We have audited the accompanying standalone financial statements of M. K. PROTEINS LIMITED (the
Company’), which comprise the Balance Sheet as at March 31, 2025 and the Statement of Profit and Loss
(Including Other Comprehensive Income), the statement of changes in equity and the statement of cash
flows for the year then ended, and notes to the 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, the aforesaid
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 Indian Accounting Standards prescribed
under Section 133 of the Act read with the Companies (India 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, its cash flows and the changes in equity
for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements 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 Act and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s 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 standalone financial statements.
Key Audit Matters
Key audit matters (“KAM”) 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 the matters described below
to be the key audit matters to be communicated in our audit report.
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The Key audit matters
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Auditor’s Response
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Revenue Recognition
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Principal Audit Procedure
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Revenue is recognised when the significant risk and
rewards of the ownership have been transferred to the
buyer, and recovery of consideration adjusted for rebate
and discounts is probable. This includes variable
consideration given the customers, associated costs, and
potential returns of goods, which can be reliably
measured. Additionally, there is no continuing effective
control or managerial involvement in respect of the goods,
and the amount of revenue can be measured reliably.
Revenue is recognised at the time control over goods is
transferred to the customer, typically upon delivery.
The timing of revenue recognition is significant to the
reported performance of the company. However, there is a
risk that revenue may get recorded before the control is
transferred.
The terms of sales arrangements, including the timing of
transfer of control and historical experience create
complexities that require key judgements in determining
revenues. Considering these factors, we have identified
revenue recognition as a key audit matter.
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We have performed the following principal audit
procedures in relation to recognised revenue, which
include a combination of testing internal controls and
substantive testing as under:
Understanding the revenue recognition process,
evaluating the design and implementation of
Company’s controls related to revenue recognition,
and testing the effectiveness of such controls over
revenue cut offs at year-end, including analytical
procedures to assess the reasonableness of the
recognised revenue.
We tested the design, implementation, and operating
effectiveness of the management’s system of
Controls, key application controls, and interfaces
between system controls and key manual internal
controls related to revenue recognition to assess the
completeness of the revenue to ensure the
completeness of revenue entries being recorded in
the general accounting system.
Sample-based testing was conducting on supporting
documentation for sales transactions recorded during
the year, including customer contracts, sales orders,
sales invoices, management’s control over dispatch
of goods, delivery challans, discount and rebate
conditions, and other related documents, ensuring
compliance with credit limit terms as per the
contract.
We evaluated the appropriateness of revenue recognition
policy and adequacy of disclosures in
the financial statements regarding revenue
recognition in accordance with the Ind AS115.
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Contingent liabilities relating to taxation, litigations
and claims
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Principal Audit Procedure
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Accrual for taxes and other contingencies requires
management to make judgements and estimates related to
issues and exposures arising from various matters,
including direct or indirect taxes, claims, general legal
proceedings, and other eventualities occurring in the
normal course of business.
The key judgement involves estimating provisions where
they may differ from future obligations. Provisions are
inherently difficult to estimate due to their dependency on
numerous variables. Moreover, there is a risk that costs
could be provisioned prematurely for obligations that are
not yet committed, depending on the timing.
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Understanding the process followed by the company
for assessing and determining the amount of
provisions and contingent liabilities and claims.
We used our professional judgement and experience
to assess the value of significant contingent
liabilities considering the nature of exposures,
applicable regulations, and relevant correspondence
with authorities.
We discussed the status and potential exposures
related to significant litigation and claims with the
company’s management, including their
perspectives on the likely outcome of each case and
potential magnitude of exposure. We also reviewed
any relevant opinions provided by advisors.
We assessed the adequacy and appropriateness of
the company’s disclosures in the financial statement.
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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 Director’s Report, Management Discussion and Analysis, Corporate Governance
Report, but does not include the standalone 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 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 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.
Responsibilities of management and those charged with governance for the Standalone 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 financial statements that give a true and fair view of the financial
position, financial performance including Other Comprehensive Income, 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 (India
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 polices; 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 statement 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 of the Company 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 Responsibilities 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 Standards on Auditing 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:
J 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.
J 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 with reference of financial
statement in place and the operating effectiveness of such controls.
J Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
J 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, 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.
J Evaluate the overall presentation, structure and content of the standalone 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 misstatement in the standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone
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 misstatement 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 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 the Central
Government of 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
(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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other
comprehensive income), the Standalone Statement of Change in Equity and the Standalone
Statement of Cash Flows 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 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 standalone financial
statements of the Company and the operating effectiveness of such controls, refer to our separate report
in Annexure “B”;
(g) In our opinion and according to the information and explanations given to us, the remuneration paid by
the Company to its directors during the current year is in accordance with the provisions of Section
197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under
Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditors’ 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 dose not has any pending litigations which would impact its financial statement
as of March 31, 2025.
ii) The Company did not have any long-term contracts including derivatives contracts for which there
were any material foreseeable losses.
iii) There were no amounts which 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 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(s) or entity(ies), including foreign
entities (“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 (“Ultimate Beneficiaries”) by or on behalf of the Company
or-provide any guarantee, security or the like to or on behalf of 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 (“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 (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or provide any
guarantee, security or the like from or on behalf of the Ultimate beneficiaries; and
c) Based on such audit procedures that we 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) Based on our examination which included test checks, the Company has used accounting softwares
for maintaining its books of account for the financial year ended March 31, 2025 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 softwares. Further, during the course of our audit we did
not come across any instance of audit trail feature being tampered with.
Additionally, the audit trail has been preserved by the Company as per the statutory
requirements for record retention.
vi) The Company has neither declared nor paid any dividend during the year.
Place: Ambala For KRA & Co.,
Chartered Accountants
Firm Registration No. 020266N
Date: 23rd May 2025
RAJAT GOYAL
(PARTNER)
Membership No.: 503150
UDIN: 25503150BMJBZH8774
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