Key audit matters
How our audit addressed the key audit matter
Revenue from sale of products (as described in Note 2.1B of the standalone Ind AS financial statements)
The Company's revenue is derived primarily from sale of goods.The Company is engaged in manufacturing, trading and selling ofTextiles (Yarn, Terry Towels & Bedsheets) and Paper & Chemicals.Revenue from sale of goods is recognised at a point in time whenperformance obligation is satisfied and is based on the transfer ofcontrol to the customer as per terms of the contract.
Revenue recognition has been identified as a key audit matteras there could be incentives or external pressures to meetexpectations resulting in revenue being overstated or recognisedbefore the control has been transferred.
In view of the significance of the matter, our procedures included
the following:
• We assessed the appropriateness of the Company'saccounting policies for revenue recognition by comparingwith applicable accounting standards.
• We evaluated the design, implementation and operatingeffectiveness of key internal controls over recognition ofrevenue.
• On a sample basis, we tested the revenue transactionsrecorded during the year by verifying the underlyingdocuments to assess whether revenue is recognisedappropriately when control is transferred.
•
We tested, on a sample basis specific revenue transactionrecorded near the financial year-end date to assess whetherrevenue (including export incentives) is recognised in thecorrect financial period in which control is transferred.
We scrutinised manual journal entries related to revenuerecognised during the year based upon specified risk-basedcriteria, to identify unusual or irregular items.
We verified the adequacy of disclosures as per applicableaccounting standards.
We performed analytical review procedures to assess anyunusual trend.
We have audited the accompanying standalone Ind ASfinancial statements of Trident Limited ("the Company"),which comprise the Balance sheet as at March 31, 2025,the Statement of Profit and Loss, including the statementof Other Comprehensive loss, the Cash Flow Statement andthe Statement of Changes in Equity for the year then ended,and notes to the standalone Ind AS financial statements,including a summary of material accounting policies andother explanatory information in which are included thefinancial statements of Trident Limited Employee WelfareTrust which have been audited by the other auditor for theyear ended on that date.
In our opinion and to the best of our information andaccording to the explanations given to us, and based onthe consideration of report of other auditor on separatefinancial statements and on the other financial informationof the Trident Limited Employee Welfare Trust, the aforesaidstandalone Ind AS financial statements give the informationrequired by the Companies Act, 2013, as amended ("the Act")in the manner so required and give a true and fair view inconformity with the accounting principles generally acceptedin India, of the state of affairs of the Company as at March31, 2025, its profit including other comprehensive loss, itscash flows and the changes in equity for the year ended onthat date.
We conducted our audit of the standalone Ind AS financialstatements in accordance with the Standards on Auditing(SAs), as specified under section 143(10) of the Act.Our responsibilities under those Standards are furtherdescribed in the 'Auditor's Responsibilities for the Audit ofthe Standalone Ind AS Financial Statements' section of ourreport. We are independent of the Company in accordancewith the 'Code of Ethics' issued by the Institute of Chartered
Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules thereunder,and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our auditopinion on the standalone Ind AS financial statements.
We draw attention to Note 53 of the standalone Ind ASfinancial statements relating to a search under Section 132of the Income Tax Act, 1961 conducted by the Income TaxDepartment at certain locations of the Company includingits manufacturing locations and its Indian subsidiaries andresidence of few of its employees/key managerial personnel.
Our opinion is not modified in respect of this matter.
Key audit matters are those matters that, in our professionaljudgement, were of most significance in our audit of thestandalone Ind AS financial statements for the financial yearended March 31, 2025. These matters were addressed inthe context of our audit of the standalone Ind AS financialstatements as a whole, and in forming our opinion thereon,and we do not provide a separate opinion on these matters.For each matter below, our description of how our auditaddressed the matter is provided in that context.
We have determined the matter described below to be thekey audit matter to be communicated in our report. Wehave fulfilled the responsibilities described in the Auditor'sresponsibilities for the audit of the standalone Ind AS financialstatements section of our report, including in relation to thismatter. Accordingly, our audit included the performance ofprocedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind ASfinancial statements. The results of our audit procedures,including the procedures performed to address the matterbelow, provide the basis for our audit opinion on theaccompanying standalone Ind AS financial statements.
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 Ind AS financial statements andour auditor's report thereon.
Our opinion on the standalone Ind AS financial statementsdoes not cover the other information and we do not expressany form of assurance conclusion thereon.
