We have audited the accompanying financial statements of M/s. Archidply Decor Limited ("the Company") which comprises theBalance Sheet as at March 31, 2025, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement ofchanges in Equity and the Statement of Cash Flows for the year then ended and notes to the financial statements, including asummary of material accounting policies and other explanatory information (herein after referred to as "Financial Statement").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statementsgive the information required by the Act in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India, of the state of affairs of the Company as at 31 March 2025, and its Profit, total comprehensiveloss, the changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibili¬ties for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant toour audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we havefulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statement.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financialstatements 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. For each matter below, ourdescription of how our audit addresses the matter is provided in that context.
Descriptions of Key Audit Matter
How we addressed the matter in our audit
A. Valuation of Inventories
Refer to note 7 to the financial statements.
The Company is having Inventory of Rs. 2846.10 lakhs as on31st March, 2025.
Inventories are to be valued as per Ind AS 2. As described in theaccounting policies in note 1(10) to the financial statements,inventories are carried at the lower of cost and net realisable
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mining the appropriate provisions against inventory of Stores,Raw Material, Finished goods and Work in progress basedupon a detailed analysis of old inventory, net realisable valuebelow cost based upon future plans for sale of inventory.
To ensure that all inventories owned by the entity are recordedand recorded inventories exist as at the year-end and valuationhas been done correctly
We obtained assurance over the appropriateness of the
management's assumptions applied in calculating the value of
the inventories and related provisions by:
• Completed a walkthrough of the inventory valuationprocess and assessed the design and implementation ofthe key controls addressing the risk.
• Verifying the effectiveness of key inventory controlsoperating over inventories; including sample basedphysical verification.
• Verify that the adequate cut off procedure has beenapplied to ensure that purchased inventory and soldinventory are correctly accounted.
• Reviewing the document and other record related tophysical verification of inventories done by themanagement during the year.
• Verify that inventories are valued in accordance with Ind
AS 2
• Verifying for a sample of individual products that costs
have been correctly recorded.
• Comparing the net realisable value to the cost price ofinventories to check for completeness of the associatedprovision.
• Reviewing the historical accuracy of inventory provisioningand the level of inventory write-offs during the year.
Our Conclusion:
Based on the audit procedures performed we did not identifyany material exceptions in the Inventory valuation.
B. Revenue recognition on sale of goods and impair
ment loss allowance on trade receivables
Revenue is measured based on the transaction price, which is
scheme allowances, price concessions, incentives and returns,if any, ('variable consideration') as specified in the contractswith the customers.
An estimate of variable consideration payable to the customers is recorded as at the year end. Such estimation is donebased on the terms of contracts, rebates and discountsschemes and historical experience.
In accordance with Ind AS 109 - Financial Instruments, theCompany follows 'simplified approach' for recognition of
the impairment loss allowance, the Company has considered
r
its customers to estimate the probability of default in futureand has considered estimates of possible effect from increaseduncertainties in economic environment. We identified estimation of variable consideration and impairment loss allowanceon trade receivables as a key audit matter because the Company's management exercises significant judgments andestimates in calculating the said variable consideration andimpairment loss allowance
Our audit procedures included, amongst others:
• Tested a sample of sales transactions for compliance withthe Company's accounting principles to assess thecompleteness, occurrence and accuracy of revenuerecorded.
• We read and evaluated the Company's policies for revenuerecognition and impairment loss allowance and assessedits compliance with Ind AS 115 - Revenue From ContractsWith Customers' and Ind AS 109 'Financial Instruments',respectively.
• We assessed the design and tested the operatingeffectiveness of internal controls related to sales includingvariable consideration and impairment loss allowance ontrade receivables.
• We performed the following tests for a sample oftransactions relating to variable consideration:
• Read the terms of contract including rebates and discountsschemes as approved by authorized personnel.
• Evaluated the assumptions used in estimation of variableconsideration by comparing with the past trends andunderstand the reasons for deviation.
• Performed retrospective review to identify and evaluatevariances.
• Tested the design, implementation and operatingeffectiveness of the Company's controls over computationof incentives and pay out against the correspondingliability
• We evaluated management's assessment of theassumptions used in the calculation of impairment lossallowance on trade receivables, including consideration ofthe current and estimated future uncertain economicconditions.
