We have audited the standalone financial statements of
Aequs Limited (formerly known as Aequs Private Limited) (the
"Company”)its Aequs Stock Option Plan Trust which comprise
the standalone balance sheet as at March 31, 2026, and the
standalone statement of profit and loss (including other
comprehensive income), standalone statement of changes in
equity and standalone statement of cash flows for the year then
ended, and notes to the standalone financial statements, including
material accounting policies and other explanatory information
(herein referred to as the "standalone financial statements”).
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 March 31,
2026, and its profit and other comprehensive income, changes in
equity and its 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 Act. Our responsibilities
under those SAs are further described in the Auditor's Responsibilities
for the Audit of the Standalone 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 standalone financial statements under the provisions of
the Act 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 obtained by us is
sufficient and appropriate to provide a basis for our opinion on the
standalone financial statements.
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 as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Revenue recognition
See Notes 2(d) and 15 to standalone financial statements
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The key audit matter
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How the matter was addressed in our audit
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The Company is engaged in the business of contract
manufacturing, catering to the manufacture of machined parts
used in the aerospace sector. The Company supplies goods only
against committed orders and has a concentrated customer base.
The revenue is derived primarily from sale of these goods.
Revenue from sale of goods is recognised when control is
transferred to the customers and when there are no other
unfulfilled obligations. There are variations in the terms of different
sales contracts which require detailed analysis of each contract
regarding timing of revenue recognition. Consequently, there is
a risk of revenue being overstated due to recognition prior to
the transfer of control, particularly in light of pressures to achieve
performance targets at the end of the reporting period.
Accordingly, we have identified the timing of revenue recognition
as a key audit matter.
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In view of the significance of the matter, we applied the following
audit procedures, among others, to obtain sufficient appropriate
audit evidence:
• We assessed the appropriateness of the accounting policies
for revenue recognition and its compliance with applicable
accounting standards;
• We evaluated the design and implementation of the
Company's manual and general IT controls and key IT
application controls with respect to revenue recognition
and tested operating effectiveness of these controls over
recording of revenue in the correct period, by involving
internal IT specialists;
• We performed substantive testing on samples selected
using statistical sampling of revenue transactions recorded
during the year and around the year end date by testing
the underlying documents including sale invoices, customer
contracts and delivery documents to assess whether the
revenue had been recognised in the correct reporting period;
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The key audit matter
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How the matter was addressed in our audit
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• We tested sample journal entries for revenue recognised,
selected based on specified risk based criteria, to identify
unusual entries;
• We have performed substantive testing of subsequent
credit notes/ reversal entries recorded by selecting a sample
of high value items resulting in untested balance being
immaterial; and
• We evaluated the adequacy and appropriateness of the
disclosures made in the standalone financial statements, in
accordance with the relevant accounting standard.
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Impairment on investments in subsidiaries
See Notes 2(n) and 6 to standalone financial statements
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The key audit matter
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How the matter was addressed in our audit
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The Company has significant investment in subsidiaries as at March
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In view of the significance of the matter, we applied the following
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31, 2026 (amounting to INR 14,103.09 million, net of impairment
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audit procedures, among others, to obtain sufficient appropriate
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provision of INR 6,627.14 million) which accounts for 70.63% of
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audit evidence:
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total assets as on that date.
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• Understanding the process followed by the Company in
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The investments are assessed at the end of each reporting period
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respect of the annual impairment analysis for investments
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to determine whether there is any indication of impairment and
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in subsidiaries. We also assessed the net profit and net
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the consequential impairment loss, if any.
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worth of the subsidiaries to identify whether an indicator for
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Significant judgements are involved in the discounted cash flow
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impairment existed and evaluated whether the net assets of
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models to determine the key assumptions used for impairment
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the subsidiary were sufficient to recover the investment value;
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testing, such as revenue growth discount rates and terminal
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• We evaluated the design and implementation and tested
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growth rate. The impairment testing is also highly dependent
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the operating effectiveness of key internal financial controls
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on external factors such as future market conditions and the
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with respect to the process of testing of impairment of
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economic environment.
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its investment in subsidiaries, including controls relating
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We have identified valuation of investments in subsidiaries as a
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to the determination of key assumptions used in such
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key audit matter because of the financial quantum of the assets
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impairment testing;
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as well as the critical judgements, estimates and assumptions
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• We examined the recoverable value computations prepared
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involved with respect to the assessment of future cash flows.
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by the Company using value-in-use models and evaluated
the appropriateness of assumptions around the key drivers
of the cash flow forecasts such as revenue growth rates,
discount rate and terminal growth rate, considering current
economic scenario;
• We tested the arithmetical accuracy of the valuation model
considered for the purpose of valuation of investment;
• We performed a retrospective review of estimates by
comparing the actual financial performance of the
subsidiaries for the year ended March 31, 2026 with the
projections considered by management during the previous
year and assessed if the estimation process is reasonable;
• We involved valuation specialists to assess the
appropriateness of valuation methodology applied by the
Company and to assess the reasonableness of market driven
assumptions used in the valuation of investments;
• We assessed the sensitivity of the assumptions on the
valuation assessment; and
• We evaluated the adequacy and appropriateness of the
disclosures made in the standalone financial statements.
