We have audited the accompanying financial statementsof Indo Tech Transformers Limited ("the Company"),which comprise the balance sheet as at March 31,2025, statement of profit and loss (including othercomprehensive income), the statement of changes inequity, the statement of cash flows for the year thenended, and notes to the financial statements, includinga summary of material accounting policies and otherexplanatory information.
In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidfinancial statements give the information required bythe Companies Act, 2013, as amended (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 with theCompanies (Indian Accounting Standards) Rules, 2015,as amended ("Ind AS") and other accounting principlesgenerally accepted in India, of the state of affairs of theCompany as at March 31, 2025, and its profit includingother comprehensive income, changes in equity and itscash flows for the year ended on that date.
We conducted our audit in accordance with the Standardson Auditing (SAs) specified under section 143(10) ofthe Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report.We are independent of the Company in accordancewith the Code of Ethics issued by the Institute ofChartered Accountants of India (ICAI) together withthe ethical requirements that are relevant to our auditof the financial statements under the provisions of theAct and the Rules thereunder, and we have fulfilled ourother ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believethat the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on thefinancial statements.
Key Audit Matters
Key audit matters are those matters that, in ourprofessional judgment, were of most significance in ouraudit of the financial statements of the current period.These matters were addressed in the context of ouraudit of the financial statements as a whole, and informing our opinion thereon, and we do not provide aseparate opinion on these matters. We have determinedthe matters described below to be the key audit mattersto be communicated in our report.
Sr No Key Audit Matter
How our audit addressed the key audit matter
1 Revenue from Operations:
We have performed the following procedures to address the
Revenue of the Company mainly
Key audit matters:
comprises of sale of transformers to its
• We assessed the Company's accounting policies for
customers and related services.
revenue recognition by comparing with the applicable
Revenue from sale of goods is recognized
accounting standards.
when control is transferred to the
• Testing the design, implementation and operating
customers and when there are no other
effectiveness of key internal controls over timing of
unfulfilled obligations. This requires
recognition of revenue from sale of goods.
detailed analysis of each contract /customer purchase order regardingtiming of revenue recognition.
• Performing testing on selected statistical samples ofcustomer contracts. Checked terms and condition relatedto acceptance of goods, acknowledged delivery receipts
Inappropriate assessment could lead to a
and tested the transit time to deliver the goods and its
risk of revenue being recognized on sale
revenue recognition. Our tests of details focused on cut-
of goods before the control in the goods
off samples to verify only revenue pertaining to current
is transferred to the customer.
year is recognized based on terms and conditions set out
Accordingly, timing of recognition ofrevenue is a key audit matter.
in sales contracts and delivery documents.
Sr No
Key Audit Matter
2
Trade Receivables:
The Company has significant outstandingfrom customers including past dues.
The recoverability and the provisioningassessment carried on by themanagement is based on ageing profile,payment pattern and expected date ofcollection and time value of money.
Based on the factors of impairmentassessment, significant judgments andassumptions, including assessing creditrisk, timing and amount of realization,etc. by the management, we identifiedthis as a key audit matter.
We have performed the following procedures in relation to the
recoverability of trade receivables:
• We obtained an understanding of the processesimplemented by management to estimate impairmentprovision against trade receivables.
• We obtained and tested the appropriateness of ageing oftrade receivables with the underlying invoices on a samplebasis.
• We evaluated the impairment model adopted bymanagement to estimate the expected credit lossand tested related computations. We corroboratedmanagement's estimates on the basis of past trends.
• We obtained, discussed and tested managementassessment of impairment for specific customer balanceswith designated management personnel.
• We have circulated direct confirmations on a sample basis.In case of non-receipt of such confirmations, alternatetest procedures such as testing subsequent receipts andunderlying documents have been performed.
• We reviewed letters of credit on sample basis providedby customers to the company to assess the assurance ofpayment. We reconciled the terms of Letters of credit withthe respective sales invoices, purchase order and shippingdocuments to ensure the validity.
The Company's Board of Directors is responsible for theother information. The other information comprises theinformation included in the Management Discussion andAnalysis, Board's Report including Annexures to Board'sReport, Business Responsibility Report, CorporateGovernance and Shareholder's Information, but doesnot include the financial statements and our auditor'sreport thereon. These reports are expected to be madeavailable to us after the date of this auditor's report.
Our opinion on the financial statements does not coverthe other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the financial statements,our responsibility is to read the other informationidentified above when it becomes available and, indoing so, consider whether the other information ismaterially inconsistent with the financial statements orour knowledge obtained during the course of our auditor otherwise appears to be materially misstated.
When we read the other information, if we concludethat there is a material misstatement therein, we arerequired to communicate the matters to those chargedwith governance and take appropriate actions.
The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Act with respectto the preparation of these financial statements that givea true and fair view of the financial position, financialperformance, including other comprehensive income,changes in equity and cash flows of the Company inaccordance with the accounting principles generallyaccepted in India, including the Indian AccountingStandards (Ind AS) specified under section 133 ofthe Act, read with the Companies (Indian AccountingStandards) Rules, 2015, as amended. This responsibilityalso includes maintenance of adequate accountingrecords in accordance with the provisions of the Actfor safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities;selection and application of appropriate accountingpolicies; making judgments and estimates that arereasonable and prudent; and design, implementation andmaintenance of adequate internal financial controls, thatwere operating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant to thepreparation and presentation of the financial statementsthat give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
In preparing the financial statements, the managementand the Board of Directors are responsible for assessingthe Company's ability to continue as a going concern,disclosing, as applicable, matters related to goingconcern and using the going concern basis of accountingunless the Board of Directors either intends to liquidatethe Company or to cease operations, or has no realisticalternative but to do so.
