Key audit matters
How our audit addressed the key audit matter
Estimation of year-end trade accruals towards rebates
Our audit procedures included, amongst others:
and discounts (Refer Note 2.3 (b) and 27 to standalonefinancial statements "trade accruals towards rebate and
• We read and evaluated the Company’s policies for revenuerecognition and assessed its compliance with Ind AS 115
discounts")
‘Revenue from contracts with customers’;
The Company makes sales to distributors/retailers who furthersells the products in the market. The Company measures itsRevenue from Sale of Goods net off Rebates & Discountsgiven to customers.
The provision for rebates and discounts involves estimation
• We obtained an understanding, evaluated the design andtested the operating effectiveness of internal controlsrelated to provisioning for trade accruals towardsrebates & discounts.
and judgement in determination of the likelihood of the amount
The estimation of the trade accruals towards rebates and
• We performed the following tests for a sample of
discount requires evaluation of various schemes for rebates
transactions related to provisioning for trade accruals
and discounts, which are often revised considering the market
towards rebates & discounts:
and competitive factors. Management, amongst other things,
• Read the terms of schemes for rebates and discounts as
considers historical sales and sales forecast for the respective
approved by authorized personnel.
schemes to determine the likely amount at which the tradeaccruals are expected to be settled.
We identified the provision of trade accruals towards rebates
• Assessed computation (including quantity and rate)of provisioning for trade accruals towards rebates &discounts by comparing it with the schemes, past trends
and discounts as a key audit matter considering the quantum,
and evaluated the reasons for deviation, if any.
estimation and judgement involved in determination of thelikelihood of the amount at which these are expected to besettled and the amount of trade accruals as at March 31,2026, and materiality of rebates & discounts to the standalone
• Performed analytical procedures relating to tradeaccruals towards rebates and discounts including cut¬offs and tested manual journal entries in respect ofrebates and discounts.
financial statements.
• We circularized requests for balance confirmations fromreceivables and examined responses.
• We read and assessed the relevant disclosures madewithin the standalone financial statements in accordancewith Indian Accounting Standard and Schedule III to theCompanies Act, 2013
We have determined that there are no other key audit matters to communicate in our report.
We have audited the accompanying standalone financialstatements of Gulf Oil Lubricants India Limited (“theCompany”), which comprise the Balance sheet as at March31, 2026, the Statement of Profit and Loss, including thestatement of Other Comprehensive Income, the Cash FlowStatement and the Statement of Changes in Equity for the yearthen ended, and notes to the standalone financial statements,including a summary of material accounting policies and otherexplanatory information.
In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid standalonefinancial statements give the information required by theCompanies Act, 2013, as amended (“the Act”) in the mannerso required and give a true and fair view in conformity withthe accounting principles generally accepted in India, of thestate of affairs of the Company as at March 31,2026, its profitincluding other comprehensive income, its cash flows and thechanges in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statementsin accordance with the Standards on Auditing (SAs), asspecified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the ‘Auditor’sResponsibilities for the Audit of the Standalone FinancialStatements’ section of our report. We are independent ofthe Company in accordance with the ‘Code of Ethics’ issued
by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit ofthe financial statements under the provisions of the Act andthe Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements andthe Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of thestandalone financial statements for the financial year endedMarch 31,2026. These matters were addressed in the contextof our audit of the standalone financial statements as a whole,and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. For each matter below, ourdescription of how our audit addressed the matter is providedin that context.
We have determined the matters described below to be the keyaudit matters to be communicated in our report. We have fulfilledthe responsibilities described in the Auditor’s responsibilitiesfor the audit of the standalone financial statements section ofour report, including in relation to these matters. Accordingly,our audit included the performance of procedures designed torespond to our assessment of the risks of material misstatementof the standalone financial statements. The results of our auditprocedures, including the procedures performed to address thematters below, provide the basis for our audit opinion on theaccompanying standalone financial statements.
