We have audited the accompanying standalone financial statements of M/s OLECTRA GREENTECH
LIMITED ("the Company"), which comprises the standalone Balance Sheet as at March 31,2025,
the standalone Statement of Profit and Loss (including Other Comprehensive Income), standalone
Statement of Changes in Equity and the standalone Statement of Cash Flows for the year ended on
that date, and 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,
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 March 31,2025, the profit
and 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 specified under section 143(10) of the Companies Act, 2013. 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
independence requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules made there under, 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 we have obtained 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.
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Sl.
No.
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Key Audit Matters
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Procedures Performed/ Auditor's
Response
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1
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Recoverability of trade receivables:
The gross balance of trade receivables as at 31
March 2025 amounted to Rs. 69,350.41 Lakhs,
against which the Company has recorded
expected credit loss provision of Rs. 175.00
Lakhs during the FY 2024-25
The Company has a formal policy for evaluation
of recoverability of receivables and recording of
impairment loss which is applied at every period
end. In accordance with Ind AS 109 ''Financial
Instruments'', the Company applies Expected
Credit Loss (ECL) model for measurement
and recognition of impairment loss on trade
receivables which is based on the forecasts of
default events over the expected life of the asset.
In calculating expected credit loss, the Company
has also considered customer accounts as well
as experience with collection trends and current
economic and business conditions.
Assessment of recoverable amount is a key audit
matter due to:
• Significance of the carrying amount of
these balances.
• The collectability of trade receivables is
a key element of the company's working
capital management.
• Determination of impairment of trade
receivables using expected credit losses
model includes significant judgments
and estimates and assumptions by
management that may have material
impact on the financial statements.
The Company s disclosures are included in Note
3.19(e) to the standalone financial statements,
which outlines the accounting policy for
determining the allowance for doubtful debts.
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Our audit procedures, among other
things included the following:
• Evaluating the Company's policies,
processes and financial controls
relating to the monitoring of trade
receivables and review of credit risks
of customers.
• Evaluating management's estimates
and the inputs used by management
for development of the ECL model,
analysis of ageing of receivables,
assessment of material overdue
individual trade receivables including
specific customer balances.
• Assessing the reasonableness of
management's loss allowance estimate
by examining the information used by
management to form such judgements,
including testing the accuracy of the
historical default data and evaluating
whether the historical loss rates are
appropriately adjusted based on
current economic conditions and
forward-looking information.
• Assessing, on a sample basis, whether
items in the debtors ageing report
were classified within the appropriate
ageing category by comparing
individual items in the report with the
underlying documentation such as
sales invoices.
• Requesting for confirmations from
major debtors and/or verifying
subsequent settlements as an
alternative procedure.
• Testing the mathematical accuracy
and computation of the allowances by
using the same input data used by the
Company.
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Sl.
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Key Audit Matters
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Procedures Performed/ Auditor's
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No.
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Response
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2
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Assessment of provision for warranty
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Our audit procedures included:
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obligations:
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• Obtaining an understanding of
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The Company has provided for product
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the design, implementation and
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warranty obligation of Rs. 724.88 lakhs during
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operating effectiveness of the
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the current Financial Year. Out of total amount
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Company management's relevant
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provided over the years, the warranty obligation
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internal controls with regards to the
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as on the date of balance sheet is Rs. 3,604.91
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appropriateness of recording of
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lakhs.
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warranty obligations, provisioning for
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We determined this matter as key audit
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warranty, and the periodic review of
. . .1
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matter since the product warranty obligations
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provision so created.
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and estimations thereof are determined by
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• Evaluating the policy followed
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management as per its policy mentioned in
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by the Company's management
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the Standalone financial statements which
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for provisioning of warranty to
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incorporates historical information on the type
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evaluate on the appropriateness of
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of product, nature, frequency and average cost
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the methodology followed by the
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of warranty claims, the estimates regarding
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management of the Company and the
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possible future incidences of product failures
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mathematical accuracy of the policy.
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and discount rate. Changes in estimated
frequency and amount of future warranty claims
can materially affect warranty expenses.
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• Review of the past cost data and the
sales of the relevant period.
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The Compan/ s disclosures are included in Note
3.17 to the financial statements, which outlines
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• Checking for the consistency of the
same methodology being adopted by
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the accounting policy for determining provision
for warranties obligation.
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the Company
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Information Other than the Standalone
Financial Statements and Auditor's
Report Thereon
The Company s Board of Directors is responsible
for the preparation of the other information.
The other information comprises the information
included in the Company's Management
Discussion and Analysis, Board's Report
including Annexure to Board's Report, Business
Responsibility & Sustainability Report, Report
on Corporate Governance and Shareholder's
Information, but does not include the standalone
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 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.
Management's Responsibility 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, total 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 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 are 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.
• Obtai n 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 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 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 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 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 standalone Balance Sheet, the
standalone Statement of Profit and
Loss including Other Comprehensive
Income, standalone Statement of
Changes in Equity and the standalone
Statement of Cash Flow dealt with by
this Report are in agreement with the
relevant books of account.
d) In our opinion, the aforesaid standalone
financial statements comply with the
Ind AS specified under Section 133 of
the Act, read with of 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, taken
on record by the Board of Directors,
none of the directors are disqualified
as on 5 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 A". Our report expresses
an unmodified opinion on the
adequacy and operating effectiveness
of the Company's internal financial
controls over financial reporting.
g) 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;
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;
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 above,
contain any material misstatement.
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:
• The Company have pending
litigations, the liabilities in respect
of which is either provided
for or disclosed as contingent
liabilities - Refer Note 32 of
the Notes on accounts to the
standalone financial statements.
The Company has disclosed the
impact of pending litigations on its
financial position in its standalone
financial statements;
• 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;
• There has been no delay in
transferring amounts, required
to be transferred, to the Investor
Education and Protection Fund by
the Company.
• 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
audit trail feature being tampered
with and the audit trail has been
preserved by the company as
per the statutory requirements for
record retention.
2. 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.
3. As required by the Companies (Auditor's
Report) Order, 2020 (the "Order") issued by
the Central Government in terms of Section
143(11) of the Act, we give in "Annexure
B" a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the
extent applicable.
For Sarath & Associates
Chartered Accountants
FRN: 005120S
Sd/-
CA. S. Srinivas
Partner
MNo: 202471
UDIN: 25202471BMKVVQ7724
Place : Hyderabad
Date : 26/05/2025
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