We have audited the accompanying Standalone
Financial Statements of Atlanta Electricals Limited
(Formerly known as Atlanta Electricals Private Limited)
(hereinafter referred to as "the Company"), which
comprise the Balance Sheet as at March 31, 2026,
the Statement of Profit and Loss (including other
comprehensive income) and Statement of Cash Flow
and Statement of Changes in Equity for the year then
ended and notes to the financial statements including
a summary of material accounting policies 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 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, 2026, and its profit, other comprehensive
income, changes in equity and its 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
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 on the Standalone Financial Statements.
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.
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Key Audit Matters
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Auditors' Response
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1 Revenue Recognition and Cut-off Assessment
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The Company recognised revenue of
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Our
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audit procedures included, amongst others:
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?1,851.32 Crores from sale of products during
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•
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Evaluating the design and implementation of controls relating to
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the year. Revenue is recognised at a point in
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revenue recognition, dispatch processes, and period-end cut-off
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time upon transfer of control of goods to the
customer in accordance with Ind AS 115 —
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procedures.
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Revenue from Contracts with Customers. The
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Testing, on a sample basis, revenue transactions recorded during
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the period immediately preceding and following the year-end by
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determination of the appropriate point of
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examining dispatch documents, lorry receipts, E-way bills, proof
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revenue recognition, particularly for goods
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of delivery, and customer acknowledgements to assess whether
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in transit at year-end where control transfers
based on contractual delivery terms, involves
judgement.
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control transferred in the correct reporting period.
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Key Audit Matters
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Auditors' Response
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Considering the significance of revenue
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• Reviewing the contractual delivery terms for significant customer
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to the financial statements, the volume of
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contracts to assess the point at which control transfers and
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transactions recorded near the year-end, and
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evaluating whether revenue recognition was consistent with
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the inherent risk of cut-off misstatement for
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such terms.
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goods in transit, this area was considered a
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• Performing a reconciliation of revenue recorded in the books
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Key Audit Matter.
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with GSTR-1 filings to identify unexplained differences or timing
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mismatches.
• Performing analytical procedures by comparing month-wise and
period-on-period revenue trends, gross margin movements,
and revenue per unit dispatched to identify unusual fluctuations
requiring further investigation.
• Assessing the adequacy of disclosures relating to revenue
recognition policies in the financial statements.
Based on the procedures performed, revenue was found to be
recognised in accordance with Ind AS 115 and in the correct reporting
period. No material cut-off misstatements were identified.
2 Assessment of Provisions and Related Estimation Uncertainty
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The Company has recognised provisions
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Our audit procedures included, amongst others:
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amounting towards warranty obligations Late
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• Evaluating the design and implementation of controls over the
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Delivery (LD) arising in the ordinary course of
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identification, estimation, and periodic reassessment of warranty
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business. The estimation of these provisions
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and LD provisions.
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requires significant management judgement
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• Understanding management's methodology and key
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under Ind AS 37 — Provisions, Contingent
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assumptions underlying the determination of provision amounts,
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Liabilities and Contingent Assets, particularly
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including the basis of estimating expected future warranty claims
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in respect of:
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and contractual LD exposures.
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(a) the probability and quantum of expected
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• Reviewing relevant customer contracts to assess the specific
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future outflows;
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terms governing liquidated damages obligations, including
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(b) the assessment of historical claim patterns
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applicable rates, caps, and trigger conditions.
• Assessing historical warranty claim rates and LD settlement
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and their applicability to current exposures;
(c) the interpretation of contractual terms
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patterns and evaluating whether management's current
estimates are consistent with such trends or whether departures
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governing LD obligations; and
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are adequately explained.
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(d) the distinction between amounts that
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• Reviewing post year-end claims, settlements, and
correspondences to assess whether actual outflows are consistent
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warrant recognition as provisions versus
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with amounts recognised at year-end.
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disclosure as contingent liabilities.
Given the materiality of the provisions, the
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• Evaluating management's classification of amounts as
provisions versus contingent liabilities to assess whether the
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high degree of estimation uncertainty, and
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probable/possible distinction under Ind AS 37 has been applied
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the inherent risk of management bias in an
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appropriately.
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environment where reported profitability
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• Assessing the adequacy of related disclosures, including
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carries significant consequence, this area was
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contingent liabilities, in the financial statements.
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considered a Key Audit Matter.
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Based on the procedures performed, the provisions recognised
were found to be within a reasonable range based on information
presently available, and the related disclosures were assessed to be
adequate
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Key Audit Matters
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Auditors' Response
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3 Capitalization of Capital Work-in-Progress and Property, Plant & Equipment
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During the year, the Company capitalized
assets amounting to ?182.91 Crores from
Capital Work-in-Progress (CWIP) to Property,
Plant and Equipment (PPE), primarily
comprising plant and machinery and civil
infrastructure. The assessment of this area
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Our audit procedures included, amongst others:
• Evaluating the design and implementation of controls over capital
expenditure authorisation, CWIP monitoring, and capitalisation
processes.
• Testing, on a sample basis, additions to CWIP and PPE by
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examining underlying invoices, purchase orders, contracts, and
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involves significant management judgement
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other supporting documentation.
