We have audited the accompanying financial statements of
Cressanda Railway Solutions Limited ("the Company"), for the
quarter and year ended 31 March 2025, attached herewith,
being submitted by the company pursuant to the requirement
of regulation 33 of SEBI (Listing Obligation and Disclosure
Requirements) Regulation 2015, as amended (Listing Regulations).
In our opinion and to the best of our information and according to
the explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion section of our report,
the aforesaid financial areas with note therein.
a. Are presented in accordance with the requirements of
regulations 33 of the listing regulations in these regards" and
b. -give a true and fair view in conformity with the regulation
and measurements principal laid down in the applicable
Indian Accounting Standard, and other accounting principal
accepted in India specified under section 133 of the Act,
of the state of affairs (financial position) of the company
as at 31st March 2025, and its profit and loss A/c (financial
performance including other comprehensive Income), its
cash flow except the qualifications.
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 ("the Act"). Our responsibilities under those SAs are
further described in the Auditor's Responsibilities for the Audit of
the Financial Results 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 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 we have obtained is sufficient
and appropriate to provide a basis for our qualified opinion on
the financial results.
QUALIFICATIONS
(1) No proper documents, supporting evidences for the non¬
current financial asset's loans in note no. 5 of the financial
statements Rs 208.91 lacs to draw our opinion on such loans
and advances and relevant impact in the profit and loss
account and relevant provisioning.
(2) No proper documents, supporting and evidences for the
current financial asset's loans and advance s in note no. 9 of
the financial statements Rs 7814.85 lacs to draw our opinion
on such loans and advances and relevant impact in the profit
and loss account and relevant provisioning
(3) Some of the trade payables, trade receivables, other financial
liabilities, are subject to confirmation and its relevant impact,
if any, on the statement of profit & loss account and balance
sheet are unascertainable.
(4) Proceeds of the Right Issue Rs 4106.10 lacs was invested in
one subsidiary amounting to Rs 2802.61 lacs and balance
are commercially deployed as an unsecured loan. It was
clear non-compliance of the letter of offer for utilization of
proceeds for the working capital requirements and other
general corporate purpose.
(5) We highlighted a material concern regarding the non¬
payment of certain statutory dues by the company. As
of 31.03.2025, payment for tax Deducted at source (TDS)
and Tax Collated at Source (TCS) of Rs. 25.76 Lacs remain
outstanding, creating a significant financial obligation.
This non-compliance with statutory obligations may have
legal and financial repercussions. While management has
provided assurances of imminent resolution, the uncertainty
surrounding the timing and completeness of these payments
poses a risk to the financial statements
(6) Company is under investigations of Security exchange Board
of India (SEBI) and relevant investigations final output is still
pending and we are unable to identify the impact on the
financial statements.
(7) During the last quarter, the Work-in-Progress (WIP) stood
at Rs. 2,454.66 lakhs. However, in the current quarter, it has
been significantly reduced to Rs. 757.58 lakhs, resulting in a
reversal of Rs. 1,697.08 lakhs. This adjustment has been made
due to the non-performance of the client and the project not
meeting its expected milestones and targets.
(8) We note the company is not maintaining books of accounts in
software having Edit Long feature. Absence of an Edit log in
the Company's accounting software as prescribed under Rule
3(1) of the Companies (Accounts) Rules, 2014 for the review
period, limiting our ability to independently verify changes
to financial records. The lack of an edit log poses the lack of
robust controls for financial transparency and compliance
with statutory provisions of the Companies Act, 2013.
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. We have fulfilled
the responsibilities described in the Auditor's responsibility for
the audit of the standalone Ind AS financial statements section
of our report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement
of the standalone Ind AS financial statements. The results of our
audit procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion on the
accompanying standalone Ind AS Financial statements.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL
STATEMENTS
The Company's Board of Directors is responsible for the matters
in section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements that give
a true and fair view of state of affairs (financial position), Profit
or loss (financial Performance including other comprehensive
income), change 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') 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, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
This responsibility also includes the maintenance of adequate
accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing
and detecting the 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 internal financial
control, 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 results, the Management and the 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
the 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 Company's Management and the Board of Directors
are responsible for overseeing the company's financial
reporting process.
AUDITOR'S RESPONSIBILITY
Our objectives are to obtain reasonable assurance about whether
the financial results 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 results.
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 results, 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 through a
separate report on the complete set of financial statements
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 in the financial results 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 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
materia l uncertainty exists, we a re required to d raw attention
in our auditor's report to the related disclosure in the financial
results or, if such disclosures are inadequate, to modify our
opinion. Our conclusion is 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 presentations, structure and content of
the financial results, including the disclosers, and whether
the financial results represent the underlying transaction and
events in a manner that achieves fair presentations.
Materiality is the magnitude at misstatements in the
Statement that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably
knowledgeable user of the Statement 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 Statement.
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.
OTHER MATTER
The financial results include the results for the quarter ended March
31,2025 being the balancing figures between the audited figures
in respect of the full financial year and the published unaudited
year-to-date figures up to the third quarter of the current financial
year which were subject to limited review by us, as required under
the Listing Regulations.
Yours faithfully,
For H. RAJEN & CO
Chartered Accountants
FRN- 108351W
CA Rajendra Desai
Partner
M. No.: 011307
UDIN: 25011307BMJFOL3173
Date: 31.07.2025
Place: Mumbai
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