INDEPENDENT AUDITORS REPORT ON STANDALONE FINANCIAL INFORMATION (As required by Section 26 of Companies Act, 2013 read with Rule 4 of Companies (Prospectus and Allotment of Securities) Rules, 2014)
To
The Board of Directors
Mangalam Alloys Limited
Plot No. 3123-3126, GIDC Phase III,
Chhatral Dist., Gandhinagar Gujarat - 382729
Dear Sir(s),
7. We, KPSJ & Associates LLP ("we", "us" or "KPSJ") have examined the attached Restated Standalone Statements of Assets & Liabilities Mangalam Alloys Limited (hereinafter referred to as "the Company"), as at March 31, 2023, March 31, 2022 and March 31, 2021, Restated Standalone Statement of Profit and Loss and Restated Standalone Statement of Cash Flows for the financial year ended on March 31, 2023, March 31, 2022 and March 31, 2021 (collectively referred to as the "Standalone Restated Summary Statements" or "Standalone Restated Financial Statements") annexed to this report and initialled by us for identification purposes. These Standalone Restated Financial Statements have been prepared by the management of the Company and approved by the board of directors at their meeting held on June 19, 2023 for the proposed Initial Public Offering ("SME IPO") of Equity Shares on Emerge Platform of National Stock Exchange of India Limited ("NSE SME") of the Company.
8. The Restated Standalone Financial Statements have been prepared in accordance with the requirements of:
section 26 of the Companies Act, 2013 (herein after referred to as "the Act") read with Companies (Prospectus and Allotment of Securities) Rules 2014 as amended from time to time;
The Securities and Exchange Board of India ["SEBI"] (Issue of Capital and Disclosure Requirements) Regulations 2018 ("ICDR Regulations") and related amendments / clarifications from time to time issued by the SEBI
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").
9. The Companys Board of Directors is responsible for the preparation of the Restated Standalone Financial Statements for the purpose of inclusion in the Draft Prospectus / Prospectus to be filed with Securities and Exchange Board of India, Emerge Platform of National Stock Exchange of India Limited and Registrar of Companies in connection with the proposed SME IPO. The Restated Standalone Financial Statements have been prepared by the management of the Company on the basis of accounting policies stated in Annexure 4 to the Restated Financial Statements. The respective Board of Directors of the companies responsibility includes designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Standalone Financial Statement. The respective Board of Directors are also responsible for identifying and ensuring that the company complies with the Act, ICDR Regulations and the Guidance Note.
10. We have examined such Restated Standalone Financial Statements taking into consideration:
The terms of reference to our engagement letter with the Company requesting us to carry out the assignment, in connection with the proposed IPO of Equity Shares on Emerge Platform of National Stock Exchange of India Limited ("IPO" or "SME IPO"); and
The Guidance Note also requires that we comply with ethical requirements of the Code of ethics issued by ICAI;
Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Standalone Financial Information;
the requirement of Section 26 of the Act, and the SEBI ICDR Regulations.
Our work was performed solely to assist you in meeting your responsibility in relation to your compliance with the Act, SEBI ICDR and the Guidance Note in connection with the issue.
11. We did not audit the Financial Statements of the Associate Concern for the year ended March 31, 2023, March 31, 2022 and March 31, 2021. However, since there are no subsidiaries or associate concern of the company as on March 31, 2023 ,we have not included share of profit/(losses) in the Restated Standalone Financial Statements for the relevant years/period ended March 31, 2023, March 31, 2022 and March 31, 2021.
(Rs. in Lakhs)
Particulars | For the year ended March 31, 2023 | For the year ended 31st March, 2022 | For the year ended 31st March, 2021 |
Profit after tax* | 1013.52 | 505.08 | -653.69 |
* The above figures reflects the Standalone share of profits/(losses).
12. Based on our examination and according to the information and explanations given to us we report that the Restated Standalone Financial Information:
have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the financial years ended March 31, 2023, March 31, 2022 and March 31, 2021;
have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
An extra-ordinary items that need to be disclosed separately in the accounts and have been disclosed accordingly.
There is no qualification in the Special Purpose Audit Report which required any adjustments.
13. In accordance with the requirements of the Act including the rules made there under, ICDR Regulations, Guidance Note and engagement letter, we report that:
The "Restated Standalone Statement of Asset And Liabilities" of the Company for the financial year ended on March 31, 2023, March 31, 2022 and March 31, 2021 examined by us, as set out in Annexure 1 to this report read with Significant Accounting Policies in Annexure 4 has been arrived at after making such adjustments and regroupings to the Standalone financial statements of the Company, as in our opinion were appropriate and more fully described in notes to the Restated Standalone Summary Statements to this report.
The "Restated Standalone Statement of Profit and Loss" of the Company for the financial year ended on at March 31, 2023, March 31, 2022 and March 31, 2021 examined by us, as set out in Annexure 2 to this report read with Significant Accounting Policies in Annexure 4 has been arrived at after making such adjustments and regroupings to the Standalone financial statements of the Company, as in our opinion were appropriate and more fully described in notes to the Restated Standalone Summary Statements to this report.
