Ý We have audited the standalone financial statements of Unison Metals Limited (the
"Company") which comprise the standalone balance sheet as at March 31, 2025, and the
standalone statement of profit and loss (including other comprehensive income), standalone
statement of changes in equity and standalone statement of cash flows for the year then
ended, and notes to the standalone financial statements, including material accounting
policies and other explanatory information.
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 ("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 profit and other comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
Section 143(10) of the Act. Our responsibilities under those SAs 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 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 obtained is sufficient and appropriate to provide a basis for our opinion on the
standalone financial statements.
Key Audit Matter
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.
|
The Key Audit Matter How the matter was addressed in our audit
|
|
Revenue Recognition - Refer Note 19 of the Standalone Ind AS Financial Statements.
|
|
Revenue is recognised when significant risk
|
Our audit procedures included:
|
|
and rewards of ownership of the products
|
•
|
Assessing the appropriateness of the
|
|
have passed to customers and it is measured
|
|
revenue recognition accounting
|
|
at the fait value of the consideration
|
|
policies, by comparing with
|
|
received or receivable, net of returns and
: allowances, trade discounts and volume
|
|
applicable accounting standards.
|
|
rebates.
|
•
|
Performing substantive testing
(including year- end cut-off testing)
|
|
Owing to the variety of products, markets,
|
|
by selecting samples of revenue
|
|
product specifications, credit terms, delivery
|
|
transactions recorded during the
|
|
terms and other terms of supply, discounts
|
|
year (and before and after the
|
|
and volume related concessions, the
|
|
financial year end) by verifying the
|
|
product pricing, recognition and
|
|
underlying documents, which
|
|
measurement of revenue involves a
|
|
included sales invoices/contracts
|
|
significant amount of management
|
|
and shipping documents.
|
|
judgement and estimation.
|
|
Comparing the historical Sales Price
|
|
Therefore, there is a risk of revenue being
|
|
to current trends. We also
|
|
misstated as a result of faulty judgements or
|
|
considered the historical accuracy of
|
|
estimations. There is also a risk of revenue
|
|
the Company's estimates in previous
|
|
being overstated due to fraud resulting from
the pressure on management to achieve
|
|
years.
|
|
performance targets at the reporting date.
|
•
|
Seeking management explanations
and justifications in specific cases
and examining and evaluating them
with available documentary
evidences wherever considered
|
| |
|
necessary
|
| |
•
|
Evaluating the adequacy of the
Company's disclosures in
respect of revenue.
|
|
Suspension of manufacturing operations of Cold Rolled paata-Patti Plant - Refer Note 2.3
|
|
of the Standalone Ind AS Financial Statements.
|
|
|
Our audit of the Financial Statements for the
|
Our audit procedures included:
|
|
year ending 31st March, 2025 included the
evaluation of the Accounting Treatment and
|
«
|
Evaluating the rationale and
|
|
disclosure of assets classified as "Held for
|
|
supporting documentation decision
|
|
Sale", which have not been sold within one
|
|
to classify these assets as held for
|
|
year from the classification date. The assets
|
|
management's for sale despite the
|
|
in question have not been sold within the
|
|
absence of potential buyers within
|
|
expected timeframe due to limited
|
|
one year and assessing whether the
|
|
availability of buyers in the market, primarily
|
|
decision was well-founded,
|
|
attributed to the high value and specialized
|
|
considering factors such as market
|
|
nature of the assets.
|
|
|
| |
|
conditions, historical sales data, and
|
|
Our audit: procedures revealed that
|
|
expert opinions.
|
|
management's decision lo classify the assets
|
•
|
Examining whether management
|
|
as held for sale, even though
|
|
conducted market research to
|
|
a sale within one year was not feasible due
|
|
identify potential buyers and to
|
|
to limited availability of buyers, was
|
|
assess the feasibility of sale within
|
|
supported by appropriate justifications. The
|
|
the designated timeframe as well
|
|
market conditions and specialized nature of
|
|
as determining the credibility of the
|
|
the assets were consistent challenges
|
|
reasons provided for the lack of
|
|
encountered in attracting potential buyers.
|
|
available buyers.