The Board of Directors are also responsible foroverseeing the company's financial reporting process.
Our objectives are to obtain reasonable assuranceabout whether the financial statements as a wholeare free from material misstatement, whether dueto fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an auditconducted in accordance with SAs will always detecta material misstatement when it exists. Misstatementscan arise from fraud or error and are considered materialif, individually or in the aggregate, they could reasonablybe 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 exerciseprofessional judgment and maintain professionalskepticism throughout the audit. We also:
• Identify and assess the risks of materialmisstatement of the 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,as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal control relevantto the audit in order to design audit proceduresthat are appropriate in the circumstances. UnderSection 143(3)(i) of the Act, we are also responsiblefor expressing our opinion on whether the Companyhas adequate internal financial controls withreference to financial statements in place and theoperating effectiveness of such controls.
• Evaluate the appropriateness of accounting policiesused and the reasonableness of accountingestimates and related disclosures made bymanagement.
• Conclude on the appropriateness of the
management and Board of Directors use of thegoing concern basis of accounting and, based onthe audit evidence obtained, whether a material
uncertainty exists related to events or conditionsthat may cast significant doubt on the Company'sability to continue as a going concern. If weconclude that a material uncertainty exists, we arerequired to draw attention in our auditor's report tothe related disclosures in the financial statementsor, if such disclosures are inadequate, to modifyour opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor'sreport. However, future events or conditions maycause the Company to cease to continue as a goingconcern.
• Evaluate the overall presentation, structure andcontent of the financial statements, including thedisclosures, and whether the financial statementsrepresent the underlying transactions and eventsin a manner that achieves fair presentation.
We communicate with those charged with governanceregarding, among other matters, the planned scopeand timing of the audit and significant audit findings,including any significant deficiencies in internal controlthat we identify during our audit.
We also provide those charged with governance witha statement that we have complied with relevantethical requirements regarding independence, and tocommunicate 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 financialstatements of the current period and are thereforethe key audit matters. We describe these matters inour auditor's report unless law or regulation precludespublic disclosure about the matter or when, in extremelyrare circumstances, we determine that a matter shouldnot be communicated in our report because theadverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits ofsuch communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report)Order, 2020 ("the Order"), issued by the CentralGovernment of India in terms of sub-section (11) ofsection 143 of the Act, we give in the "Annexure A",a statement on the matters specified in paragraphs3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we reportthat:
(a) We have sought and obtained all theinformation and explanations which to the bestof our knowledge and belief were necessaryfor the purposes of our audit;
(b) In our opinion, proper books of account asrequired by law have been kept by the Companyso far as it appears from our examination ofthose books;
(c) The balance sheet, the statement of profit andloss (including other comprehensive income),the statement of changes in equity and thestatement of cash flows dealt with by thisReport are in agreement with the books ofaccount;
(d) In our opinion, the aforesaid financialstatements comply with the Ind AS specifiedunder Section 133 of the Act, read with theCompanies (Indian Accounting Standards)Rules, 2015, as amended;
(e) On the basis of the written representationsreceived from the directors as on March 31,2025 taken on record by the Board of Directors,none of the directors are disqualified as onMarch 31, 2025 from being appointed as adirector in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internalfinancial controls with reference to financialstatements of the Company and the operatingeffectiveness of such controls, refer to ourseparate Report in "Annexure B". Our reportexpresses an unmodified opinion on theadequacy and operating effectiveness of theCompany's internal financial controls withreference to financial statements;
(g) With respect to the matter to be included in theAuditor's Report under Section 197(16) of theAct, in our opinion, according to the informationand explanation given to us, the remunerationpaid by the Company to its directors duringthe year is in accordance with the provisionsof section 197 read with Schedule V of the Act;and
(h) With respect to the other matters to beincluded in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit andAuditors) Rules, 2014, in our opinion and to thebest of our information and according to theexplanations given to us:
i. The Company has disclosed the impact ofpending litigations on its financial positionin its financial statements - Refer Note No.30 to the financial statements.
ii. The Company did not have any long-termcontracts including derivative contractsfor which there were any materialforeseeable losses.
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 knowledge andbelief, no funds 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 persons or entities, 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 inany manner whatsoever ("UltimateBeneficiaries") by or on behalf of theCompany, or provide any guarantee,security or the like on behalf of theUltimate Beneficiaries.
(b) The management has represented,that, to the best of its knowledgeand belief, no funds have beenreceived by the Company from anypersons or entities, including foreignentities ("Funding Parties"), with theunderstanding, 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 provideany guarantee, security or the like onbehalf of the Ultimate Beneficiaries.
(c) Based on audit procedures that havebeen considered reasonable andappropriate in the circumstances,nothing has come to our notice thathas caused us to believe that therepresentations under sub-clause
(i) and (ii) of Rule 11(e) contain anymaterial misstatement.
v. The Company has neither declared norpaid any dividend during the year.
vi. Based on our examination which includedtest checks, the company has usedaccounting software for maintaining itsbooks of account which has a feature ofrecording audit trail (edit log) facility andthe same has operated throughout the
year for all relevant transactions recordedin the software. Further, during the courseof our audit we did not come acrossany instance of audit trail feature beingtampered with. Additionally, the audit trailhas been preserved by the company asper the statutory requirements for recordretention.
Chartered Accountants
Firm Registration No: 009571N/N500006
Partner
Membership No. 202363
UDIN: 25202363BMOQHI7356
Place: Chennai
Date: May 20, 2025