We have audited the financial statements of Duroply IndustriesLimited (hereinafter referred to as "the Company"), whichcomprises the Balance Sheet as at March 31, 2026, and theStatement of Profit and Loss (Including Other ComprehensiveIncome), Cash Flow Statement and the Statement of Changesin Equity for the year then ended, and notes to the financialstatements, including a summary of material accounting policyinformation and other explanatory information for the year endedon that date (hereinafter referred to as the "financial statements").
In our opinion and to the best of our information and accordingto the explanations given to us, the aforesaid financial statementsgive the information required by the Companies Act, 2013(hereinafter referred to as "the Act") in the manner so required andgive a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules, 2015, asamended, ("Ind AS") and other accounting principles generallyaccepted in India, of the state of affairs of the Company as atMarch 31, 2026, the profit and total comprehensive income,its cash flows and the changes in equity for the year ended onthat date.
Basis for Opinion
We conducted our audit in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further describedin the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financialstatements under the provisions of the Companies Act, 2013and the Rules made thereunder, and we have fulfilled our otherethical responsibilities in accordance with these requirements andthe Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for ouropinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of the financialstatements of the current period. These matters were addressedin the context of our audit of the financial statements as a whole,and in forming our opinion thereon, and we do not providea separate opinion on these matters. We have determinedthe matters described below to be the key audit matters to becommunicated in our report.
S.
No
Key Audit Matter
Auditor's Response
1.
Implementation of SAP Business One System
During the Year, the Company has implementedSAP Business One system across its operations fromNovember 01,2025. The management has ensured thatappropriate controls were in place for data migrationand system stabilization. The implementation has nothad any material impact on the financial statements forthe period.
Principal Audit Procedures
1. We obtained an understanding of the data migration processand assessed the controls put in place by management. Weverified that the closing ledger balances as at October 31,2025 in the legacy FACT ERP system were correctly migratedand matched the opening balances in SAP Business One asat November 01, 2025. We performed reconciliation of keyaccount balances and tested a sample of transactions post¬migration to verify accuracy and completeness. We found nomaterial discrepancies arising from the migration.
Emphasis of Matter
1. We draw attention to Note 17(f) to the financial statements,which describes the conversion of 9,85,220 warrants intoequity shares during the quarter ended 30th September2025, each carrying a right to subscribe to one (1) equityshare of Rs. 10 each at an issue price of Rs. 203 perwarrant, aggregating to approximately Rs. 1,999.99 Lakhs.The conversion was effected on 25th September 2025, upon
receipt of the balance subscription money representing 75%of the issue price, i.e., Rs. 152.25 per warrant, amountingto Rs. 1,499.99 Lakhs. Consequently, the said equity shareshave been duly allotted and rank pari passu in all respectswith the existing equity shares of the Company.
2. We draw attention to Note 36(a) to the financial statements,whereby the Government of India has consolidated 29existing labour legislations into a unified framework
comprising four labour codes as follows: Code on Wages,2019, Code on Social Security, 2020, Industrial RelationsCode, 2020 and Occupational Safety, Health and WorkingConditions Code 2020 (collectively referred to as the NewLabour Codes), effective from November 21, 2025. TheCompany has assessed the implications of the New LabourCodes and has recognized an incremental cost of Rs. 27.5lakhs towards employee benefits as past service cost of planamendments during the year ended 31 March 2026.
3. We draw attention to Note 40.10 to the financial statements,regarding an advance of Rs.2.27 crore recoverable from acompany, which is presently under litigation. No interest hasbeen charged on the said outstanding balance during theperiod. Based on the assessment made by the management,the aforesaid amount is considered recoverable andaccordingly, no provision towards impairment / expectedcredit loss has been recognized in the accompanyingfinancial statements.
Our opinion is not modified in respect of the above matters.
Information Other than the Financial Statementsand Auditor's Report thereon
The Company's management and Board of Directors areresponsible for the other information. The other informationcomprises the information included in the Company's annualreport but does not include the financial statements and ourauditor's report thereon.
Our opinion on the financial statements does not cover theother information and we do not express any form of assuranceconclusion thereon.
In connection with our audit of the financial statements, ourresponsibility is to read the other information and, in doing so,consider whether the other information is materially inconsistentwith the financial statements, or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If, basedon the work we have performed, we conclude that there is amaterial misstatement of this other information, we are requiredto report that fact. We have nothing to report in this regard.
Responsibility of Management and Those Chargedwith Governance for the financial statements
The Company's Management and Board of Directors areresponsible for the matters stated in section 134(5) of the Actwith respect to the preparation of these financial statementsthat give a true and fair view of the financial position, financialperformance, changes in equity and cash flows of the Companyin accordance with the accounting principles generallyaccepted in India, including the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules, 2015, asamended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; anddesign, implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant tothe preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is responsiblefor assessing the Company's ability to continue as a goingconcern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of theFinancial Statements
Our objectives are to obtain reasonable assurance aboutwhether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and toissue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee thatan audit conducted in accordance with SAs will always detecta material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individuallyor in aggregate, they could reasonably be expected to influencethe economic decisions of users taken on the basis of thesefinancial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
O I dentify and assess the risks of material misstatement of thefinancial statements, whether due to fraud or error, designand perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detectinga material misstatement resulting from fraud is higher thanfor one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or theoverride of internal control.
O Obtain an understanding of internal financial controlsrelevant to the audit in order to design audit procedures thatare appropriate in the circumstances. Under section 143(3)(i)of the Act, we are also responsible for expressing our opinionon whether the Company has adequate internal financialcontrols system in place and the operating effectiveness ofsuch controls.
O Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates and relateddisclosures made by management.
O Conclude on the appropriateness of management's use ofthe going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significantdoubt on the ability of the Company to continue as a goingconcern. If we conclude that a material uncertainty exists,we are required to draw attention in our auditor's reportto the related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up tothe date of our auditor's report. However, future events orconditions may cause the Company to cease to continue asa going concern.
O Evaluate the overall presentation, structure, and content of thefinancial statements, including the disclosures, and whetherthe financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financialstatements that, individually or in aggregate, makes it probablethat the economic decisions of a reasonably knowledgeableuser of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning thescope of our audit work and in evaluating the results of our work;and (ii) to evaluate the effect of any identified misstatements inthe financial statements.
We communicate with Those Charged with Governance,regarding, among other matters, the planned scope and timing ofthe audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
We also provide Those Charged with Governance, witha statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate withthem all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable,related safeguards.
From the matters communicated with management, we determinethose matters that were of most significance in the audit of thefinancial statements of the current period and are therefore thekey audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, wedetermine that a matter should not be communicated in ourreport because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits ofsuch communication.
Report on Other Legal and RegulatoryRequirements
1. As required by the Companies (Auditor's Report) Order,2020 (hereinafter referred to as "the Order") issued by theCentral Government of India in terms of sub-section (11)of Section 143 of the Act, we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 ofthe 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 andexplanations which to the best of our knowledge andbelief were necessary for the purposes of our audit;
b. In our opinion proper books of account as required bylaw have been kept by the Company so far as appearsfrom our examination of those books;
c. The Balance Sheet, the Statement of Profit and Lossincluding Other Comprehensive Income, the Statementof Changes in Equity and the Statements of Cash Flowsdealt with by this report are in agreement with the booksof account;
d. In our opinion, the Balance Sheet, the Statement ofProfit and Loss including Other Comprehensive Income,the Statement of Changes in Equity and the Statementof Cash Flows comply with the Indian AccountingStandards (Ind AS) specified under section 133 ofthe Act;
e. On the basis of the written representations receivedfrom the directors as on March 31,2026 and taken onrecord by the Board of Directors, none of the directorsis disqualified as on March 31, 2026, from beingappointed as a director in terms of section 164 (2) ofthe Act;
f. With respect to the adequacy of the internal financialcontrols over financial reporting of the Company andthe operating effectiveness of such controls, refer to ourseparate Report in "Annexure B". Our report expressesan unmodified opinion on the adequacy and operatingeffectiveness of the Company's internal financialcontrols over financial reporting.
g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements ofsection 197(16) of the Act, as amended. In our opinionand to the best of our information and according to theexplanations given to us, the remuneration paid by theCompany to its directors during the year is in accordancewith the provisions of section 197 of the Act.
h. With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 1 1 ofthe Companies (Audit and Auditors) Rules, 2014, inour opinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact of pendinglitigations which would impact financial position.(Refer Note 40.2 to the financial statements).
ii. The Company did not have any long-term contractsincluding derivative contracts for which there wereany material foreseeable losses.
iii. There has been no delay in transferring amountswhich were required to be transferred to the InvestorEducation and Protection Fund by the Company.
iv. (a) The Management has represented that, tothe best of its knowledge and belief, nofunds (which are material either individuallyor in the aggregate) have been advancedor loaned or invested (either from borrowedfunds or share premium or any othersources or kind of funds) by the Companyto or in any other person or entity, includingforeign entity ("Intermediaries"), with theunderstanding, whether recorded in writing orotherwise, that the Intermediary shall, whether,directly or indirectly lend or invest in otherpersons or entities identified in any mannerwhatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide anyguarantee, security or the like on behalf of theUltimate Beneficiaries;
(b) The Management has represented, that, tothe best of its knowledge and belief, no funds(which are material either individually or inthe aggregate) have been received by theCompany from any person or entity, includingforeign entity ("Funding Parties"), with theunderstanding, whether recorded in writing orotherwise, that the Company shall, whether,directly or indirectly, lend or invest in otherpersons or entities identified in any mannerwhatsoever by or on behalf of the FundingParty ("Ultimate Beneficiaries") or provide anyguarantee, security or the like on behalf of theUltimate Beneficiaries;
(c) Based on the audit procedures that have beenconsidered reasonable and appropriate inthe circumstances, nothing has come to ournotice that has caused us to believe that therepresentations under sub-clauses (i) and (ii)of Rule 11(e), as provided under (a) and (b)above, contain any material misstatement.
v. No dividend has been paid or declared by theCompany during the year.
vi. Based on our examination which includes testchecks, the company has maintained its books ofaccount using accounting software which has afeature of recording audit trail (edit log). Based onour examination, which included test checks, andaccording to the information and explanationsgiven to us, we report that:
(a) The audit trail feature has been enabledand operated throughout the year for alltransactions recorded in the software.
(b) During the course of our audit, we did notcome across any instance of the audit trailfeature being tampered with.
(c) The audit trail records have been preserved bythe Company as per the statutory requirementsfor record retention under applicable law
For S K Agrawal and Co Chartered Accountants LLP
Chartered Accountants
Firm Registration No. - 306033E/E300272
CA Vivek Agarwal
Partner
Place: Kolkata Membership Number: 301571
Date: May 21,2026 UDIN: 26301571XMRTOE4003