Opinion
We hove audited the accompanying Standalone Financial Statements of rechknawgreen Solutions Limited ("the Company"), which comprise the balance sheet as at 31st March 2026, and the statement of Profit ond Loss and statement of cash flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information.
1 n ouraplnion 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 Company AcL, 2013 (the "Act ") iri 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 31st March, 2026, its profit and its cash flows for the yeaT ended on lhai dale.
Basis far Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section M3(lG) of the Companies Act,. 2013. Our responsibilities under those Standards- are further described in the
Auditor's Responsibilities for rhe Audit of the Stood a I one 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 rinanciaf Statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we hove fulfilled our other eihical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we nave obtained is sufficient and appropriate to provide a basis far Otir opinion
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit ol Ihe standalone Financial Statements Of The current period. These matters were addressed in the context of our audit of the standalone rinanciaf Statements as a whale, and in tormina our opinion thereon, and we do not provide o separate opinion on those matters. Wo 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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AUDITOR'S RESPONSE
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Revenue Recognition for Turnkey Contracts (Works Contracts)
The Company applies the stoge-ohcompletion method to recognise revenue on long-term turnkey contractsin accordance with Accounting standard (AS) 7. "Construction Contracts," and AS 9> "Revenue Recognition" Undei as 7, contract revenue is measured at the lair value of consideration receivable and recognised in profit or loss by reference to the proportion of contract costs; incurred to dote against the total estimated contract costs. AS 9 requires that revenue, including amounts recoverable on variations and cioims be recognised only when it is probable that economic benefits wfli flow to the Company and the amount of revenue con be measured reiiably.
Significant management judgements and estimates ore applied irv
* Estimating totai controct costs, including appropriate cost contingencies for identified risks, uncertainties or disputed claims. These estimates are reviewed and updated throughout the contracl life cycle.
* Determining the stage at completion by comparing casts incurred at the reporting date with the total estimated costs at contract completion
* Identifying and recognising expected contract losses immediately when total estimated contract costs exceed contract revenue, as ret]uired by AS 7
Ý Assessing the probability and reliable measurability oi variable considerations such as controct variations and claims prior to including these amounts in contract revenue, as required by 9
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Our audit procedures included, among others:
- Evaluating management's process lor estimating lotal contract costs, including the identification of cast contingencies, by inspecting budgets, cost forecasts and supporting documentation
* Testing the accuracy ol costs incurred to date for a sample of significant contracts by examining subcontractor invoices, material purchases and labour records.
* Reviewing the reasonableness ol management's stage of completion calculations and their reconciliation to underlying cost records,
* inspecting management's Analyses of contracts larecast to be loss making and verifying that anticipated losses have been recognised In full;
* Challenging managements assessment of variable consideration by examining Correspondence with customers, change-order approvals and dispute-settlement documentation to determine whether amounts ore both probobie ol recovery and reliably measurable,
We consider revenue recognition for turnkey contracts to be a key audit matter due to the significant judgements involved in estimating total contract costs, determining stage of completion, and assessing variable consideration
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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 Board's Report including Annexures to Board's Report 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 cl this other information, we are required to report that fact, We have nothing to report in this regard.
Those Charged with Govemaftce forj he Standalone Financial Statements
This Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Acl, 2013 (“the Act") with respecl to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 of the Act This responsibility also includes maintenance at adequate accounting records In accordance with the provisions of the Act for safeguarding of fheOSSOtS of the Company and lor preventing and detecting (roods and other irregularities; selection and application af appropriate accounting policies; malting 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 lair view and are tree 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 o! accounting unless management either Intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors arc aiso responsible for overseeing the Company's financial reporting process,
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from male rial misstatement, whether due to fraud or error, and to issue on 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 Iraud or error and are considered material Jf, Individually nr in the aggregate, -hey could
reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements,
AS parr nf an audit in accordance with SAsr we exercise professional Judgment and maintain professional skepticism throughout the audit We also:
* identify and assess the risks at 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 hrgher than for one resulting from error, as fraud may involve collusion, forgery, inten Hanoi omissions, misrepresentations;, oi the override of internal conLrol.
* Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate In the circumstances. Under section 1*13(^f) (i) of The Companies Act, 2d 13, we are also responsible for expressing our opinion on whether the company has nd equate internal financial controls system in place and the operating effectiveness of such controls
* Evaluate the appropriateness of accounting policies used and Lhe reasonableness of accounting estimates and related disclosures made by management
Ý Conclude on the appiopriateness ol management's use ol Lhe 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 an 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, ii such disclosures are inadequate, to modify our opinion. Our conclusions are based on theaudit 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 .'epresent, 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 or the Standalone Financial Statements may bo influenced, We consider quantitative materiality and qualitative factors In (i) planning the scope of our audit work and in evaluating the results of ou: 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 matteis, the planned scope and timing of fhe audit and significant audit findings, rnc luding any significant deficiencies in internal central that we identify during our audit.
We also provide those charged with governance with a statement that we hove compiled With i Levant 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.
Requirements
1. As required by the Companies (Aud car's Report) Order, 2020 ("the Order"), Issued by the Central Government o\ India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the 'Annoxure A', 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 that1
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 out opinion,, proper books of account as required by law nave been kept oy the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement 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 Accounting Standards specified under Section 133 ol the Act and rules made thereunder,
e. On the basis of the written representations
received frbm the directors as an 31st March, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2025 Irom being appointed as a director in terms of Section 164 (2) ot the Act.
f. With respect to me adequacy of the internal financial controls with reference to Standalone financial Statements of the Company and the operating effectiveness of guoh controls, ref°F la our separate Report in Annexure EL
g. With respect to the matter to be Included in the Auditor's Report under section 157(16), in our opinion and according to fhe information ond 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 ot the limit laid down under Section 197 of fhe Act The Ministry of Corporate Affairs has not prescribed Other details under section 197(16) which are required to be commented upon by us. (applicable in cose ot Public Connponyj
h. With respect £0 the other matters to be included in tne Auditor's 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 exp La notions given to us;
i The Company does not have any pending litigations which would Impact its financial position.
Ii fhe Company did nor hove any long-term contracts including derivative contracts lor which there were any material loreseeable losses.
[ii. [here were no amounts which were required Lo be transferred to the investor Education and Protection Fund by the Company.
iv,{a) The management has represented that, io The best of it's knowledge and belief, other than as disclosed in the notes to The accounts, 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 entiEy(iesJ, including foreign entires ("Intermediaries"), with the .mdei standing, 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 B&neiiclories'1) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) the management has represented, that to the best of it's knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by I he company from nny person(s) or enriiy(ies), 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 ol the Funding Party (‘'Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that hove 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 ft!) of Rule 11(e), as provided under (a) and (b) above, contain any material mis-statement
v. No dividend have been declared or paid during the yeai by the company.
vi Based on our examination which included test checks, the company has used on accounting software for maintaining its books of account which has ? feature of recording audit trail (edit log) facility and thesome hasoperoted throughoutthe year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance ot audit trail feature being tampered with.
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