We have audited the accompanying Standalone
Financial Statements of Precision Wires India Limited
("the Company"), which comprise the Balance Sheet as
at March 31,2025, and the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement
of Changes in Equity and the Statement of Cash Flows
for the year then ended and Notes to the Standalone
Financial Statements and a summary of the significant
accounting policies and other explanatory information.
In our opinion and to the best of our information and
according to the explanations given to us,
i) the Statement, together with the notes thereon are
presented in the format prescribed under Regulation
33 and Regulation 52 of the SEBI (Listing
Obligations and Disclosure Requirements)
Regulations, 2015 in this regard; and
ii) 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, 2025, and its profit, total
comprehensive income, the changes in equity and
its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under Section
143(10) of the Act. Our responsibilities under those SAs
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 ('ICAI')
together with the independence requirements that are
relevant to our audit of the Standalone Financial
Statements under the provisions of the Act and the
Rules thereunder and we have fulfilled our other ethical
responsibilities in accordance with the provisions of the
Act. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matter
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
Assessment of Recoverability of Trade Receivables
The aggregate Trade Receivables as at 31st March, 2025
were Rs. 55662.25 lakhs which are mostly unsecured
and constitute approx. 44.59% of the Gross Assets of
the Company.
The Company reviews the recoverability of the Trade
Receivables periodically including at the Balance Sheet
Date. Receivables which are not expected to be
recovered are written off as Bad Debts. In addition to
the Bad Debts written off, provision is made in the
Accounts for Expected Credit Loss based on past record
of irrecoverable Trade Receivables.
We have considered this to be a key audit matter as the
amount of Trade Receivables are mostly unsecured and
constitute the largest component of the Balance Sheet
and therefore have a significant impact on the financial
position of the Company.
How theAudit addressed the KeyAudit matters
The audit procedures included, amongst others, review
of age analysis of Trade Receivables, review of Trade
Receivables overdue by more than a certain period,
discussion with management of the reasons for such
overdue trade receivables and the efforts made for
recovery of the same.
The audit procedures also include, checking recovery of
Trade Receivables as at Balance Sheet Date,
subsequently, up to the date of the audit.
Other Information
The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Annual Report, but does not
include the Standalone 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 Ind AS
financial statements, our responsibility is to read the
other information and, in doing so , consider whether
such 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 we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to
report in this regard.
Management's Responsibility for the Standalone
Financial Statements
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of the Companies Act,
2013 ("the Act") with respect to the preparation of these
financial statements that give a true and fair view of the
financial position, financial performance including other
comprehensive income, cash flows and changes in
equity of the Company in accordance with the Indian
Accounting Standards (Ind AS) prescribed under section
133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, and
other accounting principles generally accepted in India.
This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding 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,
management 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 Board of Directors are also responsible for
overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objective is 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 Ind AS
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 control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under
Section 143(3)(i) oftheAct, 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.
• Conclude on the appropriateness of management's
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 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
the aggregate, make 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.
We communicate with those charged with governance of
the Company, 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 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 for the financial year ended March
31, 2025 and are therefore the key audit matters. We
describe these matters in our auditor's report unless law
or regulation products 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 in terms of Section 143(11) of the Act,
we give in "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
A. As required by Section 143(3) of theAct, based
on our audit 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, Statement of Changes in Equity
and the Statement of Cash Flow dealt with
by this Report are in agreement with the
relevant books of account.
d) in our opinion, the aforesaid financial
statements comply with the Indian
Accounting Standards prescribed under
section 133 of the Act and Rule 7 of the
Companies (Accounts) Rules, 2014;
e) on the basis of the written representations
received from the directors of the
Company as on March 31, 2025 taken on
record by the Board of Directors, none of
the directors is disqualified as on March
31, 2025 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 over financial reporting.
g) In our opinion and according to the
information and explanations given to us,
the remuneration paid by the Company to
its directors during the current year is in
accordance with the provisions of section
197 of the Act. The remuneration paid to
any director is not in excess of the limit
laid down under Section 197 of theAct.
B. 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, as amended, 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.
ii. The Company has made provision, as
required under the applicable law or
accounting standards, for material
foreseeable losses, if any, on long-term
contracts including derivative contracts.
iii. There has been no delay in transferring
amounts, 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, as disclosed in notes to the
accounts, no funds have been
advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind
of funds ) by 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") 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, as disclosed in the notes to
accounts, no funds 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 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 Funding Party ("Ultimate
Beneficiaries") or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
and
c) Based on such audit procedures
performed 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
clause (i) and (ii) of the Rule 11(e)
contain any material mis-statement.
v) a) The interim dividend declared and
paid by the Company during the year
and until the date of this audit report
is in accordance with the Section 123
of the CompaniesAct, 2013.
b) The final dividend paid by the
Company during the year in respect
of the same declared for the previous
year is in accordance with Section
123 of the Companies Act 2013 to the
extent it applies to payment of
dividend.
As stated in the notes 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
ensuingAnnual General Meeting. The
dividend declared 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 have a feature of
recording the audit trail (edit log) facility
and the same has been operated
throughout the year for all relevant
transactions recorded in the respective
software.
Further, for the periods where audit trail (edit log) facility
was enabled and operated throughout the year for the
respective accounting software, we did not come across
any instance of the audit trail feature being tampered
with.
For S R Divatia and Co.
Chartered Accountants
Firm Regn No. 102646W
Shalin S Divatia
Partner
Membership No. 039755
UDIN: 25039755BMLZFX8021
Place : Mumbai
Date : 17th May, 2025
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