1. We have audited the accompanying standalone financialstatements of Indo Rama Synthetics (India) Limited ('theCompany'), which comprise the Balance Sheet as at March31 2025, the Statement of Profit and Loss (including OtherComprehensive Income), the Statement of Cash Flowand the Statement of Changes in Equity for the year thenended, and notes to the standalone financial statements,including material accounting policy information and otherexplanatory information.
2. 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 ('the Act') in the manner so requiredand give a true and fair view in conformity with the IndianAccounting Standards ('Ind AS') specified under section133 of the Act read with the Companies (Indian AccountingStandards) Rules, 2015 and other accounting principlesgenerally accepted in India, of the state of affairs of theCompany as at March 31 2025, and its profit (including othercomprehensive income), its cash flows and the changes inequity for the year ended on that date.
3. We conducted our audit in accordance with the Standardson Auditing 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 Financial Statements section of our report.We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of CharteredAccountants of India ('ICAI') together with the ethicalrequirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and therules 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 abasis for our opinion.
4. Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of thestandalone financial statements of the current period. Thesematters were addressed in the context of our audit of thestandalone financial statements as a whole, and in formingour opinion thereon, and we do not provide a separateopinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Recoverability of deferred tax assets (refer note 47 to the accompanying
Our audit procedures in relation to the recoverability of deferred tax
standalone financial statements)
assets included, but were not limited to, the following:
As detailed in note 47 to the accompanying standalone financial
•
Evaluated the design and tested the operating effectiveness of
statements, the Company has deferred tax assets (net) aggregating to
key controls implemented by the Company over recognition and
H 258.61 crores as at March 31 2025.
recoverability of deferred tax assets based on the assessment of
The Company's ability to recover the deferred tax assets is assessed by
Company's ability to generate sufficient taxable profits in foreseeable
the management at the close of each reporting period which depends on
future allowing the use of deferred tax assets within the time
the forecasts of the future results and taxable profits that Company expects
prescribed by income tax laws.
to earn within the period by which such brought forward losses and
Reconciled the future taxable profit projections to future business
unabsorbed depreciation can be adjusted against the taxable profits
plans of the Company as approved by the management.
as governed by the Income-tax Act, 1961.
Tested the assumptions used in the aforesaid future projections such
The projected cash flows involve key assumptions such as future growth
as growth rates, expected saving, increased utilization of plants,
rate and market conditions. Any change in these assumptions could have
etc. considering our understanding of the business, actual historical
a material impact on the carrying value of deferred tax assets. These
results, other relevant existing conditions, external data and market
assumptions and estimates are judgmental, subjective and depend on the
conditions.
future market and economic conditions, including industry focused trade
Tested the arithmetical accuracy of the calculations including those
policies, materialisation of the Company's expansion plans.
related to sensitivity analysis performed by the management.
We have identified the recoverability of deferred tax assets recognized
Performed independent sensitivity analysis to test the impact of
on carried forward tax losses and unabsorbed depreciation as a keyaudit matter for the current year audit considering the materiality of the
possible variations in key assumptions.
amounts, complexities and significant judgments involved, as described
Reviewed the historical accuracy of the cash flow projections
above.
prepared by the management in prior periods.
In addition to the above, the corresponding disclosures made in the
Evaluated management's assessment of time period available
accompanying standalone financial statements with respect to above
for adjustment of such deferred tax assets as per provisions of
matter have also been considered as fundamental to user's understanding
the Income-tax Act, 1961 and appropriateness of the accounting
of such financial statements.
treatment with respect to the recognition of deferred tax assets asper requirements of Ind AS 12, Income Taxes.
Evaluated the appropriateness and adequacy of the disclosures madein the standalone financial statements in respect of deferred taxassets in accordance with applicable accounting standards.
