1. We have audited the accompanying standalone financial
statements of Yuken India Limited ('the Company'), which
comprise the Standalone Balance Sheet as at 31 March 2026,
the Standalone Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Statement of Cash
Flow and the Standalone Statement of Changes in Equity for
the year then ended, and notes to the standalone financial
statements, including material accounting policy information
and other explanatory information.
2. 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 Indian
Accounting Standards ('Ind AS') specified under section 133 of
the Act read with the Companies (Indian Accounting Standards)
Rules, 2015 and other accounting principles generally accepted
in India, of the state of affairs of the Company as at 31 March
2026, and its profit (including other comprehensive income),
its cash flows and the changes in equity for the year ended on
that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards
on Auditing 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.
Key Audit Matters
4. 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.
5. 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
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How our audit addressed the key audit matter
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Impairment assessment of Investment in, advances given to
and receivables from certain subsidiaries
Refer to the material accounting policies in Note 2(l) and related
disclosure in Note 6,9 and 11 of the standalone financial statements.
As at 31 March 2026, the Company has investment of Rs. 666.03
lakhs, advance of Rs. 3,050.53 lakhs and receivable balances of
Rs. 498.94 lakhs from its wholly subsidiary company, Coretec
Engineering India Private Limited and subsidiary Company, Kolben
Hydraulics Limited.
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Our audit procedures included, but were not limited to, the
following:
Ý Obtained an understanding of the management's process
for identification of impairment indicators for investments,
advances and receivables and impairment testing in
accordance with Ind AS 36 and Ind AS 109, as applicable;
Ý Evaluated the design and tested the operating effectiveness
of key controls in relation to impairment assessment;
Ý Assessed the professional competence, capabilities and
objectivity of the valuation expert used by the management
to determine the recoverable amounts and verified overall
mathematical accuracy of underlying calculations;
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Key audit matter
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How our audit addressed the key audit matter
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At each period end, the management reviews whether
any impairment indicators exist in the carrying amounts of
investments, advances and receivables, in accordance with the
requirements of Ind AS 36, "Impairment of Assets" ('Ind AS 36'), and
Ind AS 109, "Financial instruments" ('Ind AS 109'), as applicable. The
aforesaid subsidiaries have incurred losses in current year and have
net current liabilities positions as at 31 March 2026, resulting in
possible impairment indicators.
Accordingly, the management has carried out an impairment test
by determining recoverable amount of aforesaid balances from
such subsidiaries using the Discounted Cash Flow ('DCF') valuation
model, which requires significant estimation and judgement
around assumptions used such as cash flow projections based
on business plans of the subsidiary companies, expected growth
rates in the business and discount rates, etc.
The management has concluded that the recoverable amount of
the aforesaid investments, advances and receivables is higher than
its carrying amount. Accordingly, no impairment provision has
been recorded as of 31 March 2026.
Considering the materiality of the amounts involved and the
significant degree of judgement and subjectivity in estimates
and key assumptions used in determining the cash flows used in
impairment test, impairment of investments in, advances given to
and receivables from certain subsidiaries is considered to be a key
audit matter for current year audit.
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Ý Involved auditor's valuation experts to assess the
appropriateness of valuation methodology and
reasonableness ofkey assumptions used by the management's
expert to determine recoverable amount;
Ý Performed a retrospective analysis to assess the reasonableness
of Company's projections by comparing historical forecast to
actual results;
Ý Evaluated and challenged the assumptions used
management's expert by comparing the inputs with
externally available data, consistency with Board approved
forecasts and our knowledge of the industry;
Ý Performed independent sensitivity analysis on the key
assumptions to determine estimation uncertainty involved
and impact on conclusions drawn; and
Ý Evaluated the appropriateness and adequacy of disclosures
given in the standalone financial statements in accordance
with applicable accounting standards.
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Revenue Recognition
Refer to the material accounting policies in Note 2(i) and related
disclosure in Note 23 of the standalone financial statements.
Revenue from the sale of goods are recognized at a point in time
upon transfer of control of promised products to the customers
in accordance with the terms of contracts with the customers.
Revenue towards a performance obligation is measured at
the amount of transaction price allocated to that performance
obligation and is accounted for net of rebates or discounts.
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Our audit procedures included, but were not limited to, the
following:
Ý Understood the process of revenue recognition and assessed
the appropriateness of the accounting policy for revenue
recognition in accordance with Ind AS 115, Revenue from
Contracts with Customers ('Ind AS 115')
Ý Evaluated the design and tested the operating effectiveness
of key controls (including the automated controls) around
revenue recognition;
Ý Performed substantive testing by selecting samples of
revenue transactions recorded during the year, including
specific period before and after the year end. For such
samples, verified the underlying supporting documents such
as invoices, goods dispatch notes, shipping documents, sales
Orders etc. to ensure correct amount of revenue is recognition
in the correct period;
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Key audit matter
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How our audit addressed the key audit matter
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Owing to the Company's high volume of sales transactions
and varied terms of contracts with customers, in line with the
requirements of the Standards on Auditing, revenue has been
determined as an area involving significant risk and hence,
requiring significant auditor attention.
