We have audited the accompanying standalone financial statements of Mangalam Worldwide Limited ("the Company"),
which comprise the balance sheet as at 31st March 2025, and the statement of Profit and Loss (including other
comprehensive income), and statement of changes in equity and statement of cash flows for the year ended 31st March
2025, and notes to the financial statements, including a summary of 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, the aforesaid standalone
financial statements give the information required by the Companies Act, 2013, as amended ("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, and other accounting
principles generally accepted in India, of the state of affairs of the Company as at 31 March 2025, and its profit and
other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit 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 ethical
requirements that are relevant to our audit of the 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 for the financial year ended 31st March 2025. 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 following matters to be the key audit matters to be communicated in our report:
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The key audit matter
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How the matter was address in our audit
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Revenue recognition from sale of goods (as described in Note 2.11 and 33 of the standalone financial statements)
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Revenue of the Company mainly comprises of sale
of goods to its customers. Revenue from sale of
goods is recognized when control is transferred to
the customer and there is no other unfulfilled
obligation. This requires detailed analysis of each
contract/ customer purchase order regarding
timing of revenue recognition. Inappropriate
assessment could lead to a risk of revenue being
recognized on sale of goods before the control in
the goods is transferred to the customer.
Accordingly, timing of recognition of revenue is a
key audit matter.
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We applied the following audit procedures in this area, among
others to obtain sufficient appropriate audit evidence:
• Assessed the Company's revenue recognition policy and its
compliance with Ind AS 115;
• Evaluated the design and tested the operating effectiveness of
key controls related to timing of revenue recognition;
• Performed testing on selected samples of customer contracts/
customer purchase orders. Checked terms and conditions
related to acceptance of goods, acknowledged delivery receipts
and tested the transit time to deliver the goods and its revenue
recognition.
• Our tests of details focused on cut-off samples to verify only
revenue pertaining to current year is recognized based on
delivery documents along with terms and conditions set out
in customer contracts/customer purchase orders.
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The key audit matter
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How the matter was address in our audit
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Inventory (as described in Note 2.8 and 13 of the standalone financial statements)
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The carrying value of inventory as at 31st March
2025 is Rs. 28,187.82 lakhs. The inventory is valued
at lower of cost or net realisable value after
providing for obsolescence if any.
We considered the value of inventory as a key
audit matter given the relative size of its balance
in the financial statements and significant
judgment involved in the consideration of factors
in determination of selling prices such as
fluctuation of raw materials prices in the market
and in determination of net realizable value.
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We applied the following audit procedures in this area, among
others to obtain sufficient appropriate audit evidence:
• We understood and tested the design and operating
effectiveness of controls as established by the management in
determination of net realizable value of inventory.
• Assessing the appropriateness of Company's accounting policy
for valuation of stock-in-trade and compliance of the policy
with the requirements of the prevailing Indian accounting
standards.
• We considered various factors including the actual selling
price prevailing around and subsequent to the yea-end.
• Compared the cost of the finished goods with the estimated
net realizable value and checked if the finished goods were
recorded at net realizable value where the cost was higher
than the net realizable value.
Based on the above procedures performed, the management's
determination of the net realizable value of the inventory as at
the year end and comparison with cost for valuation of inventory
is considered to be reasonable.
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Tax litigations and contingencies (as described in Note 2.23 and 46 of the standalone financial statements)
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The Company has litigations in respect of certain
matters at various authority levels, in respect of
which, the company has disclosed contingent
liabilities as at 31st March 2025.
The management's assessment with regard to the
tax matters is supported by advice from
independent consultants.
We considered this as a key audit matter, as
evaluation of these matters requires significant
management judgement and estimation,
interpretation of laws and regulations and
application of relevant judicial precedents to
determine the probability of outflow of economic
resources for recognising provisions and making
related disclosures in the financial statements.
The application of accounting principles as given
under Ind AS 37, Provisions, Contingent Liabilities
and Contingent Assets, in order to determine the
amount to be recognised as a provision, or to be
disclosed as a contingent Liability, needs careful
evaluation and judgement to be applied by the
management.
