We have audited the accompanying standalone financial
statements of Adinath Exim Resources Limited ("the Company"),
which comprise the balance sheet as at 31st March 2025, the
statement of Profit and Loss (Including Other Comprehensive
Income), the statement of cash flows 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 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 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 March 31, 2025, and its profit,
total comprehensive income, the changes in equity and its cash
flows for the year ended on that date.
Basis for Opinion
We conducted our audit of financial statement 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 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 audit opinion on the financial statement.
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 do not provide a
separate opinion on these matters. In our opinion, there are
no reportable Key Audit Matters for the standalone financial
statements of the Company.
Information Other than the Financial Statements and Auditor's
Report thereon
The Company's Board of Directors are responsible for 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 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 Responsibility for the Financial Statements
The Company's Management and the Board of Directors are
responsible for the matters stated in section 134(5) of the Act with
respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance including other comprehensive income,
changes in equity and cash flows of the Company in accordance
with the other accounting principles generally accepted in India,
including the Indian Accounting Standards specified under
section 133 of the Act read with relevant Rules issued thereunder.
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 financial statements 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
Our 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 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
financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional scepticism 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 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 with reference to the financial
statements 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 and the Board of Directors.
• Conclude on the appropriateness of management's and
Board of Directors' 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, 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 financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the 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 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 financial statements for 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 Act, we give in "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), Statement of Cash Flow and
the Statement of Changes in Equity dealt with by this report
are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply
with the Ind AS specified under section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of 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 with reference to the financial statements of the
Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B". Our report
expresses an unmodified opinion on the adequacy and
operating effectiveness of the Company's internal financial
controls with reference to financial statements.
g) With respect to other matters to be included in the Auditor's
Report in accordance with the requirements of section
197(16) of the Act, as amended, 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, we further report that:
i. The Company has disclosed the impact of pending
litigations as at March 31, 2025 on its financial position
in its financial statements - Refer Note No. 23 to the
financial statements.
ii. According to the information and explanations
provided to us, 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 Company's Management and the Board of
Directors have represented that, to the best of
their knowledge and belief, no funds (which are
material either individually or in aggregate) 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
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 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 Company's Management and the Board of
Directors have represented, that, to the best of
their knowledge and belief, no funds (which are
material either individually or in 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 on behalf of the
Ultimate Beneficiaries; and
(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
representations under sub-clause (i) and (ii) of
Rule 11(e) as provided under (a) and (b) above,
contain any material misstatement.
v. The Company has neither declared nor paid any dividend
during the year.
vi. The company has used accounting software for maintaining
its books of account which has a feature of recording audit
trail (edit log) facility and the same has been operated
throughout the year for all relevant transactions recorded
in the software. Further, there are no instances of audit
trail being tampered with. Additionally, the audit trail of
prior year(s) has been preserved by the Company as per the
statutory requirements for record retention to the extent it
was enabled and recorded in the respective years.
For Mahendra N Shah & Co.
Chartered Accountants
FRN: 105775W
Chirag M. Shah
Partner
Place: Ahmedabad Membership No: 045706
Date: May 26, 2025 UDIN: 25045706BMJAIN3898
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