The "Restated Standalone Statement of Cash Flows" of the Company for the financial year ended on at March 31, 2023, March 31, 2022 and March 31, 2021 examined by us, as set out in Annexure 3 to this report read with Significant Accounting Policies in Annexure 4 has been arrived at after making such adjustments and regroupings to the Standalone financial statements of the Company, as in our opinion were appropriate and more fully described in notes to the Restated Standalone Summary Statements to this report.
14. The Restated Standalone Financial Statements of the Company have been compiled by the management from the Standalone financial statements of the Company for the financial year ended on March 31, 2023, March 31, 2022 and March 31, 2021.
15. 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 for the financial year ended on at March 31, 2023, March 31, 2022 and March 31, 2021 proposed to be included in the Draft Prospectus / Prospectus ("Offer Document").
16. Annexures to the Restated Standalone Financial Statements of the Company:
Particulars | Annexures |
Restated Standalone Statement of Assets and Liabilities | 1 |
Restated Standalone Statement of Profit & Loss | 2 |
Restated Standalone Statement of Cash Flows | 3 |
Corporate Information, Summary of significant accounting policies and Other Explanatory Notes to Restated Standalone Summary Statement | 4 |
Statement of Restatement Adjustments to Audited Standalone Financial Statements | 5 |
Restated Standalone Statement of Share Capital | 6 |
Restated Standalone Statement of Reserves and Surplus | 7 |
Restated Standalone Statement of Borrowings | 8 |
Restated Standalone Statement of Provisions | 9 |
Restated Standalone Statement of Other Current Liabilities | 10 |
Restated Standalone Statement of Trade Payables | 11 |
Restated Standalone Statement of Property, Plants and Equipment, Computers & Office Equipments | 12 |
Restated Standalone Statement of Intangible Assets | 13 |
Restated Standalone Statement of Non Current Investments | 14 |
Restated Standalone Statement of Loans and Advances | 15 |
Restated Standalone Statement of Deferred Tax Assets/Liabilities | 16 |
Restated Standalone Statement of Non Current Tax Assets | 17 |
Restated Standalone Statement of Other Assets | 18 |
Restated Standalone Statement of Inventories | 19 |
Restated Standalone Statement of Trade Receivables | 20 |
Restated Standalone Statement of Cash and Bank Balance | 21 |
Restated Standalone Statement of Revenue from Operations | 22 |
Restated Standalone Statement of Other Income | 23 |
Restated Standalone Statement of Cost of Material Consumed | 24 |
Restated Standalone Statement of Change in Inventory | 25 |
Restated Standalone Statement of Employee Benefit Expenses | 26 |
Restated Standalone Statement of Finance Cost | 27 |
Restated Standalone Statement of Depreciation and Amortisation Cost | 28 |
Restated Standalone Statement of Other Expenses | 29 |
Restated Standalone Statement of Payment to Auditors | 30 |
Restated Standalone Statement of Contingent liabilities and commitments (to the extent not provided for) | 31 |
Restated Standalone Statement of Segment Reporting | 32 |
Restated Standalone Statement of Related Party Transaction | 33 |
Restated Standalone Statement of Employee Benefits | 34 |
Restated Standalone Statement of Earning in Foreign Currency | 35 |
Restated Standalone Statement of Expenditure in Foreign Currency | 36 |
Restated Standalone Statement of Unhedged Foreign Currency Exposure | 37 |
Restated Standalone Statement of Earnings Per Share | 38 |
Material Adjustments And Regroupings To Restated Summary Statements | 39 |
Restated Standalone Statement of Accounting Ratios | 40 |
Restated Standalone Statement of Capitalisation | 41 |
Restated Standalone Statement of disclosure of Accounting Ratios and Reason for Variance | 42 |
Restated Standalone Statement of Other Information | 43 |
17. The Report should not in any way be construed as a re-issuance or re-dating of any of the previous audit reports issued by any other firm of Chartered Accountants nor should this report be construed as a new opinion on any of the financial statements referred to therein.
18. We have no responsibility to update our report for events and circumstances occurring after the date of the report.
19. In our opinion, the above financial information contained in Annexure 1 to 43 of this report read with the respective Significant Accounting Policies and Notes to Restated Standalone Summary Statements as set out in Annexures attached therewith are prepared after making adjustments and regrouping as considered appropriate and have been prepared in accordance with the Act, ICDR Regulations, Engagement Letter and Guidance Note.
20. Our report is intended solely for use of the management and for inclusion in the offer document in connection with the SME IPO. Our report should not be used, referred to or adjusted for any other purpose except with our consent in writing.
FOR KPSJ & ASSOCIATES LLP |
CHARTERED ACCOUNTANTS |
FRN: 124845W/W100209 |
SD/- |
CA PRAKASHCHANDRA PARAKH |
PARTNER |
MNO: 039946 |
UDIN: 23039946BGXMRQ9172 PLACE: AHMEDABAD |
DATE: JUNE 19, 2023 |
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