We have audited the accompanying standalonefinancial statements of ARO GRANITE INDUSTRIESLIMITED (the "Company”), which comprise the BalanceSheet as at March 31, 2026, the Statement of Profit andLoss (including Other Comprehensive Income), theStatement of Changes in Equity and the Statement ofCash Flows for the year ended on that date and asummary of significant accounting policies and otherexplanatory information (hereinafter referred to as the"standalone financial statements”).
In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidstandalone financial statements give the informationrequired by the Companies Act, 2013 (the "Act”) inthe manner so required and give a true and fair viewin conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules,2015, as amended, ("Ind AS”) and other accountingprinciples generally accepted in India, of the state ofaffairs of the Company as at March 31, 2026 and its
Loss, total comprehensive income, changes in equityand its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financialstatements in accordance with the Standards onAuditing ("SA”s) specified under section 143(10) ofthe Act. Our responsibilities under those Standardsare further described in the Auditor's Responsibilitiesfor the Audit of the Standalone Financial Statementssection of our report. We are independent of theCompany in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants ofIndia ("ICAI”) together with the ethical requirementsthat are relevant to our audit of the standalonefinancial statements under the provisions of the Actand the Rules made thereunder, and we have fulfilledour other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics.We believe that the audit evidence obtained by usis sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit ofthe standalone financial statements of the current period. These matters were addressed in the context of ouraudit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do notprovide a separate opinion on these matters. We have determined the matters described below to be the keyaudit matters to be communicated in our report.
Key Audit Matter
Auditor’s Response
1. Provisions and contingent liabilities in relation to taxpositions
The Management have made judgements relatingto the likelihood of an obligation arising andwhether there is a need to recognize a provision ordisclose a contingent liability. We therefore focusedon this area as a result of uncertainty and potentialmaterial impact.
Refer Note 38 to the financial statements.
We have involved our experts to gain anunderstanding of the current status of the tax casesand monitored changes in the disputes by readingexternal opinions received by the company if any,where relevant to establish that the tax provisionshad been appropriately adjusted to reflect thelatest external developments.
For Legal, regulatory and tax matters our proceduresincluded the following:
• Testing key controls surrounding litigation,regulatory and tax procedures.
• Performing substantive procedures on theunderlying calculations supporting theprovisions recorded.
• Where relevant, reading external legal opinionsobtained by the management
• Discussing open matters with the litigation,regulator, general counsel and tax teams
• Assessing management's conclusions throughunderstanding precedents set in similar cases.
Based on the evidence obtained, while noting theinherent uncertainty with such legal, regulatory andtax matters, we determined the level of provisioningand disclosure of contingent liabilities as at March31,2026 to be appropriate.
2. Related Party Transactions
The Company has entered into several transactionswith related parties during the year 2025-26.Weidentified related party transactions as a key auditmatter because of risks with respect to completenessof disclosures made in the standalone financialstatements including recoverability thereof;compliance with statutory regulations governingrelate party relationships such as the CompaniesAct,2013 and SEBI Regulations and the judgementinvolved in assessing whether transactions withrelated parties are undertaken at arms' length.
Refer Note 40 to the standalone financialstatements.
Our audit procedures on related party transactions
included:
• Assessed the key controls to identify anddisclose related party relationships andtransactions in accordance with the relevantaccounting standard.
• Assessed compliances with the listingregulations and the regulations underCompanies Act,2013 including checking ofapprovals/scrutiny as specified in Sections177 and 188 of the Companies Act,2013 withrespect to the related party transactions.
• Considered the adequacy and appropriatenessof the disclosures in the standalone financialstatements, including recoverability thereof,relating to the related party transactions.
• Inspected relevant ledgers, agreementsand other information that may indicatethe existence of related party relationshipsor transactions. Further, we also testedcompleteness of related parties with referenceto the various registers maintained by thecompany statutorily.
On a sample basis, tested Company's assessment ofrelated party transactions for arms' length pricing.
Information Other than the Financial Statementsand Auditor’s Report Thereon
The Company's Board of Directors is responsible forthe other information. The other information comprisesthe information included in the ManagementDiscussion and Analysis, Board's Report includingAnnexures to Board's Report, Business ResponsibilityReport, Corporate Governance and Shareholder'sInformation, but does not include the standalonefinancial statements and our auditor's report thereon.