Provisions and contingent liabilities relating to litigations (refer note 20
Our audit procedures in relation to the assessment of litigations and
and note 35 to the accompanying standalone financial statements)
provisions included, but were not limited to, the following:
As detailed in note 20 and note 35 to the standalone financial statements,
• Obtained an understanding of the management process for:
the Company is exposed to a large number of litigations including matters
- identification of legal and tax matters initiated against the
pertaining to income tax and prior years' matters pertaining to excise,service tax, customs, goods and service tax, etc., which could have a
Company,
significant impact on the financial position of the Company, if the potential
- assessment of accounting treatment for each such litigation
exposures were to materialise.
identified under Ind AS 37 accounting principles, and
Provision for such litigations amounts to H 27.41 crores as at March 31
- measurement of amounts involved
2025 based on its estimate of the likelihood of such liability devolving upon
• Evaluated the design and tested the operating effectiveness of key
the Company.
controls around above process including for completeness and
The amounts involved are material and the application of accounting
accuracy of the list of litigations outstanding against the Company.
principles as given under Ind AS 37, 'Provisions, Contingent Liabilities and
• Obtained understanding of the developments during the year in
Contingent Assets', in order to determine the amount to be recognised as a
each existing litigation, and understanding of the new litigations
liability or to be disclosed as a contingent liability, in each case, is inherently
initiated against the Company during the year by inquiry with the
subjective, and needs careful evaluation and judgement to be applied by
management, inspection of case related documents such as notices,
the management.
orders, etc. and correspondence of the Company with their external
The key judgements involved are with respect to the potential exposure of
counsels handling such matters on behalf of the Company.
each litigation and the likelihood and/or timing of cash outflows from the
• Conducted a critical review of the assessment done by the
Company, requires interpretation of laws and past legal rulings.
management with the help of its experts for the likelihood and
Considering the significant judgments, materiality of the amounts involved,
potential impact of each litigation, examining the available supporting
inherent high estimation uncertainty and reliance on experts, this matter
documents. Tested the independence, objectivity and competence of
has been identified as a key audit matter for the current year audit.
such experts involved.
• Exercised our professional judgment to assess the management'sassessment of the potential likelihood of liability devolving upon theCompany with respect to each legal case.
• Involved auditor's experts to assess the Company's interpretationand application of relevant tax laws to evaluate the appropriatenessof key assumptions used and the reasonableness of estimatesmade in relation to uncertain tax positions, taking into account pastprecedents.
• Reviewed significant movements in provision with supportingdocuments.
• Tested the underlying calculations of amount of liability recognisedand contingent liability disclosed in the standalone financialstatements.
• Evaluated the appropriateness and adequacy of disclosures madein the standalone financial statements with respect to provisionsand contingent liability in accordance with applicable accountingstandards.
6. The Company's Board of Directors are 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. The Annual Report is expected to be madeavailable to us after the date of this auditor's report.
Our opinion on the standalone financial statements does notcover the other information and we will not express any formof assurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the other informationidentified above when it becomes available and, in doingso, consider whether the other information is materiallyinconsistent with the standalone financial statements or ourknowledge obtained in the audit or otherwise appears to bematerially misstated.
When we read the Annual Report, if we conclude that thereis a material misstatement therein, we are required tocommunicate the matter to those charged with governance.
7. The accompanying standalone financial statements havebeen approved by the Company's Board of Directors. TheCompany's Board of Directors are responsible for thematters stated in section 134(5) of the Act with respectto the preparation and presentation of these standalonefinancial statements that give a true and fair view of thefinancial position, financial performance including othercomprehensive income, changes in equity and cash flowsof the Company in accordance with the Ind AS specifiedunder section 133 of the Act and other accounting principlesgenerally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assetsof the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriateaccounting policies; making judgments and estimates thatare reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracyand completeness of the accounting records, relevant to thepreparation and presentation of the financial statements
that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, the Boardof Directors is responsible for assessing the Company's abilityto continue as a going concern, disclosing, as applicable,matters related to going concern and using the going concernbasis of accounting unless the Board of Directors eitherintends to liquidate the Company or to cease operations, orhas no realistic alternative but to do so.
9. The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
10. 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 Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basisof these financial statements.
