ATC Energies System Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

We have audited the accompanying financial statements of
ATC Energies System Limited (formerly known as ATC Energies
System Private Limited) (“the Company”) which comprise
the Balance Sheet as at 31^st March 2025, Statement of Profit
and Loss (including other comprehensive income), Statement
of change in equity and Statement of Cash Flows for the year
then ended and notes to the financial statements, including a
summary of material 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 financial statements
give the information required by the Companies Act, 2013
(“Act”) in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted
in India, of the state of affairs of the Company as at 31^st March
2025, and its Profit (including 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 specified under Section 143(10) of the Act. Our
responsibilities under those Standards are further described
in the auditor’s 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 together
with the ethical requirements that are relevant to our audit of
the financial statements under the provisions of the Act 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.

Key audit matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed
in the context of our audit of the 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
matters described below to be the key audit matters to be
communicated in our report.

S No.	Key Audit Matter	Auditor’s Response
1.	Revenue Recognition Revenue from sale of goods is recognized when control of the goods is transferred to the customer, which is typically upon delivery in accordance with the terms of the contract. Revenue is a significant metric for evaluating the Company’s performance and is therefore a key focus area in the audit. There is a risk of revenue being overstated due to pressure on management to achieve performance targets at or near the end of the reporting period. The application of the revenue recognition accounting standard involves significant judgments, particularly in determining the timing of revenue recognition, identifying distinct performance obligations, and assessing the transaction price and allocation	Our audit procedures included, among others: 1. Evaluated the appropriateness of the Company’s revenue recognition accounting policies and tested their consistent application. 2. Assessed the design and tested the operating effectiveness of internal controls related to revenue recognition. 3. Performed substantive testing of sales transactions recorded during the year and around the year-end to determine whether revenue was recognized in the correct accounting period. 4. Verified, on a sample basis delivery documentation to assess the timing of revenue recognition. 5. Performed analytical procedures and trend analysis on revenue streams. 6. Evaluated the disclosures related to revenue recognition in the financial statements for compliance with the accounting principles generally accepted in India.
2.	Inventory Valuation Inventories of raw material are carried at the lower of cost and net realizable value and for finished goods, these are valued at the lower of cost or market value. The valuation of inventories involves significant management judgment, particularly in determining net realizable values, assessing slow-moving and obsolete items, and estimating provisions. Given the quantum of inventory held and the subjective estimates involved in valuation, this area was considered to be a key audit matter.	Our audit procedures included, among others: 1. Evaluated the appropriateness of the Company’s accounting policies related to inventory valuation. 2. Assessed the design and tested the operating effectiveness of controls over the inventory valuation process. 3. Observed physical inventory counts and performed sample test counts to confirm existence and condition of inventories. 4. Tested the costing methodology used by the Company and verified the cost of a sample of inventory items to supporting documentation. 5. Evaluated management’s assessment of net realizable value of inventories, including the reasonableness of assumptions and estimates used. 6. Reviewed the ageing analysis of inventories and assessed the adequacy of provisions for slow-moving and obsolete items. 7. Verified compliance accounting principles generally accepted in India in the disclosures related to inventories.

Information other than the financial statements and auditors’
report thereon

The Company’s management and board of directors are
responsible for the preparation of the other information. The
other information comprises the information included in the
Board’s Report including Annexures to Board’s Report, Business
Responsibility Report but does not include the financial
statements and our auditor’s report thereon.

Our opinion on the 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 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.

Management’s Responsibility for the Financial Statement

The Company’s management and Board of Directors are
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 and financial performance of the Company in
accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. 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 financial statements that give a true and fair
view and are free from material misstatement, whether due to
fraud or error.

In preparing the financial statements, management and Board of
Directors are 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 is also responsible for overseeing the
Company’s financial reporting process.

Auditor’s Responsibility

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 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
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
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 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 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 financial statements of the
current period 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

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 statement on the matters
specified in paragraph 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 purpose 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, Statement of Profit and Loss and
Statement of Cash Flows dealt with by this Report are in
agreement with the books of account.

d. In our opinion, the aforesaid financial statements comply
with the Accounting Standards specified under section 133
of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2015 as amended from time to time.

e. On the basis of written representations received from the
directors as on 31^st March 2025 taken on record by the Board
of Directors, none of the director is disqualified as on 31^st
March 2025 from being appointed as a director in terms of
Section 164 (2) of the Act.

f. There is no qualification, reservation or adverse remark
relating to maintenance of accounts and other matters
connected therewith.

g. 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” wherein we have expressed
an unmodified opinion.

h. With respect to other matters to be included in the Auditor’s
Report in accordance with the requirements of section
197 (16) of the Act, as amended, in respect of whether the
remuneration paid by the Company to its directors during
the year is in accordance with the provisions of section 197
of the Act.

i. 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, in our opinion
and to the best of our information and according to the
explanations given to us:

a. The Company does not have any pending litigations
which would impact its financial position.

b. The Company did not have any long-term contracts
including derivative contracts for which there were any
material foreseeable losses.

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

d. The management has represented that, to the best of
its knowledge and belief, other than as disclosed in the
notes to the accounts,

i. 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 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; and

ii. 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 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.

iii. Based on audit procedures carried out by us, that we
have considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has
caused us believe that the representations under sub¬
clause (a) and (b) contain any material misstatement.

j. The Company has not declared or paid any dividends during
the year and accordingly reporting on the compliance with
section 123 of the Companies Act, 2013 is not applicable for
the year under consideration.

k. Based on our examination which included test checks, the
Company has used an accounting software (Tally) which
has a feature of recording audit trail (edit log) facility and
same has been operative. Further, during the course of our
audit we did not come across any instance of the audit trail
being tampered with.

For A.Kasliwal & Company

Chartered Accountants
Firm Regd. No. 011727C

Ambar Kasliwal

Proprietor
M No. 402210
UDIN: 25402210BMMMNL7743

Place: Mumbai

Date : May 30, 2025