In connection with our audit of the standalone Ind ASfinancial statements, our responsibility is to read theother information and, in doing so, consider whethersuch other information is materially inconsistent with thefinancial statements, or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If,based on the work we have performed, we conclude thatthere is a material misstatement of this other information,we are required to report that fact. We have nothing toreport in this regard.
The Company's Board of Directors is responsible forthe matters stated in section 134(5) of the Act withrespect to the preparation of these standalone Ind ASfinancial statements that give a true and fair view ofthe financial position, financial performance includingother comprehensive income, cash flows and changes inequity of the Company in accordance with the accountingprinciples generally accepted in India, including the IndianAccounting Standards (Ind AS) specified under section 133of the Act read with the Companies (Indian AccountingStandards) Rules, 2015, as amended. This responsibilityalso includes maintenance of adequate accountingrecords in accordance with the provisions of the Actfor safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities;selection and application of appropriate accountingpolicies; making judgements and estimates that are
reasonable and prudent; and the design, implementationand maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracyand completeness of the accounting records, relevant tothe preparation and presentation of the standalone Ind ASfinancial statements that give a true and fair view and arefree from material misstatement, whether due to fraudor error.
In preparing the standalone Ind AS financial statements,management is responsible for assessing the Company'sability to continue as a going concern, disclosing, asapplicable, matters related to going concern and using thegoing concern basis of accounting unless managementeither intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Our objectives are to obtain reasonable assurance aboutwhether the standalone Ind AS financial statements asa whole are free from material misstatement, whetherdue to fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an auditconducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatements canarise from fraud or error and are considered material if,individually or in the aggregate, they could reasonablybe expected to influence the economic decisions ofusers taken on the basis of these standalone I nd ASfinancial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgement and maintain professionalskepticism throughout the audit. We also:
• Identify and assess the risks of material misstatementof the standalone Ind AS financial statements, whetherdue to fraud or error, design and perform auditprocedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide abasis for 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, orthe override 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 expressingour opinion on whether the Company has adequateinternal financial controls with reference to financialstatements in place and the operating effectiveness ofsuch 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 conditionsthat may cast significant doubt on the Company'sability to continue as a going concern. If we concludethat a material uncertainty exists, we are required todraw attention in our auditor's report to the relateddisclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtainedup to the date of our auditor's report. However, futureevents or conditions may cause the Company to ceaseto continue as a going concern.
• Evaluate the overall presentation, structure andcontent of the standalone Ind AS financial statements,including the disclosures, and whether the standaloneInd AS financial statements represent the underlyingtransactions and events in a manner that achievesfair presentation.
• Obtain sufficient appropriate audit evidence regardingthe financial information of the Company of which weare the independent auditors to express an opinionon the standalone Ind AS financial statements. Weare responsible for the direction, supervision andperformance of the audit of the financial statementsof the components which have been audited by us. Forthe Trident Limited Employee Welfare Trust includedin the standalone Ind AS financial statements, whichhave been audited by other auditor, such other auditorremains responsible for the direction, supervision andperformance of the audits carried out by them. Weremain solely responsible for our audit opinion.
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 weidentify during our audit.
We also provide those charged with governance witha statement that we have complied with relevantethical requirements regarding independence, and tocommunicate with them all relationships and othermatters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.
From the matters communicated with those chargedwith governance, we determine those matters that wereof most significance in the audit of the standalone Ind ASfinancial statements for the financial year ended March31, 2025, and are therefore the key audit matters. Wedescribe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, wedetermine that a matter should not be communicated inour report because the adverse consequences of doingso would reasonably be expected to outweigh the publicinterest benefits of such communication.
We did not audit the financial statements and other financialinformation, in respect of Trident Limited EmployeeWelfare Trust whose financial statements include totalassets of Rs. 1,462.2 Million as at March 31, 2025, totalrevenues of Rs. 1,008.1 Million and net cash inflows of Rs.1,144.1 Million for the year ended on that date (also refernote 60 of standalone Ind AS financial statements). Thesefinancial statements and other financial information ofthe Trident Limited Employee Welfare Trust have beenaudited by other auditor, whose financial statements,other financial information and auditor's report hasbeen furnished to us by the Management. Our opinionon the standalone Ind AS financial statements, in so faras it relates to the amounts and disclosures included inrespect of Trident Limited Employee Welfare Trust, andour report on Other Legal and Regulatory Requirementsbelow is based solely on the report of such other auditor.Our opinion is not modified in respect of this matter.