• For sample customers, we tested past collection history,customer's credit assessment and probability of defaultassessment performed by the management.
• We tested the mathematical accuracy and computation ofthe allowances.
• We read and assessed the relevant disclosures madewithin the financial statements.
Our conclusion:
Based on the audit procedures performed we did not identify
any material exceptions in the recognition of revenue and
incentives and discount expenses.
Information other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the informationincluded in the Board's Report including Annexure to the Board's Report, but does not include the financial statements and ourauditor's report thereon. The Company's annual report is expected to be made available to us after the date of this auditor's report.Our opinion on the financial statements does not cover the other information and we do not express any form of assuranceconclusion 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 in theaudit 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 arerequired to report that fact. We have nothing to report in this regard.
Responsibility of Management and Board of Director's for the Financial Statements
The Company's Management and 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 equityof the Company in accordance withthe Indian Accounting standards (Ind AS) prescribed under section 133 of the Act, read with the Companies (Indian Accountingstandards)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 forsafeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection, application,implementation and maintenance of appropriate of accounting policies; making judgments and estimates that are reasonable andprudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financialstatement 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 tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative butto do so.
The Management and Board of Directors is also responsible for overseeing the company's financial reporting process.
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout theaudit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internalcontrol.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate inthe circumstances, under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether theCompany 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 auditevidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify 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 thefinancial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable thatthe economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantita¬tive 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 financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the auditand 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 requirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably be thought tobear 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 significancein the audit of the financial statements of the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circum¬stances, we determine that a matter should not be communicated in our report because the adverse consequences of doing sowould 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 termsof sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure A" statement on the matters specified inparagraphs 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 necessaryfor 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 exam¬ination of those books
c. The Balance Sheet, the Statement of Profit and Loss including other Comprehensive Income, Statement of changes in Equity andthe Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 ofthe Act, read with the Companies (Indian Accounting standards) Rules, 2015 as amended from time to time.
e.On the basis of the written representations received from the directors as on 31st March, 2025 taken on record by the Board ofDirectors, 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 over financial reporting of the Company and the operatingeffectiveness of such controls, refer to our separate Report in "Annexure B". Our Report expresses an unmodified opinion on theadequacy and operating effectiveness of the company's internal financial controls over financial reporting.
g. The modifications relating to the maintenance of accounts and other matters connected therewith in respect of audit trail are asstated in the paragraph 2B(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
2B. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations givento us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer to Note 37to the financial statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeablelosses.
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, no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other source or kind of funds) by the Company to or in any otherpersons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or other¬wise, that the Intermediary shall:
• directly or indirectly lender 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, no funds have been received by the companyfrom any person or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing orotherwise, 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 theFunding Party ("Ultimate Beneficiaries") or
• provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
c. Based on audit procedures as we considered reasonable and appropriate in the circumstances, nothing has come to our noticethat has caused us to believe that the representations under sub-clause iv(a) and iv(b) contain any material mis-statement.
v. The company has not declared or paid any dividend during the year, hence the provisions of section 123 of the Companies Act,2013 is not applicable to the Company.
vi. Based on our examination which included test checks and in accordance with requirements of the Implementation Guide onReporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, the Company has used accountingsoftware for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same hasoperated throughout the year for all relevant transactions recorded in the respective software except inventory which is beingmaintained in separate software where there is no audit trail features.
Further, after audit trail (edit log) facility was enabled and operated throughout the year, we did not come across any instance ofaudit trail feature being tampered with during the course of our audit.
Additionally, the audit trial has been preserved by the company as per the statutory requirements for records retention.
The back-up of audit trail (edit log) has been maintained on the server physically located in India for financial year ended 31st
March, 2025.
2C. 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 itsdirectors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribedother details under Section 197(16) of the Act which are required to be commented upon by us.
For G R V & P KChartered AccountantFRN : 008099S
(H. Ganpatlal Kawad)
Partner
(Membership Number.204840)
UDIN: 25204840BMJMCA8489Place: BangaloreDate: 29/05/2025