We have audited the accompanying standalone
financial statements of ARO GRANITE INDUSTRIES
LIMITED (the "Company”), which comprise the Balance
Sheet as at March 31, 2026, the Statement of Profit and
Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of
Cash Flows for the year ended on that date and a
summary of significant accounting policies and other
explanatory information (hereinafter 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 (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, 2026 and its
Loss, total comprehensive income, changes in equity
and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial
statements in accordance with the Standards on
Auditing ("SA”s) 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 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 ("ICAI”) 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 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
audit 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. We have determined the matters described below to be the key
audit matters to be communicated in our report.
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Key Audit Matter
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Auditor’s Response
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1. Provisions and contingent liabilities in relation to tax
positions
The Management have made judgements relating
to the likelihood of an obligation arising and
whether there is a need to recognize a provision or
disclose a contingent liability. We therefore focused
on this area as a result of uncertainty and potential
material impact.
Refer Note 38 to the financial statements.
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We have involved our experts to gain an
understanding of the current status of the tax cases
and monitored changes in the disputes by reading
external opinions received by the company if any,
where relevant to establish that the tax provisions
had been appropriately adjusted to reflect the
latest external developments.
For Legal, regulatory and tax matters our procedures
included the following:
• Testing key controls surrounding litigation,
regulatory and tax procedures.
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• Performing substantive procedures on the
underlying calculations supporting the
provisions recorded.
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• Where relevant, reading external legal opinions
obtained by the management
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• Discussing open matters with the litigation,
regulator, general counsel and tax teams
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• Assessing management's conclusions through
understanding precedents set in similar cases.
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Key Audit Matter
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Auditor’s Response
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Based on the evidence obtained, while noting the
inherent uncertainty with such legal, regulatory and
tax matters, we determined the level of provisioning
and disclosure of contingent liabilities as at March
31,2026 to be appropriate.
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2. Related Party Transactions
The Company has entered into several transactions
with related parties during the year 2025-26.We
identified related party transactions as a key audit
matter because of risks with respect to completeness
of disclosures made in the standalone financial
statements including recoverability thereof;
compliance with statutory regulations governing
relate party relationships such as the Companies
Act,2013 and SEBI Regulations and the judgement
involved in assessing whether transactions with
related parties are undertaken at arms' length.
Refer Note 40 to the standalone financial
statements.
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Our audit procedures on related party transactions
included:
• Assessed the key controls to identify and
disclose related party relationships and
transactions in accordance with the relevant
accounting standard.
• Assessed compliances with the listing
regulations and the regulations under
Companies Act,2013 including checking of
approvals/scrutiny as specified in Sections
177 and 188 of the Companies Act,2013 with
respect to the related party transactions.
• Considered the adequacy and appropriateness
of the disclosures in the standalone financial
statements, including recoverability thereof,
relating to the related party transactions.
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• Inspected relevant ledgers, agreements
and other information that may indicate
the existence of related party relationships
or transactions. Further, we also tested
completeness of related parties with reference
to the various registers maintained by the
company statutorily.
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On a sample basis, tested Company's assessment of
related party transactions for arms' length pricing.
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Information Other than the Financial Statements
and Auditor’s Report Thereon
The Company's Board of Directors is responsible for
the other information. The other information comprises
the information included in the Management
Discussion and Analysis, Board's Report including
Annexures to Board's Report, Business Responsibility
Report, Corporate Governance and Shareholder's
Information, but does not include the standalone
financial statements and our auditor's report thereon.
Our opinion on the standalone 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 standalone
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.
Responsibilities of Management and Those
Charged with Governance for the Standalone
Financial Statements
The Company's Board of Directors is 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 financial
position, financial performance, including other
comprehensive income, changes in equity and cash
flows of the Company in accordance with the Ind AS
and other accounting principles generally accepted
in India. This responsibility also includes 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 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,
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 is also responsible for overseeing
the Company's financial reporting process.
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:
• Identifyandassesstherisksof 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 financial
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 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 the 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 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.
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or
in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
standalone financial statements may be influenced.
We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in
the standalone financial statements.
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 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 Section 143(3) of the Act, based
on our audit 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.
c) The Balance Sheet, the Statement of Profit
and Loss including Other Comprehensive
Income, Statement of Changes in Equity and
the 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 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) 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 A”. Our report
expresses an unmodified opinion on the
adequacy and operating effectiveness of
the Company's internal financial controls
with reference to standalone financial
statements.
g) With respect to the other matters to
be included in the Auditor's Report in
accordance with the requirements of 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 by the Company to its directors during
the year is in accordance with the provisions
of section 197 of the Companies Act, 2013.
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 no pending litigations.
ii. The Company has made provision,
as required under the applicable law
or accounting standards, for material
foreseeable losses, if any, on long-term
contracts including derivative contracts.
iii. There has been no delay in transferring
amounts, required to be transferred, to
the Investor Education and Protection
Fund by the Company.
iv. (a) The Management has represented
that, to the best of its knowledge
and belief, no funds (which are
material either individually or in the
aggregate) 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 or entity, including
foreign entity ("Intermediaries”),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, whether,
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 has represented,
that, to the best of its knowledge
and belief, no funds (which are
material either individually or in the
aggregate) have been received
by the Company from any person
or entity, including foreign entity
("Funding Parties”), with the
understanding, whether recorded
in writing or otherwise, that the
Company shall, whether, 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;
(c) 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 (a) and
(b) above, contain any material
misstatement.
v. The Board of Directors of the Company
have not proposed any final dividend for
the year which is subject to the approval
of the members at the ensuing Annual
General Meeting or paid any interim
dividend during the financial year.
Accordingly, the provisions of section
123 of the Act, are not applicable.
vi. Proviso to Rule 3(1) of the Companies
(Accounts) nies
(Accounts) Rules, 2014 for maintaining
books of account using accounting
software which has a feature of recording
audit trail (edit log) facility is applicable
to the Company with effect from April 1,
2023, and accordingly reporting under
Rule 11(g) of Companies (Audit and
Auditors) Rules 2014 is applied for the
financial year ended March 31, 2026.
2. As required by the Companies (Auditor's Report)
Order, 2020 ("the Order”), issued by the Central
Government in terms of Section 143(11) of the
Act, we give in “Annexure B” a statement on the
matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable
For Alok Mittal & Associates
Chartered Accountants
Firm Regn. No. 005717N
Alok Kumar Mittal
Partner
M.N.: 071205
Place: Hosur, Tamil Nadu
Date: 15.05.2026
UDIN: 26071205NV0TAA3543</
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