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Other Information
The Company's Management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the annual report, but
does not include the financial statements and auditor's reports
thereon. The annual report is expected to be made available to
us after the date of this auditor's report.
Our opinion on the standalone financial statements does not
cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
identified above when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the standalone financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated.
When we read the annual report, if we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance and take necessary
actions, as applicable under the relevant laws and regulations.
Management's and Board of Directors'/Board
of Trustees' Responsibilities for the Standalone
Financial Statements
The Company's Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the Act
with respect to the preparation of these standalone financial
statements that give a true and fair view of the state of affairs,
profit/ loss and other comprehensive income, changes in
equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under Section
133 of the Act. The respective Management and Board of
Directors of the companies/Board of Trustees of the Aequs Stock
Option Plan Trust are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act
for safeguarding of the assets of the Company / Trust 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 standalone
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the respective
Management and Board of Directors/Board of Trustees are
responsible for assessing the ability of the Company/Trust to
continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless the respective Board of Directors/Board of
Trustees either intends to liquidate the Company/Trust or to
cease operations, or has no realistic alternative but to do so.
The respective Board of Directors/Board of Trustees are
responsible for overseeing the financial reporting process of
the Company/Trust.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether
the standalone 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
standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional Judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the standalone 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 Act, we are also responsible for expressing our opinion
on whether the company has adequate internal financial
controls with reference to financial statements 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 the Management and
Board of Directors.
• Conclude on the appropriateness of the Management
and Board of Directors use of the going concern basis of
accounting in preparation of standalone financial statements
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 standalone
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 standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance of the
Company 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 standalone 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 Section 143(11) of the Act, we give in
the “Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2 A. As required by Section 143(3) of the Act, 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
purposes of our audit.
b. In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination
of those books except for the matter stated
in the paragraph 2B(f) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014.
c. The standalone balance sheet, the standalone
statement of profit and loss (including other
comprehensive income), the standalone
statement of changes in equity and the
standalone statement of cash flows dealt
with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified
under Section 133 of the Act.
e. On the basis of the written representations
received from the directors of the Company as
on March 31, 2026 taken on record by the Board
of Directors, none of the directors is disqualified
as on March 31,2026 from being appointed as a
director in terms of Section 164(2) of the Act.
f. the qualification relating to the maintenance of
accounts and other matters connected therewith
are as stated in the paragraph 2A(b) above on
reporting under Section 143(3)(b) and paragraph
2B(f) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
g. With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company and the operating
effectiveness of such controls, refer to our
separate Report in “Annexure B”.
B. 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
a. The Company has disclosed the impact of
pending litigations as at March 31, 2026 on
its financial position in its standalone financial
statements - Refer Note 29 to the standalone
financial statements.
b. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.
c. There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company.
d (i) The management of the Company
represented to us that, to the best of
its knowledge and belief, as disclosed
in the Note 34(vi)(a) to the standalone
financial statements, no funds have been
advanced or loaned or invested (either
from borrowed funds or share premium
or any other sources or kind of funds) by
the Company to or in any other person(s)
or entity(ies), including foreign entities
(“Intermediaries”), with the understanding,
whether recorded in writing or otherwise,
as on the date of this audit report that the
Intermediary shall directly or indirectly
lend or invest in other persons or entities
identified in any manner whatsoever by
or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.
(ii) The management of the Company
represented to us that, to the best of its
knowledge and belief, as disclosed in the
Note 34(vi)(b) to the standalone financial
statements, no funds have been received
by the Company from any person(s)
or entity(ies), including foreign entities
(“Funding Parties”), with the understanding,
whether recorded in writing or otherwise,
as on the date of this audit report, that the
Company shall directly or indirectly, lend or
invest in other persons or entities identified
in any manner whatsoever by or on behalf of
the Funding Parties (“Ultimate Beneficiaries”)
or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as
provided under (i) and (ii) above, contain
any material misstatement.
e. The Company has neither declared nor paid any
dividend during the year.
f. Based on our examination which included test
checks, except for the instances mentioned
below, the Company has used accounting
software for maintaining its books of account,
which has a feature of recording audit trail
(edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software:
• not enabled for the period from April 01,
2025 to December 15, 2025 at the database
level to log any direct data changes; and
• not enabled for the period from April 01,
2025 to October 09, 2025 at the application
level for certain fields / tables relating to all
the significant financial processes.
Further, where audit trail (edit log) facility was
enabled, we did not come across any instance
of audit trail feature being tampered with.
Additionally, the audit trail where enabled, has
been preserved by the Company as per the
statutory requirements for record retention.
C. With respect to the matter to be included in the
Auditor's Report under Section 197(16) of the Act:
In our opinion and according to the information and
explanations given to us, the remuneration paid/
payable by the Company to its directors during the
current year is in accordance with the provisions of
Section 197 of the Act. The remuneration paid/payable
to any director by the Company is not in excess of
the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other
details under Section 197(16) of the Act which are
required to be commented upon by us.
For B S R & Co. LLP
Chartered Accountants
Firm's Registration No.:101248W/W-100022
Sampad Guha Thakurta
Partner
Place: Chennai Membership No.: 060573
Date: May 26, 2026 ICAI UDIN:26060573SJNAZY4183
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