We have audited the accompanying Financial Statements of MAHALAXMI RUBTECH LIMITED ("the Company"), which comprise of the
Balance Sheet as at March 31, 2025 and the statement of profit and loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of significant accounting policies and other
explanatory information (hereinafter referred to as " Financial Statements".
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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
2025, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing specified under section 143(10) of the
Act (SAs). Our responsibilities under those Standards are further described in the Auditor's Responsibility for the Audit of the 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 Financial Statements
under the provisions of the Act and the Rules made 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 obtained by us is sufficient and appropriate to provide
a basis for our audit opinion on the 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 Financial Statements
of the current period. These matters were addressed in the context of our audit of the 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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How our audit addressed the key audit matter
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Revenue recognition
Company's revenue is derived primarily from sale of goods.
Revenue from sale of goods is recognised when control of
the products being sold is transferred to the customer and
there are no longer any unfulfilled performance obligations.
The performance obligations in the contracts are fulfilled
at the time of dispatch, delivery or upon formal customer
acceptance depending on customer terms.
Inappropriate assessment could lead to risk of revenue being
recognized before transfer of control.
In view of the above and since revenue is a key performance
indicator of the Company, we have identified timing of
revenue recognition from sale of goods as a key audit matter.
Valuation of Inventories
The Company is a technical textile manufacturer and the
inventory primarily comprises of yarn, grey fabric, rubber,
chemicals and technical textile fabric and rubber printing
blankets. Inventories are valued at lower of cost and net
realisable value. The Company maintains its inventory levels
based on forecast demand and expected future selling
prices. There is a risk of inventories being measured at values
which are not representative of the lower of costs and net
realisable value ('NRV')
The Company exercises high degree of judgment in assessing
the NRV of the inventories on account of estimation of
future market and economic conditions. The carrying value
of inventories is material in the context of total assets of the
Company. We identified the valuation of inventories as a key
audit matter.
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In this regard, our audit procedures included:
Assessing the appropriateness of the accounting policy for revenue
recognition with relevant accounting standards;
Evaluating the design and implementation of the Company's key internal
financial controls in relation to timing of revenue recognition and tested the
operating effectiveness of such controls for selected samples
Performing detailed testing by selecting samples of revenue transactions
recorded during the year and around the year end date using statistical
sampling. We assessed fulfilment of performance obligations during the
year by verifying the underlying documents. These documents included
contract specifying terms of sale, invoices, goods dispatch notes, customer
acceptances and shipping documents;
Testing, on a sample basis using specified risk based criteria, journal entries
affecting revenue recognised during the year to identify unusual items.
In this regard, our audit procedures included:
Assessing the appropriateness of the accounting policy for inventories with
relevant accounting standards:
Evaluating the design and implementation of the Company's key internal
financial controls over valuation of inventories and testing the operating
effectiveness of such controls for selected samples;
Observing the physical verification of inventory on a sample basis. In this
regard, we have considered the physical condition of inventory by way
of obsolescence or wear and tear, wherever relevant and applicable, in
determining the valuation of such inventory.
For NRV testing, selecting inventory items, on a sample basis at reporting
date and compared their carrying value to their subsequent selling prices as
indicated in sales invoices subsequent to the reporting date.
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Information other than the Financial Statements and Auditor's report thereon
The Company's Board of Directors is responsible for the other information. The other information obtained at the date of this auditor's
report is information included in the Directors' Report including the Annexures to the Directors' report, but does not include the Financial
Statements and our auditor's report thereon.
Our opinion on the 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 Financial Statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the 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 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.
Management's Responsibility for the 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
financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income,
cash flows and changes in equity 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 financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the 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.
Auditor's Responsibility for the Audit of the 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 the 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 scepticism throughout the audit.
We also:
i) 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.
ii) 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.
iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the management.
iv) 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 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.
v) 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 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 sub¬
section (11) of the section 143 of the Act, we give in the Annexure "A", a statement on the matters specified in the paragraph 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
Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Financial Statements comply with the Indian Accounting Standards specified under Section 133 of
the Act read with relevant rules issued there under.
(e) On the basis of written representations received from the directors as on March 31, 2025 and taken on record by the Board of
Directors, none of the directors is 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 adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such control, refer to our separate report in the Annexure-B . Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.
(g) With respect to the 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 / provided by the Company to its directors during the year is in accordance with the provisions of section 197
of the Act.
(h) With respect to 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 litigations on its financial position in its Financial Statements. Refer Note
No.34 to the Financial Statements.
ii. The company has made provision, as required under the applicable law or IND AS, for material foreseeable losses, if any, on
long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Company.
iv. a. The management has represented that, to the best of its knowledge and belief, to the financial statements, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company, to or in any other 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, to the financial statements, no funds 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 Parties or
• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries
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 sub-clause h(iv) (a) & (b) contain any material mis-statement.
v. The Company has not declared any dividend during the year.
vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of
account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. However, the audit trail feature is not enabled for certain direct changes to data when using
certain access rights and at the database level for the accounting software, as described in note 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 the
accounting software. Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record
retention.
For Jain Chowdhary & Co.,
Chartered Accountants
Firm Registration No.113267W
(CA Hitesh Salecha)
Partner
M. No. 147413
Ahmedabad: 28th May, 2025 UDIN:25147413BMOTLH9374
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