We have audited the accompanying StandaloneFinancial Statements of Crompton Greaves ConsumerElectricals Limited (“the Company”), which comprisethe Balance Sheet as at March 31, 2026, and theStatement of Profit and Loss (including OtherComprehensive Income), the Statement of Changes inEquity and the Statement of Cash Flows for the yearthen ended, and notes to the Standalone FinancialStatements, including material accounting policyinformation and other explanatory information(hereinafter referred to as the “Standalone FinancialStatements”).
In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidStandalone Financial Statements give the informationrequired by the Companies Act, 2013 (“the Act') inthe manner so required and give a true and fair viewin conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read withCompanies (Indian Accounting Standards) Rules, 2015,as amended (“Ind AS”) and other accounting principlesgenerally accepted in India, of the state of affairs of theCompany as at March 31, 2026, and its loss (includingother comprehensive income), changes in equity and itscash flows for the year ended on that date.
We conducted our audit of the Standalone FinancialStatements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Auditof the Standalone Financial Statements section ofour report. We are independent of the Company inaccordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to ouraudit of the Standalone Financial Statements underthe provisions of the Act and the Rules thereunder,and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the Codeof Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basisfor our opinion.
Key audit matters are those matters that, in ourprofessional judgment, were of most significance in
our audit of the Standalone Financial Statements ofthe current period. These matters were addressed inthe context of our audit of the Standalone FinancialStatements as a whole, and in forming our opinionthereon, and we do not provide a separate opinionon these matters. We have determined the mattersdescribed below to be the key audit matters to becommunicated in our report.
Sr. No.
Key Audit Matters
How the Key Audit Matters were addressed in our audit
1.
Impairment of investments in Butterfly
Our audit procedures with respect to this matter included, but
Gandhimathi Appliances Ltd. and associated
were not limited to, the following:
trademarks
a)
Obtained an understanding of the Company’s policies
(Refer Notes 2E and 3A to the Standalone
and procedures in respect of identification of impairment
Financial Statements)
indicators, performing the impairment testing and
During the year, as part of the annual impairmenttesting over the carrying value of investment in
recording and disclosing impairment charge along with keycontrols over this area.
subsidiary Butterfly Gandhimathi Appliances
b)
Evaluated the design, implementation and operating
Ltd (“BGMAL”) and associated trademark
effectiveness of internal controls over the Company's
balances, management identified certaininternal and external indicators. Consequently,basis an independent valuation exercise, animpairment loss aggregating to I 716.04 croreswas recognised by management. The impairment
c)
review of the impairment testing exercise.
Assessed reasonableness of management’s forecastingaccuracy by comparing the estimated revenue and marginprojections, with the actuals achieved.
charge encompasses an impairment of the
d)
Assessed the competence, capability, independence and
carrying value of investment in BGMAL amounting
objectivity of valuation expert engaged by management.
to I 683.13 crores and further an impairment of
e)
Involved our valuation experts to assist in examining
the associated trademarks amounting to I 32.91
and challenging the reasonableness of the Company’s
crores.
valuation model and reviewing the underlying basis for key
An impairment exercise involves a comparisonof the expected recoverable values withthe underlying carrying values of the assets.
In accordance with Ind AS 36, recoverable
f)
assumptions, including exit multiplier and discount rate.
Performed sensitivity analysis of changes to keyassumptions and its impact on the recoverable amount.
amount of investment was based on value in
g)
Verified the future operating cash flow forecasts with the
use (ViU) determined based on a discounted
business plan and budgets approved by the Board and
cash flows with exit multiple. Determination of
tested the mathematical accuracy of management’s
ViU involves significant estimates, assumptions
calculations.
and judgements as regards reasonableness of
h)
Assessed the adequacy and appropriateness of the
assumptions involved in developing projections ofentity’s financial performance, exit multiples, anddiscount rates to be considered.
disclosures made in the Standalone Financial Statements.
Considering the complexity of a valuation exercisewhich involves uncertainties with respect toforecasting future cash flows and significantjudgements over key assumptions, we consideredthis to be a significant risk requiring auditorjudgement and specialist involvement, and hencea key audit matter.
2.
Impairment of goodwill recognised on account
of demerger of the Consumer Business from
Crompton Greaves Limited (now CG Power andIndustrial Solutions Limited) and CromptonGreaves Consumer Electricals Limited in FY 2015
Obtained an understanding of the process of impairmentassessment and evaluated the design, implementationand operating effectiveness of internal controls over the
(Refer Notes 2D and 34 to the Standalone
accounting and impairment for goodwill arising out of
business reconstruction transaction.
The goodwill balance as of March 31, 2026
Assessed reasonableness of the future revenue and margin
of I 779.41 crores pertains to demerger of the
projections and the historical accuracy of the estimates.
Consumer Business from Crompton GreavesLimited (now CG Power and Industrial SolutionsLimited) and Crompton Greaves ConsumerElectricals Limited in FY 2015.
Involved our valuation experts to assist in examiningand challenging the reasonableness of the Company’svaluation model and reviewing the underlying basis for keyassumptions, including terminal growth rates and discountrates.
