Storage Technologies & Automation Ltd Auditor Reports

SECTION IX: FINANCIAL INFORMATION OF THE COMPANY RESTATED FINANCIAL STATEMENTS

Independent Auditors Report on Restated Financial Information

To,

The Board of Directors

Storage Technologies And Automation Limited

(Formerly known as "Storage Technologies And Automation Private Limited")

No 10, Survey No 21/6A, 21/7A, 21/7B and 21/8 Singanayakanahalli, Yelahanka, Bangalore, Karnataka, India, 560064

1. We have examined the attached consolidated restated financial information of Storage Technologies AndAutomation Limited (Formerly known as "Storage Technologies And Automation Private Limited") (hereinafter referred to as "the Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group") comprising the restated consolidated statement of assetsand liabilities as at October 31, 2023 , March 31, 2023, 2022 and 2021, restated consolidated statement of profit and loss and restated consolidated cash flow statement for the financial period / year ended on October 31, 2023 , March 31, 2023, 2022 and 2021 and the summary statement of significant accountingpolicies and other explanatory information (collectively referred to as the "restated financial information" or "Restated Consolidated Financial Information") annexed to this report and initialed by us for identification purposes. These Restated Consolidated Financial Information have been preparedby the management of the Company and approved by the board of directors at their meeting in connectionwith the proposed Initial Public Offering on SME Platform ("IPO" or "SME IPO") of BSE Limited ("BSE") of the company.
2. These restated summary statements have been prepared in accordance with the requirements of:
1. Section 26 of Part – I of Chapter III of Companies Act, 2013 (the "Act") read with Companies (Prospectus and Allotment of Securities) Rules 2014;
2. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 ("ICDR Regulations") and related amendments / clarifications from time to timeissued 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 ("Guidance Note")
3. The Companys Board of Directors is responsible for the preparation of the Restated ConsolidatedFinancial Information for inclusion in the Draft Red Herring Prospectus/ Red Herring Prospectus

/Prospectus ("Offer Document") to be filed with Securities and Exchange Board of India ("SEBI"), BSEand Registrar of Companies (Bangalore) in connection with the proposed IPO. The Restated Consolidated Financial Information have been prepared by the management of the Company on the basisof preparation stated in Annexure IV to the Restated Consolidated Financial Information. The responsibility of the board of directors of the Company includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Consolidated 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.

4. We have examined such Restated Consolidated Financial Information taking into consideration:
1. The terms of reference and terms of our engagement letter requesting us to carry out the assignment,in connection with the proposed SME IPO;
2. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethicsissued by the ICAI;
3. Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Consolidated Financial Information;
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, theICDR Regulations and the Guidance Note in connection with the IPO.
5. The Restated Consolidated Financial Information of the Company have been compiled by the managementfrom consolidated audited financial statements for the period / year ended on October 31, 2023, March 31, 2023, 2022 and 2021.
6. Audit for the financial period ended on October 31, 2023 was conducted by us vide report 08.01.2024. Audit for the financial year ended March 31, 2023, 2022 and 2021 was conducted by B. Chinnappa vide their report dt. August 23, 2023, September 02, 2022 and November 13, 2021. There are no audit qualifications in the audit reports issued by previous auditors and which would require adjustments in the Restated Consolidated Financial Information of the Company. The financial report included for these yearsis based solely on the report submitted by him.
7. We did not audit the Financial Statements of the Subsidiaries for the period / year ended October 31,2023

, March 31, 2023, 2022, and 2021, whose share of total assets, total revenues, net cash inflows/(outflows)included in the Restated Consolidated Financial Statements for the relevant years is tabulated below whichhave been audited by other auditors and our opinion on the Restated Consolidated Financial Statements inso far as it related to amounts and disclosures included in respect of Subsidiaries is based on the report of such other auditors:

1. Glaukoustech Solutions Private Limited

(? in Lakhs)

Particulars	For the Period ended October 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021
Total Assets	197.40	134.56	17.00	20.8 9
Total Revenues	135.30	662.62	6.39	16.3 4
Net Cash Inflows/ (Outflows)	(45.72)	14.67	(19.67)	2.96

1. DI&P Services Private Limited

(? in Lakhs)

Particulars	For the Period ended October 31, 2023	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021
Total Assets	95.80	92.76	122.07	223.80
Total Revenues	15.16	268.19	783.54	198.31
Net Cash Inflows/ (Outflows)	1.98	11.33	58.92	16.17

1. Based on our examination and according to information and explanations given to us, we are of the opinion thatthe Restated Consolidated 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 ended on October 31, 2023,March 31, 2023, 2022 and 2021.
2. do not require any adjustment for modification as there is no modification in the underlying audit reports;
3. have no extra-ordinary items that need to be disclosed separately in the accounts and requiring adjustments.
4. have been prepared in accordance with the Act, ICDR Regulations and Guidance Note.

1. In accordance with the requirements of the Act including the rules made there under, ICDR Regulations,Guidance Note and engagement letter, we report that:
1. The "restated consolidated statement of asset and liabilities" of the Company as at October 31, 2023,March 31, 2023, 2022 and 2021 examined by us, as set out in Annexure I to this report read with significant accounting policies in Annexure IV has been arrived at after making such adjustments and regroupings to the audited financial statements of the Company, as in our opinion were appropriate and more fully described in notes to the restated summary statements to this report.
2. The "restated consolidated statement of profit and loss" of the Company for the financial year ended on at October 31,

2023 , March 31, 2023, 2022 and 2021 examined by us, as set out in Annexure II to this report read with significant accounting policies in Annexure IV has been arrived at after making such adjustments and regroupings to the audited financial statements of the Company, as in our opinion were appropriate and more fully described in notes to the restated summary statements to this report.

