ಅಡಿಟರ್ಸ್ ರಿಪೋರ್ಟ್Shree Refrigerations Ltd.

We have audited the Standalone financial statements
of Shree Refrigerations Limited ("the Company"), which
comprise the balance sheet as at 31^st March, 2026, and the
statement of profit and loss, and statement of cash flows for
the year then ended, and notes to the financial statements,
including a summary of significant accounting policies and
other explanatory information.

In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Standalone
financial statements give the information required by the
Companies Act, 2013 (‘Act'') in the manner so required and
give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs
of the Company as at 31^st March, 2026, its profit (or Loss) and
cash flows for the year ended on that date.

Basis For Opinion

We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under section 143(10) of
the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor''s
Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial
statements under the provisions of the Companies Act,
2013 and the Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.

Emphasis Of Matter

We draw attention to Note 1, Note 3 and Note 30 to the
Standalone Financial Statements, which describe the listing
of the Company on the SME Platform of BSE Limited on 1^st
August 2025 pursuant to an Initial Public Offer (IPO), the
consequent changes in the share capital structure of the
Company and utilisation of IPO proceeds towards the objects
of the issue. Our opinion is not modified in respect of this
matter.

Key Audit Matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements of the current period. These
matters were addressed in the context of our audit of the
standalone financial statements, and in forming our opinion
thereon, and we do not provide a separate opinion on these
matters.

Key Audit Matters

1. Valuation Of Inventory

Inventory forms a significant part of the assets, amounting
to Rs.5,477.04 lacs as of 31^st March, 2026 represent
18.26% of total assets.

Inventory is made up of raw materials, spares and semi¬
finished goods. It essentially includes steel, pumps,
spares and is managed internally at warehouse.

Inventories are measured at the lower of cost and net
realizable value.

We focused on this area because of its size, project-based
inventory holding and complexity in valuation of semi¬
finished products, which are relevant for ascertaining the
value as of reporting date.

The company has maintained the stock records in ERP
system where recording of stock from material inward to
dispatch of goods is structured in the ERP system and is
recorded on real time basis. Process owners were given
responsibility to update stock records in the inventory
module. Thus, accuracy in recording of stock movement
is key to ensure correct reporting of inventory.

Valuation of inventory is a key audit matter as the
amount involved is significant and complexity related to
adherence to procedures by each process owners

How Our Audit Addressed The Key Audit Matter

Our audit procedures included the following:

• Obtained an understanding from the management,
assessed and tested the design and operating
effectiveness of the Company''s key controls over the
inventory movement and rate applied for valuation of
inventory.

• Evaluated the company''s process regarding valuation
of inventory

• Physical verification of A-Class and B-Class inventory
vis-a-vis records maintained by the company

• Evaluated the adequacy of the disclosures made in
the Standalone Financial Statements based on the
above procedures performed, we did not identify
any significant exceptions in the management''s
assessment in relation to valuation of inventory.

Based on the above procedures performed, we did not
identify any significant exceptions in the management''s
assessment in relation to valuation of inventory.

2. Accuracy and completeness of disclosure of
related party transactions and compliance
with the provisions of Companies Act 2013
and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended
(‘SEBI (LODR) 2015’) (as described in note 35 of
the standalone financial statements)

We identified the accuracy and completeness of
disclosure of related party transactions as set out in
respective notes to the standalone financial statements
as a key audit matter due to:

• The significance of transactions with related parties
during the year ended March 31^st, 2026

• Related party transactions are subject to the compliance
requirement under the Companies Act 2013 and SEBI
(LODR) 2015.

How Our Audit Addressed The Key Audit Matter

Our audit procedures in relation to the disclosure of
related party transactions included the following:

• We obtained an understanding of the company’s
policies and procedures in respect of the capturing
of related party transactions and how management
ensures all transactions and balances with related
parties have been disclosed in the standalone financial
statements.

• We obtained an understanding of the company’s
policies and procedures in respect of evaluating
arms-length pricing and approval process by the audit
committee and the board of directors.

• We agreed the amounts disclosed with underlying
documentation and read relevant agreements,
evaluation of arms-length by management, on a sample
basis, as part of our evaluation of the disclosure.

• We assessed management evaluation of compliance
with the provisions of Section 177 and Section 188 of
the companies Act 2013 and SEBI (LODR) 2015.

• We evaluated the disclosures through reading of
statutory information, books and records and other
documents obtained during the course of our audit.

Information Other Than The Financial Statements And
Auditors'' Report Thereon

The Company’s board of directors is responsible for the
preparation of the other information. The other information
comprises the information included in the Board’s
Report including Annexures to Board’s Report, Business
Responsibility Report but does not include the financial
statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover
the other information and we do not express any form of
assurance conclusion thereon.

