We have audited the Standalone Financial Statements of INDEF MANUFACTURING LIMITED (“the Company”), which
comprise the Balance Sheet as at March 31, 2025, and the Statement of Profit and Loss (including Other Comprehensive
Income), Statement of Changes in Equity and Statement of Cash flows for the year then ended, and notes to the Standalone
Financial Statements, including a summary of the significant accounting policies and other explanatory information (hereinafter
referred to as “the Standalone Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, read together with the
matters described in the Emphasis of Matters paragraph, 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, of the state of affairs of the Company as at March 31, 2025, and its net profit
including other comprehensive income, 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 together with 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.
Emphasis of Matter
1. In accordance with Note No. 51 of Standalone Financial Statement for the year ended 31st March 2025, the Scheme of
Arrangement between Hercules Hoists Limited (“Demerged entity”) and Indef Manufacturing Limited (“Resulting entity”)
and their respective shareholders (“Scheme”) became effective after regulatory approvals and conditions precedent.
Accordingly, as per the Scheme, the Demerger of Demerged Undertaking into Resulting Entity has been accounted
under the pooling of interest method retrospectively as prescribed in Appendix C Para 9 (iii) to IND AS 103 Business
Combinations of entities under common control. Thus, the previous year corresponding numbers have been accordingly
restated. The Restated Financial Statements for the year ended 31 March 2024 has been prepared by the management as
per the approved scheme.
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 of the current period. 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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Sr.
No.
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Key Audit Matter
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Response To Key Audit Matter
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1
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Warranty Provisions
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Principal Audit Procedures
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The Company's product warranties primarily cover
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Our procedures included but were not limited to:
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expected costs to repair or replace components with
defects or functional errors. Warranties are usually
granted for one year to two-year period.
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• Testing of relevant internal controls regarding completeness
of warranty provisions and how management assesses
valuation of provisions.
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We focused on this area as the completeness and
valuation of the expected outcome of warranty
provisions requires a high degree of Management
judgment and the use of estimates giving rise to
inherent uncertainty in the amounts recorded in the
Standalone Financial Statements.
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• We assessed the assumptions underlying the valuation
of provisions by checking and corroborating the inputs
used to calculate the provisions, including interviewing
Management regarding individual cases. We assessed
specific warranty provisions held for individual cases to
evaluate whether the warranty provisions were sufficient to
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(For the year ended March 31, 2025 the Company has
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cover expected costs at year-end.
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provided free replacement of Rs. 43.82 Lakhs which
is approximately 0.24% compared to last year's total
turnover.)
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• Further, we assessed the level of historical warranty claims
to assess whether the total warranty provisions held at
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year-end were sufficient to cover expected costs in light of
known and expected cases and standard warranty periods
provided.
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From the procedures performed and bases on historical data
we have no matters to report.
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2
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Inventory Valuation
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Principal Audit Procedures
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As at March 31, 2025 the Company held Rs. 2217.87
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We have performed the following procedures over the valuation
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Lakhs of inventory. Given the size of the inventory
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of inventory:-
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balance relative to the total assets of the Company
and the estimates and judgments described below,
the valuation of inventory required significant audit
attention.
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• For sample inventory items, re-performed the weighted
average cost calculation and compared the weighted
average cost to the last purchase invoices;
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As disclosed in Note No. 2(F), inventories are held at
the lower of cost or net realisable value determined
using the weighted average cost method. At year end,
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• We tested that the ageing report used by management
correctly aged inventory items by agreeing a sample of
aged inventory items to the last recorded invoice;
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the valuation of inventory is reviewed by management
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• On a sample basis we tested the net realizable value of
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and the cost of inventory is reduced where inventory
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inventory lines with recent selling prices of finished goods
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forecasts to be sold below cost.
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wherein these raw materials are used;
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Management undertake the following procedure for
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• We assessed the percentage write down applied to older
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determining the level of write down required:
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inventory with reference to historic inventory write downs
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• Use Inventory ageing report to check slow moving
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and recoveries on slow moving inventory; and
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& non-moving inventory;
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• We re-performed the calculation of the inventory write
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• For inventory aged greater than one year,
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down.
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management apply a percentage based write
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We also made enquiries with the management and
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down to inventory. The percentage are derived
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considered the results of our testing above to determine
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from historical level of write down;
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whether any specific write downs were further required.
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• Perform a line-by-line analysis of remaining
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From the procedures performed we have no matters to report.
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inventory to ensure it is stated at the lower of cost
or net realizable value and a specific write down is
recognized if required.
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Other Information
The Company's Management and the Board of Directors are responsible for the other information. The other information
comprises the information included in the Company's annual report, but does not include the Standalone Financial Statements
and our auditors' report thereon.
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 management and the 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, the
financial performance, the changes in equity and the 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 the 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 management 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 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 control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Companies Act, 2013, 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 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 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 (Auditors' Report) Order, 2020 (“the Order”) issued by the Central Government of India in
terms of Section 143 (11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
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 of the aforesaid Standalone Financial Statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Standalone
Financial Statements 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 Cash Flow Statement dealt with by this Report are in agreement with the books of account
maintained for the purpose of preparation of the Standalone Financial Statements.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Account) Rules, 2014.
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 over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in “Annexure B”.
g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section
197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions
of section 197 of the Act.
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, 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. 31(a) to the Ind AS Standalone Financial Statements).
ii. The Company did not have any material foreseeable losses on long-term contracts including derivatives 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 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, 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 Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
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 (d) (i) and (d) (ii)
contain any material mis-statement.
v. The Company has not declared or paid dividend during the year. Hence, provisions of Section 123 of the Act are not
applicable to the Company.
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. Further, we did not come across any
instance of the audit trail feature being tampered with.
For Kanu Doshi Associates LLP
Chartered Accountants
FRN. No. 104746W/W100096
Kunal Vakharia
Partner
Membership no. 148916
UDIN: 25148916BMKNLP2544
Place: Mumbai
Date: May 27, 2025
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