I have audited the financial statements of Sar Auto Products Limited ("the Company"), which comprise
the balance sheet as at March 31, 2025, and the statement of Profit and Loss (including Other
Comprehensive Income), statement of changes in equity, and statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information for the year ended on that date (hereinafter referred to as "financial
statements").
In my opinion and to the best of my information and according to the explanations given to me, 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 principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2025, the profit, and
total comprehensive income, changes in equity and its cash flows for the year ended on that date.
BASIS FOR OPINION
I conducted my audit of financial statement in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act. My responsibilities under those Standards are further described in the
'Auditor's Responsibilities for the Audit of the Financial Statements' section of my report. I am
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 my audit of the
financial statements under the provisions of the Act and the Rules thereunder, and I have fulfilled my
other ethical responsibilities in accordance with these requirements and the Code of Ethics. I believe that
the audit evidences I have obtained are sufficient and appropriate to provide a basis for my opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in my professional judgment, were of most significance in my
audit of the financial statements of the current period. These matters were addressed in the context of
my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide
a separate opinion on these matters.
I have determined that there are no key audit matters to communicate in my report.
OTHER INFORMATION
Management is responsible for the other information. The other information comprises the information
included in the Annual Report, but does not include the financial statements and my auditor's report
thereon.
My opinion on the financial statements does not cover the other information and I do not express any
form of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or my knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work I have performed, I conclude that there is a material misstatement of
this other information; I am required to report that fact.
I have nothing to report in this regard.
MANAGEMENT'S RESPONSIBILITY FOR THE 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 financial statements that give a true and fair view of the
financial position, financial performance, total comprehensive income, 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 implementation and maintenance of 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 statement that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the 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 are also
responsible for overseeing the Company's financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
My 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 my 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 statements.
As part of an audit in accordance with SAs, I exercise professional judgment and maintain professional
skepticism throughout the audit. I also:
• Identify and assess the risks of material misstatement of the 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 my 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, I am also
responsible for expressing my 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 I conclude that a material uncertainty exists, I am required to draw attention in my
auditor's report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to
the date of my 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 financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
I 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 I identify during my audit.
I also provide those charged with governance with a statement that I 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 my independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, I determine those matters that
were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. I describe these matters in my auditor's report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I
determine that a matter should not be communicated in my 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 sub-section (11) of section 143 of the Act, I give in the "Annexure
A". 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, I report that:
a) I have sought and obtained all the information and explanations which to the best of my
knowledge and belief were necessary for the purposes of my audit.
b) In my opinion, proper books of account as required by law have been kept by the Company so
far as it appears from my examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, Other Comprehensive Income, Statement
of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement
with the books of account.
d) In my 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,
2014.
e) 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.
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 my separate Report in
"Annexure B".
g) 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 my opinion and to the best of my
information and according to the explanations given to me:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company during the year ended on March 31, 2025.
iv. a) The management has represented that, to the best of it's 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 person
or entity, including foreign entities ("Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly
lend or invest in other person or entity 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 it's knowledge and belief, no
funds have been received by the company from any person or entity, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the company shall, whether, directly or indirectly, lend or invest in other
person or entity 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; and
c) Based on such audit procedures that were considered reasonable and appropriate in the
circumstances, nothing has come to my notice that has caused me to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
v. The Company does not declared or paid dividend during the year.
vi. The Company uses accounting software Tally for maintaining its books of account which has
a feature of recording audit trail (edit log) facility and as represented by the management the
same has operated throughout the year for all relevant transactions recorded in the
accounting software. However, there are some inherent limitations of this accounting
software.
3. With Respect to the other matters to be included in Auditors' Report in accordance with the
requirements of Section 197(16) of the Act, as amended:
In my opinion and according to the information and explanation given to me, the remuneration
paid during the current year by the Company to its directors is in accordance with the provisions of
Section 197 of the Act.
For J. A. Sheth& Associates,
Chartered Accountants
(Firm Registration Number - 119980W)
Jingal A. Sheth
Proprietor
(Membership No.107067)
Rajkot, Dated 12thMay, 2025 UDIN: 25107067BMLFCC2985
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