Restated Financial Information of H.M. Electro Mech Limited
To,
The Board of Directors H.M. Electro Mech Limited,
305, Ashram Avenue, B/H. Kochrab Ashram, Paldi, Ahmedabad, Gujarat 38000, India.
Dear Sirs,
1. We have examined the attached Restated Financial Information of H.M. Electro Mech Limited (the "Company" or the "Issuer"), comprising the Restated Statement of Assets and Liabilities as at September 30, 2024 & March 31, 2024, 2023 and 2022, the Restated Statements of Profit and Loss, the Restated Cash Flow Statement for the stub period ended on September 30, 2024 & for the financial year ended on March 31, 2024, 2023 and 2022, the Summary Statement of Significant Accounting Policies, and other explanatory information (collectively, the
"Restated Financial Information"), as approved by the Board of Directors of the Company at their meeting held on January 06, 2025 for the purpose of inclusion in the Red Herring Prospectus / Prospectus (Here-in Offer Documents) prepared by the Company in connection with its proposed Initial Public Offer of equity shares ("IPO").
2. These restated Summary Statement have been prepared in terms of the requirements of: a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act")
b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations"); and
c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").
3. The Companys Board of Directors is responsible for the preparation of the Restated Financial Information for the purpose of inclusion in the Offer Documents to be filed with Securities and Exchange Board of India, Registrar of Companies, Gujarat and the BSE SME Exchange in connection with the proposed IPO. The Restated Financial Information have been prepared by the management of the Company on the basis of preparation stated in Annexure IV to the Restated Financial Information. The Board of Directors responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Financial Information. The Board of Directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.
4. We have examined such Restated Financial Information taking into consideration:
a) The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated February 29, 2024 in connection with the proposed IPO of equity shares of the Issuer;
b) The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI; c) Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Financial Information; and
d) The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO.
5. These Restated Financial Information have been compiled by the management from:
The audited Financial Statements of the Company for the stub period ended September 30, 2024 & for the financial years ended on March 31, 2024, 2023 and 2022 which has been approved by the Board of Directors.
6. We have audited the special purpose financial information of the Company for the financial year ended on 31st March 2024 prepared in accordance with the Accounting Standards as prescribed under Section 133 of the Act for the limited purpose of complying with the requirement of getting its financial statements audited by an audit firm holding a valid peer review certificate issued by the "Peer Review Board" of the ICAI as required by ICDR Regulations in relation to proposed IPO. We have issued our report dated January 06, 2025 on these special purpose financial information to the Board of Directors who have approved these in their meeting held on January 06, 2025.
7. For the purpose of our examination, we have relied on:
a) Auditors Report issued by statutory auditor dated July 26, 2024, September 04, 2023, and August 30, 2022 on the financial statements of the company as at and for the year ended on March 31, 2024, 2023 and 2022 respectively.
b) Audit report issued by us dated December 24, 2024 on the financial statements of the company as at and for the stub period ended on September 30, 2024.
c) The audits for the financial years ended March 31, 2024, 2023 & 2022 were conducted by the Companys statutory auditors, M/S B V Gajera & Co. Chartered Accountants, and accordingly reliance has been placed on the restated statement of assets and liabilities and the restated statements of profit and loss and cash flow statements, the Summary Statement of Significant Accounting Policies, and other explanatory information and collectively, the " Restated Financial Information" examined by them for the said years.
8. Based on our examination and according to the information and explanations given to us, we report that:
a) The "Restated Summary Statement of Assets and Liabilities" as set out in Annexure I to this report, of the Company as at and for the stub period ended on September 30, 2024 & for the financial year ended on March 31, 2024, 2023 & 2022 are prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Assets and Liabilities, have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more. These fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to this Report.
b) The "Restated Summary Statement of Profit and Loss" as set out in Annexure II to this report, of the Company as at and for the stub period ended on September 30, 2024 & for the financial year ended on March 31, 2024, 2023 &, 2022 are prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Profit and Loss have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to this Report.
c) The "Restated Summary Statement of Cash Flow" as set out in Annexure III to this report, of the Company as at and for the stub period ended on September 30, 2024 & for the financial year ended on March 31, 2024, 2023 & 2022 are prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Cash Flow have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in Annexure IV to this Report.
