We have audited the accompanying standalone financialstatements of Deep Industries Limited (the 'Company') whichcomprise the Balance Sheet as at March 31,2026, and the statementof Profit and Loss (including the statement of other comprehensiveincome), Statement of changes in equity and Statement of cashflows for the year then ended, and notes to the financial statements,including a summary of significant accounting policies and otherexplanatory information (herein after referred as "the standalonefinancial statements").
In our opinion and to the best of our information and according tothe explanations given to us, the standalone financial statementsgive the information required by the Companies Act, 2013 (the"Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribedunder Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules, 2015 as amended ("Ind AS") andother accounting principles generally accepted in India, of thestate of affairs of the Company as at March 31,2026, and its profit,total comprehensive income, the statement of changes in equityand its cash flows for the year then ended on that date.
We conducted our audit of the standalone financial statementsin accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilitiesfor the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the
Code of Ethics issued by Institute of Chartered Accountants of India(ICAI) together with the ethical requirements that are relevant to ouraudit of the standalone financial statements under the provisions ofthe Act and the Rules made thereunder, and we have fulfilled ourother ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis forour opinion on the standalone financial statements.
We draw attention to Note No. 49.1 of the standalone FinancialStatement regarding Scheme of Amalgamation of Kandla Energy &Chemicals Limited ("KECL"), a wholly owned subsidiary, with DeepIndustries Limited ("DIL") and their respective shareholders andcreditors. The Scheme has been duly sanctioned by the Hon'bleNational Company Law Tribunal (NCLT), Ahmedabad.
The accounting treatment of the amalgamation has been carried outin accordance with the applicable Indian Accounting Standards (IndAS), including the principles prescribed under Ind AS 103 - BusinessCombinations. The Appointed Date of the Scheme is March 31,2025.Accordingly, the comparative figures for the previous period/yearhave been restated and/or reclassified, wherever necessary, to giveeffect to the Scheme and to ensure comparability with the currentyear presentation.
Our opinion is not modified in respect of these matters.
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of the financialstatements of the current period. These matters were addressed inthe context of our audit of the financial statements as a whole, andin forming our opinion thereon, and we do not provide a separateopinion on these matters. We have determined the mattersdescribed below to be the key audit matters to be communicatedin our report.
Key Audit matter
Auditor's Response
Recoverability and write-off of leaacv trade receivables
As disclosed in Note No. 57 to the Standalone financial statements,the Company had legacy trade receivables pertaining to periodsprior to its acquisition under the Corporate Insolvency ResolutionProcess (CIRP).
As disclosed in the Standalone financial statements for the previousyear ended 31 March, 2025, the assessment of the recoverabilityof these legacy trade receivables was ongoing as at that reportingdate. During the current year, Management completed theassessment based on additional information and evidenceobtained and recognised the write-off of identified unrecoverablebalances.
Our audit procedures in relation to the above included, amongothers, the following:
- Obtained an understanding of the process established byManagement for assessing the recoverability of the legacytrade receivables and tested the design and implementationof relevant internal controls.
- Evaluated the methodology and assumptions adopted byManagement in assessing the recoverability of the legacyreceivables and determining whether there was a reasonableexpectation of recovery in accordance with the requirementsof Ind AS 109, Financial Instruments.
During the year ended 31 March, 2026, Management completed
- Examined, on a sample basis, the underlying customer
a comprehensive assessment of the recoverability of these legacy
records, invoices, correspondence, legal documentation
receivables. The assessment involved significant judgement
and other supporting evidence forming the basis of
in evaluating the ageing of balances, financial position of
Management's assessment.
counterparties, and status of legal proceedings, historical recoveryexperience, subsequent recoveries and other relevant availableevidence.
- Reviewed the ageing analysis of receivables and evaluatedthe period for which the balances had remained outstanding.
Based on the outcome of the assessment, Management concludedthat there was no reasonable expectation of recovery of certain
- Verified subsequent recoveries, where applicable, up to thedate of our audit report.
legacy trade receivables and accordingly wrote off receivables
- Verified that the write-off was approved by the appropriate
amounting to Rs. 20,828.49 lakhs during the year in accordance
authority in accordance with the Company's delegation
with the impairment and derecognition requirements of Ind AS
framework.