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) ofsection 143 of the Act, based on our audit and onthe consideration of report of the other auditoron financial statements and the other financialinformation of Trident Limited Employee WelfareTrust, as noted in the 'Other Matter' paragraph wegive in the "Annexure 1" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. Section 143(3) of the Act is not applicable to TridentLimited Employee Welfare Trust. As required bySection 143(3) of the Act, we report to the extentapplicable, 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) I n our opinion, proper books of account asrequired by law have been kept by the Companyso far as it appears from our examination ofthose books except for the matters stated in theparagraph 2(j)(vi) below on reporting under Rule
11(g);
(c) The Balance Sheet, the Statement of Profitand Loss including the Statement of OtherComprehensive loss, the Cash Flow Statementand Statement of Changes in Equity dealt withby this Report are in agreement with the booksof account;
(d) In our opinion, the aforesaid standalone Ind ASfinancial statements comply with the AccountingStandards specified under Section 133 of theAct, read with Companies (Indian AccountingStandards) Rules, 2015, as amended;
(e) The matter described in Emphasis of Matter- Income Tax search paragraph above, in ouropinion, may not have an adverse effect on thefunctioning of the Company;
(f) On the basis of the written representationsreceived from the directors as on March 31,2025, taken on record by the Board of Directors,none of the directors is disqualified as on March31, 2025, from being appointed as a director interms of Section 164 (2) of the Act;
(g) The modification relating to the maintenance ofaccounts and other matters connected therewithare as stated in the paragraph 2(b) above onreporting under Section 143(3)(b) and paragraph2(j)(vi) below on reporting under Rule 11(g)
(h) With respect to the adequacy of the internalfinancial controls with reference to standaloneInd AS financial statements and the operatingeffectiveness of such controls, refer to ourseparate Report in ''Annexure 2" to this report;
(i) In our opinion, the managerial remuneration forthe year ended March 31, 2025, has been paid/ provided by the Company to its directors inaccordance with the provisions of section 197read with Schedule V to the Act.
(j) 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 positionin its standalone Ind AS financial statements- Refer Note 31 to the standalone Ind ASfinancial statements;
ii. The Company did not have any long-termcontracts including derivative contracts forwhich there were any material foreseeablelosses - Refer Note 45 to the standalone IndAS financial statements;
iii. There has been no delay in transferringamounts, required to be transferred, to theInvestor Education and Protection Fund bythe Company;
iv. a) The management has represented
that, to the best of its knowledge and
belief, as disclosed in the note 61 (v)to the standalone Ind AS financialstatements, no funds have beenadvanced or loaned or invested(either from borrowed funds or sharepremium or any other sources or kindof funds) by the Company to or in anyother persons or entities, includingforeign entities (“Intermediaries"),with the understanding, whetherrecorded in writing or otherwise,that the Intermediary shall, whether,directly or indirectly lend or invest inother persons or entities identifiedin any manner whatsoever by or onbehalf of the Company (“UltimateBeneficiaries") or provide anyguarantee, security or the like onbehalf of the Ultimate Beneficiaries;
b) The management has representedthat, to the best of its knowledge andbelief, as disclosed in the note 61 (vi)to the standalone Ind AS financialstatements, no funds have beenreceived by the Company from anypersons or entities, including foreignentities (“Funding Parties"), with theunderstanding, whether recordedin writing or otherwise, that theCompany shall, whether, 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 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 interim dividend declared and paid bythe Company during the year and until thedate of this audit report is in accordancewith section 123 of the Act.
vi. Based on our examination which includedtest checks, the Company has usedaccounting software for maintaining itsbooks of account which has a feature ofrecording audit trail (edit log) facility andthe same has operated throughout theyear for all relevant transactions recordedin the software except that, audit trailfeature is not enabled for direct changes todatabase when using certain access rights,as described in note 50 to the standaloneInd AS financial statements. Further,during the course of our audit we did notcome across any instance of audit trailfeature being tampered with, in respect of
accounting software. Additionally, the audittrail in respect of the relevant prior yearhas not been preserved by the Company asper the statutory requirements for recordretention, as stated in Note 50 to thestandalone Ind AS financial statements.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Pravin Tulsyan
Partner
Membership Number: 108044
UDIN: 25108044BMIBFV4663
Place of Signature: New Delhi
Date: May 21, 2025