We have audited the accompanying standalone financial statements of SMT ENGINEERING
LIMITED (Formerly known as Adarsh Mercantile Limited) ("the Company”) which comprises
the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss (including Other
Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity
for the year then ended, and notes to 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 standalone financial statements give the information required by the
Companies Act, 2013 ("the Act”), as amended 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 31st March, 2025 and its loss including other comprehensive
income, its cash flows and the changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Act. 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 (‘ICAI’) 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 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 that there are no key audit matter to be communicated in our report.
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 Annual Report, but does not include the
Standalone Financial Statements and our auditor’s report thereon.
Our opinion on the Standalone 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 Standalone 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 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.
RESPONSIBILITY OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE
FOR THE STANDALONE FINANCIAL STATEMENTS
The accompanying standalone financial statements have been approved by the Company’s
Board of Directors. The Company’s Board of Directors are responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act”) with respect to the preparation of
these standalone financial statements that give a true and fair view of the state of affairs
(financial position), profit (financial performance including other comprehensive income),
changes in equity and cash flows and changes in equity 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 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 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 also responsible for overseeing the Company’s financial reporting
process.
AUDITOR’S RESPONSIBILITY 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 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 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 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,
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 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 Financial
Statements, including the disclosures, and whether the Standalone Financial Statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information / financial
statements of Company to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the audit of financial
statements of the Company.
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.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the section 197(16) of the Act based on our audit, we report that the
Company has paid remuneration to its directors during the year in accordance with the
provisions of and limits laid down under section 197 read with Schedule V of the Act.
2. As required by the Companies (Auditor’s Report) Order, 2020 ("the Order”) issued by
the Central Government of India, in terms of section 143(11) 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.
3. As required by Section 143(3) of the Act based on our audit, we report, to the extent
applicable, 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 purpose of our audit of
the accompanying standalone financial statements;
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 standalone financial statements dealt with by this report are in agreement with
the books of account;
d) In our opinion, the aforesaid Standalone Financial Statements comply with Ind AS
specified under section 133 of the Act.
e) On the basis of written representations received from the directors and taken on
record by the Board of Directors, none of the directors is disqualified as on 31
March, 2025 from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the adequacy of internal financial controls with reference to
financial statements of the Company as on 31 March 2025 and the operating
effectiveness of such controls, refer to our separate report in Annexure "B" wherein
we have expressed an unmodified opinion; and
g) 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 does not have any pending litigations which would impact its
financial position as at 31 March 2025.
(ii) The Company did not have any long term contracts including derivative
contracts for which there were any material foreseeable losses as at 31
March 2025.
(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 31 March 2025.
(iv) a. The management has represented that, to the best of its knowledge and
belief. no funds have been advanced or loaned or invested (either from
borrowed funds or securities premium or any other sources or kind of
funds) by the Company to or in any person(s) or entity(ies), including
foreign entities (the 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 (the Ultimate
Beneficiaries) or provide any guarantee, security or the like on behalf the
Ultimate Beneficiaries.
b. The management has represented that, to the best of its knowledge and
belief, no funds have been received by the Company from any person(s)
or entity(ies). including foreign entities (the 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 such audit procedures performed as considered reasonable and
appropriate in the circumstances, nothing has come to our attention that
causes us to believe that the management representations under sub¬
clauses (a) and (b) above contain any material misstatement.
(v) The Company has not declared or paid any dividend during the year ended
31 March 2025.
(vi) Reporting on Audit Trails
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 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.
For NKSJ & Associates
Chartered Accountants
Registration No. 329563E
UDIN: 25234454BMLGZL2958
Embassy Building, Flat No. 1B,
1st Floor,
4, Shakespeare Sarani,
Kolkata - 700 071 CA Sneha Jain
Partner
Dated the 16th day of June, 2025 Membership No. 234454
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