We have audited the accompanying standalone
financial statements of Sanghvi Movers Limited ("the
Company"), which comprise the Balance Sheet as at
March 31, 2026, and 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 then ended, and notes
to the standalone financial statements, including
material accounting policy information 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 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 profit (including other
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 (SAs) specified under section 143(10) of
the Act. Our responsibilities under those SAs 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 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 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 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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Sr.
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Key Audit Matters
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How the Key Audit Matters was addressed in
our audit
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1
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Provision for expected credit loss for
accounts receivable:
Refer Note 10 of Standalone Financial statement
with respect to the disclosures of Trade Receivables.
On March 31, 2026, Trade receivable balances
aggregate to INR 17,803.59 Lakhs against which
provision aggregating INR 1,432.33 Lakhs has
been created towards credit risk and expected
credit loss in the books of account.
The Company determines the allowance for
credit losses based on analysis of past data and
determine the default rate. Further, calculation of
credit loss provision is a complex area and requires
management to make significant assumptions on
customer payment behaviour and estimating the
level and timing of expected future cash flows and
interest rate to be used for time loss.
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Our audit procedures performed in respect of
this area include but are not limited to:
1. Obtained an understating of the Company's
policy on assessment of impairment of
trade receivables, including design and
implementation of controls over development of
the methodology for the computation of provision
for credit losses including completeness and
accuracy of information used in such estimation
and computation and validation of management
review controls.
2. Verified the operating effectiveness of these
controls on a test check basis.
3. Obtained independent balance confirmations
from the Company's customers on a test check
basis and performed alternative procedures
wherever applicable.
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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in
our audit
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We identified allowance for credit losses as a key
audit matter because significant management
judgement and assumptions are involved in
calculating the expected credit losses. This
required an increased extent of effort when
performing the audit procedures to evaluate the
reasonableness of management's estimate of
the expected credit losses including significant
discussion with management on slow recoveries.
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4. Verified subsequent receipts after the year-end
on a test check basis.
5. Verified aging of trade receivables for sample of
customer transactions.
6. Evaluated management comments and recovery
plans for trade receivables outstanding for more
than 180 days.
7. Assessed the trade receivables impairment
methodology applied in the current year and
compared the Company's provisioning rates
against historical collection data.
8. Verified the completeness and accuracy of the
disclosures in accordance with the requirements
of the relevant Ind AS, which are included in
note 10 of the Standalone financial statements.
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Revenue from contract with customer's:
Refer Note 25 of Standalone Financial statement
with respect to the revenue recognized for the year
ended March 31, 2026. The Company recognized
revenue of INR 4,468.43 Lakhs from Engineering,
Procurement and Construction (EPC) contracts
over time, using the percentage-of-completion
method.
This approach requires significant management
judgment in estimating total contract revenue
and costs, determining the stage of completion,
assessing contract modifications and variable
consideration, and evaluating the recoverability of
costs.
Given the complexity of these contracts and the
level of estimation involved, revenue recognition
for EPC contracts was considered a key audit
matter.
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Our audit procedures performed in respect of
this area include but are not limited to:
1. Evaluating the appropriateness of the Company's
revenue recognition policies in line with the
applicable financial reporting framework (Ind AS
115 - Revenue from Contracts with Customers).
2. Testing the design and implementation, and
operating effectiveness of key internal controls
over revenue recognition, contract cost
estimation, and project monitoring.
3. Selecting a sample of significant EPC contracts
and performing the following: -
• Reading key contract terms and conditions
to assess the performance obligations and
pricing, including any variable consideration
or contract modifications.
• Assessing the reasonableness of
management's estimates of total contract
revenue and costs through comparison
with historical trends and budgets.
• Comparing project status and stage of
completion to internal reports, customer
confirmations, and physical site inspection
reports.
• Evaluating the reasonableness of costs
incurred to date and the estimated costs
to complete, including inquiries with project
management teams.
4. Performing analytical procedures on margins
across projects and comparing with historical
and industry trends.
5. Evaluating the adequacy of the related
disclosures in the financial statements regarding
the judgments involved in revenue recognition.
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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 other information. The other information
comprises the information included in the Director's
report but does not include the standalone financial
statements and our auditor's report thereon, which
we obtained prior to the date of this auditor's report,
and the Management report, Chairman's statement,
Business Responsibility and Sustainability Reporting,
and other information included in Annual report
which is expected to be made available to us after
that date.
Our opinion on the standalone financial statements
does not cover the other information and we do
not and will 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 identified above and, in
doing so, consider whether the other information is
materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated.