Sr. No. Key Audit Matters
Carrying value of goodwill is material as at
Evaluated the competence of management’s experts who
March 31, 2026 and inherent uncertainty isinvolved in forecasting and discounting futurecash flows, determination of discount andterminal growth rates for computing the valueand the assessment of its recoverability. This
assisted in the valuation.
Performed sensitivity analysis and evaluated whether anyreasonably possible changes in assumptions could lead toimpairment.
audit area is considered a key audit matter.
Compared the reasonableness of future operatingcash flow forecasts with the business plan and budgets
The Company has carried out an impairmentassessment using the value-in-use (ViU)calculations which is based on Discounted Cash
approved by the Board and tested the mathematicalaccuracy of management’s calculations.
Flow with Exit Multiple Method. Determination of
ViU involves significant estimates, assumptionsand judgements as regards reasonableness ofassumptions involved in developing projections ofentity’s financial performance, exit multiples, anddiscount rates to be considered.
3. Provision for warranties
(Refer Note 13 to Standalone Financial
Statements)
Obtained an understanding of the warranty claims process
The Company’s business involves the sale of
and evaluated the design, implementation and operating
products under warranty. The Company also hasback-to-back contractual arrangements with its
effectiveness of internal controls over the provision forwarranties.
vendors for reimbursement of costs relating to
Reviewed the historical data of warranty costs incurred in
products supplied by the vendors.
regard to the product sales, the trend of claims over the
Warranty provisions, which are inherentlyjudgmental in nature, are provided by theCompany to record an appropriate estimate ofthe costs of repairing and replacing products and
warranty period and the comparison between provisionspreviously recognised and actual expenses. Also reviewedthe historical data of recoveries from vendors againstwarranty claims and defective returns.
spares within the warranty period. The Company
Reviewed reconciliations of sales made during the year
estimates and provides for liability for product
with sales register to determine completeness on which
warranties in the year in which the products are
warranty obligation is determined.
sold. Further, the timing of outflows will vary basedon the actual warranty claims made during thewarranty period in the future.
Performed enquiry procedures and reviewed relevantdocuments in evaluating the accuracy of historicalinformation prepared by the management (including cost
The above estimations of warranty provisionrequire significant judgement considering thenature and timing of the cash outflows. Also,there is estimation uncertainty as regards to thetiming and the amount of the actual warrantyclaims that may devolve over the warranty period.Accordingly, provision for warranties has been
of repairs and returns).
Reviewed the recognition and appropriateness ofprovisions by verifying the computation of defectrates, vendors recovery and mathematical accuracy ofmanagement calculations and obtaining managementstatements, evidence and supporting documents.
determined by us to be a key audit matter.
Assessed the adequacy and appropriateness of therelevant disclosures made in the Standalone FinancialStatements.
Information Other than the StandaloneFinancial Statements and Auditor’s ReportThereon
The Company’s Management and Board of Directorsare responsible for the other information. The otherinformation comprises the information included in theManagement Discussion and Analysis and Director’sreport, but does not include the Standalone Financial
Statements and our auditor’s report thereon, which weobtained prior to the date of this auditor’s report.
Our opinion on the Standalone Financial Statementsdoes not cover the other information and we do notexpress any form of assurance conclusion thereon.
In connection with our audit of the StandaloneFinancial Statements, our responsibility is to read theother information identified above and, in doing so,
consider whether the other information is materiallyinconsistent with the Standalone Financial Statementsor our knowledge obtained in the audit, or otherwiseappears to be materially misstated. If, based on thework we have performed on the other information thatwe obtained prior to the date of this auditor’s report, wconclude that there is a material misstatement of thisother information, we are required to report that fact.We have nothing to report in this regard.
Responsibilities of Management and Boardof Directors for the Standalone FinancialStatements
The Company’s Management and Board of Directorsare responsible for the matters stated in section134(5) of the Act with respect to the preparation ofthese Standalone Financial statements that give atrue and fair view of the financial position, financialperformance, changes in equity and cash flows of theCompany in accordance with the accounting principle:generally accepted in India, including the IndianAccounting Standards specified under section 133 ofthe Act. This responsibility also includes maintenance o'adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets ofthe Company and for preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgmentsand estimates that are reasonable and prudent;and design, implementation and maintenance ofadequate internal financial controls, that wereoperating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant tothe preparation and presentation of the StandaloneFinancial Statement that give a true and fair view andare free from material misstatement, whether due tofraud or error.
In preparing the Standalone Financial Statements, theManagement and Board of Directors of the Companyare responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable,matters related to going concern and using the goingconcern basis of accounting unless the Board ofDirectors either intends to liquidate the Company or tocease operations, or has no realistic alternative but todo so.
The Management and Board of Directors are alsoresponsible for overseeing the Company's financialreporting process.
Auditor’s Responsibilities for the Audit of theStandalone Financial Statements
Our objectives are to obtain reasonable assuranceabout whether the Standalone Financial Statementsas a whole are free from material misstatement,whether due to fraud or error, and to issue an auditor’sreport that includes our opinion. Reasonable assuranceis a high level of assurance, but is not a guaranteethat an audit conducted in accordance with SAs willalways detect a material misstatement when it exists.Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate,they could reasonably be expected to influence theeconomic decisions of users taken on the basis of theseStandalone Financial Statements.
