We have audited the accompanying Standalone
Financial Statements of BMW Industries 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 a summary of material accounting
policies and Other Explanatory Notes for the year ended
on that date (hereinafter referred to as "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, 2025, its profits, total
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 Companies Act, 2013. Our responsibilities
under those Standards are further described in the
Auditors' Responsibility 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 Companies Act, 2013 and the Rules made
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 audit opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgement, were of most significance
in our audit of the Standalone Financial Statements
of the current year. 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 for
incorporation in our report.
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Key audit Matters
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Addressing the Key Audit Matters
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Trade Receivables
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Our audit procedures based on which we arrived at
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Gross Trade Receivables of the Company is Rs.
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the conclusion regarding the carrying amount of Trade
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9,598.00 Lakhs as on March 31, 2025. This includes
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Receivables include the following:
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significant amounts, which have fallen due for payment
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• We obtained an understanding from the Management,
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including the amounts outstanding for a considerable
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assessed and tested the design and operating
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period of time. (Note No. 9 of the Standalone Financial
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effectiveness of the Company's key controls over
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Statements). The Company is exposed to potential risk
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the recoveries against the outstanding amounts
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of financial loss when the customers fail to meet their
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and resultant impairment assessment of material
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contractual obligations.
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Trade Receivables;
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The recoverable amount was estimated by
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• We reviewed Management's assessment and
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management based on assessment of recoverability
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evaluation of the credit worthiness of the major trade
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on case to case basis and this requires significant
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receivables and historical trends and current dealing
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audit attention. The Company evaluates whether there
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with the customers;
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is any objective evidence that trade receivables are
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impaired and determines the amount of impairment
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allowance as a result of the inability of the customers
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to make required payments.
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Key audit Matters
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Addressing the Key Audit Matters
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This has been based on the ageing of the trade
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• Assessed the recoverability of the unsettled
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receivables, credit worthiness of the of the parties and
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receivables on a sample basis through our evaluation
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historical write-off experience.
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of management's assessment keeping in view the
credit profile, historical payments, publicly available
information and latest correspondence with customers
and to consider if any provision should be made;
• Tested settlement of trade receivables subsequent to
the Balance Sheet date on a sample basis;
• Reliance has also been placed on the management's
representation and confirmation for amount
recoverable against the outstanding balances.
Based on the above procedures performed, the carrying
amount of Trade Receivables have been considered to be
adequate.
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Verification of Inventories and Valuation thereof
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Our audit procedures based on which we arrived at the
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As at March 31, 2025, the Company has Rs. 5,646.79
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conclusion regarding reasonableness of determination
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Lakhs of Inventories (Note No. 7 of the Standalone
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of year-end inventory and valuation thereof include the
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Financial Statements). Given the size of the Inventory
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following:
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relative to the total assets of the Company and the
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• Ensuring the effectiveness of the design,
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estimates and judgements described below, the
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implementation and maintenance of controls over
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determination and valuation of Inventory required
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changes in inventory to determine whether the conduct
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significant audit attention.
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of physical inventory verification at a date other than
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Given the nature of Industry and volume of inventory
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the date of the financial statement is appropriate
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and physical verification being undertaken by the
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and testing of those controls whether those have
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management in phases and all the locations not being
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operated effectively;
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covered at a time, determination thereof in absence of
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• Verification of Inventories at the year end have been
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specific identification, batches etc has largely been done
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undertaken by the management;
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on theoretical basis considering cross-sectional weight
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• We have obtained and reviewed necessary evidences,
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including for the locations not covered for verifications.
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working papers and documents for the physical
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Moreover, certain materials are lying in heaps and /
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verification carried out as above. This includes
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or are suspectable to obsolescence and deterioration
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verification report from independent professionals
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in quality. All these require specific procedures based
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and third party verification. Inventories at one of the
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on technical experience for arriving at the ground
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location in Kolkata was even attended by us;
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stock of usable / saleable inventory. The result of these
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• In cases where inventories have been scrapped and
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procedures may not always be accurate and involves
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are carried at estimated realizable price, reliance
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significant management judgement and estimation.
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has been placed on management's estimate provided
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Management reviews the Ageing reports together
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in this respect to us. The adequacy of the disclosure
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with historical trends to estimate the likely future
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made in this respect and adjustments given effect to in
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saleability of slow moving and older inventory items
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respect of this in the Financial statements have been
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and performed a line-by-line analysis to ensure that it
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reviewed by us so that to reflect the inventories as
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is stated at the lower of cost or net realizable value.