|
| |
•
|
Reviewing the methodologies
|
|
We confirmed that the fair value
|
|
employed by management to
|
|
determination was appropriately
|
|
determine the fair value less costs to
|
|
conducted, taking into account the unique
|
|
sell relevant to the specialized
|
|
circumstances surrounding the assets.
|
|
nature of the assets and limited
|
|
Additionally, the related disclosures were
|
|
buyer availability and verified the
|
|
found to be in and transparent
|
|
inputs used in the valuation process
|
|
comprehensive communicating the reasons
|
|
and their alignment with market
|
|
for the delayed sale and the potential
|
|
data and expert opinions.
|
|
impact on the entity's operations.
|
•
|
Assessing whether the sale is
anticipated to qualify for recognition
as a completed sale within the
stipulated time frame provided in
Ind AS.
|
|
'
|
•
|
Evaluating whether the assets
classified as held for sale are
measured at lower of its carrying
amount or fair value less costs to sell
and whether further impairment loss
to be provided or not in accordance .
with Ind AS-36 Impairment of Assets.
|
| |
•
|
Reviewing the disclosures in the
financial statements related to the
classification of assets as held for
sale and not sold within one year and
evaluating the reasons for the delay
in sale, potential impact on the
entity's operations, and the
uncertainties surrounding the timing
of sale are accurately and adequately
communicated to users of the
financial statements.
|
| |
|
Evaluating whether the audit
procedures applied provides a
reasonable level assurance on the
accounting treatment and disclosure
of these assets as held for sale",
|
| |
despite the extended timeframe, are
in accordance with the applicable
framework financial reporting
specifically IND AS.
|
Other information
The Company's Management and 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 financial statements and auditor's reports 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.
Management's and Board of Directors' Responsibilities for the Standalone Financial
Statements
The Company's Management and Board of Directors are responsible for the matters stated
in Section 134(5) of the A\ct with respect to the preparation of these standalone financial
statements that give a true and fair view of the state of affairs, profit/ loss and other
comprehensive income, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for-
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the standalone financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error. In preparing
the standalone financial statements, the Management and Board of Directors are responsible
for assessing the Company's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the
Board of Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financial reporting
process.
Auditor's Responsibilities for the Audit of the Standalone 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 judgement 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 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.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Management and Board of
Directors.
® Conclude on the appropriateness of the Management and Board of Directors use of
the going concern basis of accounting in preparation of standalone financial
statements and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the
related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence-
obtained up to the date of our auditor's report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought . to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements of
the current 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. A. 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.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The standalone balance sheet, the standalone statement of profit and loss
(including other comprehensive income), the standalone statement of changes in
equity and the standalone 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 May
02, 2025 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.
I) The modification relating to the maintenance of accounts and other matters
connected therewith are as stated in the paragraph 2A(b) above on reporting
under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules, 2014.
g) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such
controls, refer to our separate Report in "Annexure B".
B. With respect to the other matters to be included in the Auditors' Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our
opinion and to the best of our information and according to the explanations given to
us:
a. The Company has disclosed the impact of pending litigations as at March 31, 2025
on its financial position in its standalone financial statements
b. The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
d. (i) 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 person(s) or entity(ies), 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 by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(ii) The management has represented that, to the best of its knowledge and belief,
no funds have been received by the Company from any person(s) or entily(ies).
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 by
or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf oi the Ultimate Beneficiaries.
(iii) Based on the audit procedures performed 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 (i) and (ii) above, contain any material
misstatement.
e. The company has not declared and paid any dividend during the year under
review.
f. 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 respective software. Further,
where audit trail (edit log) facility was enabled and operated throughout the year
for the accounting software, we did not come across any instance of the audit trail
feature being tampered with.
C. With respect to the matter to be included in the Auditors' Report under Section
197(16) of the Act:
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to
any director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry ol Corporate Affairs has not prescribed other details under Section 197(16)
of the Act which are required to be commented upon by us.
For Purushottam Khandelwal and Co
Chartered Accountants
FRN: 0123825W
p
CA Mahendrasingh S Rao
Partner
Place: Ahmedabad Membership No: 154233
Date: May 30, 2025 UDIN: 2515429BMGYXUS365
| 