We give in “Annexure A” a detailed description ofAuditor’s responsibilities for Audit of the StandaloneFinancial Statements.
Report on Other Legal and RegulatoryRequirements
1. As required by the Companies (Auditor's Report)Order, 2020 (“the Order”), issued by the CentralGovernment of India in terms of sub-section (11)of section 143 of the Act, we give in “Annexure B” astatement on the matters specified in paragraphs3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, wereport that:
(a) We have sought and obtained all theinformation and explanations which tothe best of our knowledge and belief werenecessary for the purposes of our audit of theaforesaid Standalone Financial Statements.
(b) In our opinion, proper books of account asrequired by law relating to preparation of theaforesaid Standalone Financial Statementshave been kept by the Company so far as itappears from our examination of those books.
(c) The Balance Sheet, the Statement of Profitand Loss (including other comprehensiveincome), the Statement of Changes in Equity
The Board of Directors of the Companyhave proposed final dividend for the yearwhich is subject to the approval of themembers at the ensuing Annual GeneralMeeting. The dividend declared is inaccordance with section 123 of the Actto the extent it applies to declarationof dividend. (Refer Note 10(h) to theStandalone Financial Statements)
vi. Based on our examination, whichincluded test checks, the Companyhas used certain accounting softwaresfor maintaining its books of accountwhich has a feature of recording audittrail (edit log) facility and the same hasoperated throughout the year for allrelevant transactions recorded in thesoftware. Further, during the course ofour audit we did not come across anyinstance of audit trail feature beingtampered with. Additionally, the audittrail has been preserved by the Companyas per the statutory requirements forrecord retention.
and the Statement of Cash Flows dealtwith by this Report are in agreement withthe books of account maintained for thepurpose of preparation of the StandaloneFinancial Statements.
(d) In our opinion, the aforesaid StandaloneFinancial Statements comply with the Ind ASspecified under Section 133 of the Act.
(e) On the basis of the written representationsreceived from the directors as on
March 31, 2026 taken on record by theBoard of Directors, none of the directors aredisqualified as on March 31, 2026 from beingappointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of theinternal financial controls with referenceto Standalone Financial Statements of theCompany and the operating effectiveness ofsuch controls, refer to our separate Report in“Annexure C”.
(g) With respect to the other matters to beincluded in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit andAuditors) Rules, 2014, in our opinion and to thebest of our information and according to theexplanations given to us:
i. The Company has disclosed the impactof pending litigations on its financialposition in its Standalone FinancialStatements - Refer Note 27 to theStandalone Financial Statements.
ii. The Company did not have any long-termcontracts including derivative contractsfor which there were any materialforeseeable losses.
iii. There has been no delay in transferringamounts, to the Investor Education andProtection Fund by the Company duringthe year ended March 31, 2026.
iv. a. To the best of our knowledge and
belief, as disclosed in the note 45 tothe Standalone Financial Statements,no funds have been advanced orloaned or invested (either from
borrowed funds or share premium orany other sources or kind of funds)by the Company to or in any otherperson(s) or entity(ies), includingforeign entities (“Intermediaries”),with the understanding, whetherrecorded in writing or otherwise,that the Intermediary shall, directlyor indirectly lend or invest in otherpersons or entities identified inany manner whatsoever by or onbehalf of the Company (“UltimateBeneficiaries”) or provide anyguarantee, security or the like onbehalf of the Ultimate Beneficiaries.
b. To the best of our knowledge andbelief, as disclosed in the note
45 to the Standalone FinancialStatements, no funds have beenreceived by the Company from anyperson(s) or entity(ies), includingforeign entities (“Funding Parties”),with the understanding, whetherrecorded in writing or otherwise,that the Company shall, directlyor indirectly, lend or invest in otherpersons or entities identified in anymanner whatsoever by or on behalfof the Funding Party (“UltimateBeneficiaries”) or provide anyguarantee, security or the like onbehalf of the Ultimate Beneficiaries.
c. Based on the audit proceduresperformed that have beenconsidered reasonable andappropriate in the circumstances,nothing has come to our notice thathas caused us to believe that therepresentations under sub-clause(i) and (ii) of Rule 11(e) contain anymaterial mis-statement.
v. The final dividend paid by the Companyduring the year in respect of the samedeclared for the previous year is inaccordance with section 123 of theCompanies Act 2013 to the extent itapplies to payment of dividend.
3. In our opinion, according to information,
explanations given to us, the remuneration paid orprovided by the Company to its directors is withinthe limits laid prescribed under Section 197 readwith Schedule V of the Act.
For M S K A & Associates LLP
(Formerly known as M S K A & Associates)
Chartered Accountants
ICAI Firm Registration No.: 105047W/W101187
Vishal Vilas Divadkar
Partner
Membership No.: 118247
UDIN: 26118247WFMHA3301
Place: Mumbai
Date: May 13, 2026