Machhar Industries Ltd Auditor Reports

To,

The Members of
Machhar Industries Limited
Chhotrapatl Sambhajinagar

Report on tho Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Machhar Industries Limited
having CIN: U452Q2MH2008PLC1851G8 ("the Company"), which comprise the Standalone Balance
Sheet as at 31st March 2024. the Standalone Statement of Profit and Loss (including other
comprehensive income). Standalone Statement of Cash Flows and Standalone Statement of
Changes in Equity for the year then ended, and notes to the Standalone financial statements,
including a summary of materiel accounting policies and other explanatory information,

2. 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 Indian
Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended ("Ind AS") and the other accounting principles
generally acccptod in India, of the state of affairs of the Company as at 31st March 2024 and its
profit (financial performance including other comprehensive income), the changes in equity and its
cash flows for the year onded on that date.

Basis for Opinion

3. We conducted our audit in accordance with Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those Standards are further described in the
Auditors Responsibilities for the Audit of the 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 (ICAI) together with the ethical requirements that arc relevant to
our audit of the financial statements under the provisions of the Act and tho rules there under, and
we have fulfilled our other ethical responsibilities in accordance with these requirements and the
ICAIs Code of Ethics. We believe that the audit evidence we hove obtained is sufficient and
appropriate to provide a basis for our opinion.

Information other than the Financial Statements and Auditors Report thereon

4. The Companys Board of Directors is responsible for the other information. Tho other information
comprises the information included in tho annual report but docs not include the financial
statements and our auditors report thereon

5. Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.

6. In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements, or our knowledge obtained in the audit or otherwise appears to be
materially misstated If, based on the work wc have porformed, we conclude that there is material
misstatement ol this other information; we arc required to report that fact. We have nothing to
report in this regard. .

Managements Responsibility for the Standalone Financial Statements

7. The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the accounting standards specified under section 133 of the Act. This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions
of the Act 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 financial statement that give a true and fair view
and are free from material misstatement, whether due to fraud or error.

8. In preparing the financial statements, management is responsible for assessing the Companys 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.

9. The Board of Directors is also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Financial Statements

10. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors 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 Standards on Auditing 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 financial statements.

11. As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:

a. Identify and assess the risks of material misstatement of the 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 matenal
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.

b. Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Company and its subsidiary companies which are
companies incorporated in India, has adequate internal financial controls system in place and the
operating effectiveness of such controls.

c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

d. Conclude on the appropriateness of managements 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 ability of the Company to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report
to the related disclosures in the 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 auditors report.
However, future events or conditions may cause the Company to cease to continue as a going concern.

e. Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the 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 in (i) 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.

12. 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.

13. 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 thought to bear on our independence, and where applicable, related
safeguards.

14. From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors 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

15. As required by the Companies (Auditors 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. 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, and the Statement of Cash Flow dealt with by this
Report are in agreement with the books of account.

(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified
under Section 133 of the Act, read with Companies (Accounting Standard) Rules, 2015, as amended.

(e) On the basis of the written representations received from the directors as on 31st March, 2024 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024 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".

(g) In 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 of the Act.

(h) With respect to the other matters to be included in the Auditors 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 financial
statements- Refer Note No. 34 o the financial statements.

ii. The Company does not have long term contracts or derivative contracts which require provision.

iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

iv. (a) the Management has represented that, to the best of its knowledge and belief, no funds (which
are material either individually or in the 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 or entity, including foreign entity ("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) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;

(b) the Management has represented, that, to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) have been received by the company from any
person or entity, 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.

(c) Based on audit procedures that have been 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), as provided under (a) and (b) above,
contain any material mis-statement.

v. No interim dividend is declared and paid by the Company during the year.

vi. As per the information and explanations given to us and based on our examination, which included
test checks, the accounting software of the company in which books of accounts are maintained
during the year does not have feature of recording audit trail (edit log) facility.

