We have audited the accompanying Standalone Financial
Statements of Apar Industries Limited ("the Company"), which
comprise the Standalone Balance Sheet as at March 31, 2026,
the Standalone Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Statement of Changes
in Equity and the Standalone Statement of Cash Flows for the year
then ended and notes to the Standalone Financial Statements,
including a summary of material accounting policies and other
explanatory information (hereinafter referred to as "Standalone
Financial Statements").
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the
Companies Act, 2013 (the "Act") in the manner so required and
give a true and fair view in conformity with the Indian Accounting
Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally
accepted in India, of the state of affairs of the Company as at
March 31, 2026, the net profit and total comprehensive income,
changes in equity and its cash flows for the year ended on
that date.
BASIS FOR OPINION
We conducted our audit of the Standalone 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 further described in
the Auditor's Responsibilities for the Audit of the Standalone
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 independence requirements that are relevant to our audit
of the Standalone Financial Statements under the provisions of
the Companies Act, 2013 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 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 of the Standalone
Financial Statements of the current period. These matters were
addressed in the context of our audit of the Standalone Financial
Statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit
matters to be communicated in our report.
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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1.
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Revenue from the sale of goods and services
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To address this key audit matter, our procedures included:
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(hereinafter referred to as "Revenue") is recognised
when the Company performs its obligations and the
amount of revenue can be measured reliably and
recovery of the consideration is probable. The timing
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• Reviewing the appropriateness of the Company's revenue
recognition accounting policies in line with Ind AS 115 ("Revenue
from Contracts with Customers") and testing thereof;
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of such recognition is when the control over the same
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• Evaluating the integrity of the control environment and testing the
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is transferred to the customers. The timing of revenue
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operating effectiveness of the IT application controls particularly
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recognition is relevant to the reported performance of
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the effectiveness of such controls over revenue cut off at year-
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the Company. Revenue is a key measure for evaluation
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end;
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of performance. There is a risk of revenue not being
recorded in the correct accounting period establishing
with certainty the point of time when control has passed.
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• Performing analytical procedures on current year revenue and
where appropriate, conducting further enquiries and testing;
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(Refer Note 2B to the Financial Statements — Material
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• Evaluating of customer contracts with a view to determine the
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Accounting Policies
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transfer of control and recognition of revenue as per Ind AS 115;
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• Undertaking substantive testing and the supporting documentation
for sales transactions recorded during the period closer to the
year-end and subsequent to the year-end, including examination
of credit notes issued after the year-end to determine whether
revenue was recognised in the correct period;
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• We assessed the adequacy of the Company's disclosures on
revenue recognition as given in notes 32 and 55 to the Standalone
Financial Statements.
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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2.
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Property, Plant and Equipment (PPE) and
Capital Work in Progress (CWIP)
During the year, the Company has capitalized items of
PPE including those from CWIP and is in the process
of executing various projects involving purchasing /
installation of new machineries / capital projects. Since
these projects take a substantial period of time to get
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To address this key audit matter, our procedures included:
• Evaluating the design, implementation, and operating
effectiveness of controls relating to the review of capitalisation
of PPE and capital work-in-progress, with specific focus on the
timing of capitalization and the recording of additions to Property,
Plant and Equipment (PPE) based on supporting documentation;
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ready for intended use and due to their materiality in
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• Verifying, on a sample basis, assets capitalized under PPE as well
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the context of the Balance Sheet of the Company, this
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as those classified as capital work-in-progress against underlying
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is considered to be an area with significant effect on
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source documents to assess whether the expenditure is capital
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the overall audit strategy and allocation of resources in
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in nature and has received appropriate approvals;
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planning and completing our audit;
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• Assessing the appropriateness of the cut-off dates used for
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The management has estimated useful lives of items
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project capitalization through discussions with Management
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of PPE for determination of depreciation and their
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and examination of corroborative audit evidence (internal and
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recoverability which involves assumptions used for
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external).;
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technical assessment, consideration of historical
experience and anticipated future risks;
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• We obtained understanding of the assessment made by the
management for estimation of useful life.
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This has been determined as a key audit matter due
to the significance of the capital expenditure during
the year and the risk that the elements of costs that
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• Reviewing operating expenses to identify whether any items
that should have been capitalized were incorrectly charged
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are eligible for capitalization are not appropriately
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to expense.