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We applied the following audit procedures in this area, among
others to obtain sufficient appropriate audit evidence:
• We evaluated and assessed and tested the design and
operating effectiveness of key controls surrounding assessment
of litigations;
• Obtaining a complete list of litigation matters and reading the
underlying orders and other communications received from
tax authorities and management's responses thereto, to assess
the status of the litigations;
• Evaluating the independence, objectivity and competence of
management's experts involved;
• Reading the management's experts advice, as applicable;
• Evaluating the management's assessment on the probability of
outcome and the magnitude of potential outflow of economic
resources in respect of tax matters including involvement of
our tax experts for assessing complex tax matters, based on
recent rulings and latest developments in case laws;
• Evaluating appropriateness of the Company's disclosures in
the financial statements.
Based on the above procedures, the assessment made by
management in respect of disclosures made in 'contingent liabilities'
relating to these matters in the standalone financial statements
was considered to be appropriate.
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Carrying value of trade receivables and advances
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The collectability of the Company's trade
receivables and advances (including trade
advances), the valuation of allowance for
impairment of trade receivables and provision for
bad and doubtful debt requires significant
management judgement. As per the current
assessment of the situation based on the internal
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We applied the following audit procedures in this area, among
others to obtain sufficient appropriate audit evidence:
• Assessing the Company's policies for recognizing loss
allowance for trade receivable and advances to determine the
carrying value of trade receivables and advances.
• Assessing trade receivables and advances on sample basis,
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The key audit matter
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How the matter was address in our audit
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Carrying value of trade receivables and advances (Contd.....)
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and external information available up to the date
of approval of these financial statements by the
Board of Directors, the Company believes that there
is no indication of any material impact on the
carrying value.
The management considers such information to
determine whether a provision for impairment or
for bad debt is required either for a specific
transaction or for a customer's balance overall.
Accordingly, it has been determined as a key audit
matter.
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based on its ageing along with historical trend/ pattern of
collections received from the customers including the same
received subsequent to year end, up to the date of completion
of audit procedures.
• Evaluating management's assessment of recoverability of
outstanding receivables through inquiry with the management
regarding disputes between the parties involved, attempts by
the management to recover the amounts outstanding and on
the credit status of significant counterparties wherever
available.
• Assessing the appropriateness of the loss allowance for trade
receivables and advances made by the Company.
• Assessing the disclosures made by the Company in this regard
in the standalone financial statements.
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Information Other than the financial statements and Auditor's report thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board's Report including Annexures
to Board's Report, Business Responsibility Report, Corporate Governance and Shareholder's Information, 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 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 during the course of our 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.
Responsibility of Management for Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act 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, cash flows and changes in equity 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 standalone financial statement 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 the Board of Directors 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 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 control 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 with
reference to financial statements 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 financial statements, including the disclosures,
and whether the standalone financial statements represent the underlying transactions and events in a manner
that achieves fair presentation.
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
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 year ended 31st March 2025 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 the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement of changes in Equity dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rule, 2015 as
amended;
(e) On the basis of the written representations received from the directors as on 31st March 2025 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March 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 with reference to these standalone financial
statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure B"
to this report;
(g) 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 - Refer note 46 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses;
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, as disclosed
in note 60 to the standalone financial statements, 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 the Company to or in any other persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(b) The management has represented, that, to the best of its knowledge and belief, as disclosed
in note 60 to the standalone financial statements, no funds have been received by the
Company from any persons or entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall:
• directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or
• Provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries.
(c) Based on such audit procedures as 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 misstatements.
v. The dividend proposed in the previous year, declared and paid by the company during the year is
in accordance with Section 123 of the Act, as applicable.
(h) With respect to the matter to be included in the Auditor's Report under Section 197(16) of the Act:
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 the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16)
of the Act which are required to be commented upon by us.
(i) Based on our examination which included test checks, the Company has used accounting software for
maintaining its books of account for the year ended 31st March 2025 which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Further, during the course of our audit we did not come across any instance of
audit trail feature being tampered with in respect of the accounting software.
For Keyur Shah & Co.
Chartered Accountants
FRN.: 141173W
Keyur Shah
Proprietor
Membership No.: 153774 Date : 30th April 2025
UDIN : 25153774BMIOJX7661 Place : Ahmedabad
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