We have audited the accompanying Ind AS financial statements of Samkrg Pistons& Rings Limited (“the Company”),
which comprises the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss (including Other
Comprehensive Income), Statement of Changes in Equity, and Statement of Cash Flows for the year then ended,
and notes to the financial statements, including a summary of 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 afore said
Standalone 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 accounting principles generally accepted
in India, of the standalone state of affairs of the Company as at March 31,2025 and its standalone profit (including
Other Comprehensive Income), standalone changes in equity and its standalone cash flows 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 Ind AS 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 Ind AS 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 Ind AS financial statements of the current period. These matters were addressed in the context
of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. Following is the Key Audit Matter identified which is of
most significance:
TRADE RECEIVABLES: Trade Receivables accounts for 49.28% of total current assets of the company.
The Company is not exposed to potential risk of financial loss as there is no risk of default on receivables from
the customers. As the company has good valued customers both in domestic OEM’s and Replacement market
and Export.
We have performed the following procedures in relation to recoverability of Trade Receivables
- Tested the accuracy of trade receivables at year end on sample basis
- Obtained a list of Outstanding Receivables and evaluated its recoverability through discussion with
management.
- Assessed the recoverability Trade Receivables through sample basis through our evaluation of management
assessment with reference to
(a) Credit Profile of Customers
(b) Historical Payment pattern of customers
(c) Tested subsequent settlement of trade receivables after the balance sheet date on a sample basis.
Based on above procedures we found the key judgements and assumptions used by management in the
recoverability of assessment of Trade Receivables to be supported based on available evidence.
Other Information
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 Ind AS Financial
Statements, Secretarial Report and our auditor’s report thereon, which we obtained prior to the date this
auditor’s reports.
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 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
Ind AS 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 Standalone Ind 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 standalone Ind AS Financial Statements that give a true and fair view of
the standalone financial position, standalone financial performance (including other comprehensive income),
standalone changes in equity and standalone 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 of 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 Financial Statements, the 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.
Those 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 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 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 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. and 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.
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
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by Central
Government of India in terms of sub-section (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.
2. 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 Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in
agreement with the books of account.
d. In our opinion, the aforesaid standalone 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 are disqualified as on 31st March,
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 and the operating effectiveness of such controls, refer to our separate report in
“Annexure B”.
g. As required by section 197 (16) of the Act; in our opinion and according to information and
explanation provided to us, the remuneration paid by the company to its directors is in accordance
with the provisions of section 197 of the Act and remuneration paid to its directors is not in excess
of the limit laid down under this section.
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 has not any pending litigations and disclosure of the same is not applicable.
ii) The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses as at 31st March 2025.
iii) There has not been any delay in transferring amounts, required to be transferred, to the
investor Education and Protection Fund by the Company
MVNMURTHY
Chartered Accountant
Sd/-
(MVN Murthy)
Date : 29-05-2025 Membership No. 201445
Place : Hyderabad UDIN: 25201445BMITPB7211
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