We have audited the standalone financial statements of Polycab India Limited (the“Company”) which comprise the standalone balance sheet as at 31 March 2026, and thestandalone statement of profit and loss (including other comprehensive income), standalonestatement of changes in equity and standalone statement of cash flows for the year thenended, and notes to the standalone financial statements, including material accountingpolicies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us,the aforesaid standalone financial statements give the information required by the CompaniesAct, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India, of the state of affairs of the Company asat 31 March 2026, and its profit and other comprehensive loss, changes in equity and its cashflows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified underSection 143(10) of the Act. Our responsibilities under those SAs are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilitiesin 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 onthe standalone financial statements.
Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the standalone financial statements of the current period. Thesematters were addressed in the context of our audit of the standalone financial statementsas a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters.
The key audit matter
How the matter was addressed in our audit
The Company generates revenues from
To obtain sufficient appropriate audit evidence
i. sale of Goods including Wires and Cables and
with respect of recognition of revenue from sale
FMEG, and
of goods, our principal audit procedures, amongst
ii. execution of EPC contracts
Revenue from sale of goods is recognised when
others, include the following:
• Compared the accounting policies in respect ofrevenue recognition with applicable accounting
control of the product is transferred to the
standards to test for compliance;
customers and when there are no other unfulfilledperformance obligations. The actual point in time
• Tested the design, implementation and
when revenue is recognized varies depending on
operating effectiveness of key internal financial
the specific terms and conditions of the sales
controls for revenue recognition, including
contracts entered with customers.
controls over period-end revenue recognition,
Revenue is a key performance indicator for
along with effectiveness of informationtechnology controls;
the Company considered by all stakeholdersincluding management to evaluate performance
• We verified the terms of the revenue contracts,
of the Company resulting in the risk of revenue
invoices, shipping documents and other
being overstated by recognition before control is
underlying records for a sample of the revenue
transferred.
recognized at the period end to test that the
We have accordingly identified the recognition of
revenue has been recognized in the correctperiod; and
revenue from sale of goods as at period end as akey audit matter.
• Tested journal entries related to revenue
recognised during the year based uponspecified risk-based criteria, to identify unusualor irregular items.
Revenue from execution of EPC contracts is
recognized over a period of time which usually
with respect to measurement of revenue from
extend beyond a reporting period.
execution of EPC contracts, our principal audit
Contract revenue is measured based on the
procedures, amongst others, include the following:
proportion of contract costs incurred for work
• Compared the accounting policies in respect of
performed to date relative to the estimated
revenue recognition with applicable accounting
total contract costs. One of the key estimates
involved in recognizing EPC contract revenue is
the estimated total contract cost. It is used to
determine the percentage of completion of the
controls in respect of recognition of revenue
relevant performance obligation. This requires
from execution of EPC contracts including
the Company to perform an initial assessment of
relevant information technology controls. These
estimated total contract cost and further reassess
include controls with respect to estimation
these estimates on a periodic basis to include
of total contract cost and measurement of
future activities to be performed in the contract,
cost incurred to date, contract assets and
additional costs to be incurred and identificationof any loss contracts including at the end of each
contract revenues;
reporting period.
• On a sample basis, inspected key contractualterms with signed contracts and verified
Considering the complexity of the estimate
evidences of completed performance
involved in measurement of total contract costs,
obligations, costs incurred to date, invoices
extent of management judgement and the
raised on customers, progress reports, basis of
significance of these amounts, we have considered
estimated cost to complete and any relevant
measurement of revenue from execution of EPC
correspondences with customers in respect of
contracts as a key audit matter.
the said contracts;
• On a sample basis, evaluated reasonablenessof Management's judgements and assumptionson an initial estimated cost to complete andsubsequent reassessments by using pastexperience and compairing the variations inestimated total contract costs on a periodicbasis; and
• Tested journal entries related to revenuerecognised during the year based uponspecified risk-based criteria, to identify unusualor irregular items.
Copper and aluminum-based inventory forms a
Our audit procedures over inventory valuation
significant part of the Company's inventory. The
included the following:
Company adopts a structured approach to the
• We tested the design, implementation and
identification, quantification and hedging of risk
of fluctuations in prices of copper and aluminum
controls, including controls over valuation of
through commodity derivative contracts.
inventory and accounting of derivative andhedging transactions;
Inventories are measured at the lower of cost and
• On a sample basis, tested the accuracy of
net realizable value. For inventories qualifying as
cost of inventory by verifying the actual
hedged items in a fair value hedge relationship,
purchase cost;
these are measured at cost, adjusted for the
• On a sample basis, tested the hedging
hedging gain or loss on the hedged item.
relationship of eligible hedging instrumentsand hedged items and the corresponding
We have considered Inventory Valuation as a key
adjustment of hedging gain or loss to the
audit matter because of its size, the assumptions
hedged item; and
used in the valuation and the complexity, which
• We used the work of specialists for assistance
are relevant when determining the amounts
in verifying hedge effectiveness requirements
recorded.
of Ind AS 109, including the economicrelationship between the hedged item and thehedging instrument.
