STATEMENT OF TAX BENEFITS

STATEMENT OF POSSIBLE SPECIAL TAX BENEFITS AVAILABLE TO CRAFTSMAN
AUTOMATION LIMITED (“THE COMPANY”) AND ITS SHAREHOLDERS UNDER THE
APPLICABLE DIRECT AND INDIRECT TAX LAWS IN INDIA

To

The Board of Directors
Craftsman Automation Limited
Senthel Towers, IV Floor,
1078, Avinashi Road,
Coimbatore — 641 018,

Tamil Nadu, India.

Re: Proposed initial public offering of equity shares of face value of = 5 each (the “Equity Shares”) of

Craftsman Automation Limited (the “Company” and such offering, the “Fresh Issue”) and an offer
for sale of Equity Shares by certain existing shareholders of the Company (the “Offer for Sale”, and
together with the Fresh Issue, the “Offer”)

This report is issued in accordance with the terms of our engagement letter dated
25 January 2021.

The accompanying Statement of Possible Special Tax Benefits available to the Company and its
Shareholders (hereinafter referred to as the “Statement”) under the direct tax laws (including the Income-
tax Act, 1961, as amended) and indirect tax laws read with respective rules, regulations, circulars,
notifications, orders, etc., presently in force in India as on the date of this report has been prepared by the
management of the Company (“the Management”) in connection with the proposed Offer for purposes of
disclosure in the Red Herring Prospectus and Prospectus of the Company pursuant to the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended
(the “SEBI ICDR Regulations”). We have initialed and sealed the Statement for identification purposes
only.

Management’s Responsibility

3.

4,

The preparation of the Statement is the responsibility of the Management. The Management’s
responsibility includes designing, implementing and maintaining internal control relevant to the
preparation and presentation of the Statement, and applying an appropriate basis of preparation and making
estimates that are reasonable in the circumstances. The Management is also responsible for identifying and
ensuring that the Company complies with the direct and indirect tax laws and regulations applicable to its
activities.

There are no material subsidiaries identified by the Company on the date of this report.

Auditor’s Responsibility

5.

Pursuant to the SEBI ICDR Regulations, it is our responsibility to report whether the Statement prepared
by the Management, presents, in all material respects, the possible special tax benefits available to the
Company and its shareholders as identified by the Management in accordance with direct tax laws
(including the Income Tax Act, 1961, as amended) and indirect tax laws, presently in force in India as on
the date of this report.

We have conducted our verification of the Statement in accordance with the Guidance Note on Reports or
Certificates for Special Purposes (Revised 2016), as revised from time to time, issued by the Institute of
Chartered Accountants of India (“the Guidance Note”). This Guidance Note requires that we comply with
the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India, as
revised from time to time.

It is imperative to note that we have relied upon a representation from the Management of the Company.

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