We have audited the accompanying standalone
financial statements of Birla Precision Technologies
Limited("the Company"), which comprise the
standalone Balance Sheet as at 31 March 2026, the
standalone Statement of Profit and Loss (including
Other Comprehensive Income), the standalone
Statement of Changes in Equity and standalone
Statement of Cash Flows for the year ended on that
date, and notes to the financial statements, including a
summary of the material accounting policies and other
explanatory information (hereinafter referred to as "the
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 31 March 2026, and profit and other
comprehensive income, changes in equity and its cash
flows for the year ended on that date.
2. 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 ("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 ICAI's
Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the standalone Financial
Statements.
3. 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 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 to be
communicated in our report.
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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a.
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Revenue recognition and expected Credit Loss
(ECL) on Trade Receivables
The Company recognised revenue from sale
of manufactured products amounting to
23,840.13 lakhs during the year ended March
31,2026. Revenue is recognised when control of
goods is transferred to customers in accordance
with the terms of the underlying contracts
and the requirements of Ind AS 115, Revenue
from Contracts with Customers. Considering
the large volume of transactions, different
customer arrangements and the significance
of revenue to the financial statements, there is
a risk that revenue may not be recognised in
the appropriate accounting period, particularly
in respect of year-end cut-off, sales returns,
rebates and discounts.
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Principal audit procedures performed included the following:
• We obtained an understanding of the Company's revenue
recognition process, including the design and implementation of
key internal controls relating to recording of revenue, dispatch
of goods, invoicing, credit notes and year-end cut-off.
• We evaluated whether the Company's accounting policy for
revenue recognition is in accordance with the requirements of
Ind AS 115.
• We tested, on a sample basis, revenue transactions by agreeing
sales invoices with customer purchase orders, dispatch
documents, e-way bills, proof of delivery and other relevant
supporting documents to verify occurrence and accuracy of
revenue recognized.
• We performed cut-off testing for revenue transactions
recorded before and after the year-end by examining dispatch
documents and related accounting entries to assess whether
revenue had been recognized in the appropriate accounting
period.
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b) Trade receivables as at March 31,2026 amount
to 6,949.21 lakhs, representing a significant
portion of the Company's current assets.
During the year, debtor collection period has
decreased as compared to the previous year,
indicating an improvement in collection cycle.
Management assesses the recoverability
of trade receivables and recognises an
impairment allowance based on the
Expected Credit Loss (ECL) model prescribed
under Ind AS 109, Financial Instruments. The
assessment requires significant management
judgement in estimating the probability of
default, historical loss experience, ageing
of receivables, customer-specific factors,
subsequent collections and forward-looking
economic information.
c) Accordingly, due to the significance of revenue
to the Company's financial performance,
the presumed fraud risk relating to revenue
recognition under SA 240, and the significant
judgementinvolvedinestimating the Expected
Credit Loss allowance on trade receivables,
we considered revenue recognition and
impairment of trade receivables to be a Key
Audit Matter.
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• We performed analytical procedures on revenue trends and
investigated significant or unusual fluctuations identified
during the audit.
• We evaluated the design and implementation of controls
relating to monitoring and recovery of trade receivables and the
process followed by management for assessment of Expected
Credit Loss.
• We tested the ageing of trade receivables on a sample basis by
agreeing balances with supporting documents and customer
confirmations, wherever available.
• We assessed the reasonableness of management's
assumptions used in determining the Expected Credit Loss
provision by considering customer-specific information, ageing
analysis and other available evidence.
• We evaluated the adequacy and appropriateness of the
disclosures made in the standalone financial statements
in respect of revenue recognition and impairment of trade
receivables in accordance with the applicable requirements of
Ind AS.
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b.
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Property Plant and Equipment
a) During the year, the Company incurred
significant amount of capital expenditure. The
determination of whether such expenditure
is directly attributable to bringing the assets
to the location and condition necessary for
their intended use, and therefore eligible
for capitalisation under Ind AS 16, involves
significant management judgement.
b) The Company also derecognises Property,
plant and equipment upon disposal,
retirement or when no future economic
benefits are expected from their continued
use. Such derecognition requires appropriate
identification of assets disposed of or
scrapped, determination of their carrying
values and recognition of the resulting gain or
loss. Further, depreciation is computed based
on the estimated useful lives, residual values
and the depreciation method applied to the
respective classes of assets. These estimates
involve management judgement and are
required to comply with the requirements of
Schedule II to the Companies Act, 2013 and
Ind AS 16.
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Principal audit procedures performed included the following:
• We obtained an understanding of the Company's process
and internal controls relating to capitalisation of Property,
Plant and Equipment, disposal of assets and computation of
depreciation.
• We evaluated whether the Company's accounting policy for
recognition, measurement, derecognition and depreciation of
PPE is in accordance with the requirements of Ind AS 16.
• We tested, on a sample basis, additions to property, plant and
equipment by examining purchase orders, vendor invoices,
goods receipt notes, installation reports, completion certificates
and other supporting documents to verify the existence,
accuracy and eligibility of expenditure capitalised.
• We assessed whether expenditure capitalised during the year
was directly attributable to bringing the assets to the location
and condition necessary for their intended use and verified that
revenue or repair expenditure had not been inappropriately
capitalised.
• We tested, on a sample basis, disposals and deletions of fixed
assets by examining supporting documents including scrap
disposal records, management approvals and accounting
entries to verify appropriate derecognition of assets and
recognition of resulting gains or losses.
