We have audited the accompanying standalone financial statements of Mufin Green Finance Limited (the "Company"),
which comprise the Balance Sheet as at 31 March 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 ended on that date and a
summary of material 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, 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 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 31 March 2025
and its profit total 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 financial statements in accordance with the Standards on Auditing ("SA"s)
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 made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit
evidence obtained by us is sufficient and appropriate to provide a basis for our audit 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 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. 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 the key audit matter was addressed in our
Audit
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Allowances for Expected Credit Losses
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We have examined the policies approved by the respective
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("ECL"):
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Board of Directors of the Company that articulate the
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As at 31 March 2025, the carrying value of loan
assets measured at amortised cost, aggregated
?83,084.01 lakhs (net of allowance of expected
credit loss ?760.47 lakhs) constituting approximately
81.34% of the Group's total assets.
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objectives of managing each portfolio and their business
models. We have also verified the methodology adopted
for computation of ECL ("ECL Model") that addresses
policies approved by the respective Board of Directors,
procedures and controls for assessing and measuring
credit risk on all lending exposures measured at amortised
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Significant judgement is used in classifying these
loan assets and applying appropriate measurement
principles. ECL on such loan assets carried at
amortised cost is a critical estimate involving
greater level of management judgement. As part
of our risk assessment, we determined that the ECL
on such loan assets has a high degree of estimation
uncertainty, with a potential range of reasonable
outcomes for the Standalone Financial Statements.
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cost. Additionally, we have confirmed that adjustments
to the output of the ECL Model are consistent with the
documented rationale and basis
for such adjustments and that the amount of adjustment
has been approved by the respective Audit Committee
of the Board of Directors. Our audit procedures related
to the allowance for ECL included the following, among
others:
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The elements of estimating ECL which involved
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Testing the design and operating effectiveness of the
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increased level of audit focus are the following:
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following:
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• Qualitative and quantitative factors used in staging
the loan assets measured at amortised cost;
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• Basis used for estimating Probabilities of Default
("PD"), Loss Given Default ("LGD") and Exposure at
Default ("EAD") at product level with past trends;
• Judgements used in projecting economic scenarios
and probability weights applied to reflect future
economic conditions; and
• Adjustments to model driven ECL results to
address emerging trends. (Refer Note 2.5.2.6 and
34.A to the Consolidated Financial Statements).
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• Completeness and accuracy of the Exposure at Default
("EAD") and the classification thereof into stages
consistent with the definitions applied in accordance
with the policy approved by the respective company's
Board of Directors including the appropriateness of the
qualitative factors to be applied;
• Completeness, accuracy and appropriateness of
information used in the estimation of the PD and LGD
for the different stages depending on the nature of
the portfolio; and
• Accuracy of the computation of the ECL estimate
including reasonableness of the methodology used to
determine macro-economic overlays and adjustments
to the output of the ECL Model.
Test of details on a sample in respect of the following:
• Accuracy and completeness of the input data such
as period of default and other related information
used in estimating the PD;
• The mathematical accuracy of the ECL computation
by using the same input data as used by the Group.
• Completeness and accuracy of the staging of the
loans and the underlying data based on which the ECL
estimates have been computed.
• Evaluating the adequacy of the adjustments made
to the output as per the ECL Model to ensure that
the adjustment was in conformity with the policy
approved by the Audit Committee of the Companies
included in the Group.
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2
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Information Technology and General Controls:
The Group is dependent on its Information
Technology ("IT") systems due to the significant
number of transactions that are processed daily
across such multiple and discrete IT systems. Also,
IT application controls are critical to ensure that
changes to applications and underlying data are
made in an appropriate manner and under controlled
environments. Appropriate controls contribute to
mitigating the risk of potential fraud or errors as
a result of changes to applications and data. On
account of the pervasive use of its IT systems, the
testing of the general computer controls of the IT
systems used in financial reporting was considered
to be a Key Audit Matter.
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With the assistance of IT specialists, we obtained
an understanding of the Group's IT applications,
databases and operating systems relevant to financial
reporting and the control environment. For these
elements of the IT infrastructure the areas of our
focus included access security (including controls
over privileged access), program change controls,
database management and network operations.
In particular:
• We tested the design, implementation, and
operating effectiveness of the Group's general IT
controls over the IT systems relevant to financial
reporting. This included evaluation of Group's
controls over segregation of duties and access rights
being provisioned / modified based on duly approved
requests, access for exit cases being revoked in a
timely manner and access of all users being recertified
during the period of audit.
• We also tested key automated business cycle
controls and logic for the reports generated
through the IT infrastructure that were relevant for
financial reporting or were used in the exercise of
internal financial controls with reference to financial
statements.
Our tests included testing of the compensating
controls or alternate procedures to assess whether
there were any unaddressed IT risks that would
materially impact the Financial Statements.
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the
information included in the Management Discussion and Analysis, Director's Report including Annexures to Director's
Report, Corporate Governance and Shareholder's Information, but does not include the financial statements and
auditor's report thereon. These reports are 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 identified above when it
becomes available and we do not and will 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 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 this fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors 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 Ind AS 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
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, management 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 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 Responsibility for the Audit of the 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 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 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 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 the 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.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements
in the standalone financial statements.
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 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 Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, 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 specified under
Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2025 taken
on record by the Board of Directors, none of the directors is disqualified as on 31 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 over financial reporting 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 over financial reporting.
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(16) 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 following litigation is pending as on March 31, 2025 having impact on the financial position of the
Company.
(a) A demand of Rs. 918.28 lakhs was raised on the company by the concerned authority towards
payment of stamp duty, under Rajasthan Stamp Act, 1998, on transfer of assets to the company
during the demerger from APM Industries Limited (Demerged Company). The company has
disputed this demand and has filed a petition to the concerned authority for withdrawal of
the demand. Further, as per share transfer agreement, the liability of stamp duty payable on
transfer of assets is to be borne by the sellers of the shares (i.e. promoters of APM Industries
Limited). Hence, in any case the amount of the stamp duty will not be charged in the books of
accounts of the company as the company will get reimbursements of such payments.
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 were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
iv.
(a) The Management has represented that, to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) 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 or entity, including foreign entity ("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 (which
are material either individually or in the aggregate) have been received by the Company from
any person or entity, including foreign entity ("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 have been 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. The company has not declared or paid any dividend during the year and has not proposed final
dividend for the year.
vi. The Reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from
1 April 2023.
Based on our examination which included test checks, the company has used an accounting software
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 audit trail feature being
tampered with. Additionally, the audit trail has been preserved by the company as per the statutory
requirements for record retention.
2) 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 paragraphs 3 and 4 of the order, to the extent applicable.
For TATTVAM & Co.
Chartered Accountants
Firm Registration No. 015048N
Sagar Arora
Partner
Membership No. 520999
UDIN - 25520999BMKXMZ2269
Place: New Delhi
Date: 27 May 2025
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