We have audited the standalone financial statements of Polycab India Limited (the“Company”) which comprise the standalone balance sheet as at 31 March 2025, 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 2025, 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 judgment, 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 Group generates revenues from
To obtain sufficient appropriate audit evidence
Revenue from execution of EPC contracts is
i. sale of Goods including Wires and
with respect of recognition of revenue from
recognized over a period of time which usually
with respect to measurement of revenue
Cables and FMEG, and
sale of goods, our principal audit procedures,amongst others, include the following:
extend beyond a reporting period.
from execution of EPC contracts, our principalaudit procedures, amongst others, include the
ii. execution of EPC contracts
Contract revenue is measured based on the
following:
Revenue from sale of goods is recognisedwhen control of the product is transferred tothe customers and when there are no otherunfulfilled performance obligations. The actual
»
Compared the accounting policies in respectof revenue recognition with applicableaccounting standards to test for compliance;
proportion of contract costs incurred for workperformed to date relative to the estimatedtotal contract costs. One of the key estimatesinvolved in recognizing EPC contract revenue is
» Compared the accounting policies in respectof revenue recognition with applicableaccounting standards to test for compliance;
point in time when revenue is recognized varies
Tested the design, implementation and
the estimated total contract cost. It is used to
» Tested the design, implementation and
depending on the specific terms and conditions
operating effectiveness of key internal
determine the percentage of completion of the
of the sales contracts entered with customers.Revenue is a key performance indicator forthe Company considered by all stakeholders
financial controls for revenue recognitionalong with effectiveness of information
relevant performance obligation. This requiresthe Company to perform an initial assessmentof estimated total contract cost and further
financial controls in respect of recognitionof revenue from execution of EPC contracts
including management to evaluate performance
technology controls;
reassess these estimates on a periodic basis,
including relevant information technology
of the Company resulting in the risk of revenue
On a sample basis, tested revenue
including end of each reporting period.
controls. These include controls with respect
being overstated by recognition before control istransferred.
transactions recorded during the year,
Considering the complexity of the estimate
to estimation of total contract cost and
by verifying the underlying documents,
involved in measurement of total contract costs,
measurement of cost incurred to date,
We have accordingly identified the recognition of
including invoices and shipping documents
we have considered measurement of revenue
contract assets and contract revenues;
revenue from sale of goods as a key audit matter.
for assessment of fulfillment of performance
from execution of EPC contracts as a key auditmatter.
» On a sample basis, inspected key contractual
obligations completed during the year. We
terms with signed contracts and verified
analysed the timing of recognition of revenue
evidences of completed performance
and any unusual contractual terms;
obligations, costs incurred to date, invoices
On a sample basis, tested the invoice and
raised on customers, progress reports, basis of
shipping documents for revenue transactions
estimated cost to complete and any relevant
recorded during the period closer to the
correspondences with customers in respect of
year end and subsequent to the year end to
the said contracts;
verify recognition of revenue in the correct
» Tested journal entries related to revenue
period; and
recognised during the year based upon
Tested journal entries related to revenue
specified risk-based criteria, to identify
unusual or irregular items.
specified risk-based criteria, to identifyunusual or irregular items.
Inventory Valuation
See Note 15 to standalone financial statements
» Copper and aluminum-based inventory
Our audit procedures over inventory valuation
forms a significant part of the Company's
included the following:
inventory. The Company adopts a structured
» We tested the design, implementation
approach to the identification, quantification
and operating effectiveness of key internal
and hedging of risk of fluctuations in prices
financial controls, including controls over
of copper and aluminum through commodity
valuation of inventory and accounting of
derivative contracts.
derivative and hedging transactions;
» Inventories are measured at the lower of
» On a sample basis, tested the accuracy of
cost and net realizable value on first in first
cost of inventory by verifying the actual
out basis, except for inventories qualifying
purchase cost. Tested the net realisable value
as hedged items in a fair value hedge
by comparing actual cost with most recent
relationship. These inventories are measured
selling price;
at cost, adjusted for the hedging gain or loss
» On a sample basis, tested the hedging
on the hedged item.
relationship of eligible hedging instruments
We have considered Inventory Valuation as a keyaudit matter because of its size, the assumptionsused in the valuation and the complexity,which are relevant when determining theamounts recorded.
and hedged items and the correspondingadjustment of hedging gain or loss to thehedged item;
» We used the work of specialists for assistancein verifying hedge effectiveness requirementsof Ind AS 109, including the economicrelationship between the hedged item andthe hedging 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 judgmentand maintain professional skepticism throughout the audit. We also:
» Identify and assess the risks of material misstatement of the standalone financial
statements, 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 achievesfair 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 bythe 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, tothe 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 datedbetween 01 April 2025 to 17 April 2025 and taken on record by the Board ofDirectors, none of the directors is disqualified as on 31 March 2025 from beingappointed as a director in terms 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 tofinancial 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 accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the
best 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 2025on its financial position in its standalone financial statements - Refer Notes 35 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 fundsor share premium or any other sources or kind of funds) by the Company to orin any other person(s) or entity(ies), including foreign entities (“Intermediaries”),with the understanding, whether recorded in writing or otherwise, that theIntermediary shall directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Company(“Ultimate Beneficiaries”) or provide any guarantee, security or the like onbehalf 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 ournotice that has caused us to believe that the representations under sub¬clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain anymaterial 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 46(ii) 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 an
accounting software for maintaining its books of account which has a feature of recordingaudit trail (edit log) facility and the same has operated throughout the year for allrelevant transactions recorded in the software. Further, during the course of our audit, wedid not come across any instance of audit trail feature being tampered with. Additionally,where audit trail (edit log) facility was enabled and operated in the previous year, theaudit trail has been preserved by the Company as per the statutory requirements forrecord 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 by the Company to its directors during the current year is inaccordance 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 ofCorporate Affairs has not prescribed other details under Section 197(16) of the Act whichare 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 2025 ICAI UDIN:25111410BMNYLO9640