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c) Property, plant and equipment constitute
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• We verified the depreciation computation on a sample basis
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a significant portion of the Company's total
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by assessing the useful lives, residual values and depreciation
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assets. Accordingly, the accounting for
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method applied by the Company and evaluated whether these
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capitalisation,derecognitionanddepreciation
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are consistent with the requirements of Schedule II to the
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of PPE is material to the standalone financial
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Companies Act, 2013 and the Company's accounting policy.
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statements. Due to the significance of the
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• We performed analytical procedures on capital expenditure,
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carrying value of PPE and the judgement
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disposals and depreciation expense and investigated
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involved in capitalisation of expenditure,
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significant or unusual movements identified during the audit.
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derecognition of assets and estimation of
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• We assessed the adequacy and appropriateness of the
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depreciation, we considered this matter to be
a Key Audit Matter.
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disclosures relating to property, plant and equipment in the
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standalone financial statements in accordance with the
applicable requirements of Ind AS.
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4. Information other than the Financial Statements and
Auditors' report there on
The Company's management and Board of Directors
are responsible for the other information. The other
information comprises the information included in the
Company's annual report but does not include the
standalone financial statements and our auditors'
report thereon. The other information is expected to
be made available to us after the date of this auditor's
report.
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 in the 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.
The above information is not made available to us as
at the date of this Auditor's report. We have nothing to
report in this regard.
5. Responsibilities of Management and Board of
Directors for the Standalone Financial Statements
The Company's Management and Board of Directors
is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of
these standalone Financial Statements that give a
true and fair view of the financial position, financial
performance, including other comprehensive income,
changes in equity and cash flows of the Company in
accordance with the accounting principles generally
accepted in India, including the Indian Accounting
Standards ("Ind AS") specified under Section 133 of
the Act. 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; makingjudgments 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, the
Management is responsibleforassessingtheCompany'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.
6. Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance
about whether the 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 aggregate, they could reasonably be
expected to influence the economic decisions of users
taken on the basis of these 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 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 with reference to financial
statements 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 in the Financial
Statements made by the Management and Board
of Directors.
• Conclude on the appropriateness of the
Management and Board of Directors use of the
going concern basis of accounting and, based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the Company's
ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to
the related disclosures in the Financial Statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's
report. However, future events or conditions may
cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure, and
content of the Financial Statements, including the
disclosures, and whether the Financial Statements
represent the underlying transactions and events
in a manner that achieves fair presentation.
• Materiality is the magnitude of 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 Financial
Statements of the current period and are therefore
the key audit matters. We describe these matters in
our auditors' 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.
7 Other Matter
The comparative financial information for the year
ended March 31, 2025, included in these financial
statements, have been audited by predecessor Auditor,
who expressed an unmodified opinion on those
statements vide their report dated May 23, 2025. Our
opinion on the financial statements is not modified in
respect of the above matter.
8. Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditors' Report)
Order, 2020 ("the Order") issued by the Central
Government 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.
II. As required by Section 143(3) of the Act, based on
our audit 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
req ui red by law have been kept by the Com pa ny
so far as it appears from our examination of
those books Further, the back-up of books of
account and other books and papers of the
Company maintained in electronic mode has
been maintained on servers physically located
in India on a daily basis.
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 flows dealt with by this
Report are in agreement with the books of
account.
d) In our opinion, the aforesaid 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 31 March
2026 taken on record by the Board of Directors,
none of the directors are disqualified as on 31
March 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 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 financial controls with
reference to the Financial Statement.
g) With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of Section 197(16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the
Company to its directors during the year is in
accordance with the provisions of Section 197
of the Act.
III. With respect to the other matters to be included
in the Auditors' Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended, in our opinion and to the best of
our information and according to the explanations
given to us:
a) The Company has disclosed the impact of
pending litigations as at 31 March 2026 on its
financial position in its Financial Statements -
Refer Note 31 of Financial Statements;
b) The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses.
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,
no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the Company to or in
any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified
in any manner whatsoever 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, no
funds have been received by the Company
from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with
the understanding, whether recorded in
writing or otherwise, that the Company
shall, whether, directly or indirectly, lend
or invest in other persons or entities
identified in any manner whatsoever 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 audit procedures that we have
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
(a) and (b) above, contain any material
misstatement
e) As stated in Note 32 to the Standalone
Financial Statements
(a) The dividend declared and paid by the
Company during the year and until the
date of this report is in compliance with
Section 123 of the Act.
(b) 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 amount of dividend proposed
is in accordance with Section 123 of the
Act, as applicable.
f) Based on our examination, which includes test
checks, the company has used accounting
software for maintaining its books of accounts
for the financial year ended March 31,2026,
which has a feature of recording audit trail (edit
log) facility and that has operated throughout
the financial year for all relevant transactions
recorded in the said software.
During the course of performing our procedures, we did not
notice any instance of audit trail feature being tampered
with, where such functionality was enabled and logs were
maintained.
However, the audit trail records relating to the period prior
to the migration of the accounting software on January
1, 2025, have not been preserved by the Company in
accordance with the applicable statutory requirements for
record retention.
For T R Chadha & Co LLP
Chartered Accountants
ICAI Firm Registration No. 006711N/N500028
Alka Hinge
Partner
Place: Mumbai Membership No. 104574
Date: May 29, 2026 UDIN: 26104574WTASDQ4858
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