For Gautam N Associates
Chartered Accountants
FRN 103117W
	Gautam Nandawat
Place: Chhatrapati Sambhajinagar	Pa rtner
Dated: 27th May 2024	Membership No 032742
	UDIN: 24032742BKCRSE2852

ANNEXURE "A" TO THE AUDITORS REPORT

The Annexure referred to in Independent Auditors Report to the members of the Company on the financial
statements for the year ended 31 st March 2024, we report that:

1. (a) The Company has maintained proper records showing full particulars, including quantitative details

and situation of Property, Plant and Equipment. The Company does not have any intangible asset.

(b) The company has regular program of physical verification of its Property, Plant and Equipment by
which Property, Plant and Equipment are verified in a phased manner over a period of three years.
In accordance with this program, certain Property, Plant and Equipment were verified during the year
and no material discrepancies were noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the company and nature of its
business.

(c) According to the information and explanations given to us, and on the basis of our examination of the

record of the company, the title deeds of the immovable properties are held in the name of the
company.

(d) According to the information and explanations given to us, and on the basis of our examination of the
record of the company, the company has not revalued any Property, Plant & Equipment (including
Right of Use assets) during the year.

(e) According to the information and explanations given to us, and on the basis of our examination of the
record of the company, no proceedings have been initiated or are pending against the company for
holding any Benami property under the "Benami Transactions (Prohibition) Act, 1988 and Rules
made thereunder.

2. (a) The inventory has been physically verified during the year by the management. In our opinion, the
coverage and procedure of such verification by the management is appropriate. There is no discrepancy
of 10% or more noticed during verification between the physical stocks and book records. The
discrepancies were not material, which have been properly dealt with in the books of account. The year-
end inventory has been physically verified by the management and the same is incorporated as per
inventory records and books of account maintained by the company.

(b) During the year, the Company has not been sanctioned working capital limits in excess of Rs. 5
crores, in aggregate, from banks, hence clause (ii)(b) of the Order is not applicable.

3. (a) As per the information and explanations given to us, the Company has granted loans including
advances in the nature of loan to two companies. The aggregate amount of loan granted is Rs. 57.10
Lakhs and the balance outstanding at the year-end is Rs. 57.10 Lakhs. The company has not given any
guarantee and security to any party and has not made any investment during the year.

(b) The terms and conditions for such above mentioned loan and guarantee are not prejudicial to the
interest of the Company except non-charging of interest.

(c) In respect of loans and advances in the nature of loans the schedule of repayment of principal and
payment of interest has not been stipulated: hence we are unable to comment whether the repayments
or receipts are regular, overdue, renewed or extended or fresh loan granted to settle the overdue of
existing loans given to the same parties.

(d) The company has granted the following loans or advances in the nature of loans repayable on
demand without any written agreement and without specifying other terms.

Type of Borrower	Amount of loan or advance in the nature of loan outstanding	Loan Given	Percentage to the total Loans and Advances in the nature of loans
Related Parties	Loan	Rs. 57.10 Lakh	100%

4. The company has complied with the provisions of section 185 and 186 of the Act in respect of loans
granted, investment made, security and guarantee provided, as applicable except non-charging of
interest on loan granted.

5. The Company has not accepted deposits within the meaning of sections 73 to 76 or any other relevant
provisions of the Act and the rules framed there under.

6. No maintenance cost records have been specified by the Central Government under section 148(1) of
the Act for the products of the company.

7. (a) According to the records of the Company, the Company is regular in depositing with appropriate
authorities undisputed statutory dues including, investor education protection fund, employees state
insurance, income tax, custom duty, cess and other material statutory dues applicable to it. No
undisputed amounts payable in respect of income tax, custom duty, excise duty, and cess were in arrears
as at 31st March 2024 for a period more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of investor education
protection fund, employees state insurance, income tax, custom duty, cess and other material statutory
dues applicable, which have not been deposited on account of any dispute.

8. According to the information and explanations given to us, there are no transactions recorded in the
books of account as have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961, hence, clause (viii) of Order is not applicable.