3. The "restated consolidated statement of cash flows" of the Company for the financial period/ year ended on at October 31, 2023, March 31, 2023, 2022 and 2021 examined by us, as set out in Annexure III to this report read with significant accounting policies in Annexure IV has been arrived at after making such adjustments and regroupings to the audited financial statements of the Company, as in our opinion were appropriate and more fully described in notes to restated summary statements to this report.
2. We have also examined the following other financial information relating to the Company prepared by themanagement and as approved by the board of directors of the Company and annexed to this report relatingto the Company for the financial year ended on at October 31, 2023, March 31, 2023, 2022 and 2021 proposed to be included in the Offer Document.

Annexure to Restated Consolidated Financial Information of the Company: -

1. Consolidated statement of assets and liabilities, as restated as appearing in ANNEXURE I;
2. Consolidated statement of profit and loss, as restated as appearing in ANNEXURE II;
3. Consolidated statement of cash flows as restated as appearing in ANNEXURE III;
4. Corporate Information, Significant accounting policies as restated and Notes to reconciliation of restatedprofits and net worth as appearing in ANNEXURE IV;
5. Details of share capital as restated as appearing in ANNEXURE V to this report;
6. Details of reserves and surplus as restated as appearing in ANNEXURE VI to this report;
7. Details of long-term borrowings as restated as appearing in ANNEXURE VII to this report;
8. Details of long-term provisions as restated as appearing in ANNEXURE VIII to this report;
9. Details of short-term borrowings as restated as appearing in ANNEXURE IX to this report;
10. Details of trade payables as restated as appearing in ANNEXURE X to this report;
11. Details of other current liabilities as restated as appearing in ANNEXURE XI to this report;
12. Details of short-term provisions as restated as appearing in ANNEXURE XII to this report;
13. Details of property, plant & equipment and intangible assets as appearing in ANNEXURE XIII to thisreport;
14. Details of deferred tax asset as restated as appearing in ANNEXURE XIV to this report;
15. Details of long-term loans and advances as restated as appearing in ANNEXURE XV to this report;
16. Details of other non-current assets as restated as appearing in ANNEXURE XVI to this report;
17. Details of inventories as restated as appearing in ANNEXURE XVII to this report;
18. Details of trade receivables as restated as appearing in ANNEXURE XVIII to this report;
19. Details of cash and bank balances as restated as appearing in ANNEXURE XIX to this report;
20. Details of short-term loans and advances as restated as appearing in ANNEXURE XX to this report;
21. Details of other current assets as restated as appearing in ANNEXURE XXI to this report;
22. Details of revenue from operations as restated as appearing in ANNEXURE XXII to this report;
23. Details of other income as restated as appearing in ANNEXURE XXIII Ito this report;
24. Details of cost of raw material consumed as restated as appearing in ANNEXURE XXIV Ito this report;
25. Details of direct expenses as restated as appearing in ANNEXURE XXV Ito this report;
26. Details of changes in inventories of work in Progress, finished goods and stock in trade as restatedas appearing in ANNEXURE XXVI to this report;
27. Details of employee benefit expenses as restated as appearing in ANNEXURE XXVII to this report;
28. Details of finance costs as restated as appearing in ANNEXURE XXVIII to this report;
29. Details of depreciation and amortization expense as restated as appearing in ANNEXURE XXIX tothis report;
30. Details of other expenses as restated as appearing in ANNEXURE XXX to this report;
31. Details of bifurcative other income as restated as appearing in ANNEXURE XXXI to this report;
32. Ageing of trade payables as restated as appearing in ANNEXURE XXXII Ito this report;
33. Ageing of trade receivables as restated as appearing in ANNEXURE XXXIII Ito this report;
34. Disclosure under AS-15 as restated as appearing in ANNEXURE XXXIV to this report;
35. Summary of significant accounting ratios as per ICDR as restated as appearing in ANNEXUREXXXV to this report;
36. Details of related party transactions as restated as appearing in ANNEXURE XXXVI to this report;
37. Statement of net assets and profit/(loss) attributable to owners and minority interest as restatedas appearing in

ANNEXURE XXXVII to this report;

38. Details of contingent liabilities and commitments as restated as appearing in ANNEXUREXXXVIII to this report;
39. Dues of small enterprises and micro enterprises as restated as appearing in ANNEXURE XXXIXto this report; XL.Additional Regulatory Information as per Para Y of Schedule III to Companies Act, 2013 as restated asappearing in

ANNEXURE XL to this report;

XLI. Capitalisation Statement as at March 31, 2023 as restated as appearing in ANNEXURE XL Ito thisreport;

1. 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.
2. We have no responsibility to update our report for events and circumstances occurring after the date of thereport.
3. Our report is intended solely for use of the board of directors for inclusion in the offer document to be filedwith SEBI, BSE and Registrar of Companies (Bangalore) in connection with the proposed SME IPO. Ourreport should not be used, referred to or distributed for any other purpose except with our prior consent inwriting. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose orto any other person to whom this report is shown or into whose hands it may come without our prior consentin writing.

For CGSS & Associates LLP Chartered Accountants

(Firms Registration No. – S200053)

Sd/-

B Chinnappa (Partner)

(M. No. 204458)

(UDIN –24204458BKFKCS2833)

Place: Bangalore Date: January 10, 2024