d) The Restated Summary Statement have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
e) The Restated Summary Statements have been made after incorporating adjustments for the changes in accounting policies retrospectively in respective financial period/years to reflect the same accounting treatment as per the changed accounting policy for all reporting periods, if any;
f) The Restated Summary Statements have been made after incorporating adjustments for prior period and other material amounts in the respective financial years/period to which they relate, if any and there are no qualifications which require adjustments;
g) Extra-ordinary items that need to be disclosed separately in the accounts has been disclosed wherever required;
h) There were no qualifications in the Audit Reports issued by the Statutory Auditors as at and for the stub period ended on September 30, 2024 & for the financial year ended on March 31, 2024, 2023 & 2022 which would require adjustments in this Restated Financial Statements of the Company;
i) Profits and losses have been arrived at after charging all expenses including depreciation and after making such adjustments/restatements and regroupings as in our opinion are appropriate and are to be read in accordance with the Significant Accounting Polices and Notes to Accounts as set out in Annexure IV to this report;
j) There was no change in accounting policies, which needs to be adjusted in the Restated Summary Statements
k) There are no revaluation reserves, which need to be disclosed separately in the Restated Financial Statements;
l) The company has not proposed any dividend in past effective for the said period.
9. We have also examined the following other financial information relating to the Company prepared by the Management and as approved by the Board of Directors of the Company and annexed to this report relating to the Company as at and for the stub period ended on September 30, 2024 & for the financial year ended on March 31, 2024, 2023 & 2022 proposed to be included in the Offer Documents.
Annexure No. Particulars
I Restated Statement of Assets & Liabilities
I.1 Restated Statement of Share Capital
I.2 Restated Statement of Reserves & Surpluses
I.3 Restated Statement of Long-Term Borrowings
I.4 Restated Statement of Long Term provisions
I.5 Restated Statement of Short-Term Borrowing
I.6 Restated Statement of Trade Payables
I.7 Restated Statement of Other Current Liabilities
I.8 Restated Statement of Short-Term Provisions
I.9 Restated Statement of Property Plants & Equipments
I.10 Restated Statement of Non-Current Investments
I.11 Restated Statement of Deferred Tax Assets
I.12 Restated Statement of Other Non-Current Assets
I.13 Restated Statement of Inventories
I.14 Restated Statement of Trade Receivable
I.15 Restated Statement of Cash & Cash Equivalent
I.16 Restated Statement of Short-Term Loans and Advances
I.17 Restated Statement of Other Current Assets
II Restated Statement of Profit & Loss
II.1 Restated Statement of Revenue from operations
II.2 Restated Statement of Other Income
II.3 Restated Statement of Cost of Material Consumed
II.4 Restated Statement of Changes in Inventories of finished goods and work-in- progress
II.5 Restated Statement of Employees Benefit Expenses
II.6 Restated Statement of Finance Cost
II.7 Restated Statement of Other Expenses
II.8 Restated Statement of Earnings per equity share
Other Annexures:
III Cash Flow Statement
IV Statement of Significant Accounting Policies
V Notes to the Re-stated Financial Statements
VI Statement of Accounting & Other Ratios and Statement of Analytical Ratios, As Restated
VII Statement of Capitalization, As Restated
VIII Statement of Tax Shelter, As Restated
IX Related party disclosures, As Restated
X Statement of Dividends
XI Changes in the Significant Accounting Policies
XII Contingent Liabilities & Capital Commitment
10. We, M/s. S V J K & Associates., Chartered Accountants have been subjected to the peer review process of the Institute of Chartered Accountants of India ("ICAI") and hold a valid peer review certificate issued by the "Peer Review Board" of the ICAI which is valid till November 30, 2026.
11. The Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the reports on the special purpose interim financial statements and audited financial statements mentioned in paragraph 5above.
12. This report should not in any way be construed as a reissuance or re-dating of any of the previous audit reports issued by us, nor should this report be construed as a new opinion on any of the financial statements referred to herein.
13. We have no responsibility to update our report for events and circumstances occurring after the date of the report.
14. Our report is intended solely for use of the Board of Directors for inclusion in the Offer Documents to be filed with
Securities and Exchange Board of India, the stock exchanges and Registrar of Companies, Gujarat in connection with the proposed IPO. Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.
For, S V J K & Associates |
Chartered Accountants |
Firm Reg. No: 135182W |
PRC No: 014698 |
Sd/- |
Reeturaj Verma |
Partner |
Membership No: 193591 |
Place: Ahmedabad |
Date: January 06, 2025 |
UDIN: 25193591BMJGGB1603 |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.