A. We have audited the accompanying "Statement of Audited Standalone Financial Results for
the Half Year/Year ended 31st March, 2025" (refer 'Other Matters' section below) of Mahip
Industries Limited ("the Company"), which includes joint statements ("the Statement"), being
submitted by the Company pursuant to the requirements of Regulations 33 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing
Regulations").
B. In our opinion and to the best of our information and according to the explanations given to
us, the Statement, except for the possible effect of the matter described in the basis for
Qualified opinion section of our report; 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 Accounting standard specified under section
133 of the act, read with the Rule 7 of the companies (Accounts) Rules, 2014 and other
accounting principles generally accepted in India:
1. In the case of the balance sheet, of the state of affairs of the company as at March 31, 2025
2. In the case of the profit and loss Account, of the loss for the period ended on that date.
3. In case of Cash flow statement, of the cash flow for the period ended on that date.
2. Basis for Qualified Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the Standards
on Auditing specified under section 143(10) of the Act (SAs). 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
independence 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 we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Standalone Financial Statements.
1. Balance confirmation statements from parties in respect of Trade Receivables, Trade Payables,
Loans and Advances (given or received), and Other Advances have not been obtained and made
available for our verification. Consequently, we are unable to comment upon the accuracy and
completeness of these balances as appearing in the financial statements.
2. The Company has accepted loans/deposits in contravention of the provisions of Section 73 of the
Companies Act, 2013, read with the Companies (Acceptance of Deposits) Rules, 2014. Necessary
compliance including filing of returns and maintenance of required records has not been made.
3. The Company has not undertaken any revaluation of its fixed assets at the end of the reporting
period, which is in contravention of the requirements prescribed under Accounting Standard (AS) 10
- Property, Plant and Equipment.
3. Emphasis of Matter
The Company has written off old TDS payable balances amounting to ^13.48 lakhs and credited the
same to Other Income. While we note that these entries relate to earlier periods and were adjusted
during year-end ledger reconciliation, Consequently, the recognition of such write-back as income
results in an overstatement of Profit Before Tax and understatement of Liabilities. Management has
clarified that this was a one-time clean-up exercise and similar adjustments will not recur in future
years.
We draw attention that the Company has recognized income of ^133.42 lakhs under the head
"Exceptional Items", arising from reversal of previously recorded expenses, TDS provisions, and
legacy account balances. These adjustments were carried out to reconcile old entries and streamline
books of account. The management has represented that these are one-time clean-up entries and
that the company has now adopted a consistent and compliant accounting framework going
forward.
4. Information Other than the Standalone Financial Statements and Auditor's Report Thereon
A. 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, 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
B. 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 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.
5. Responsibilities of Management and Those Charged with Governance for the Standalone
Financial Statements
A. The Company's Board of Directors is responsible for the matters stated 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 the financial position, financial performance, (changes in equity)
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. This
responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of 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.
B. In preparing the Standalone Financial Statements, management and Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
C. The Board of Directors are responsible for overseeing the Company's financial reporting
process.
6. Auditor's Responsibilities for the Audit of the Standalone Financial Statements
A. 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.
B. As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
i) 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.
ii) 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 financial statements
in place and the operating effectiveness of such controls
iii) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management
iv) 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
v) 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
C. 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.
D. 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.
E. 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.
F. 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.
II. 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 sub section (11) of Section 143(3) of the Act, we give in the
"Annexure A" statement on the matters specified in paragraph 3 and 4 of the order, to the extent
applicable.
2. As a 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. Except for the possible effects of the matter described in the basis for qualified opinion
paragraph above, in our opinion proper books of accounts as required by law have been
kept by the company so far as 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 Flow dealt with by this Report
are in agreement with the relevant books of account;
D. In our opinion, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2013;
E. The matter described in the basis for Qualified opinion paragraph above, in our opinion, may
have an adverse effect on the functioning of the company.
F. On the basis of the 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;
G. The qualification relating to the maintenance of accounts and other matters connected
therewith are as stated in the basis for Qualified paragraph above.
H. 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 B". Our report expresses a disclaimer of opinion on the adequacy and operating
effectiveness of the Company's internal financial controls over financial reporting.
I. 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:
i) The Company has not disclosed the impact of pending litigations on its financial
position in its financial statements. Refer Point 7 of CARO, 2020 ("Annexure A" to this
report).
ii) The Company has not entered into any derivative contract during the relevant period.
Hence, Company is not required to make provision for material foreseeable losses on
long-term contracts including derivative contracts.
iii) The company is not required to transfer any amounts to the investor education and
protection fund, hence 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,
company has advanced funds (which are material either individually or in the
aggregate) by the Company to other persons in Individual capacity and/or entity, with
the understanding, whether recorded in writing or otherwise;
(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, we are of the opinion that the company has
advanced funds to the Individuals and have received funds regarding the same which
are in contravenes to sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b)
above, which contain material misstatement.
v) The company did not declare any dividend during the year.
vi) Based on our examination, which includes test checks, the company has not used an
accounting software for maintaining its books of account for the period ended 31st
March, 2025, 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. Further, during the course of our audit we did not come across any instance
of audit trail feature being tampered with.
As proviso to rule 3(1) of the Companies (Accounts) Rules, 2021 is applicable from April
1, 2024, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014
on preservation of audit trail as per the statutory requirements for record retention is
not applicable for the period ended as on 31st March, 2025.
2. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act, the provisions of the
said Order are applicable to the Company, as it qualifies for the exemption prescribed under the
Order, We give in the "Annexure A" statement on the matters specified in paragraph 3 and 4 of
the order to the extent applicable.
for B.A.BEDAWALA & CO.
Chartered Accountants
Sd/
Place : AHMEDABAD - INIT M. SHAH
Date : 21/05/2025 PARTNER
UDIN :25138769BMIJZR5702 M.NO:138769
FRN:101064W
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