109, Financial Instruments.
- Evaluated whether the accounting treatment adopted by the
The assessment of recoverability and determination of the amount
Company for the write-off was in accordance with Ind AS 109,
to be written off involved significant management judgement andestimation. Considering the materiality of the balances involvedand the extent of audit effort required in evaluating Management'sassessment, this matter was determined to be a Key Audit Matter.
Financial Instruments.
The Company's Board of Directors is responsible for the OtherInformation. The Other Information comprises the informationincluded in the Board's Report including Annexures to Board'sReport, Corporate Governance report and Management Discussionand Analysis (but does not include the standalone financialstatements, consolidated financial statements and our auditor'sreports thereon). The other information is expected to be madeavailable to us after the date of this auditor's report.
Our opinion on the standalone financial statements does notcover the Other Information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the standalone financial statements,our responsibility is to read the other information identifiedabove and, in doing so, consider whether the other informationis materially inconsistent with the standalone financial statementsor our knowledge obtained in the audit, or otherwise appears tobe materially misstated. If, based on the work we have performed,we conclude that there is a material misstatement of this OtherInformation, we are required to report that fact. We have nothingto report in this regard.
When we read the other information, if we conclude that there isa material misstatement therein, we are required to communicatethe matter to those charged with governance as required under SA720 "The Auditor's Responsibilities Relating to Other Information".
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparationof these standalone financial statements that give a true and fairview of the financial position, financial performance includingother comprehensive income, changes in equity and cash flowsof the Company in accordance with the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules, 2015,as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisionsof the Act, for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; makingjudgement and estimates that are reasonable and prudent; anddesign, implementation and maintenance of adequate internalfinancial controls, that were operating effectively for ensuringaccuracy and completeness of the accounting records, relevantto the preparation and presentation of the standalone financialstatements 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 isresponsible for assessing the Company's ability to continue as agoing concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance about whetherthe standalone financial statements as a whole are free frommaterial misstatement, whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee thatan audit conducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalonefinancial statements.
As part of an audit in accordance with Standard on Auditing,
we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of thestandalone financial statements, whether due to fraud orerror, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations,or the override of internal control.
• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) ofthe Act, we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controlssystem in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting polices usedand the reasonableness of accounting estimates and relateddisclosures made by the management.
• Conclude on the appropriateness of management's use ofthe going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists,we are required to draw attention in our auditor's report tothe related disclosures in the standalone financial statementsor, if such disclosures are inadequate, to modify our opinion.Our conclusions are based on the audit evidence obtained upto the date of our auditor's report. However, future events orconditions may cause the Company to cease to continue as agoing concern.
• Evaluate the overall presentation, structure and content of thestandalone financial statements, including the disclosures,and whether the standalone financial statements representthe underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in thestandalone financial statements that, individually or inaggregate, makes it probable that the economic decisions ofa reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope ofour audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements inthe standalone financial statements.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with astatement that we have complied with relevant ethical
requirements regarding independence, and to communicatewith them all relationships and other matters that mayreasonably be thought to bear on our independence, andwhere applicable, related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were ofmost significance in the audit of the standalone financialstatements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances,we determine that a matter should not be communicatedin our report because the adverse consequences of doingso would reasonably be expected to outweigh the publicinterest benefits of such communication.
1. As required by the Companies (Auditor's Report) Order,2020 (the "Order") issued by the Central Government ofIndia in terms of sub-section (11) of section 143 of theCompanies Act, 2013, we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the informationand explanations which to the best of ourknowledge and belief are necessary for thepurpose of our audit;
(b) In our opinion, proper books of account as requiredby law have been kept by the Company so far asit appears from our examination of those booksexcept for the matters stated in the paragraph 2(i)(vi) below on reporting under Rule 11(g) of theCompanies (Audit and Auditors) Rules, 2014 (asamended).
