We have audited the accompanying standalone financial statements of Mukand Limited (“the Company”), which
comprise the Balance Sheet as at March 31,2026, 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 notes
to the standalone financial statements including a summary of material accounting policy information and other
explanatory information (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 accounting principles generally accepted in
India including the Indian Accounting Standards (“Ind AS”) prescribed under section 133 of the Act, read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, of the state of affairs of the Company as at
March 31,2026, its profit (including other comprehensive income), its changes in equity and its cash flows for the
year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the
Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit
of the Standalone Financial Statements section of our report. We are independent of the Company in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India (“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 we have obtained is sufficient and appropriate to provide
a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the standalone financial statements of the current 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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Key audit matter(s)
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How our audit addressed the key audit matter
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1. Revenue recognition
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We have performed the following procedures among
others:
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(Refer Note 27 of the standalone financial
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• Assessed the company's accounting policies
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statements)
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relating to revenue recognition by comparing the
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The Company recognizes revenue from sale of
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same with applicable accounting standard.
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goods when control over the goods is transferred
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• Selected samples of revenue transactions during
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to the customer. The terms of sales arrangements,
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the year and inspected underlying customer
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including the timing of transfer of control delivery
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contracts and shipping documents to identify the
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specifications, creates complexity and judgment
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terms and conditions relating to the transfer of
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in determining timing of revenue recognition. The
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control of the products sold and assessed the
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actual point in time when revenue is recognized
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Company's timing of revenue recognition.
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varies depending on the terms and conditions of
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• Understood and evaluated the design and tested
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the sale contracts entered into with customers.
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the operating effectiveness of controls around
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There exist a risk that revenue is recognized
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estimation of costs to complete the project including
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during the cut off period though the control may
not have been passed to the customers.
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the review and approval of estimated project cost.
• Tested selected samples of revenue transactions
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The Company generates part of its revenue from
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recorded before and after the financial year end
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long term construction / project related activity
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date to determine whether the revenue has been
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and contracts for supply / commissioning of
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recognised in the appropriate financial period.
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plant and equipment which is accounted under
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• Verified the contracts on test check basis entered
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the percentage of completion method (“POC”),
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by the Company for the consideration and relevant
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which is the proportion of cost of work performed
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terms and conditions relating to variations to the
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to-date, to the total estimated contract costs.
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cost.
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Determination of revenue under POC requires
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• Verified original invoices, purchase orders,
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significant judgements and estimates in particular
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receipts, etc. for the actual costs incurred up to the
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with respect to estimation of the cost to complete
the projects.
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year-end date on test check basis.
• Verified that revenue has been recognised as
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Due to estimates, judgements and complexity
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per the agreed terms and when the conditions for
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involved in application of the revenue recognition
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revenue recognitions are satisfied.
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standards, we have considered this matter as a
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• Discussed the status of the project, evaluated the
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key audit matter.
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reasonableness of the estimates of the cost to
be incurred to complete the projects, verified the
revision in total cost during the year and obtained
the reasons for such revision.
• Assessed the adequacy of the disclosures made
in respect of revenue from sale of goods and the
undergoing engineering projects of the Company.
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2. Business Transfer under slump sale
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We have performed the following procedures among
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(Refer note 50 to the standalone financial
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others:
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statements)
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•
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We read minutes of meetings of the Board of
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During the current year, the Company has
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Directors of the Company and BTA to understand
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transferred its part of Industrial Machinery
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the key terms and conditions;
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Division engaged in designing, manufacturing,
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•
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Evaluated the basis of the management's
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Erection and Commissioning of EOT Cranes,
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assessment of treating the transfer of Industrial
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other material handling and process plant
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Machinery division as Discontinued operations
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equipment activities of the Company as a going
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in accordance with the applicable accounting
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concern basis through slump sale to its wholly
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standards;
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owned subsidiary, Mukand Heavy Engineering
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Limited (‘MHEL') through execution of Business
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•
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We evaluated the design and tested the
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Transfer Agreement (‘BTA').
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operating effectiveness of the key control over
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The BTA was executed on October 18, 2025. The
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the identification of assets and liabilities of the
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slump sale has been completed on March 31,
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Industrial Machinery division to be transferred
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2026, after the closing hours against the receipt
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from the Company to MHEL.
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of purchase consideration of Rs. 45.78 crore
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•
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We have performed necessary procedures to
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discharged in the form of 26,347 equity shares
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verify the amounts disclosed as discontinued
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fully paid up, issued and allotted by MHEL. The
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operations in the Statement of Profit or Loss for
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difference, being the surplus of value of purchase
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the current and previous year;
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consideration received over net assets (i.e.,
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the value of assets over the value of liabilities)
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•
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We have analysed the accounting treatment
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transferred to MHEL pursuant to slump sale, has
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and adequacy of disclosure for compliance with
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been credited to Capital Reserve.
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applicable Indian Accounting Standards and
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The transfer of Industrial Machinery Division
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accounting principles generally accepted in India.
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has significant measurement and disclosure
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impact on the Company's standalone financial
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statements. This involves
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• identification of assets and liabilities to be
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transferred as a part of slump sale; and
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• disclosure of revenue, expenses and pre-tax
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profit or loss of discontinued operations as a
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single amount in the Statement of Profit or Loss
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for current and previous year in accordance with
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Ind AS 105, Non current Assets Held for Sale and
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Discontinued Operations.
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Thus, we have identified transfer of the Industrial
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Machinery Division under slump sale as a key
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audit matter given that it is a significant, complex,
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unusual / non-routine transaction and that is
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fundamental to the user's understanding of the
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financial statements.
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Other Information
The Company's Board of Directors is responsible for the other information. The other information comprises the
information included in the Director's 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 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. We have nothing to report in this regard.
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 (including other comprehensive income), changes in equity and cash flows of the Company
in accordance with the accounting principles generally accepted in India, including Ind AS prescribed under section
133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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, Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those 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 this 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 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 made by 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 year 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 Requirement
(1) As required by the Companies (Auditor's Report) Order, 2020 (“the Order”) issued by the Central Government
of India in terms of section 143(11) of the Act, we report in “Annexure 1”, a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
(2) As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as
it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), 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 standalone financial statements comply with the Ind AS prescribed
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended;
e. On the basis of the written representations received from the directors as on March 31,2026, and taken
on record by the Board of Directors, none of the directors is disqualified as on March 31,2026 from
being appointed as a director in terms of section 164(2) of the Act;
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 2”;
g. With respect to the other matter 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 the other matters to be included in the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our
information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its
standalone financial statements - Refer Note 38 on Contingent Liabilities to the standalone
financial statements;
(ii) The Company has made provision, as required under the applicable law or accounting standards,
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 There were
no amounts which were 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, 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;
(b) 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;
(c) Based on the audit procedures that are 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;
(v) As stated in the standalone financial statements:
(a) The final dividend proposed in the previous year, declared and paid by the Company during
the year is in compliance with section 123 of the Act, as applicable;
(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 compliance with section 123 of the Act, as applicable;
(vi) Based on our examination which included test checks, the Company has used an accounting
software for maintaining its books of account for the financial year ended March 31,2026 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. Further, during the course of our audit
we did not come across any instance of audit trail feature being tampered with and the audit trail
has been preserved by the Company as per the statutory requirements for record retention.
For DHC & Co.
Chartered Accountants
ICAI Firm Registration No.103525W
Pradhan Dass
Partner
Membership No. 219962
UDIN: 26219962STBKWG5311
Place: Mumbai
Date: May 14, 2026
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