We have audited the accompanying Standalone Ind AS financial statements of MARTIN BURN LIMITED ("the Company”),which comprise the Balance sheet as at 31st March 2025, the Statement of Profit and Loss (including other comprehensiveincome), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financialstatements, including a summary of significant accounting policies and other explanatory information (hereinafterreferred to as "standalone Ind AS financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standaloneInd AS financial statements give the information required by the Companies Act' 2013 ("the Act”) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS”) and otheraccounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2025, its profitincluding other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the Standalone Ind AS financial statements in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements section of our report. Weare independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountantsof India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Sl No.
Key Audit Matter(s)
How the audit addressed the key audit matter(s)
1
Capital Working-in-Progress
The amount incurred in relation to CapitalWork in Progress as on 31st March 2025 isamounting to Rs. 1,096.43 Lakhs. These projectstake a substantial period of time to get readyfor intended use. Due to the materiality in thecontext of the balance sheet of the Company andthe level of judgments and estimates required,we consider this to be a key audit matter.
We performed an understanding and evaluation of systemof internal control over the capital work-in-progress, withreference to identification and testing of key controls. Weassessed the progress of the projects and the intention ofthe management to carry forward and bring the asset toits state of intended use. Based on our discussions and thedocumentation reviewed, we note that the project is currentlyon hold, and the management is in the process of reviewingthe costs incurred in light of the initial budget and projectplan. The outcome of this review will guide the company'snext steps regarding the continuation or modification of theproject."
2
Provision and Written off Loans
The Company has during the year ended march31, 2025, made a provision against loan given(Bad & Doubtful) amounting to Rs. 445 Lakhs,due to uncertainty of recoverable.
Further, the company has written off anamount of Rs 52.54 Lakhs, being receivablesfrom loan to various parties. .Refer Note 30 to the financial statements.
Obtained details which the Company has written off andmade the provision, to test the recoverability of these loans.We have relied on the management's judgment that the saidamounts are not receivable. We have verified the copy of theloan documents along with documents of communicationagainst recovery of loan.
3
Employee benefits actuarial assumptions
Employee benefits are all forms of considerationgiven by the entity in exchange for servicerendered by employees or for the terminationof employment.
The net defined benefit liability (asset) is thedeficit or surplus, adjusted for any effect oflimiting a net defined benefit asset to the assetceiling.
Accounting for defined benefit plans is complexbecause actuarial assumptions are required tomeasure the obligation and the expense andthere is a possibility of actuarial gains and losses.Moreover, the obligations are measured on adiscounted basis because they may be settledmany years after the employees render therelated service.
Due to above mentioned requirementsemployee benefits is considered as key auditmatter by us.
The procedures performed by the auditors, as reported bythem, included the following:
Reconciled the underlying data used by the company'sAppointed Actuary (the "Appointed Actuary") with thytrial balance and the data obtained by us from the policyadministration system to ensure completeness.
Understood from the Appointed Actuary the assumptionsused and the basis for the same.Assessed the company'smethodology for settlement of employees' benefits againstrecognized actuarial practices."We have obtained andreconciled the provision for employee benefits with thecertificate provided by the Appointed Actuary. During ourreview, we noted that the certificate makes reference toAccounting Standard (AS) 15 instead of the applicable IndAS 19 - Employee Benefits, which governs the accountingfor post-employment defined benefit plans under theapplicable financial reporting framework however,Management represented that the valuation methodology isconsistent with the principles laid down in Ind AS 19. Further,the Company has classified the gratuity liability amountingto Rs. 38.38 lakhs under Non-Current Liabilities, based onmanagement's assessment that no gratuity payments areexpected to be made within the next 12 months."
The Company's Board of Directors is responsible for the preparation of the other information. The other informationcomprises the information included in the Management Discussion and Analysis, Board's Report including Annexures toBoard's Report and Shareholder's Information, but does not include the standalone financial statements and our auditor'sreport thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express anyform 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 orour 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 of this other information, weare required to report that fact. We have nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013("the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view ofthe financial position, financial performance, total comprehensive income, changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in India, including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate of accounting policies; making judgments andestimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financialcontrols, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevantto the preparation and presentation of the financial statement that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to cease operations, or has norealistic 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 Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole arefree 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 SAswill always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resultingfrom 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 proceduresthat are appropriate in the circumstances. Under section 143(3)® of the Act, we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant 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 therelated disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify ouropinion. 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 thedisclosures, and whether the standalone financial statements represent the underlying transactions and events in amanner 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 financial statements maybe influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit workand in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financialstatements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identify duringour audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably 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 mostsignificance in the audit of the standalone financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefitsof such communication.
Corresponding figures of the company for the year ended 31 March 2024 have been audited by another auditor whoexpressed an unmodified opinion dated 29 May 2024 on the Standalone Ind AS financial statements of the company forthe year ended 31 March 2024.
Our opinion on the Standalone Ind AS Financial Statements is not modified in respect of the above matter.
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order”), as amended, issued by the Governmentof India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information and explanations given tous, we give in the "Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the said Order, to theextent 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 andbelief 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 appearsfrom our examination of those books.
c. The balance sheet, the statement of profit and loss including other comprehensive income, the statement ofcash flows and the statement of changes in equity dealt with by this Report are in agreement with the booksof account;
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the applicable AccountingStandards 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 recordby the Board of Directors, none of the Directors is disqualified as on 31st March 2025 from being appointedas a director in terms of Section 164(2) of the Act;
It 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 anunmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controlsover financial reporting.
g. With respect to the matter to be included in the Auditor's Report under section 197(16), In our opinion and
according to the information and explanations given to us, the remuneration paid by the Company to itsdirectors during the current year is in accordance with the provisions of section 197 of the Act. The remunerationpaid to any director is not in excess of the limit laid down under section 197 of the Act. The Ministry of CorporateAffairs has not prescribed other details under section 197(16) which are required to be commented upon by us.
h. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and accordingto the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its StandaloneFinancial Statements -Refer paragraph 10 of the notes to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.
iv. (a) In our opinion and to the best of our information and according to the explanations given to us,
Management has represented that, to the best of it's knowledge and belief, other than as disclosedin the notes to the accounts, no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the company to or inany other person(s) or entity(ies) including foreign entities ("Intermediaries”) with the understanding,whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of theUltimate Beneficiaries;
(b) In our opinion and to the best of our information and according to the explanations given to us,Management has represented, that, to the best of it's knowledge and belief, other than as disclosedin the notes to the accounts, no funds have been received by the Company from any person(s) orentity(ies), including foreign entities ("Funding Parties”) with the understanding, whether recordedin writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest inother 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 UltimateBeneficiaries; and
(c) In our opinion and to the best of our information and according to the explanations given to us,nothing has come to their notice that has caused us to believe that the representations undersub-clause (i) and (ii) 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 year by the company.
vi. Based on our examination, which included test checks, the Company has used accounting software formaintaining its books of account for the financial year ended March 31,2025 which has a feature of recordingaudit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recordedin the software. Further, during the course of our audit we did not come across any instance of the audit trailfeature being tampered with and the management has represented that the audit trial feature cannot bedisabled. Company has preserved the Audit Trail as per the statutory requirements for records retention.
Chartered Accountants
Firm Registration No. 016223C
Partner
Membership No. 302102
UDIN: 25302102BMIODG2187
Place: Kolkata
Date: 28th May, 2025