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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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1
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Revenue Recognition:
Refer note 2.2 to the standalone financial statements
for the material accounting policy on revenue
recognition and details of revenue recognised
during the year.
Revenue is a key performance measure for the
Company. Revenue of the Company mainly consists
of sale of Granite Blocks and related products to its
customers and is recognised at a point in time upon
transfer of control over the products sold.
Company recognises the sale of goods, based on
shipping terms which varies with different customers
which defines the timing of revenue recognition.
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Our audit procedures in respect of this matter included the
following but not limited to:
1. Evaluated the appropriateness of the Company’s
revenue recognition accounting policies as required
under the applicable accounting standards.
2. Obtained an understanding of process and tested the
design, implementation and operating effectiveness of
key controls around the timely and accurate recording
of sales transactions.
3. Obtained sale order/contracts with customers and
basis which revenue is recognised and verified the
underlying documents and evidence for transfer of
control and fulfilment of performance obligations.
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Sr.
No
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Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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In respect of sale transactions executed near to the
balance sheet date, it is essential to ensure that the
control of goods has transferred to the customers
and there are no unfulfilled obligations regarding
these sales. Tracking of the delivery evidence and
ascertaining revenue recognition against each
Invoice date is a manual exercise, accordingly cut
off for revenue is considered as a significant account
balance for audit consideration.
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4.
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Ensured completeness and existence assertion by
performing substantive testing on selected samples
of revenue transactions recorded during the year
by testing the underlying documents including sale
orders/contracts, invoices, goods dispatch notes
and shipping documents, wherever applicable and
obtaining independent balance confirmation from the
customers at the balance sheet date.
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2
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Inventory:
Refer to Note 2.2 of the standalone financial
statements for the Company’s accounting policy on
inventory valuation.
Inventory comprises of finished goods in the form
of granites blocks. This was determined a key audit
matter, as the measurement of these inventory
quantities lying at the Company’s premises is
complex and involves significant judgements and
estimates resulting from measuring the volume/
quantity of the block of granite and classification
into various grades. The Company uses internal
experts, as applicable, to perform physical count and
assessments of grading, basis which the quantities
and net realisable values of these inventories are
estimated.
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Our audit procedures in respect of this matter included the
following but not limited to:
1. Understanding and evaluating the design and testing
the operating effectiveness of controls over the physical
count process and measurement of such inventory,
basis of classification into various grades;
2. Evaluated that the Company’s inventory valuation
policy is in compliance with Ind AS-2 ‘Inventories.
3. Evaluation of the competency and capabilities of the
management’s internal experts;
4. Physically observing inventory measurement and
count procedures carried out by management using
internal experts to assess its appropriateness and
completeness;
5. Verifying the subsequent sales of the granite block to
justify the carrying value;
6. Obtaining and inspecting inventory measurement and
physical count results for such inventories, including
assessing and evaluating the results of analysis
performed and adjustments made by Company’s
management in respect of differences between book
and physical quantities.
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We have audited the accompanying standalone
financial statements of Midwest Limited ("the
Company”), which comprise the Balance Sheet as
at March 31, 2026, 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 standalone financial statements, including
material accounting policy information and other
explanatory information (hereinafter referred to as
the "standalone financial statements”).
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 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, 2026, and its profit (including other
comprehensive loss), changes in equity and its cash
flows 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 SAs 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 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 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 the matters
described below to be the key audit matters 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
Chairman’s statement and Director’s report but does
not include the standalone financial statements and
our auditor’s report thereon etc. which is expected to
be made available to us after that date.
Our opinion on the standalone financial statements
does not cover the other information and we do
not and will 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 identified above 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 on the
other information that we obtained prior to the date
of this auditor’s report, 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.
When we read the Chairman’s statement and
Director’s report etc., if we conclude that there is a
material misstatement therein, we are required to
communicate the matter to those charged with
governance.
Responsibilities of Management and Board of
Directors for the Standalone Financial Statements
The Company’s Management and Board of Directors
are 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, changes in equity and cash flows of
the Company in accordance with the accounting
principles generally accepted in India, including
the Indian Accounting Standards specified under
section 133 of the Act. 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
statements - Refer Note 40 to the
standalone financial statements.
ii. The Company did not have any
long-term contracts including
derivative contracts for which there
were any material foreseeable losses.
iii. There are no amounts which are
required to be transferred to the
Investor Education and Protection
Fund by the Company during the year
ended March 31, 2026.
iv. a. The Management has represented
that, to the best of it’s knowledge
and belief, as disclosed in the note
54 to the standalone financial
statements, 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, 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 it’s knowledge
and belief, as disclosed in the note
54 to the standalone financial
statements, no funds have been
received by the Company from any
person(s) or entity(ies), including
foreign entities ("Funding Parties”),
with the understanding, whether
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
Board of Directors of the Company are 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 the Board of
Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative
but to do so.
The Board of Directors is 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 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.
We give in "Annexure A” a detailed description of
Auditor’s responsibilities for Audit of the Standalone
Financial Statements.
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 Act, we give in "Annexure
B” 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 of the aforesaid standalone financial
statements.
(b) In our opinion, proper books of account
as required by law relating to preparation
of the aforesaid standalone financial
statements 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
loss), the Statement of Changes in Equity
and the Statement of Cash Flows dealt
with by this Report are in agreement with
the books of account maintained for the
purpose of preparation of the standalone
financial statements.
(d) In our opinion, the aforesaid standalone
financial statements comply with the Ind
AS specified under Section 133 of the Act.
(e) On the basis of the written representations
received from the directors as on
March 31, 2026 taken on record by the
Board of Directors, none of the directors
are disqualified as on March 31, 2026 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 C”.
(g) 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 disclosed the impact
of pending litigations on its financial
position in its standalone financial
recorded in writing or otherwise,
that the Company shall, 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.
c. Based on the audit procedures
performed 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) contain any
material mis-statement.
v. The Company has neither declared nor
paid any dividend during the year.
vi. 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. Additionally, the
audit trail of the prior years has been
preserved by the Company as per
the statutory requirements for record
retention to the extent it was enabled
and recorded.
3. In our opinion, according to information,
explanations given to us, the remuneration paid
or provided by the Company to its directors is
within the limits laid prescribed under Section
197 of the Act.
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