We have audited the accompanying standalone financial statements
of Shivalik Bimetal Controls Limited ("the Company"), which comprise
the Standalone Balance Sheet as at 31st March, 2026, the Standalone
Statement of Profit and Loss (including Other Comprehensive Income),
Standalone Statement of Cash Flows, the Standalone Statement of
Changes in Equity for the year then ended, and notes to the standalone
financial statements, including a summary of material accounting
policies and other explanatory information, (hereinafter referred as
"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 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 31st March,
2026, and its profit and loss (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
("SA"s) 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
("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 ICAI's
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
Key audit matters ('KAM') 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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The Key Audit Matters
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How our audit addressed the key audit matters
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1. Assessment of Liabilities under Newly Enacted Labour Codes
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The Government of India has enacted four labour codes, namely
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Our audit procedures in relation to the assessment of liabilities under the
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the Code on Wages, 2019, Industrial Relations Code, 2020,
Occupational Safety, Health and Working Conditions Code,
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new labour codes included, among others:
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2020 and Code on Social Security, 2020. While these codes
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1. Obtaining an understanding of management's process for evaluating the
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have been notified, the effective date of implementation and the
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impact of the new labour codes on the Company's financial statements.
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finalisation of certain rules remain subject to notification by the
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2. Assessing management's interpretation of the provisions of the enacted
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respective authorities.
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labour codes, including consideration of external legal opinions,
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The transition to the new labour codes may have implications
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industry practices and guidance, where applicable.
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on the Company's obligations relating to employee benefits,
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3. Evaluating the assumptions and key judgements used by management in
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including but not limited to gratuity, leave encashment,
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estimating potential liabilities, including the timing of applicability and
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provident fund, bonus and other social security benefits. The
assessment of the financial impact of these codes involves
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identification of affected employee benefit schemes.
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significant management judgement and estimation, particularly
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4. Reviewing actuarial valuations, where applicable, and assessing the
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in evaluating the applicability, timing of implementation,
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competence and objectivity of the actuarial experts engaged by the
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interpretation of provisions and determination of potential
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Company.
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incremental liabilities.
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Evaluating the adequacy and appropriateness of disclosures made in the
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Given the evolving regulatory framework, the complexity
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financial statements in accordance with applicable Indian Accounting
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involved in interpreting the provisions, and the potential impact
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Standards, including Ind AS 19 Employee Benefits and Ind AS 37
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on the financial statements, this matter was considered to be of
most significance in our audit.
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Provisions, Contingent Liabilities and Contingent Assets.
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2. Contingent Liabilities- Contingencies & Capital Commitments:
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The Company makes a determination for recording or
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We have obtained an understanding of the Company's internal instructions,
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alternatively disclosing them as contingencies. We identified
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and procedures in respect of assessment and disclosure of contingent
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this as a key audit matter because the estimation on which these
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liabilities & capital commitments and adopted the following audit
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amounts are based involves a reasonable degree of assessment
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procedures: -
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by the management.
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1. understood and tested the operating effectiveness of controls as
established by the management for obtaining all relevant information;
2. discussing with the management any material developments and latest
status;
3. reviewing the adequacy and completeness of disclosures;
Based on the above procedures performed, the assessment and
disclosures of Contingent liabilities & Capital Commitments are
considered to be adequate and reasonable.
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Information Other than the Financial Statements
and Auditor's Report thereon
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 report thereon.
The Company has informed us that the annual report containing the
other information is expected to be made available to us after the date
of this auditor's report.
Our opinion on the 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 financial statements, our
responsibility is to read the other information when it becomes
available and, in doing so, consider whether such information is
materially inconsistent with the financial statements or our knowledge
obtained during the course of our audit, or otherwise appears to be
materially misstated. Since the other information has not been made
available to us up to the date of this auditor's report, we are unable to
report whether there is any material misstatement therein.
Management’s Responsibilities for the Standalone
Financial Statements
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 state of
affairs, profit / loss (including 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, 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 Audit of 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 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 the complete set
of financial statements on whether the Company has adequate
internal financial controls with reference to standalone 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 in
the standalone financial statements 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 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 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,
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 purpose of our audit;
b. In our opinion proper books of account as required by law
have been kept by the Company so far as 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 the Indian Accounting Standards specified under
Section 133 of the Act.
e. On the basis of written representations received from the
directors as on 31st March, 2026, and taken on record by the
Board of Directors, none of the directors is disqualified as on
31st March, 2026, from being appointed as a director in terms of
section 164 (2) of the Companies Act, 2013.
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. In our opinion, the managerial remuneration for the year ended
31st March, 2026 has been paid / provided by the company to
its directors in accordance with the provisions of Section 197
read with Schedule V of the Companies Act, 2013; 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. there are no pending litigations as on date of financial statements,
against the company as such there is no impact thereof to be
considered;
ii. the Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
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 (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 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 (a) and (b) above, contain any material
misstatement.
v. The final dividend paid by the Company during the year, in respect
of the same declared for the previous year is in accordance with
Section 123 of the Act to the extent it applies to payment of
dividend.
The interim dividend declared and paid by the company during the
year is in accordance with section 123 of the Act.
Company has proposed final dividend for the year 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. The reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 is applicable from 1st April, 2023.
Based on our examination which included test checks, the Company
has used accounting softwares for maintaining its books of account for
the financial year ended 31s' March, 2026 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's. Further, during the course of our audit we did not come across any instance of
audit trail feature being tampered with.
For Arora Gupta & Co.
Chartered Accountants
Firm Registration No: 021313C
Sd/-
Amit Arora
Partner
Place: Solan Membership No:- 514828
Dated: 18th May, 2026 ICAI UDIN No:26514828VGHYMA5378
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