9. In our opinion and according to the information and explanations given to us>

(a) the Company has not defaulted in payment of dues to financial institution or bank or debenture
holders.

(b) the company is not declared willful defaulter by any bank or financial institution or other lender.

(c) no term loans were availed during the year.

(d) no funds raised on short term basis have been utilized for long term purposes.

(e) the Company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures; hence the clause (ix) (e) of the Order is not
applicable.

(f) the Company has not raised loans during the year on the pledge of securities held in its subsidiaries,
joint ventures or associate companies; hence the clause (ix) (f) of the Order is not applicable.

10. The company has not raised any moneys by way of initial public offer, further public offer (including debt
instruments), preferential allotment or private placement of shares during the year.

11. (a) According to the information and explanations given to us, no fraud by the company or any fraud on
the Company has been noticed or reported during the year.

(b) No report under sub-Section (12) of Section 143 of the Act has been filed by the auditors in Form
ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central
Government.

(c) We have not considered whistle-blower complaints, since there is no complaint received during the
year by the Company.

12. The company is not a Nidhi Company as such provisions of the clause (xii) of the Order are not
applicable to the company.

13. All transactions with the related parties are in compliance with section 177 and 188 of the Act, where
applicable, and the details have been disclosed in the Ind AS standalone financial statements etc., as
required by the applicable accounting standards.

14. As per the information and explanation given to us, provisions related to the internal audit are not
applicable to the company hence, the clause (xiv) is not applicable.

15. The company has not entered into any non-cash transactions with directors or persons connected with

him.

16. (a) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934.

(b) In Our opinion, the Company has not conducted any Non-Banking Financial or Housing Finance
activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the
Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company (CIC) as defined under the Regulations by the
Reserve Bank of India.

17. The Company has not incurred cash losses in the financial year and in the immediately preceding
financial year.

18. There has been no resignation of the statutory auditors during the year.

19. On the basis of the financial ratios, ageing and expected dates of realization of financial assets and
payment of financial liabilities, other information accompanying the financial statements, we are of the
opinion that no material uncertainty exists as on the date of the audit report which infers that the
company is not capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of one year from the balance sheet date.

20. Since, the company does not satisfy the applicability criteria of Section 135 of the Act, the provisions of
Corporate Social Responsibility are not applicable to company.

21. The company has a joint venture with 50% share. However, in view of insignificant transactions,
consolidation of financial statement is not carried out.

ForGautam N Associates
Chartered Accountants
FRN 103117W
	Gautam Nandawat
Place: Chhatrapati Sambhajinagar	Pa rtner
Dated: 27" May 2024	Membership No 032742
	UDIN: 24032742BKCRSE2852

ANNEXURE "B" TO THE AUDITORS REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the

Companies Act, 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of Machhar Industries
Limited ("the Company") as of 31^s,March, 2024 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

2. The Companys management is responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants
of India (ICAI). These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to the Companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as required under the
Act.

Auditors Responsibility

3. Our responsibility is to express an opinion on the Companys internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the
ICAI and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act, to
the extent applicable to an audit of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial reporting
was established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the
internal financial controls system over financial reporting and their operating effectiveness. Our audit
of internal financial controls over financial reporting included obtaining an understanding of internal
financial controls over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error.

5. We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a
basis for our audit opinion on the Companys internal financial controls system over financial
reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A companys internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A
companys internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a material
effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are subject to the risk that the internal
financial control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion, to the best of our information and according to the explanations given to us, the Company
has, in all material respects, an adequate internal financial controls system over financial reporting and
such internal financial controls over financial reporting were operating effectively as at 31^st March, 2024,
based on the internal control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the ICAI.

ForGautam N Associates
Chartered Accountants
FRN 103117W
	Gautam Nandawat
Place: Chhatrapati Sambhajinagar	Partner
Dated: 27th May 2024	Membership No 032742
	UDIN: 24032742BKCRSE2852