Revenue is one of the key performance indicators of the Company
and external stakeholders which makes it susceptible to fraud
risk and misstatement and thus timing of revenue recognition is
relevant as there is a risk of revenue being recognized without
transfer of control
Considering the varied terms of contracts with customers,
significance of the amount involved and significant attention
required by the auditor as mentioned above, revenue recognition
is considered to be a key audit matter for the current year audit
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Ý Tested sample journal entries for revenue recognized during
the year, selected based on specified risk-based criteria, to
identify unusual transactions.
Ý Performed analytical procedures on current year revenue
which included product analysis, customer analysis, etc. to
identify any unusual variances / relationships, if any;
Ý Obtained balance confirmations for samples of customers
selected and reviewed the reconciling items, if any; and
Ý Evaluated the appropriateness and adequacy of the related
disclosures included in standalone financial statements in
accordance with applicable accounting standards.
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Information other than the Standalone Financial
Statements and Auditor's Report thereon
6. The Company's Board of Directors are responsible for the other
information. The other information comprises the information
included in the Annual Report, but does not include the
standalone financial statements and our auditor's report
thereon. The Annual Report is expected to be made available
to us after the date of this auditor's report.
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
identified above when it becomes available 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.
When we read the Annual Report, if we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance.
Responsibilities of Management and Those
Charged with Governance for the Standalone
Financial Statements
7. The accompanying standalone financial statements have been
approved by the Company's Board of Directors. The Company's
Board of Directors are responsible for the matters stated in
section 134(5) of the Act with respect to the preparation and
presentation 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 Ind AS specified under section 133 of the Act and
other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding 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 financial statements that give a true and
fair view and are free from material misstatement, whether due
to fraud or error.
8. In preparing the standalone financial statements, the 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.
9. 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
10. 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 Standards on Auditing 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.
11. As part of an audit in accordance with Standards on Auditing,
specified under section 143(10) of the Act we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
O I dentify 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 controls;
O 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;
O Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management;
O Conclude on the appropriateness of Board of Directors'
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; and
O 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.
12. 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.
13. 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.
14. 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
15. As required by section 197(16) of the Act, based on our audit,
we report that the Company has paid remuneration to its
directors during the year in accordance with the provisions of
and limits laid down under section 197 read with Schedule V to
the Act.
16. 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 give in the Annexure I
a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
17. Further to our comments in Annexure II, as required by section
143(3) of the Act based on our audit, we report, to the extent
applicable, 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 purpose of our audit of the
accompanying standalone financial statements;
b) Except for the matters stated in paragraph 17(h)(vi) below
on reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended), 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 financial statements dealt with by this
report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under section
133 of the Act;
e) On the basis of the written representations received
from the directors and taken on record by the Board of
Directors, none of the directors is disqualified as on 31
March 2026 from being appointed as a director in terms of
section 164(2) of the Act;
f) The qualification relating to the maintenance of accounts
and other matters connected therewith are as stated in
paragraph 17(b) above on reporting under section 143(3)
(b) of the Act and paragraph 17(h)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014 (as amended);
g) With respect to the adequacy of the internal financial
controls with reference to financial statements of the
Company as on 31 March 2026 and the operating
effectiveness of such controls, refer to our separate report
in Annexure II wherein we have expressed an unmodified
opinion; and
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, as detailed in Note 34(a) to the
standalone financial statements, has disclosed the
impact of pending litigations on its financial position
as at 31 March 2026;
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses as at 31 March 2026;
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company during the year
ended 31 March 2026;
iv. a. The management has represented that, to the
best of its knowledge and belief, as disclosed
in Note 47(1) to the standalone financial
statements, no funds have been advanced or
loaned or invested (either from borrowed funds
or securities premium or any other sources
or kind of funds) by the Company to or in any
person or entity, including foreign entities
('the 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 ('the Ultimate
Beneficiaries') or provide any guarantee, security
or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the
best of its knowledge and belief, as disclosed
in Note 47(2)to the standalone financial
statements, no funds have been received by the
Company from any person or entity, including
foreign entities ('the 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
c. Based on such audit procedures performed
as considered reasonable and appropriate
in the circumstances, nothing has come to
our notice that has caused us to believe that
the management representations under
sub-clauses (a) and (b) above contain any
material misstatement.
v. The final dividend paid by the Company during the year ended
31 March 2026 in respect of such dividend declared for the
previous year is in accordance with section 123 of the Act to
the extent it applies to payment of dividend.
As stated in Note 15(c) to the accompanying standalone
financial statements, the Board of Directors of the Company
have proposed final dividend for the year ended 31 March
2026 which is subject to the approval of the members at the
ensuing Annual General Meeting. The dividend declared is in
accordance with section 123 of the Act to the extent it applies
to declaration of dividend.
vi. As stated in Note 48 to the standalone financial statements and based on our examination which included test checks, except for the
matters mentioned below, the Company, in respect of financial year commencing on 1 April 2025, 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 been 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 other than the consequential impact of the exception given below. Furthermore,
the audit trail has been preserved by the Company as per the statutory requirements for record retention.
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Nature of exception noted
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Details of Exception
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Instances of accounting software for maintaining books of
account for which the feature of recording audit trail (edit log)
facility was not operated throughout the year for all relevant
transactions recorded in the software.
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The audit trail feature was not enabled at the database level for
accounting software to log any direct data changes, used for
maintenance of all accounting records by the Company.
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For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Lokesh Khemka
Partner
Membership No.: 067878
UDIN: 26067878XRHLNA2446
Place: Bengaluru
Date: 26 May 2026
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