We have audited the financial statements of SHESHADRI INDUSTRIES LIMITED (“the Company”), which comprise
the balance sheet as at 31st March 2025, the statement of Profit and Loss, statement of cash flows for the year then
ended, an d notes tea the financial statements, including a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations given to us,, 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 ronformity with the accounting principles generally accepted in India inc luding the Accounting
Standards prescribrd under section 133 of the Act read with the Companies (Accounting Stanrlards) Rules, 2006,as
amended, (AS),of the state of affairs of the Company as at March 31,2025, its loss and its cash flows for the year ended
on that date.
Basis for Qualified Opinion
No provision is made in the books of account for the interest payable on outstanding unpaid statutory dues of Tax
deducted at source up to the date to an extent of ' 21.85 lakhs (including arrears of 34.90 lakhs up to March 31,2024)
Consequent to the above the profit for the year is overstated by ' 5.46 lakhs , and current liabilities are under stated by
' 21.85 lakhs.
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 Act and tine Rules thereunder, and we
have fulfilled our otlner 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 qualified opinion can (hie
financial statements .
Key Audit Matters
Key Audit Matters (‘KAM') tire those matters that, in our professional judgement, were of most significance in our- audit of
the financial statements of7 the: current period. These matters were addressed in the context ht our audit of the fitancial
statements as a whole, and in forming oun opinion thereon, and we do not provide a separate opinion on these matters.
We have determined that there sre no Key Audit Masters to be communicated in our report.
Other Information
The Company'r Board of Directors is responsible for the other information. The other information comprises the
information included in tire company's annual report but does not include the financial statements and our auditor's
report thereon.
Our off inion 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 such other information is materially inconsistent with the financial statements, or our knowledge
obtained in the 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.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of tha 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, and cash flows of the Company in accordance with the accounting principles generally
accepted in I ndia,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; maping judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adepuate 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 v iew and ere free from material misstatement, whether due to fraud or error.
In preparing the financialstatements, management is responsible for assessing the Company's ability to continue as a going
concern, disclosing, as eepiicable, 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 Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements asa whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonalle
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always
detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in aggregate, they could reasonably be expected to influence Che economic decisions of users taken oc the
basis of these financial statements.
As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional
skepticism throughout the: audit. We 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 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 tine: override of internal control.
> Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that ase
appropriate in the ciscumstances. Under section I43(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 sucg controls.
> Evaluate the app ropriateness of accounting policies used and the reasonableness of ac sou nting esti mates an d 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, ih 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 theoverall presentation, structure, and content of the financ ial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
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 aud it of the 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 car
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
oS India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we 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, we report that:
(a) Except for the effects of the matter described in the basis for qualified opinion 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 osr opinion, Except for the effects of the matter described in the basis for qualified opinion and for the
matters stated in the paragraph 2(i)(vi) below on reporting under Rulell(g) of the Companies (Audit and
Auditors) Rules, 2014., proper books of account as required bylaw have been kept bythe Company so far as
it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are
in agreement with the books of account.
(d) In our opinion, Except for the effects of the matter described in the basis for qualified opinion, the aforesaid
financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with
Rule 1 of the Companies (Accounts) Rules, 2014.
(e) On the Isasis of the written representations received from the ditectors as on 31st March 2025 taken on record
toy the Board of Directors, none of the directors is disqualified as on 31st March 2025 from being appointed as
a director in terms op Section 164 (2) of the Act.
(f) The modifications relating to the maintenance of accounts and other matters connected therewith are as stated
in the paragraph 2(b) above on reporting under Section l43(3)(b) of the Act and paragraph 2(i)(vi) below on
reporting urder Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the
Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B.”
(h) Wirh respect to the other matters to be included in the auditor's report in accordance with the requirements
of section 191(16) of the Act, as amended, in our opinion and to the best of our information and according to
tine explanations given to us, the remuneration paid by the company to its Managing Director during the year
is in accordance with the provisions of Section 191 of the Act.
(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 disclosed the impact of pending litigations on its financial position in its financial
statements - Refer Note 22 to the 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 by the Company.
iv. a. 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 advanced cor 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 cither person or entity, including foreign entity (“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 whatsoevdr 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, 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 ion behalf of the Ultimate
Beneficiaries;
c. Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representatiots
under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) aboed, contain any material
misstatement.
v. The company has not declared or paid any dividend during the year and has not proposed final dividend
for the year.
vi. Based on our examination which included test checks, the company has used accounting software for
mtintaining its books of account which has a feature of recording audit trafl(edit log) facility. However,
th e same is nest: enabled during the year.
for K S. Rao & CO;
Chartered Accountants
Firm's Registration Number: 003I09S
(V. VENKATESWARA RAO)
Partner
Place :Hyderabad Membership Number:2I9209
Dhte : May 213, 2025 UDIN:252 i 9209OMJBN B8994
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