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in:
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• Reviewing management's assessment of readiness of assets for
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(a) determination of the date on which
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their intended use, including examination of commissioning
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assets are ready for their intended use;
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certificates, technical sign-offs, and trial run records, to assess
the appropriateness of capitalisation dates.
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(b) classification of expenditure between
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capital and revenue nature;
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• Assessing management's classification of expenditure between
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capital and revenue nature with reference to the criteria under
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(c) capitalisation of borrowing costs in
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Ind AS 16.
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accordance with Ind AS 23 — including
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• Evaluating the appropriateness of borrowing cost capitalisation
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the commencement, suspension, and
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under Ind AS 23, including the identification of qualifying assets,
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cessation of capitalisation; and
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the borrowing rate applied, and the period of capitalisation.
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(d) determination of useful lives and
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• Assessing management's determination of useful lives and
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residual values for the purpose of
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residual values for significant asset categories, and reviewing the
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componentisation and depreciation
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application of component accounting for material items of PPE.
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under Ind AS 16.
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• Reviewing the CWIP ageing to identify assets that may have been
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ready for use but not yet capitalised, or items that may indicate
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Given the quantum of capitalisation
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impairment under Ind AS 36.
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during the year, the degree of judgement
involved, and the consequential impact on
depreciation charges and net block, this area
was considered a Key Audit Matter.
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• Verifying depreciation computation for assets capitalised
during the year, including the date from which depreciation was
commenced.
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• Evaluating the adequacy of disclosures in the financial statements
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in accordance with Ind AS 16 and Ind AS 23.
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Based on the procedures performed, the capitalisation of CWIP to
PPE, the useful lives and residual values applied, and the related
depreciation computations were found to be reasonable and in
accordance with the applicable accounting standards. No material
misstatements were identified in this regard.
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Information Other than the Financial Statements and
Auditor's Report Thereon
The Company's management and Board of Directors
are responsible for the preparation of the other
information. The other information comprises the
information included in the Management Discussion
and Analysis, Board's Report including Annexure to
Board's Report, Report on Corporate Governance
and Shareholder's Information, but does not include
the consolidated financial statements, 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 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 and Board of Directors' Responsibilities
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, other comprehensive income,
changes in equity and cash flows of the Company in
accordance with the Ind AS and other accounting
principles generally accepted in India. 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 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, and as applicable, matters related to
going concern and using the going concern basis
of accounting unless management and Board of
Directors either intend to liquidate the Company or
to cease operations, or has no realistic alternative but
to do so.
The Board of Directors is 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.
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 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 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 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
Board of Directors.
• Conclude on the appropriateness of managements and
Board of Director'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.
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 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 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.
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,
Statement of Changes in Equity and the Statement
of Cash Flow dealt with by this Report are in
agreement with the relevant books of account.
d) In our opinion, the aforesaid Standalone 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) Based on our examination, which included test
checks, the Company has used accounting
software systems for maintaining its books of
account for the financial year ended March 31,
2026 which have the feature of recording audit
trail (edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software systems. Further, during
the course of our audit we did not come across any
instance of the audit trail feature being tampered
with and the audit trail has been preserved by the
Company as per the statutory requirements for
record retention.
f) 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 is disqualified
as on March 31, 2026 from being appointed
as a director in terms of Section 164 (2) of the
Act.
g) With respect to adequacy of the internal
financial controls over financial reporting and
the operating effectiveness of such controls,
refer to our separate report in "Annexure- B"
attached herewith. Our report expresses an
unmodified opinion on the adequacy and
operating effectiveness of the Company's
internal financial controls with reference to
Standalone Financial Statements.
h) 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. The Ministry
of Corporate Affairs has not prescribed other
details under Section 197(16) of the Act which are
required to be commented upon by us.
i) As per the Financial Statements, neither any final
dividend proposed nor any interim dividend
declared and paid by the Company during the
year.
j) 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, as amended 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 litigation on its financial position
in its Standalone financial statement.
Refer Note 44 of the Standalone Financial
Statements.
ii. The Company did not have any long-term
contracts including derivative contracts;
as such the question of commenting on
any material foreseeable losses thereon
does not arise.
iii. There has not been an occasion in case
of the Company during the year under
report to transfer any sums to the Investor
Education and Protection Fund. The
question of delay in transferring such sums
does not arise.
iv. (A) The management has represented that,
to the best of its knowledge and belief,
no funds (which are material either
individually or in the 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 persons or entities, 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 ("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 (which are material
either individually or in the aggregate)
have been received by the Company
from any persons or entities, including
foreign entities ("Funding Parties"),
with the understanding, whether
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 ("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
as considered reasonable and
appropriate in the circumstances,
nothing has come to our notice that
has caused us to believe that the
representations under subclause (i)
and (ii) of Rule 11 (e), as provided
under (A) and (B) of (iv) above,
contain any material misstatement.
For PSCA & Co.
(Formerly ‘Parikh Shah Chotalia & Associates')
Chartered Accountants
Firm Reg. No. 118493W
CA Rahul Parikh
Partner
Mem. No. 105642
Vadodara
Date: 9th May 2026
UDIN: 26105642EESDYX7815
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