Our opinion on the standalone financial statementsdoes not cover the other information and we do notexpress any form of assurance conclusion thereon.
In connection with our audit of the standalonefinancial statements, our responsibility is to read theother information and, in doing so, consider whetherthe other information is materially inconsistent with thestandalone financial statements or our knowledgeobtained during the course of our audit or otherwiseappears to be materially misstated.
If, based on the work we have performed, weconclude 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 ThoseCharged with Governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Act with respectto the preparation of these standalone financialstatements that give a true and fair view of the financialposition, financial performance, including othercomprehensive income, changes in equity and cashflows of the Company in accordance with the Ind ASand other accounting principles generally acceptedin India. This responsibility also includes maintenanceof adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets ofthe Company and for preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies making judgmentsand estimates that are reasonable and prudent;and design, implementation and maintenanceof adequate internal financial controls, that wereoperating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant to
the preparation and presentation of the standalonefinancial statements that give a true and fair view andare free from material misstatement, whether due tofraud or error.
In preparing the standalone financial statements,management is responsible for assessing theCompany's ability to continue as a going concern,disclosing, as applicable, matters related to goingconcern and using the going concern basis ofaccounting unless management either intends toliquidate the Company or to cease operations, or hasno realistic alternative but to do so.
The Board of Directors is also responsible for overseeingthe Company's financial reporting process.
Auditor’s Responsibilities for the Audit of theStandalone Financial Statements
Our objectives are to obtain reasonable assuranceabout whether the standalone financial statements asa whole are free from material misstatement, whetherdue to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assuranceis a high level of assurance, but is not a guaranteethat an audit conducted in accordance with SAs willalways detect a material misstatement when it exists.Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate,they could reasonably be expected to influence theeconomic decisions of users taken on the basis ofthese standalone financial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professionalskepticism throughout the audit. We also:
• Identifyandassesstherisksof material misstatementof the standalone financial statements, whetherdue to fraud or error, design and perform auditprocedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriateto provide a basis for our opinion. The risk of notdetecting a material misstatement resulting fromfraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal financialcontrol relevant to the audit in order to designaudit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of theAct, we are also responsible for expressing ouropinion on whether the Company has adequateinternal financial controls system in place and theoperating effectiveness of such controls.
• Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosuresmade by the management.
• Conclude on the appropriateness of
management's use of the going concern basisof accounting and, based on the audit evidenceobtained, whether a material uncertainty existsrelated to events or conditions that may
cast significant doubt on the Company's abilityto continue as a going concern. If we concludethat a material uncertainty exists, we are requiredto draw attention in our auditor's report to therelated disclosures in the standalone financialstatements or, if such disclosures are inadequate,to modify our opinion. Our conclusions are basedon the audit evidence obtained up to
the date of our auditor's report. However, futureevents or conditions may cause the Company tocease to continue as a going concern.
• Evaluate the overall presentation, structure andcontent of the standalone financial statements,including the disclosures, and whether thestandalone financial statements represent theunderlying transactions and events in a mannerthat achieves fair presentation.
Materiality is the magnitude of misstatements in thestandalone financial statements that, individually orin aggregate, makes it probable that the economicdecisions of a reasonably knowledgeable user of thestandalone financial statements may be influenced.We consider quantitative materiality and qualitativefactors in (i) planning the scope of our audit workand in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements inthe standalone financial statements.
We communicate with those charged withgovernance regarding, among other matters, theplanned scope and timing of the audit and significantaudit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide those charged with governance witha statement that we have complied with relevantethical requirements regarding independence, andto communicate with them all relationships and othermatters that may reasonably be thought to bear onour independence, and where applicable, relatedsafeguards.
From the matters communicated with those chargedwith governance, we determine those matters thatwere of most significance in the audit of the standalonefinancial statements of the current period and aretherefore the key audit matters. We describe thesematters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when,in extremely rare circumstances, we determine thata matter should not be communicated in our reportbecause the adverse consequences of doing sowould reasonably be expected to outweigh thepublic interest benefits of such communication.