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required in terms of the policy followed in this respect;
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As disclosed in Note 1(C) (i), Inventories are held at
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• We have examined the valuation process/methodology
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lower of cost or Net Realizable Value determined using
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and checks being performed at multiple levels to
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the First in First Out/ Weighted Average cost method.
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ensure that the valuation is consistent with and as per
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At year end, valuation of Inventories have been
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the policy followed in this respect.
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reviewed by the management and the cost of Inventory
is reduced in cases where the Net Realizable value is
lower.
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Based on the above procedures performed, the
determination of year-end inventory and valuation thereof
have been considered to be adequate and reasonable.
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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 Annual Report but
does not include the Standalone Financial Statements,
Consolidated 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 with respect to the above.
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 state
of affairs (financial position), Profit or Loss (financial
performance including other comprehensive income),
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 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, 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.
Auditors’ Responsibility 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 auditors' 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 Standard on
Auditing (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 financial
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.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures made by
the 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
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
I. 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.
II. Further to our comments in the annexure referred
to in the paragraph above, 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 except for the matters stated in
paragraph III(f) below on reporting under Rule
11(g) of the Companies (Audit and Auditors)
Rules, 2014, as amended from time to time;
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 relevant
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 Rule 7 of the
Companies (Indian Accounting Standards)
Rules, 2015, as amended from time to time;
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) With respect to the maintenance of accounts
and other matters connected therewith,
reference is invited to paragraph II(b)
above on reporting under section 143(3)(b)
of the Act; and
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 B”. Our
report expresses an unmodified opinion on the
adequacy and operating effectiveness of the
Company's internal control with reference to
the standalone financial statements;
III. With respect to the other matters to be included
in the Auditors' Report in accordance with Rule
11 of the Companies (Audit and Auditor's) Rules,
2014, as amended in our opinion and to the
best of our information and according to the
explanations given to us:
a) The Company has disclosed the impact of
pending litigations on its financial position in its
standalone financial statements -Refer Note
no. 40 of the standalone financial statements;
b) The Company did not have any material
foreseeable losses against long-term
contracts, including derivative contracts and
thereby requirement for making provision in
this respect is not applicable to the company;
c) There were no amounts which were required
to be transferred to the Investor Education
and Protection Fund by the Company;
d) i) The Management has represented that,
to the best of its knowledge and belief as
disclosed in Note No.50 to the standalone
financial statements, 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 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 by
or on behalf of the Company ("Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries;
ii) The Management has represented, that,
to the best of its knowledge and belief as
disclosed in Note No.50 to the financial
statements, no funds (which are material
either individually or in the aggregate)
have been received by the Company from
any person(s) or entity(ies), including
foreign entity ("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 by or
on behalf of the Funding Party ("Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries; and
iii) Based on the audit procedures 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),
as provided under (i) and (ii) above,
contain any material misstatement. The
comments made under this para relate
to the year under audit and therefore in
respect of the earlier years' transactions
dealing with investments, loans, etc. it is
neither required nor possible to ascertain
and/or comment under this para; and
e) The dividend declared and paid during the year
by the Company is in compliance with section
123 of the Act.
f) Based on our examination which included test
checks, except for the instances mentioned
below, the Company has used accounting
software for maintaining its books of account,
which have a feature of recording audit trail
(edit log) facility that operated throughout the
year for all relevant transactions recorded in
the respective software as :
Audit trail feature at application level are
enabled and stored partially in SAP ERP
software (only standard tables).
The feature of recording audit trail (edit
log) facility is not enabled at database
level to log any direct data changes.
Audit trail (edit log) facility wherever
enabled were operated throughout the
year for the accounting software and we
did not come across any instance of the
audit trail feature being tampered with
during the course of our audit.
As per proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 is applicable from
April 1, 2023 and reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules,
2014 on preservation of audit trail as per the
statutory requirements for record retention,
audit trail, wherever enabled on data changes
are maintained since the implementation
of the software.
IV. With respect to the reporting under Section 197
(16) of the Act to be included in the Auditors' Report,
in our opinion and according to the information
and explanations given to us, the Remuneration
(including Sitting fees) paid by the Company to its
Directors during the current year is in accordance
with the provisions of Section 197 of the Act and is
not in excess of the limit laid down therein.
For Lodha & Co LLP
Chartered Accountants
Firm's ICAI Registration No.: 301051E/E300284
Sd/-
Vikram Matta
Partner
Place: Kolkata Membership No: 054087
Date: 16.05.2025 UDIN: 25054087BMNWEF9419
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