Information Other than the Financial Statementsand Auditor’s Report Thereon
The Company’s Board of Directors is responsible for theother information. The other information comprises theinformation included in the Annual report, but does notinclude the standalone financial statements and our auditor’sreport thereon.
Our opinion on the standalone financial statements does notcover the other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the other informationand, in doing so, consider whether such other informationis materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appearsto be materially misstated. If, based on the work we haveperformed, we conclude that there is a material misstatementof this other information, we are required to report that fact.We have nothing to report in this regard.
Responsibilities of Management for theStandalone Financial Statements
The Company’s Board of Directors is responsible for thematters stated in section 134(5) of the Act with respect tothe preparation of these standalone financial statements thatgive a true and fair view of the financial position, financialperformance including other comprehensive income, cash
flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India,including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies(Indian Accounting Standards) Rules, 2015, as amended.This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company andfor preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies;making judgments and estimates that are reasonable andprudent; and the design, implementation and maintenanceof adequate internal financial controls, that were operatingeffectively for ensuring the accuracy and completenessof the accounting records, relevant to the preparation andpresentation of the standalone financial statements that givea true and fair view and are free from material misstatement,whether due to fraud or error.
In preparing the standalone financial statements, managementis responsible for assessing the Company’s ability to continueas a going concern, disclosing, as applicable, matters relatedto going concern and using the going concern basis ofaccounting unless management either intends to liquidatethe Company or to cease operations, or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeingthe Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of theStandalone Financial Statements
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a wholeare free from material misstatement, whether due to fraudor error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, theycould reasonably be expected to influence the economicdecisions of users taken on the basis of these standalonefinancial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatementof the standalone financial statements, whether dueto fraud or error, design and perform audit proceduresresponsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain an understanding of internal control relevant tothe audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing ouropinion on whether the Company has adequate internalfinancial controls with reference to financial statementsin place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policiesused and the reasonableness of accounting estimatesand related disclosures made by management.
• Conclude on the appropriateness of management’s useof the going concern basis of accounting and, basedon the audit evidence obtained, whether a materialuncertainty exists related to events or conditions thatmay cast significant doubt on the Company’s abilityto continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosuresin the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the
date of our auditor’s report. However, future events orconditions may cause the Company to cease to continueas a going concern.
• Evaluate the overall presentation, structure and contentof the standalone financial statements, including thedisclosures, and whether the standalone financialstatements represent the underlying transactions andevents in a manner that achieves fair presentation.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with astatement that we have complied with relevant ethicalrequirements regarding independence, and to communicatewith them all relationships and other matters that mayreasonably be thought to bear on our independence, andwhere applicable, related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of mostsignificance in the audit of the standalone financial statementsfor the financial year ended March 31,2026 and are thereforethe key 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,we determine that a matter should not be communicated inour report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and RegulatoryRequirements
1. As required by the Companies (Auditor’s Report) Order,2020 (“the Order”), issued by the Central Government ofIndia in terms of sub-section (11) of section 143 of theAct, based on our audit, we give in the “Annexure 1” astatement on the matters specified in paragraphs 3 and4 of the Order.