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capitalized in accordance with the recognition criteria
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• Reviewing of capitalisation of Interest as per Ind AS 23
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provided in Indian Accounting Standard (Ind AS) 16
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Borrowing Costs
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(Refer Note 3 and 4 to the Standalone Financial
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• We have assessed the required disclosures made by the
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Statements)
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Company in the Standalone Financial Statements for compliance
with the requirement of Ind AS and Schedule III of the Companies
Act 2013.
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INFORMATION OTHER THAN THE
STANDALONE FINANCIAL STATEMENT AND
AUDITOR'S REPORT THEREON
The Company's Management and Board of Directors is responsible
for the Other Information. The Other Information comprises
the information included in the Management Discussion and
Analysis, Board's Report including Annexures to that Board's
Report, Business Responsibility and Sustainability Report,
Corporate Governance and Shareholder's Information, but does
not include the Standalone Financial Statements, Consolidated
Financial Statements, and our auditor's report thereon.
Our opinion on the Standalone 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 Financial
Statements, our responsibility is to read the Other Information
identified above when it becomes available and, in doing so,
consider whether the Other Information is materially inconsistent
with the Standalone Financial Statements, or our knowledge
obtained in 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. When we read the Other Information,
if we conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged with
governance. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE
FOR THE STANDALONE FINANCIAL
STATEMENTS
The Company's Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 with respect to the preparation of these
Standalone Financial Statements that give a true and fair view
of the financial position, financial performance (including other
comprehensive income), changes in equity and cash flows of the
Company in accordance with the Ind AS and other accounting
principles generally accepted in India, including the accounting
Standards specified under Section 133 of the Companies Act,
2013. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Companies Act, 2013 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 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 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 Financial Statements, the
Management and Board of Directors 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 Management and the Board of Directors are also responsible
for overseeing the company's financial reporting process;
AUDITOR'S RESPONSIBILITIES FOR THE
AUDIT OF STANDALONE FINANCIAL
STATEMENTS
Our objectives are to obtain reasonable assurance about whether
the Standalone 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 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 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 controls relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, 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 and Board of Directors;
• Conclude on the appropriateness of Management and Board
of Directors 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 Standalone
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 Financial Statements, including the disclosures,
and whether the Standalone Financial Statements represent
the underlying transactions and events in a manner 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 Standalone Financial Statements
may be influenced. We consider quantitative materiality and
qualitative factors (i) in planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the Standalone
Financial Statements.
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
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, (Refer
Note No. 58(vi)) no funds (which are
material either individually or in aggregate)
have been received by the Company from
any person(s) or entity(ies), including
foreign entities ("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; and
iii. Based on such audit procedures that
we have 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) contain
any material misstatement;
l The final dividend paid by the Company during
the year in respect of F.Y 2024-2025 is in
accordance with Section 123 of the Act to the
extent it applies to payment of dividend.
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 Financial Statements
of the current period 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
1. 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.
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 and
belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and
Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Cash Flow
Statement dealt with by this Report are in agreement
with the relevant books of account.
(d) In our opinion, the aforesaid Standalone Financial
Statements comply with the Indian Accounting
Standards 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 March 31, 2026, taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2026, 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". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the company's internal
financial controls with reference to Standalone
Financial Statements.
(g) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements
of section 197(16) of the Act, as amended.
I n our opinion and to the best of our information
and according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is in accordance with the provisions of
section 197 read with Schedule V to the Companies
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
Standalone Financial Statements — Refer Note
53 to the Standalone Financial Statements;
ii. The Company did not have any long-term
contracts including derivatives contracts for
which there were any material foreseeable losses;
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,
(Refer Note No. 58(v)) no funds (which
are material either individually or in
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(s) or entity(ies), including
foreign entities ("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")
As stated in Note no. 21 to the Financial
Statements, the Board of Directors of the
Company have proposed final dividend for
the year which is subject to the approval of
the members at the ensuing Annual General
Meeting. The dividend proposed is in
accordance with section 123 of the Act to the
extent it applies to declaration of dividend.
vi. Based on our examination, which included test
checks, the Company has used accounting
software for maintaining its books of account
which has the feature of recording audit trail
(edit logs) facility and the same has operated
throughout the year for all relevant transactions
recorded in the respective software. Further,
during the course of our audit we did not come
across any instances of audit trail feature being
tampered with. Additionally, the audit trail has
been preserved by the Company as per the
statutory requirement for record retention.
For C N K & Associates LLP
Chartered Accountants
Firm Registration No. 101961W/W-100036
Himanshu Kishnadwala
Partner
Place: Mumbai Membership No.: 037391
Date: May 28, 2026 UDIN: 26037391CFJRN1908
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