We have audited the accompanying financial statements of
Shreyans Industries Limited (’the Company’), which
comprise the Balance Sheet as at 31st March 2025, and the
Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity, the Statement of
Cash flows for the year then ended and notes to the financial
statements, including a summary of the material accounting
policies and other explanatory information (hereinafter
referred to as “the financial Statements”).
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid 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
31st March, 2025, the 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 of the financial statements in
accordance with the Standards on Auditing (SAs) 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 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 Financial
Statements under the provisions of the Act and the Rules there
under, 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 by us is sufficient
and appropriate to provide a basis for our audit opinion on the
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 financial
statements of the current period. These matters were
addressed in the context of our audit of the 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 matter described below to be the key audit
matter 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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Assessment of litigations and related disclosure of
contingent liabilities
[Refer to Notes 2.3(r), 2.4 (v), 38-A to the financial
statements.]
As at 31st March 2025, the Company has exposures
towards litigations relating to various matters as set
out in the aforesaid Notes.
Significant management judgement is required to
assess such matters to determine the probability of
occurrence of material outflow of economic resources
and whether a provision should be recognised, or a
disclosure should be made. The management
judgement is also supported with legal advice in
certain cases as considered appropriate.
As the ultimate outcome of the matters are uncertain
and the positions taken by the management are
based on the application of their best judgement,
related legal advice including those relating to
interpretation of laws/regulations, it is considered to
be a Key Audit Matter.
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Our audit procedures included the following:
We understood, assessed and tested the design and operating
effectiveness of key controls surrounding assessment of
litigations relating to the relevant laws and regulations;
We inquired with the management for recent developments
and the status of the material litigations which were reviewed
and noted by the Audit Committee;
We performed our assessment on a test basis on the underlying
calculations supporting the contingent liabilities/other significant
litigations disclosed in the Financial Statements;
We used auditor’s experts / specialist to gain an understanding
and to evaluate the disputed tax matters;
We considered external legal opinions, where relevant,
obtained by management;
We evaluated management’s assessments by understanding
precedents set in similar cases and assessed the reliability of
the management’s past estimates/judgements;
and
We assessed the adequacy of the disclosures.
Based on the above work performed, the assessment in
respect of litigations and related disclosures relating to
contingent liabilities/other significant litigations in the Financial
Statements is considered to be reasonable.
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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 Directors' Report including annexures, if any,
thereon, and Report on Corporate Governance but does not
include the financial statements and our auditor's report
thereon.
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 identified above
and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed on the other
information, 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.
Responsibilities of Management and those charged with
governance for the Financial Statements
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) (Act) with respect to the
preparation of these 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 Indian Accounting Standards
(Ind AS) 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 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 the 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.
In preparing the financial statements, the 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 are also responsible for overseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about
whether the 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 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
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 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 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 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 Financial Statements, including the disclosures, and
whether the Financial Statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the 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 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 in
terms of sub section (11) of section 143 of the Act, we give in
“Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. (A)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 financial statements comply
with the Indian Accounting Standards specified under
Section 133 of the Act, read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended.
e. On the basis of the written representations received from
the directors as on 31st March 2025 taken on record by
the Board of directors, none of the directors is disqualified
as on 31st 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 control
over financial reporting.
(B) 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:
(a) The company has disclosed the impact of pending
litigations on its financial position in its Financial
Statements. Refer Note 38 to the 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 or entity, including
foreign entities ("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;
(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 or entity, including
foreign entities ("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;
(iii) Based on such audit procedures that we 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) above contain any material misstatement.
(e) The final dividend proposed in the previous year,
declared and paid by the company during the current
year is in accordance with section 123 of the Act, to the
extent it applies to payment of dividend.
(f) The Board of Directors of the Company have 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.
(g) Based on our examination which included test checks,
the company has used an accounting software for
maintaining its books of account for the financial year
ended 31st March, 2025 which have the 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.
(C) 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 managerial remuneration
paid/ provided by the Company to its directors during
the year is in accordance with the provisions of section
197 of the Act.
For SCV & Co. LLP
Chartered Accountants
(Firm Reg. No. 000235N/N500089)
Place : Ludhiana (Sanjiv Mohan)
Dated: 23rd May, 2025 Partner
UDIN : 25086066BMKNND7825 M. No. 086066
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