We have audited the accompanying standalone
Ind AS financial statements of Sharat Industries
Limited (“the Company”), which comprise
the Balance Sheet as at 31st March 2025, the
Statement of Profit and Loss (including other
comprehensive income) for the year then ended,
the Cash Flows and the Statement of Changes in
Equity for the year then ended and a summary
of the significant accounting policies and other
explanatory information (hereinafter referred to
as “the standalone Ind AS 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 (“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 the 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 31st March,
2025, the profit for the year ended on that date
total comprehensive income, its cash flows and
the changes in equity for the year ended on that
date.
Basis of Opinion
Weconducted ourauditof the standalone financial
statements 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 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 Companies
Act, 2013 and the Rules there under, 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 on the standalone
financial statements.
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 have determined that there are no key
audit matters to communicate in our report.
Information other than the financial
statements and auditors’ 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 Board's Report including
Annexures to Board's Report, Business
Responsibility Report but does not include the
financial statements and our auditor's report
thereon.
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 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.
Management’s Responsibilities for the
Standalone Financial Statements
The Company's Board of Directors is responsible
for the matters stated in section 134(5) of
the Companies Act 2013, with respect to the
preparation of these standalone financial
statements that give a true and fair view of the
financial position and financial performance, 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 the assets of the Company
and for preventing and detecting frauds and
other irregularities; selection and application
of appropriate accounting policies; making
judgements 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. The Board of
Directors are 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.
As part of an audit in accordance with SAs, we
exercise professional judgement and maintain
professional scepticism 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 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 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 standalone financial statements or, if
such disclosure 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 also communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit and
significant audit findings 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
As required by the Companies (Independent
Auditor's Report) Order, 2020 (“the Order”)
issued by the Central Government of India in
terms of subsection (11) of Section 143 of the Act,
we give in the “Annexure A”, a statement on the
matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
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.
b) In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit and
Loss including other comprehensive income,
the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are
in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind
AS financial statements comply with the
Indian Accounting Standards specified under
Section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as
amended.
e) On the basis of the written representations
received from the directors as on
31st March, 2025 taken on record by the
Board of Directors, none of the directors is
disqualified as on 31st March, 2025 from being
appointed as a director in terms of Section 164
(2) of the Act.
f) With respect of the adequacy of the Internal
Financial Controls over Financial Reporting of
the company and its operating effectiveness
of such controls, refer to our separate report
in “Annexure B”.
g) 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 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 does not have any pending
litigations which would impact its financial
position in its standalone Ind AS 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 were no amounts which were required
to be transferred to the Investor Education
and Protection Fund.
iv. (a) The management has represented
that, to the best of its knowledge and
belief, other than as disclosed in the
notes to the accounts, 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 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) The management has represented,
that, to the best of its knowledge and
belief, other than as disclosed in the
notes to the accounts, 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 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; and
(c) Based on audit procedures which we
considered reasonable and appropriate
in the circumstances, nothing has come
to their notice that has caused them to
believe that the representations under
sub-clause (i) and (ii) contain any
material misstatement.
v. The company has not declared or paid any
dividend during the year in contravention
of the provisions of section 123 of the
Companies Act, 2013.
i) Based on our examination carried out in
accordance with the Implementation Guidance
on Reporting on Audit Trail under Rule 11(g)
of the Companies (Audit and Auditors)
Rules,2014 (Revised 2024 Edition) issued
by the Institute of Chartered Accountants of
India, which included test checks, we report that 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 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. Our examination of the audit trail was in the context of an audit of financial
statements carried out in accordance with the Standard of Auditing and only to the extent required
by Rule 11(g) of the Companies (Audit and Auditors) Rules,2014. We have not carried out any audit
or examination of the audit trail beyond the matters required by the aforesaid Rule 11(g) nor have
we carried out any standalone audit or examination of the audit trail.”
j) With respect to the matter to be included in the Auditors' Report under Section 197(16) of the Act, in
our opinion and according to the information and explanations given to us, the remuneration paid
to the directors during the year is in accordance with the section 197 of the Act. The remuneration
paid to any director is not in excess of the limit.
For A.R. KRISHNAN & ASSOCIATES
Chartered Accountants
FRN:009805S
B. Anandaramakrishnan
Partner
Place: Chennai Membership No.: 209122
Date: 29/05/2025 UDIN : 25209122BMKVLN1720
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