We have audited the accompanying Standalone Ind AS financial statements of TECHNOCRAFT INDUSTRIES (INDIA)
LIMITED, (“the Company”), which comprise the Balance Sheet as at 31st March 2025, the Statement of Profit and Loss
(Including Other Comprehensive Income), the Cash Flow Statement and the Statement of changes in Equity for the
year then ended and notes to the financial statements including a summary of significant 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
Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“the 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 31st March 2025, its profit including other comprehensive income its cash
flows and the changes in equity for the year ended on that date.
Basis of Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing
(SAs), as 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 Standalone Ind AS 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 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 we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Standalone Ind AS 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 Ind AS financial statements for the financial year ended 31st March 2025. These matters were addressed
in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone Ind AS financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the performance
of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS
financial statements. The results of our audit procedures, including the procedures performed to address the matters
below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.
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Key Audit Matters
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How our audit addressed the key audit matter
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1.
2.
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Assessment of impairment of investment in subsidiaries, (Refer Note 6(a) of the Standalone Ind AS Balance
Sheet)
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As at 31st March 2025 the Company balance sheet
includes investment in subsidiaries & associates of Rs.
30,826.48 Lakhs,
In accordance with Indian Accounting Standards (Ind-
AS), the management has allocated these balances
to their respective cash generating units (CGU) and
tested these for impairment using a discounted cash
flow model. The management compares the carrying
value of these assets with their respective recoverable
amount. A deficit between the recoverable amount
and CGU’s net assets would result in impairment. The
inputs to the impairment testing model which have most
significant impact on the model includes:
a) Sales growth rate;
b) Operating margin;
c) Working capital requirements;
d) Capital expenditure; and
e) Discount rate applied to the projected cash flows.
The impairment test model includes sensitivity testing
of key assumptions.
The annual impairment testing is considered a
significant accounting judgment and estimate and a
key audit matter because the assumptions on which the
tests are based are highly judgmental and are affected
by future market and economic conditions which are
inherently uncertain, and because of the materiality of
the balances to the financial statements as a whole.
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As a part of our audit we have, carried out the following
procedures:
a) We assessed the Company’s methodology applied
in determining the CGUs to which these assets are
allocated.
b) We assessed the assumptions around the key
drivers of the cash flow forecasts including discount
rates, expected growth rates and terminal growth
rates used;
c) We also assessed the recoverable value by
performing sensitivity testing of key assumptions
used.
d) We tested the arithmetical accuracy of the models
e) Performed analysis of the disclosures related to
the impairment tests and their compliance with
Indian Accounting Standard (Ind-AS).
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Revenue Recognition (Refer to the accounting policies in Note 2(iii) to the financial statements)
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Revenue from the sale of goods is recognised upon the
transfer of control of the goods to the customer. The
Company uses a variety of shipment terms across its
operating markets and this has an impact on the timing
of revenue recognition. There is a risk that revenue
could be recognised in the incorrect period for sales
transactions occurring on and around the year-end,
therefore revenue recognition has been identified as a
key audit matter.
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a) Our audit procedures included reading the
Company’s revenue recognition accounting
policies to assess compliance with Ind AS 115
“Revenue from contracts with customers”.
b) We performed test of controls of management’s
process of recognizing the revenue from sales
of goods with regard to the timing of the revenue
recognition as per the sales terms with the
customers.
c) We performed test of details of the sales
transactions testing based on a representative
sampling of the sales orders to test that the related
revenues and trade receivables are recorded
taking into consideration the terms and conditions
of the sale orders, including the shipping terms.
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Key Audit Matters
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How our audit addressed the key audit matter
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d) We also performed audit procedures relating
to revenue recognition by agreeing deliveries
occurring around the year end to supporting
documentation to establish that sales and
corresponding trade receivables are properly
recorded in the correct period.
e) Assessing and testing the adequacy of presentation
and disclosures.
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Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises the
information included in the Annual report but does not include the Standalone Ind AS financial statements and our
auditor’s report thereon.
Our opinion on the Standalone Ind AS 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 Ind AS financial statements, our responsibility is to read the other
information and, in doing so, consider whether such 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, 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 Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash flows and changes in equity 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 read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended. 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 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 Standalone Ind AS 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 Ind AS 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 also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS 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 Ind AS 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 Ind AS 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 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 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 Ind AS financial statements, including
the disclosures, and whether the standalone Ind AS 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 Ind AS financial statements for the financial year ended 31st March 2025 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
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 Companies Act, 2013, we give in the Annexure - A, a statement on the
matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 Balance Sheet, Statement of Profit and Loss including the statement of Other Comprehensive Income, Cash
Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards
specified under section 133 of the Act read with relevant Rules issued thereunder.
(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.
(g) In our opinion, the managerial remuneration for the year ended 31st March 2025 has been paid / provided by the
Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Company’s
Act, 2013;
(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 in our opinion and to the best of our information and according to the explanations
given to us:
i. The company has disclosed the impact of pending litigations on its financial position in its financial statement
- Refer Note no. 31.
ii. The Company has made provision, as required under the applicable law or Ind AS, for material foreseeable
losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
iv. (i) 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;
(ii) 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;
(iii) 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 under (a) and (b) above, contain any material misstatement.
v. a. The Board of Directors of the Company had not declared in the previous year and paid during the year any
dividend in the as per section 123 of the Company’s Act, 2013. Hence, we have nothing to report in this
regard.
b. The Board of Directors of the Company have proposed interim dividend for the year. The amount of
dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. 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. Additionally, the
audit trail has been preserved by the company as per the statutory requirements for record retention.
For M. L. Sharma & Co.,
Firm Reg. No. 109963W
Chartered Accountants
Place of Signature: Mumbai (Jinendra D. Jain) Partner
Date: 29th May, 2025 Membership No. 140827
UDIN - 25140827BMOYHO5668
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