SHIVA GRANITO EXPORT LIMITED
Report on the Audit of the Standalone lnd AS Financial Statements
Qualified Opinion
We have audited the accompanying Standalone lnd AS financial statements of Shiva Granito Export Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2025 the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the Standalone lnd AS financial Statements including a summary of the 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, except for the possible effects of the matter described in the basis for qualified opinion paragraph section the aforesaid Standalone lnd AS financial statements give the information required by the Companies Act, 2013,as amended ("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 the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("lnd AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, the loss and its cash flows and changes in equity for the year ended on that date.
Basis of Qualified Opinion
1. The Company has not made a provision for expected credit loss in respect of trade receivables amounting to *76897418, which is not in compliance with lnd AS 109 - Financial Instruments In our opinion, had the Company made such provision, the total expenses would have increased and the profit before tax would have decreased by * 76897418 for the year ended 31st March 2025 Accordingly, trade receivables and equity as at 31st March 2025 are overstated by the same amount.
2. The Company has not provided for interest payable to micro and small enterprises (as defined under the Micro, Small and Medium Enterprises Development Act, 2006) on delayed payments as required under Section 16 of the said Act. As informed to us, the management has not determined the amount of such interest liability and hence no provision has been made in the financial statements for the year ended 31st March 2025.Had the Company provided for such interest, the profit for the year would have been lower by the said un ascertained amount and the corresponding liability- under current liabilities would have increased by a similar amount.
3. The Company has not made provision for gratuity liability in accordance with the requirements of lnd AS 19 - Employee Benefits. As per the information and explanations given to us, the management has not conducted any actuarial valuation for gratuity obligations as at the year-end. Consequently, we arc unable to determine the impact of such non-provision on the financial statements for the year ended 31 st March 2025.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results 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 results under the provisions of the Companies Act, 2013 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 qualified opinion
Emphasis of Matter
1. We draw attention to Note 04 of the financial statements, which describes the recognition of Deferred Tax Asset of 526565 relating to MAT credit entitlement and Deferred Tax Liability of ?18,92394 arising from timing differences on fixed assets. The recognition of MAT credit as Deferred Tax Asset is based on management’s assessment of probable future taxable income. Our opinion is not modified in respect of this matter.
2. As stated in Note 24 to the standalone Ind AS financial statements, the Company has not provided appropriate valuation of inventories as at 31.03.2025 due to non-availability of required stock records and valuation reports. In the absence of sufficient appropriate audit evidence regarding the existence and valuation of inventor)', we were unable to determine whether any adjustments might be necessary in respect of inventory, cost of goods sold, and the corresponding impact on the results for the year, assets, and equity as at the balance sheet date
Key Audit Matters
Except for the matter described in the Basis for Qualified opinion section and Emphasis of matter section ,we have determined that there are no other key audit matters to communicate in our report. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Information Other than the Financial Statements and Auditor's 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 Annual Report, but does not include the Ind AS financial statements and our auditor's report thereon.
Our opinion on the Standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection w ith our audit of the Standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Tnd AS financial statements or our know ledge 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; w e are required to report that fact. We have nothing to report in this regard.
Management's Responsibility for the Standalone Tnd AS 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 Ind AS 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(Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 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 statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS 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 Standalone Ind AS Financial Statements.
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS 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 w ith SAs w ill 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 Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Standalone Ind AS financial statements, w'hether 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 detec ting 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 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 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, wre are required to draw attention in our auditor's report to the related disclosures in the Standalone Ind AS 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.
Evaluate the overall presentation, structure and content of the Standalone Ind AS financial statements, including the disclosures, and whether the Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Ind AS 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 w ork and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
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 audit of the Standalone Ind AS 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 (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 Companies Act, 2013, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and except the matter described in the basis of qualifying opinion and emphasis matter, 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 effec ts of the matter described in the Basis for Qualified opinion and-emphasis matter paragraph above in our opinion, proper books of account as required bv law 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 (h-vi.) below, on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014
c) Except for the possible effects of the matter described in the Basis qualified opinion and-emphasis matter paragraph The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity and the Statement of Clash Flow dealt with by this Report are in agreement with the relevant books of account.
d) Except the matter described in the basis of Qualified opinion and-emphasis matter paragraph , in our opinion, the aforesaid Standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules 2015 as amended.
e) On the basis ol 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 with reference to these Standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2” to this report.
g) In our opinion and to the best of our information and according to the explanations
given to us, the remuneration for the year ended March 31,2025 has been paid /provided by the Company to its directors during the year is in accordance with the provisions of section 197 read w ith schedule V to the Act.
h) Except for the possible effects of the matter described in the Basis for Qualified opinion paragraph and the modifications relating to the maintenance of accounts and other matters connected therewith on reporting under section 143(3)(b) of the Act and paragraph h-vi below on reporting under Rule 11(g) and with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of The Companies (Audit and Auditors) Rules, 2014, as amended 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 litigation on its financial position in its Standalone Ind AS financial statements. Refer note 35,36(a)and36(b) to the Financial Statements
ii The Company did not have any long-term contracts including derivative contracts for which there w ere any material foreseeable losses.
iii 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, no fund has 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 otherw ise, 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, no fund has been received by the company from any person(s) or entity(ies), including foreign entities ("funding parties"), with the understanding, whether recorded in w riting 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 such audit procedures that were 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 (a) and (b) 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.
(vi) Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility, however the same has not operated throughout the year for all relevant transactions recorded in the respective software.
As the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, mandating the use and preservation of audit trail, is applicable from April 1, 2023, the reporting requirement under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, is applicable for the financial year ended March 31, 2025. Accordingly, based on our examination, we report that the Company has not complied with the requirements relating to operation and preservation of audit trail for the entire vear.
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For NTNAWATI & ASSOCIATES Chartered Accountants (Firm's Registration No. 002148C)
Sd/-
(CA C. S. Nenawati)
Place: Udaipur Partner
Dated: 23.06.2025 Membership No. 071341
UDTN 25071341BMOXFX7184
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