(c) The Balance Sheet, the Statement of Profit andLoss including statement of other comprehensiveincome and the Cash Flow Statement, Statementof changes in Equity dealt with by this Report arein agreement with the books of account;
(d) In our opinion, the aforesaid Standalone financialstatements comply with the Indian AccountingStandards specified under Section 133 of theCompanies Act, 2013;
(e) On the basis of the written representationsreceived from the directors as on 31st March, 2026taken on record by the Board of Directors, none ofthe directors is disqualified as on 31st March, 2026from being appointed as a director in terms ofSection 164(2) of the Act;
(f) The modification relating to the maintenance ofaccounts and other matters connected therewithare as stated in the paragraph (b) above onreporting under Section 143(3) and paragraph 2(i)
(vi) below on reporting under Rule 11(g) of theCompanies (Audit and Auditors) Rules, 2014 (asamended).
(g) With respect to the adequacy of internal financialcontrols over financial reporting of the Companyand the operating effectiveness of such controls,refer to our separate report in "Annexure B";
(h) With respect to the matters to be included inthe Auditor's Report in accordance with therequirements of Section 197(16) of the Act, asamended: In our opinion and to the best of ourinformation and according to the explanationsgiven to us, the remuneration paid/provided bythe Company to its directors during the year is inaccordance with the provisions of section 197 readwith Schedule V to the Companies Act, 2013;
(i) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rule, 2014, inour opinion and to the best of our information andaccording to the explanations given to us :
a) The Company has disclosed the impact ofpending litigations on the financial positionof its financial statements - Refer Note No. 39to the standalone financial statements;
b) The Company did not have any long-termcontracts including derivative contracts forwhich there were any material foreseeablelosses.
c) There has been no delay in transferringamounts, required to be transferred, to theInvestor Education and Protection Fund bythe Company.
d) (a) The Management has represented that,
to the best of its knowledge and belief,as disclosed in the notes to the accountsno funds (which are material eitherindividually or in the aggregate) havebeen advanced or loaned or invested(either from borrowed funds or sharepremium or any other sources or kindof funds) by the Company to or in anyother person(s) or entity(ies), includingforeign entities ("Intermediaries"),with the understanding, whetherrecorded in writing or otherwise,that the Intermediary shall, directlyor indirectly lend or invest in otherpersons or entities identified in anymanner whatsoever by or on behalf ofthe Company ("Ultimate Beneficiaries")or provide any guarantee, securityor the like on behalf of the UltimateBeneficiaries.
(b) The Management has represented, that,to the best of its knowledge and belief,as disclosed in the notes to accounts,no funds (which are material eitherindividually or in the aggregate) havebeen received by the Company fromany person(s) or entity(ies), includingforeign entities ("Funding Parties"), withthe understanding, whether recorded inwriting or otherwise, that the Companyshall, directly or indirectly, lend orinvest in other persons or entitiesidentified in any manner whatsoeverby or on behalf of the Funding Party("Ultimate Beneficiaries") or provide anyguarantee, security or the like on behalfof the Ultimate Beneficiaries.
(c) Based on the audit procedures thathas been considered reasonable andappropriate in the circumstances,nothing has come to our notice thathas caused us to believe that the
representations under sub-clause (i)and (ii) of Rule 11(e) as provide under(a) & (b) above contain any materialmisstatement..
(e) The final dividend proposed in the previousyear, declared and paid by the Companyduring the year is in accordance with Section123 of the Act, as applicable.
The Company has not declared and paid anyinterim dividend during the year and untilthe date of this report.
The Board of Directors of the Company haveproposed final dividend for the year, whichis subject to approval of the member atthe ensuing Annual General Meeting. Theamount of dividend proposed in accordancewith Section 123 of the act as applicable.
(f) Based on our examination which includedtest checks, we report that the company hasused an accounting software for maintaining
its books of account which has a feature ofrecording audit trail (edit log) facility andthe same has operated throughout the yearfor all relevant transactions recorded in thesoftware except that audit trail feature is notenabled for direct changes to database level.Further, during the course of our audit we didnot come across any instance of audit trailfeature being tampered with in respect toaccounting software. Additionally, the audittrail has been preserved by the Companyas per statutory requirements for recordretention to the extent it was enabled andrecorded in the respective years. (Refer NoteNo. 56 to the Standalone financial statement).
Chartered AccountantsFRN 105775W
CA Chirag M. Shah
PartnerM. No. 045706
UDIN: 26045706IQERKA4459Place: AhmedabadDate: May 14, 2026