We have audited the accompanying financial statements of APM
Industries Limited (“the Company”), which comprise the Balance
Sheet as at March 31, 2025, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of Cash
Flows and the Statement of Changes in Equity for the year then
ended, and notes to the financial statements including a summary
of material accounting policies and other explanatory information
(hereinafter referred to as “the financial statements”).
In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid 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 Indian Accounting Standards prescribed under Section 133
of the Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, (“Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the Company
as at March 31, 2025 and its loss, total comprehensive income,
cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the financial statements in accordance
with the Standards on Auditing (SAs) specified under Section
143(10) of the Act. 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 (ICAI) together with
the ethical requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the Rules made
thereunder and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI’s 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 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 financial
statements for the year ended March 31,2025. These matters were
addressed in the context of our audit of the financial statements as
a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
On the facts and circumstances of the Company and the audit, we
determine that there are no key audit matters to communicate in
our report.
Information Other than the Financial Statements and Auditor’s
Report thereon
The Company’s Management and Board of Directors are responsible
for preparation of the other information. The other information
comprises the information included in the Annual Report, but does
not include the financial statements and our auditor’s report thereon.
The Annual Report is expected to be made available to us after the
date of this Auditor’s Report.
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 financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is
material misstatement therein, we are required to communicate the
matter to those charged with governance as required under SA 720
‘The Auditor’s Responsibilities Relating to Other Information’ and
take necessary actions, as applicable under the relevant laws and
regulations.
Responsibilities of Management and Board of Directors for the
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 financial statements that give a true and
fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity of
the Company in accordance with the Ind AS and the accounting
principles generally accepted in India. These responsibilities also
include maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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 statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Company’s Management
and Board of Directors are 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 the Board of Directors 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 skepticism 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 controls.
• Obtain an understanding of internal financial controls 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 the 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 Management and Board
of Directors’ 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 to the Company, 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 for the financial
year ended March 31,2025 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. As required by Section 143(3) of the Act, we report, to the
extent applicable, 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 (h) (vi) below on reporting under
Rule 11 (g) of the Companies (Audit and Auditors) Rules,
2014;
c) the Balance Sheet, the Statement of Profit and Loss
including Other Comprehensive Income, the Statement
of Cash Flows and the Statement of Changes in Equity
dealt with by this Report are in agreement with the books
of account;
d) in our opinion, the aforesaid financial statements comply
with the Indian Accounting Standards (Ind AS) specified
under Section 133 of the Act, as applicable to the
Company;
e) on the basis of the written representations received from
the directors and taken on record by the Board of
Directors, none of the directors is disqualified as on March
31,2025 from being appointed as a director in terms of
Section 164(2) of the Act;
f) with respect to the adequacy of the internal financial
controls with reference to these financial statements and
the operating effectiveness of such controls, refer to our
separate Report in the Annexure “B” to this report;
g) with respect to the other matters to be included in the
Auditor’s Report under Section 197(16) of the Act, as
amended, in our opinion and to the best of our information
and according to the explanations given to us, the
remuneration paid/provided by the Company to its
directors during the year is in accordance with the
provisions of Section 197 read with Schedule V to the
Act.
h) 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, as
amended, in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company has disclosed the impact of pending
litigations on its financial position as at March 31,
2025 in its financial statements - Refer Note 38 to
the financial statements.
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses as at March 31,
2025.
iii. There has been no delay in transferring the amount,
required to be transferred to the Investor Education
and Protection Fund by the Company during the year
ended March 31,2025.
iv. (a) The Management of the Company has
represented that, to the best of their knowledge
and belief, no funds have been advanced or
loaned or invested (either from the borrowed
funds or share premium or any other sources
or kind of funds) by the Company to or in any
other persons or entities including foreign
entities (“intermediaries”), with the
understanding, whether recorded in writing or
otherwise, 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;
(b) The Management of the Company has
represented that, to the best of their knowledge
and belief, no funds have been received by the
Company from any persons or entities,
including foreign entities (“Funding Parties”)
with the understanding, whether recorded in
writing or otherwise, 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 Party
(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries; and
(c) Based on the audit procedures that have been
considered reasonable and appropriate in the
circumstances, performed by us on the
Company, 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 (a) and (b) above,
contain any material misstatement.
v. The dividend paid by the Company during the year
is in compliance with Section 123 of the Act, as
applicable. As stated in Note 57 to the financial
statements, the Board of Directors of the Company
have not proposed any dividend for the year ended
March 31,2025.
vi. As per the information and explanations provided to
us and based on our examination which included
test checks, the Company has used ERP 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 accounting
software. However, the audit trail feature is not
enabled when using administrative access right to
the ERP application for direct data changes which
is restricted to limited set of users who necessarily
require this access for maintenance and
administration of the database. Further, we did not
come across any instance of audit trail feature being
tempered with during our course of audit in respect
of accounting software for which the audit trail feature
was operating and the audit trail has been preserved
by the Company as per the statutory requirements
for record retention.
For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
LAXMI NARAIN JAIN
Partner
New Delhi Membership No. 072579
May 07, 2025 UDIN - 25072579BMJIVS3612
|