Report on Other Legal and RegulatoryRequirements
1. As required by Section 143(3) of the Act, based
on our audit we report that:
a) We have sought and obtained all theinformation and explanations which to thebest of our knowledge and belief werenecessary for the purposes of our audit.
b) In our opinion, proper books of accountas required by law have been kept by theCompany so far as it appears from ourexamination of those books.
c) The Balance Sheet, the Statement of Profitand Loss including Other ComprehensiveIncome, Statement of Changes in Equity andthe Statement of Cash Flows dealt with bythis Report are in agreement with the booksof account.
d) In our opinion, the aforesaid standalonefinancial statements comply with the Ind ASspecified under Section 133 of the Act.
e) On the basis of the written representationsreceived from the directors as on March31, 2026 taken on record by the Board ofDirectors, none of the directors is disqualifiedas on March 31, 2026 from being appointedas a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of the internalfinancial controls over financial reportingof the Company and the operatingeffectiveness of such controls, refer to ourseparate Report in “Annexure A”. Our reportexpresses an unmodified opinion on theadequacy and operating effectiveness ofthe Company's internal financial controlswith reference to standalone financialstatements.
g) With respect to the other matters to
be included in the Auditor's Report inaccordance with the requirements of section197(16) of the Act, as amended:
In our opinion and to the best of ourinformation and according to theexplanations given to us, the remunerationpaid by the Company to its directors duringthe year is in accordance with the provisionsof section 197 of the Companies Act, 2013.
h) With respect to the other matters to
be included in the Auditor's Report inaccordance with Rule 11 of the Companies(Audit and Auditors) Rules, 2014, asamended, in our opinion and to the bestof our information and according to theexplanations given to us:
i. The Company has no pending litigations.
ii. The Company has made provision,as required under the applicable lawor accounting standards, for materialforeseeable losses, if any, on long-termcontracts including derivative contracts.
iii. There has been no delay in transferringamounts, required to be transferred, tothe Investor Education and ProtectionFund by the Company.
iv. (a) The Management has represented
that, to the best of its knowledgeand belief, no funds (which arematerial either individually or in theaggregate) have been advancedor loaned or invested (either fromborrowed funds or share premiumor any other sources or kind offunds) by the Company to or in anyother person or entity, includingforeign entity ("Intermediaries”),with the understanding, whetherrecorded in writing or otherwise,that the Intermediary shall, whether,directly or indirectly lend or invest inother persons or entities identified inany manner whatsoever by or onbehalf of the Company ("UltimateBeneficiaries”) or provide anyguarantee, security or the like onbehalf of the Ultimate Beneficiaries;
(b) The Management has represented,that, to the best of its knowledgeand belief, no funds (which arematerial either individually or in theaggregate) have been receivedby the Company from any personor entity, including foreign entity("Funding Parties”), with theunderstanding, whether recordedin writing or otherwise, that theCompany shall, whether, directlyor indirectly, lend or invest in otherpersons or entities identified in anymanner whatsoever by or on behalfof the Funding Party ("UltimateBeneficiaries”) or provide anyguarantee, security or the like onbehalf of the Ultimate Beneficiaries;
(c) Based on the audit proceduresthat have been consideredreasonable and appropriate in thecircumstances, nothing has cometo our notice that has caused usto believe that the representationsunder sub-clause (i) and (ii) of Rule11 (e), as provided under (a) and(b) above, contain any materialmisstatement.
v. The Board of Directors of the Companyhave not proposed any final dividend forthe year which is subject to the approvalof the members at the ensuing AnnualGeneral Meeting or paid any interimdividend during the financial year.Accordingly, the provisions of section123 of the Act, are not applicable.
vi. Proviso to Rule 3(1) of the Companies(Accounts) nies(Accounts) Rules, 2014 for maintainingbooks of account using accountingsoftware which has a feature of recording
audit trail (edit log) facility is applicableto the Company with effect from April 1,2023, and accordingly reporting underRule 11(g) of Companies (Audit andAuditors) Rules 2014 is applied for thefinancial year ended March 31, 2026.
2. As required by the Companies (Auditor's Report)Order, 2020 ("the Order”), issued by the CentralGovernment in terms of Section 143(11) of theAct, we give in “Annexure B” a statement on thematters specified in paragraphs 3 and 4 of theOrder, to the extent applicable
Chartered AccountantsFirm Regn. No. 005717N
PartnerM.N.: 071205
Place: Hosur, Tamil NaduDate: 15.05.2026
UDIN: 26071205NV0TAA3543</