2. As required by Section 143(3) of the Act, we report, tothe extent applicable, that:
(a) We have sought and obtained all the informationand explanations which to the best of ourknowledge and belief were necessary for thepurposes of our audit;
(b) In our opinion, proper books of account as requiredby law have been kept by the Company so far as
it appears from our examination of those books,except for the matter stated in paragraph (i) belowon reporting under Rule 11(g)
(c) The Balance Sheet, the Statement of Profit and Lossincluding the Statement of Other ComprehensiveIncome, the Cash Flow Statement and Statementof Changes in Equity dealt with by this Report arein agreement with the books of account;
(d) In our opinion, the aforesaid standalone financialstatements comply with the Accounting Standardsspecified under Section 133 of the Act, read withCompanies (Indian Accounting Standards) Rules,2015, as amended;
(e) On the basis of the written representations receivedfrom the directors as on March 31, 2026 takenon record by the Board of Directors, none of thedirectors is disqualified as on March 31,2026 frombeing appointed as a director in terms of Section164 (2) of the Act;
(f) The modifications relating to the maintenance ofaccounts and other matters connected therewithare as stated in paragraph (i) below;
(g) With respect to the adequacy of the internal financialcontrols with reference to these standalone financialstatements and the operating effectiveness of suchcontrols, refer to our separate Report in “Annexure2” to this report;
(h) In our opinion, the managerial remuneration forthe year ended March 31, 2026 has been paid/ provided by the Company to its directors inaccordance with the provisions of section 197 readwith Schedule V to the Act;
(i) With respect to the other matters to be includedin the Auditor’s Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules,2014, as amended in our opinion and to thebest of our information and according to theexplanations given to us:
i. The Company has disclosed the impact ofpending litigations on its financial position in itsstandalone financial statements - Refer Note38 to the standalone financial statements;
ii. The Company did not have any long¬term contracts including derivativecontracts for which there were any materialforeseeable losses;
iii. There has been no delay in transferringamounts, required to be transferred, tothe Investor Education and ProtectionFund by the Company
iv. a) The management has represented
that, to the best of its knowledge andbelief, and as disclosed in note 51 tothe standalone financial statements, nofunds have been advanced or loaned orinvested (either from borrowed funds orshare premium or any other sources orkind of funds) by the Company to or in anyother person(s) or entity(ies), includingforeign entities (“Intermediaries”), withthe understanding, whether recorded inwriting or otherwise, that the Intermediaryshall, whether, directly or indirectly lendor invest in other persons or entitiesidentified in any manner whatsoever byor on behalf of the Company (“UltimateBeneficiaries”) or provide any guarantee,security or the like on behalf of theUltimate Beneficiaries;
b) The management has represented that, tothe best of its knowledge and belief, andas disclosed in note 51 to the standalonefinancial statements, no funds havebeen received by the Company fromany person or entity, including foreignentities (“Funding Parties”), with theunderstanding, whether recorded inwriting or otherwise, that the Companyshall, whether, directly or indirectly, lendor invest in other persons or entitiesidentified in any manner whatsoeverby or on behalf of the Funding Party(“Ultimate Beneficiaries”) or provide anyguarantee, security or the like on behalfof the Ultimate Beneficiaries; and
c) Based on such audit proceduresperformed that have been consideredreasonable and appropriate in thecircumstances, nothing has cometo our notice that has caused us tobelieve that the representations undersub-clause (a) and (b) contain anymaterial misstatement.
v. The final dividend paid by the Company duringthe year in respect of the same declared
for the previous year is in accordance withsection 123 of the Act to the extent it appliesto payment of dividend.
The interim dividend declared and paid by theCompany during the year and until the date ofthis audit report is in accordance with section123 of the Act.
As stated in note 45(B) to the standalonefinancial statements, the Board of Directorsof the Company have proposed final dividendfor the year which is subject to the approvalof the members at the ensuing AnnualGeneral Meeting. The dividend declared is inaccordance with section 123 of the Act to theextent it applies to declaration of dividend.
vi. Based on our examination which includedtest checks, the Company has used SAPaccounting software for maintaining its booksof account which has a feature of recordingaudit trail (edit log) facility and the same hasoperated throughout the year for all relevanttransactions recorded in the software except
that, audit trail feature is not available forcertain changes made, if any, using privileged/administrative access rights to the applicationand underlying database, as described in note55 to the standalone financial statements.Further, during the course of our audit wedid not come across any instance of audittrail feature being tampered with, in respectof accounting software where the audit trailhas been enabled. Additionally, the audittrail of prior years has been preserved by theCompany as per the statutory requirementsfor record retention to the extent it wasenabled and recorded in the respective years.
For S R B C & CO LLP
Chartered AccountantsICAI Firm Registration Number: 324982E/E300003
per Anil Jobanputra
Partner
Place: Mumbai Membership Number: 110759
Date: May 27, 2026 UDIN: 26110759CXAEUS7507