If, based on the work we have performed on the
other information that we obtained prior to the date
of this auditor's report, 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.
When we read the Management Report,
Chairman's statement, Business Responsibility
and Sustainability Reporting and other information
included in Annual report, if we conclude that there
is a material misstatement therein, we are required
to communicate the matter to those charged with
governance.
RESPONSIBILITIES OF MANAGEMENT AND
BOARD OF DIRECTORS FOR THE STANDALONE
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 standalone 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 Indian 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 standalone
financial statement 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, the
Board of Directors of the Company 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 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.
We give in "Annexure A" a detailed description of
Auditor's responsibilities for Audit of the Standalone
Financial Statements.
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.
c. Based on the audit procedures
performed 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) contain
any material mis-statement.
v. The final dividend paid by the Company
during the year in respect of the same
declared for the previous year is in
accordance with section 123 of the
Act to the extent it applies to payment
of dividend. The Board of Directors
of the Company have proposed final
dividend for the year which is subject
to the approval of the members at the
ensuing Annual General Meeting. The
dividend declared is in accordance with
section 123 of the Act to the extent
it applies to declaration of dividend.
(Refer Note 16 to the Standalone
financial statements).
vi. In regard to financial accounting
software:
Based on our examination which
included test checks, the Company
has used an accounting software for
maintaining its books of account which
has a feature of recording audit trail
(edit log) facility and the same has
been enabled and operated throughout
the year for all relevant transactions
recorded in such software except that
we are unable to comment on audit trail
at database level due to inadequate
coverage in SOC report, as explained
in Note 54 to the standalone financial
statements. Further, during the course
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 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.
2. As 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 of the aforesaid standalone financial
statements.
(b) In our opinion, proper books of account as
required by law relating to preparation of the
aforesaid standalone financial statements
have been kept by the Company so far as
it appears from our examination of those
books, except for the matters stated in
the paragraph 2(h)(vi) below on reporting
under Rule 11(g).
(c) The Balance Sheet, the Statement of Profit
and Loss (including other comprehensive
income), the Statement of Changes in
Equity and the Statement of Cash Flows
dealt with by this Report are in agreement
with the books of account maintained for the
purpose of preparation of the standalone
financial statements.
(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 are
disqualified as on March 31, 2026 from
being appointed as a director in terms of
Section 164 (2) of the Act.
(f) The modification relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 2(b)
above on reporting under Section 143(3)(b)
and paragraph 2(h)(vi) below on reporting
under Rule 11(g).
(g) With respect to the adequacy of the
internal financial controls with reference
to standalone financial statements of the
Company and the operating effectiveness
of such controls, refer to our separate
Report in "Annexure C".
(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, 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 in its standalone financial
statements - Refer Note 52 to the
standalone financial statements.
ii. The Company did not have any long¬
term contracts including derivative
contracts for which there were any
material foreseeable losses.
iii. There are no amounts which are
required to be transferred to the
Investor Education and Protection
Fund by the Company during the year
ended March 31, 2026.
iv. a. To the best of our knowledge and
belief, as disclosed in the note
47 to the standalone financial
statements, 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
person(s) or entity(ies), 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. To the best of our knowledge and
belief, as disclosed in the note
47 to the standalone financial
statements, no funds have been
received by the Company from any
person(s) or entity(ies), including
of our audit, we did not come across
any instance of audit trail feature
being tampered with in respect of such
accounting software except for above.
Additionally, where enabled, the audit
trail of prior year has been preserved
by the Company as per the statutory
requirements for record retention.
In regard to Payroll application
Based on our examination which included
test checks, the Company has used an
accounting software for maintaining its
payroll records during the year, which is
managed and maintained by a third-party
software service provider as explained
in note 54 to the financial statements.
However, in absence of sufficient and
appropriate audit evidence including
adequate coverage in SOC report we are
unable to comment whether the accounting
software has a feature of recording audit
trail (edit log) facility and whether the
same has operated throughout the period
for all relevant transactions recorded in the
software or whether there is any instance
of audit trail feature being tampered with.
Additionally, 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 March 31, 2026.
3. In our opinion, according to information,
explanations given to us, the remuneration paid
or provided by the Company to its directors is
within the limits laid prescribed under Section
197 of the Act.
For M S K A & Associates LLP
(Formerly known as M S K A & Associates)
Chartered Accountants
ICAI Firm Registration No. 105047W/W101187
Yogesh Yewale
Partner
Membership No.: 158877
UDIN: 26158877ZFUSNX9005
Place: Pune
Date: May 20, 2026
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