We have audited the accompanying standalone Ind AS Financial Statements of Macpower CNC
Machines Limited(“the Company”), which comprises the Balance Sheet as at 31st March 2025, the
statement of Profit & Loss (including statement of Other We have audited the accompanying
standalone Ind AS Financial Statements of Macpower CNC Machines Limited(“the Company”), which
comprises the Balance Sheet as at 31st March 2025, the statement of Profit & Loss (including
statement of Other Comprehensive Income), the Cash Flow Statements and the Statement of
Changes in Equity for the year then ended, and notes to the financial statements, including a
material accounting policy information and other explanatory information, (herein after referred to
as “the standalone Ind AS Financial Statement”)
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Standalone Ind AS 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 31st March, 2025, the Profit and
other comprehensive Income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the
Standards on Auditing, as 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 Ind
AS 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 together with the
ethical requirements that are relevant to our audit of the financial statements under the provisions of
the act and rules there under, 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 audit opinion on the standalone Ind
AS financial statements.
Emphasis of Matter
We draw attention to note no. 39 of the financial statements, which describes the loss due to a fire
incident that occurred at the company’s godown during the year. The company has recognized the
loss in the financial statements and has also disclosed the related insurance claim under process.
Our opinion is not modified in respect of this matter.
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 for the financial year ended 31st March, 2025. 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.
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Key Audit Matter
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Response to Key Audit Matter
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Revenue recognition.
As disclosed in note 2.3 Revenue in respect of sale
of goods is recognized when control of the
products being sold is transferred to our
customer and measured at contracted price, after
deduction of any trade discounts, and any taxes or
duties collected on behalf of the Government
such as goods and services tax, etc.
The application of the revenue accounting
standard involves certain key judgements
relating to identification of distinct performance
obligations, determination of transaction price of
the identified performance obligations, the
appropriateness of the basis used to measure
revenue recognized over a period. Additionally,
revenue accounting standard contains
disclosures which involves collation of
information in respect of disaggregated revenue
and periods over which the remaining
performance obligations will be satisfied
subsequent to the balance sheet date.
Based on above, revenue recognition has been
considered as a key audit matter for the current
year’s audit.
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We assessed the Company’s process to
identify the impact of adoption of the revenue
accounting standard.
Our audit approach consisted testing of the
design and operating effectiveness of the
internal controls and substantive testing as
follows:
• Evaluated the design of internal controls
relating to implementation of the revenue
accounting standard.
• It is observed that in majority of the cases,
transaction price is charged at ex¬
works price and revenue is booked at the time
of dispatch of the goods.
• The above method followed by the
company is in line the provisions of Ind AS 115 -
‘Revenue from contracts with customers’
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Contingent liabilities relating to taxation,
litigations and claims (refer Note 32)
The contingent liabilities relate to ongoing
litigations and claims with various authorities and
third parties. These relate to direct tax, indirect
tax, transfer pricing arrangements, claims,
general legal proceedings, environmental issues
and other eventualities arising in the regular
course of business.
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Our audit procedures included:
• Understanding the process followed by the
Company for assessment and determination
of the amount of contingent liabilities
relating to taxation, litigations and claims.
• Evaluating the design and implementation
and testing operating effectiveness of key
internal controls around the recognition and
measurement of re-assessment of
contingent liabilities.
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The determination of contingent liability requires
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• Involving our tax professionals with
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significant judgement by the Company because
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specialized skills and knowledge to assist in
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of the inherent complexity in estimating future
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the
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assessment of the value of significant
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costs.
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The contingent liabilities are subject to
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contingent liabilities relating to taxation
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changes in the outcomes of litigations and claims
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matter, on sample basis, in light of the nature
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and the positions taken by the Company. It
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of the exposures, applicable regulations and
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involves significant judgement and estimation to
determine the likelihood and timing of the cash
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related correspondence with the authorities.
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outflows and interpretations of the legal aspects,
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• Inquiring the status in respect of significant
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tax legislations and judgements previously made
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contingent liabilities with the Company’s
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by authorities.
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internal tax and legal team, including
challenging the assumptions and critical
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Based
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on above, Contingent Liability has been
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judgements made by the Company which
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considered as a key audit matter for the current
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impacted the computation of the provisions
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year’s audit.
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and inspecting the computation.
• Assessing the assumptions used and
estimates of outcome and financial effect,
including considering judgement of the
Company, supplemented by experience of
similar decisions previously made by the
authorities and, in some cases, relevant
opinions given by the Company’s advisors.
• Testing data used to develop the estimate
for completeness and accuracy.
• Evaluating judgements made by the
Company by comparing the estimates of
prior year to the actual outcome.
• Evaluating the Company’s disclosures in
the standalone financial statements in
respect of provisions and contingent
liabilities
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Information Other than Financial Statements and
Auditor’s Report Thereon
The company’s board of directors and management is responsible for the preparation of the other
information. The other information comprises the information included in Management
discussion and analysis, Board’s report including Annexure to board’s report, corporate
governance and shareholder’s information, but doesn’t include standalone financial statements
and our auditor’s report thereon.
Our opinion on 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 standalone financial statement, our responsibility is to read the
other information and in doing so, consider whether the other information is materially
inconsistent with the standalone financial statement or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information; we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged
with Governance for the Standalone IND AS
Financial Statement
The Company’s Management and Board of Directors are responsible for the matters stated in
section 134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the state of affairs, profit/loss and 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; 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, the Management and Board of Directors are
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.
The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the
Standalone Ind AS 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 these standalone financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial
statements, whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of
the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s and board of director’s use of the going
concern basis of accounting in preparation of standalone financial statements 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 sub-section (11) of 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, 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 required by law have been kept by the
Company so far as it appears from our examination of those books;
(C) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including
Other Comprehensive Income), the Standalone Statement of Cash Flows and the
Standalone Statement of Changes in Equity dealt with by this Report are in agreement
with the books of account;
(d) ln our opinion, the aforesaid Standalone Financial Statements comply with the Indian
Accounting Standards specified 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 31st
March, 2025 and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 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 B”; Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Company’s internal
financial controls with reference to financial statements.
(g) 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, in our opinion and to the
best of our information and according to the explanations given to us:
A. The Company has disclosed the impact of pending litigations on its financial position in its
financial statements. Refer Note 32 to the standalone 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 have been no delays in transferring the amounts, required to be transferred to the Investor
Education and Protection Fund by the Company.
D. (|) The Management of the Company 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 of the Company has represented that, 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 such 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) above contain any material mis-statement.
E. The dividend declared or paid during the year by the Company is in compliance with Section 123
of the Act
F. Based on our examination which included test checks, the company has used an 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. Further, during the course of our audit we did not come across any instance of
the audit trail feature being tampered with and the audit trail has been preserved by the
Company as per the statutory requirements for record retention.
3. 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 by the Company to its directors during the current year is in accordance
with the provisions of section 197 of the Act. The remuneration paid to any director is not in excess
of limit laid down under section 197 of the Act. The Ministry of Corporate Affairs has not
prescribed other details under section 197 (16) which are required to be commented upon by us.
For S. C. Makhecha and Associates
Chartered Accountants
FRNO.120184W
Jay R. Khara
Partner
M. No. 182933
Date: 29/05/2025
Place: Rajkot
UDIN : 25182933BMITNC8592
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