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 for the year ended March 31, 2025. 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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Sr. No Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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1 Provision for expected credit loss for accounts receivable:
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Our audit procedures performed in respect of this area include but
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Refer note 10 of standalone financial statements with
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are
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not limited to:
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respect to the disclosures of Trade Receivables. On March
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1.
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Obtained an understating of the Company's policy on
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31, 2025, Trade receivable balances aggregate to INR
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assessment of impairment of trade receivables, including
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17,559.93 Lakhs against which provision aggregating INR
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design and implementation of controls over development of
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938.57 Lakhs has been created towards credit risk and
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the methodology for the computation of provision for credit
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expected credit loss in the books of account.
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losses including completeness and accuracy of information
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The Company determines the allowance for credit
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used in such estimation and computation and validation of
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losses based on analysis of past data and determine the
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management review controls.
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default rate. Further, calculation of credit loss provision
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2.
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Verified the operating effectiveness of these controls on a
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is a complex area and requires management to make
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test check basis.
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significant assumptions on customer payment behaviour
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3.
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Obtained independent balance confirmations from the
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and estimating the level and timing of expected future
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Company's customers on a test check basis and performed
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cash flows and interest rate to be used for time loss.
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alternative procedures wherever applicable.
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We identified allowance for credit losses as a key audit
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4.
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Verified subsequent receipts after the year-end on a test
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matter because significant management judgement and
assumptions are involved in calculating the expected
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5.
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check basis.
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credit losses. This required an increased extent of effort
when performing the audit procedures to evaluate
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Verified aging of trade receivables for sample of
customer transactions.
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the reasonableness of management's estimate of the
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6.
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Evaluated management comments and recovery plans for
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expected credit losses including significant discussion with
management on slow recoveries.
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trade receivables outstanding for more than 180 days.
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Sr. No Key Audit Matters
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How the Key Audit Matters was addressed in our audit
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7.
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Assessed the trade receivables impairment methodology
applied in the current year and compared the Company's
provisioning rates against historical collection data.
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8.
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Verified the completeness and accuracy of the disclosures
in accordance with the requirements of the relevant
Ind AS, which are included in note 10 of the standalone
financial statements.
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2 Revenue from contract with customer's:
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Our audit procedures performed in respect of this area include but
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Refer note 25 and 36 of standalone financial statement
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are not limited to:
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with respect to the revenue recognized for the year
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1.
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Evaluating the appropriateness of the Company's revenue
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ended March 31, 2025. The Company recognized revenue
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recognition policies in line with the applicable financial
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of INR 8,494.93 Lakhs from Engineering, Procurement
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reporting framework (Ind AS 115 - Revenue from Contracts
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and Construction (EPC) contracts over time, using the
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with Customers).
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percentage-of-completion method (including revenue
from discontinued operations).
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2.
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Testing the design and implementation, and operating
effectiveness of key internal controls over revenue
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This approach requires significant management
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recognition, contract cost estimation, and project monitoring.
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judgment in estimating total contract revenue and costs,
determining the stage of completion, assessing contract
modifications and variable consideration, and evaluating
the recoverability of costs.
Given the complexity of these contracts and the level of
estimation involved, revenue recognition for Wind EPC
contracts was considered a key audit matter.
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3.
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Selecting a sample of significant EPC contracts and performing
the following: -
• Reading key contract terms and conditions to assess
the performance obligations and pricing, including any
variable consideration or contract modifications.
• Assessing the reasonableness of management's estimates
of total contract revenue and costs through comparison
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with budgets.
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• Comparing project status and stage of completion to
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internal reports and customer confirmations.
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• Evaluating the reasonableness of costs incurred to date
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and the estimated costs to complete, including inquiries
with project management and engineering teams
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4.
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Performing analytical procedures on margins across projects.
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5.
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Evaluating the adequacy of the related disclosures in the
financial statements regarding the judgments involved in
revenue recognition.
