We have audited the accompanying standalone financial statements of Mukand Limited (“the Company”), which comprise the
Balance Sheet as at March 31,2025, 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, 2025, 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(s):
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1. Revenue recognition
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We
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have performed the following procedures among
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(Refer Note 27 of the standalone financial statements)
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others:
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The Company recognizes revenue from sale of goods
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•
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We have performed the following procedures among
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when control over the goods is transferred to the customer.
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others:
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The terms of sales arrangements, including the timing of
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•
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Assessed the company's accounting policies relating
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transfer of control delivery specifications, creates complexity
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to revenue recognition by comparing the same with
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and judgment in determining timing of revenue recognition.
The actual point in time when revenue is recognized varies
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applicable accounting standard.
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depending on the terms and conditions of the sale contracts
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•
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Understood and evaluated the design and tested the
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entered into with customers. There exist a risk that revenue is
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operating effectiveness of controls around estimation
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recognized during the cut off period though the control may not
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of costs to complete the project including the review
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have been passed to the customers. The Company generates
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and approval of estimated project cost.
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part of its revenue from long term construction / project related
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•
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Verified the contracts on test check basis entered
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activity and contracts for supply / commissioning of plant
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by the Company for the consideration and relevant
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and equipment which is accounted under the percentage of
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terms and conditions relating to variations to the cost.
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completion method (“POC”), which is the proportion of cost of
work performed to-date, to the total estimated contract costs.
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•
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Verified original invoices, purchase orders, receipts,
etc. for the actual costs incurred up to the year-end
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Determination of revenue under POC requires significant
judgements and estimates in particular with respect to
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date on test check basis.
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estimation of the cost to complete the projects.
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•
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Verified that revenue has been recognised as per the
agreed terms and when the conditions for revenue
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Due to estimates, judgements and complexity involved in
application of the revenue recognition standards, we have
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recognitions are satisfied.
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considered this matter as a key audit matter.
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Discussed the status of the project, evaluated the
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.
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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 Combination under Common Control/Scheme
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We have performed the following procedures among
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of Arrangement
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others:
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Merger of Stainless Steel Cold Finished Bars and Wires
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• Understood from the management, assessed and
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Business of Mukand Sumi Metal Processing Limited
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tested the design and operating effectiveness of
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(“MSMPL”) with Mukand Limited
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the Company's key controls over the accounting for
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[Refer to Note 2(x) to the standalone financial statements
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business combinations.
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“Business combination under common control” and Note 50
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• Traced the assets and liabilities as at April 01, 2023
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to the standalone financial statements]
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and results for the financial year ended March 31,
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Pursuant to the National Company Law Tribunal (NCLT)
Orders received during the year, Stainless Steel Cold
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2024 of MSMPL transferred to the Company under
the Scheme with its financial statement.
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Finished Bars and Wires Business of MSMPL (“Demerged
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• Evaluated the Company's accounting for the
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Undertaking”) was merged with the Company. The 'appointed
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business combinations in accordance with the
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date' for the Scheme as per the NCLT Order is April 1, 2024.
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'pooling of interests' method in Appendix C “Business
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The Company has accounted for the Arrangement as per
the Accounting Treatment approved by the NCLT read
with Appendix C “Business combinations of entities under
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combinations of entities under common control” of
Ind AS 103 “Business Combinations” in accordance
with the NCLT Orders.
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common control” of Ind AS 103 “Business Combinations”.
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• Tested the management's computation of determining
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The Company has recognized the impact of the Scheme
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the amount recorded in the capital reserve.
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under “Capital Reserve” in Other Equity.
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• Assessed the adequacy of the disclosures made in
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the standalone 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 Requirements
(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 31,2025, 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 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 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, 2025 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: 25219962BMHXJH4730
Place : Bengaluru
Date : May 16th, 2025
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