In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the Standalone financial statements or
our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that
there is a material misstatement of this other information;
we are required to report that fact. We have nothing to report
in this regard.

Management''s Responsibility For The Financial
Statements

The Company’s board of directors are responsible for the
matters stated in section 134 (5) of the Act with respect to
the preparation of these financial statements that give a true
and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including
the accounting standards specified under section 133 of
the Act. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the financial statement
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the financial statements, management is
responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.

The board of directors are also responsible for overseeing the
Company''s financial reporting process.

Auditor''s Responsibilities For The Audit Of The
Financial Statements

Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional scepticism
throughout the audit. We also:

• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company has
adequate internal financial controls system in place and
the operating effectiveness of such controls

• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management''s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as
a going concern.

• If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor''s report to the
related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up
to the date of our auditor''s report. However, future events
or conditions may cause the Company to cease to continue
as a going concern.

• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.

• We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.

We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards. From the matters
communicated with those charged with governance, we
determine those matters that were of most significance in the
audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters
in our auditor''s report unless law or regulation precludes
public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should
not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.

Report On Other Legal And Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order,
2020 (‘the order'') issued by the Central Government of
India in terms of sub-section (11) of section 143 of the
Act, we give in the "Annexure - A", a statement on the
matters specified in the paragraph 3 and 4 of the order.

2. As required by Section 143(3) of the companies Act
2013, we report that:

a. We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purpose of our audit

b. In our opinion proper books of accounts as required
by law have been kept by the Company so far as it
appears from our examination of those books;

c. The Balance Sheet and Statement of Profit and
Loss dealt with by this report are in agreement with
the books of accounts

d. In our opinion, the Balance Sheet and Statements
of Profit and Loss comply with the Accounting
Standards specified under section 133 of the
Companies Act 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014.and

e. On the basis of written representations received
from directors as on 31^st March, 2026 taken on
record by the Board of Directors, none of the
directors are disqualified as on 31st March, 2026
from being appointed as director in terms of
section 164 (2) of the Companies Act 2013

f. With respect to the adequacy of the internal
financial controls over financial reporting of the
Company and the operating effectiveness of such
controls, refer to our separate report in "Annexure
- B"; and

g. With respect to the other matters to be included in
the Auditor''s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us:

3. The Company does not have any pending litigations
which would impact its financial position;

4. The Company does not have any long-term contracts
including derivative contracts; as such the question
of commenting on any material foreseeable losses
thereon does not arise;

5. There has not been an occasion in case of the Company
during the year under report to transfer any sums to the
Investor Education and Protection Fund. The question
of delay in transferring such sums does not arise.

For SSSS & Associates

Chartered Accountants
FRN 121769W

Shirish N Godbole

Partner

Place: Karad M No. 038716

Date: 25-05-2026 UDIN: 26038716UFJXYM3125

To the Members of Shree Refrigerations Limited,

Report on the Audit of the Standalone Financial Statements:

Opinion

We have audited the Standalone financial statements of Shree Refrigerations Limited (“the Company”), which comprise the balance sheet as at 31^st March, 2025, and the statement of profit and loss, and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone financial statements give the information required by the Companies Act, 2013 (the ‘Act’) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2025, its profit (or Loss) and cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Information other than the financial statements and auditors’ report thereon.

The Company’s board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Board’s Report including Annexures to Board’s Report, Business Responsibility Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

Management’s responsibility for the financial statements

The Company’s board of directors are responsible for the matters stated in section 134 (5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The board of directors are also responsible for overseeing the Company’s financial reporting process.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern.

• If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (‘the order’) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure - A”, a statement on the matters specified in the paragraph 3 and 4 of the order;

2. As required by Section 143(3) of the companies Act 2013, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet and Statement of Profit and Loss dealt with by this report are in agreement with the books of accounts.

d. In our opinion, the Balance Sheet and Statements of Profit and Loss comply with the Accounting Standards specified under section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014; and

e. On the basis of written representations received from directors as on 31^st March, 2025 taken on record by the Board of Directors, none of the directors are disqualified as on 31^st March, 2025 from being appointed as director in terms of section 164 (2) of the Companies Act 2013,

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure - B”; and

g. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us.

3. The Company does not have any pending litigations which would impact its financial position;

4. The Company does not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise;

5. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise.

For SSSS & Associates Chartered Accountants FRN 121769W

SD/-

Shirish N Godbole Partner M No. 038716

UDIN: 25038716BMGGLE7017

Place: Karad Date: 03-06-2025