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We have audited the accompanying standalone financial
statements of Sanghvi Movers Limited ("the Company"), which
comprise the Balance Sheet as at March 31, 2025, and 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 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, 2025, and profit
(including other comprehensive income), 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
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
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 obtained by us is sufficient
and appropriate to provide a basis for our opinion.
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 Director's
report but does not include the standalone financial statements
and our auditor's report thereon, which we obtained prior to
the date of this auditor's report, and the Management report,
Chairman's statement, Business Responsibility and Sustainability
Reporting and other information included in Annual report 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 Management report, Chairman's statement,
Business Responsibility and Sustainability Reporting and other
information included in Annual report, if we conclude that there is
a material misstatement therein, we are required to communicate
the matter to those charged with governance under SA 720 'The
Auditor's responsibilities Relating to Other Information'.
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, changes
in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including
the 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
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 and Board of Directors 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.
(b) I n 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 except
for the matters stated in the paragraph 2(h)(vi) below
on reporting under Rule 11(g).
(c) The Balance Sheet, the Statement of Profit and Loss
including other comprehensive income, the Statement
of Changes in Equity and the Statement of Cash Flow
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 Accounting Standards
specified under Section 133 of the Act.
(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
are disqualified as on March 31, 2025 from being
appointed as a director in terms of Section 164 (2) of
the Act.
(f) The reservation relating to the maintenance of
accounts and other matters connected therewith are
as stated in paragraph 2(b) above on reporting under
Section 143(3)(b) and paragraph 2(h)(vi) below on
reporting under Rule 11(g).
(g) 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".
(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 disclosed the impact of
pending litigations on its financial position in its
standalone financial statements - Refer note 51
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 has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company.
iv.
1. 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, 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.
2. 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, as on the date of this audit
report, 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.
3. Based on the audit procedures performed that have
been considered reasonable and appropriate in the
circumstances, and according to the information and
explanations provided to us by the Management in this
regard 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 (1)
and (2) above, contain any material mis-statement.
v. The final dividend paid by the Company during the
year in respect of the same declared for the previous
year is in accordance with section 123 of the Act to the
extent it applies to payment of dividend.
The Board of Directors of the Company have
proposed final dividend for the year which is subject
to the approval of the members at the ensuing
Annual General Meeting. The dividend declared is in
accordance with section 123 of the Act to the extent
it applies to declaration of dividend. (Refer note 16 to
the standalone financial statements).
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
been operated throughout the year for all the relevant
transactions recorded in the software except that in
absence of sufficient and appropriate audit evidence
including adequate coverage in SOC report we are
unable to comment on audit trail at database level,
as explained in note 53 to the financial statements.
Further, during the course of our audit, we did not
come across any instance of audit trail feature being
tampered with in respect of such accounting software
except for above. Additionally, the audit trail of prior
year has been preserved by the Company as per the
statutory requirements for record retention to the
extent it was enabled and recorded in respective years.
In regard to Payroll application
Based on our examination which included test checks,
the Company has used an accounting software for
maintaining its payroll records, which is managed and
maintained by a third-party software service provider
as explained in note 53 to the financial statements.
However, in absence of sufficient and appropriate audit
evidence including adequate coverage in SOC report
we are unable to comment whether the accounting
software has a feature of recording audit trail (edit log)
facility and whether the same has operated throughout
the period for all relevant transactions recorded in the
software or whether there is any instance of audit
trail feature being tampered with. Additionally, we are
unable to comment whether the audit trail of prior
year has been preserved by the Company as per the
statutory requirements for record retention
3. In our opinion, according to information, explanations
given to us, the remuneration paid by the Company to
its directors is within the limits laid prescribed under
Section 197 read with Schedule V of the Act and the
rules thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No.105047W
Nitin Manohar Jumani
Partner
Membership No.: 111700
UDIN: 25111700BMKSGI9759
Place: Pune
Date: 20 May 2025
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