We have audited the accompanying standalone financial statements of CWD Limited
(Formerly known as CWD Innovation Limited)("the Company") which comprise the
Balance Sheet as at 31st March, 2025, and the Statement of Profit and Loss and Cash Flow
Statement for the period ended, and notes to the financial statements, including 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 inconformity with
the Accounting Standards prescribed under section 133 of the Act read with the Companies
(Accounting Standards) Rules, 2015, as amended, (“AS”) and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2025, the
profit and Loss account 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 Companies Act, 2013. 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 together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of
the Companies Act, 2013 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
opinion.
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 of the current period. 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.
We have determined the matters described below to be key audit matters to be communicated
in our report. For each matter below, our description of how our audit addressed the matter is
provided in that context.
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Key Audit Matters
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How our audit addressed the key audit
matters
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Capitalization of development costs
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The Company’s ability to generate revenue is
linked to capitalized development costs in
respect of ingredients of company’s products.
These are included in Balance Sheet as
intangible assets & ITA under development
(Collectively referred to as “ITA”.] The
Company conducts significant level of
development activities and has to apply
judgement in identifying projects meeting the
criteria for capitalization under the
requirement of accounting standards and to
capture accurate time and cost information
for those projects.
Total carrying value of ITA as at 31st March
2025 is Rs. 430.9 Lakhs as shown in the
Balance Sheet as Note 12B, of which Rs. 53.76
Lakhs relates to base technology and Rs.
377.13 relate to product development.
Further Rs. 435.83 Lakhs is against Intangible
under Development.
The carrying value of ITA is particularly
judgmental given its dependency of forecasts
of revenue growth, contribution margins and
required rate of return.
We included capitalization of development
costs as a key audit matter because if the
company is unable to generate revenue and
produce sustainable operating cashflows, this
affects the carrying values of its key ITA.
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Our procedure in relation to capitalization of
development costs included:-
• Evaluate the appropriators of revenue
forecasts, operating cashflows
submitted by the company to its
bankers.
• Performing sensitivity analysis on
revenue growth assumptions to assess
the impact on forecasted cash flows:
• Evaluating the nature or the type of
expenses incurred that are capitalized
and management’s controls on
capitalization of Development Costs.
• Evaluating the appropriators of
expenses capitalized, on sample basis,
by agreeing the cost components
involved.
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Information Other than the Standalone Financial Statements and Auditor's Report
Thereon
The Company’s Board of Directors is responsible for the preparation of 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, but does not include the
financial statements and our auditor’s report thereon. These reports are expected to be made
available to us after the date of our 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 identified above when it becomes available and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
When we read the other information included in the above reports, if we conclude that there is
material misstatement therein, we are required to communicate the matter to those charged
with governance and determine the actions under the applicable laws and regulations.
Management's Responsibility 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, and cash flows of the Company in
accordance with the 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.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting
process.
Auditor's Responsibility for the Audit of the Standalone 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 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 Companies Act, 2013, 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 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 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 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
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 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
“Annexure A”, a statement on the matter specified in the paragraph 3 and 4 of the
Order.
2. As required under provisions of section 143(3] of the Companies Act, 2013, we report
that:
a. We have obtained all the information and explanations which to the best of our
knowledge and belief where 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 appears from our examination of those books;
c. The Balance Sheet and Statement of Profit and Loss and Statement of Cash Flow
dealt with this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet and Statement of Profit and Loss comply with
the AS specified in section 133 of the Act, read with relevant rule issued
thereunder.
e. On the basis of written representations received from the directors as on March
31, 2025, 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 over financial
reporting of the company and operating effectiveness of such controls, referred
to our separate report in “Annexure B".
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 Act.
h. With respect to other matters to be included in the Auditor’s Report in
accordance with Rule 11 of the Companies (Audit and Auditor] Rules, 2014, in
our opinion and to the best of our knowledge and belief and according to the
information and explanations given to us:
(a] The Company has disclosed the impact of pending litigations as at 31 March
2025 on its financial position in its standalone financial statements - Refer
Note (vii) of Annexure - A to the standalone financial statements
(b) The Company did not have any long-term and derivative contracts as at
March 31, 2025.
(c] There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended March 31, 2025.
(d) The management has;
(i] represented that, to the best of its knowledge and belief, 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 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 (“Ultimate Beneficiaries”) by
or on behalf of the Company or
• provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
(ii) represented, that, to the best of its 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 (“Ultimate Beneficiaries”] by
or on behalf of the Funding Party or
• provide any guarantee, security or the like from or on behalf of the
Ultimate Beneficiaries; and
(iii] Based on such audit procedures as considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has
caused us to believe that the representations under subclause (d] (i] and (d]
(ii] contain any material misstatement.
(e) The company has not neither declared nor paid any dividend during the year
under Section 123 of the Act.
Proviso to Rule 3(1] of the Companies (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. Based on our examination, which
included test checks, and other generally accepted audit procedures performed by us, we
report that the Company has used accounting software 'Tally Prime System’ for maintaining its
books of account which has a feature of recording audit trail facility and the same has been
operated from December 16, 2024 for all transactions recorded in the software. Further,
during the course of our audit we did not note any instance of the audit trail (edit log] feature
being tampered with on accounting software since the date this feature has been enabled.
FOR D G M S & Co.,
Chartered Accountants
Place: Mumbai
Date: 30th May 2025
SD/-
Hiren J Maru
Partner
M. No. 115279
FRN: 0112187W
UDIN: 25115279BMIQCP5314
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