The Company's Management and Board of Directors are responsible for the other information.The other information comprises the information included in the Company's annual report, butdoes not include the financial statements and auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility isto read the other information and, in doing so, consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If, based on the work we haveperformed, 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.
The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs, profit/ loss and othercomprehensive income, changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India, including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparationand presentation of the standalone financial statements that give a true and fair view and arefree from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Management and Board of Directorsare 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 ofaccounting unless the Board of Directors either intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Our objectives are to obtain reasonable assurance about whether the standalone financialstatements 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 highlevel of assurance, but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraud orerror and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these standalonefinancial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financialstatements, whether due to fraud or error, design and perform audit procedures responsiveto those risks, and obtain audit evidence that is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act,we are also responsible for expressing our opinion on whether the company has adequateinternal financial controls with reference to financial statements in place and the operatingeffectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Management and Boardof Directors.
• Conclude on the appropriateness of the Management and Board of Directors use of thegoing concern basis of accounting in preparation of standalone financial statements and,based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company's ability to continueas a going concern. If we conclude that a material uncertainty exists, we are required todraw attention in our auditor's report to the related disclosures in the standalone financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditor's report. However, futureevents or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financialstatements, including the disclosures, and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and to communicate with them allrelationships 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 thosematters that were of most significance in the audit of the standalone financial statements ofthe current period and are therefore the key audit matters. We describe these matters in ourauditor'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 inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”) issued by
the Central Government of India in terms of Section 143(11) of the Act, we give in the
“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
2 A. 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 thebest of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books except for thematter stated in the paragraph 2(B)(f) below on reporting under Rule 11(g) of theCompanies (Audit and Auditors) Rules, 2014.
c. The standalone balance sheet, the standalone statement of profit and loss(including other comprehensive income), the standalone statement of changes inequity and the standalone statement of cash flows dealt with by this Report are inagreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the IndAS specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors dated 01April 2026 and 02 April 2026 taken on record by the Board of Directors, none of thedirectors is disqualified as on 31 March 2026 from being appointed as a director interms of Section 164(2) of the Act.
f. The modification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the paragraph 2(A)(b) above on reportingunder Section 143(3)(b) of the Act and paragraph 2(B)(f) below on reporting underRule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
g. With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of suchcontrols, refer to our separate Report in “Annexure B”.
B. With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to thebest of our information and according to the explanations given to us:
a. The Company has disclosed the impact of pending litigations as at 31 March 2026on its financial position in its standalone financial statements - Refer Notes 35A and36 to the standalone financial statements.
b. The Company has made provision, as required under the applicable law oraccounting standards, for material foreseeable losses, if any, on long-termcontracts including derivative contracts - Refer Note 12B and 21B to the standalonefinancial statements.
c. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
d (i) The management has represented that, to the best of their knowledge and
belief, as disclosed in the Note 11(G) to the standalone financial statements, nofunds have been advanced or loaned or invested (either from borrowed funds orshare premium or any other sources or kind of funds) by the Company to or in anyother person(s) or entity(ies), including foreign entities (“Intermediaries”), with theunderstanding, whether recorded in writing or otherwise, that the Intermediaryshall directly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) orprovide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented that, to the best of their knowledge andbelief, as disclosed in the Note 11(G) to the standalone financial statements,no funds have been received by the Company from any person(s) or entity(ies),including foreign entities (“Funding Parties”), with the understanding, whetherrecorded in writing or otherwise, that the Company shall directly or indirectly,lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Funding Parties (“Ultimate Beneficiaries”) or provide anyguarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures that have been considered reasonable andappropriate in the circumstances performed, nothing has come to our notice thathas caused us to believe that the representations under sub-clause (i) and (ii) ofRule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e. The final dividend paid by the Company during the year, in respect of the samedeclared for the previous year, is in accordance with Section 123 of the Act to theextent it applies to payment of dividend.
As stated in Note 47(i) to the standalone financial statements, the Board ofDirectors of the Company have proposed final dividend for the year which is subjectto the approval of the members at the ensuing Annual General Meeting. Thedividend declared is in accordance with Section 123 of the Act to the extent it appliesto declaration of dividend.
f. Based on our examination which included test checks, the Company has used anaccounting software for maintaining its books of account which has a feature ofrecording audit trail (edit log) facility and the same has operated throughout theyear for all relevant transactions recorded in the software. Further, during thecourse of our audit, we did not come across any instance of audit trail feature beingtampered with. Additionally, where audit trail (edit log) facility was enabled andoperated in the previous years, the audit trail has been preserved by the Companyas per the statutory requirements for record retention.
C. With respect to the matter to be included in the Auditor's Report under Section 197(16) ofthe Act:
In our opinion and according to the information and explanations given to us, theremuneration paid/payable by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid/payableto any director is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) of theAct which are required to be commented upon by us.
For B S R & Co. LLP
Chartered AccountantsFirm's Registration No.:101248W/W-100022
Sreeja Marar
Partner
Place: Mumbai Membership No.: 111410
Date: 06 May 2026 ICAI UDIN:26111410UCBGPS9321