26. Statement of Accounting Ratios in Annexure XXX to this report.

27. Statement of Tax Shelters as restated in Annexure XXXI to this report.

28. Statement of Reconciliation of Restated Profit after Tax, Restated Equity/Net worth, as restated in Annexure XXXII to this report.

29. Statement of Capitalization as restated in Annexure XXXIII to this report

30. Statement of Statement of Principal Terms of Loans and Asset charged as Security as restated in Annexure XXXIV to this report.

31. Statement of Other Financial Information as restated in Annexure XXXV to this report.

7) We, P.R. Agarwal & Awasthi, Chartered Accountants hold a valid peer review certificate issued by the "Peer Review Board" of the Institute of Chartered Accountants of India ("ICAI").

8) 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.

9) 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 an opinion on any of the Consolidated Financial Information referred to herein.

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 Restated Financial Statements contained in Annexure I to XXXV to this report read along with the ‘Significant Accounting Policies and Notes to the Financial Statements? appearing in

Annexure IV to XXXV after making adjustments and regrouping/reclassification as considered appropriate and have been prepared in accordance with the provisions of Section 26 and 32 of the Companies Act, 2013 read with the Companies (Prospectus and Allotment of Securities) Rules 2014, to the extent applicable, the SEBI Regulations, the Guidance Note issued in this regard by the ICAI, as amended from time to time, and in terms of our engagement agreed with you.

12) Our report is intended solely for use of the Management and for inclusion in the offer documents in connection with the proposed SME IPO of equity shares of the Company and is not to be used, referred to or distributed for any other purpose except with our prior written consent.

For P.R.Agarwal & Awasthi,

Chartered Accountants

Firm Registration No.: 117940W

CA Pawan Agarwal

Membership No. 034147

Partner

UDIN: 23034147BGXICG5697

Place: Mumbai

Date: August 05, 2023