11. As part of an audit in accordance with Standards on Auditing,specified under section 143(10) of the Act we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement ofthe financial statements, whether due to fraud or error,design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraudmay involve collusion, forgery, intentional omissions,misrepresentations, or the 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 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 policies usedand the reasonableness of accounting estimates andrelated disclosures made by management;
• Conclude on the appropriateness of Board of Directors'use of 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 ability tocontinue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention
in our auditor's report to the related disclosures in thefinancial statements or, if such disclosures are inadequate,to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditor'sreport. However, future events or conditions may causethe Company to cease to continue as a going concern; and
• Evaluate the overall presentation, structure and contentof the financial statements, including the disclosures,and whether the financial statements represent theunderlying transactions and events in a manner thatachieves fair presentation.
12. 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.
13. 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.
14. From the matters communicated with those charged withgovernance, we determine those matters that were ofmost significance in the audit of the standalone financialstatements of the current period and are therefore the keyaudit 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 communicatedin our report because the adverse consequences of doingso would reasonably be expected to outweigh the publicinterest benefits of such communication.
15. As required by section 197(16) of the Act based on our audit,we report that the Company has paid remuneration to itsdirectors during the year in accordance with the provisionsof and limits laid down under section 197 read with ScheduleV to the Act.
16. As required by the Companies (Auditor's Report) Order, 2020('the Order') issued by the Central Government of India interms of section 143(11) of the Act we give in the AnnexureA a statement on the matters specified in paragraphs 3 and 4of the Order, to the extent applicable.
17. Further to our comments in Annexure A, as required bysection 143(3) of the Act based on our audit, we report, tothe extent applicable, that:
a) We have sought and obtained all the information andexplanations which to the best of our knowledge andbelief were necessary for the purpose of our audit ofthe accompanying standalone financial statements;
b) Except for the matters stated in paragraph 17(h)(vi)below on reporting under Rule 11(g) of the Companies(Audit and Auditors) Rules, 2014 (as amended), in ouropinion, proper books of account as required by law
have been kept by the Company so far as it appearsfrom our examination of those books.
c) The standalone financial statements dealt with by thisreport are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financialstatements comply with Ind AS specified under section133 of the Act;
e) On the basis of the written representations receivedfrom the directors and taken on record by the Boardof Directors, none of the directors is disqualified as onMarch 31 2025 from being appointed as a director interms of section 164(2) of the Act;
f) The modification relating to the maintenance ofaccounts and other matters connected therewith areas stated in paragraph 17(b) above on reporting undersection 143(3)(b) of the Act and paragraph 17(h)(vi)below on reporting under Rule 11(g) of the Companies(Audit and Auditors) Rules, 2014 (as amended);
g) With respect to the adequacy of the internal financialcontrols with reference to financial statements ofthe Company as on March 31 2025 and the operatingeffectiveness of such controls, refer to our separatereport in Annexure B wherein we have expressed anunmodified opinion; and
h) With respect to the other matters to be includedin the Auditor's Report in accordance with rule 11of the Companies (Audit and Auditors) Rules, 2014(as amended), in our opinion and to the best of ourinformation and according to the explanations givento us:
i. The Company, as detailed in note 35 to thestandalone financial statements, has disclosedthe impact of pending litigations on its financialposition as at March 31 2025.
ii. The Company did not have any long-termcontracts including derivative contracts for whichthere were any material foreseeable losses as atMarch 31 2025.;
iii. There were no amounts which were requiredto be transferred to the Investor Education andProtection Fund by the Company during the yearended 31 March 2025;
iv. (a) The management has represented that, to the best ofits knowledge and belief, as disclosed in note 51(e) tothe standalone financial statements, no funds havebeen advanced or loaned or invested (either fromborrowed funds or securities premium or any othersources or kind of funds) by the Company to or in anyperson(s) or entity(ies), including foreign entities ('theintermediaries'), with the understanding, whetherrecorded in writing or otherwise, that the intermediaryshall, whether, directly or indirectly lend or invest inother persons or entities identified in any mannerwhatsoever by or on behalf of the Company ('theUltimate Beneficiaries') or provide any guarantee,security or the like on behalf the Ultimate Beneficiaries;
(b) The management has represented that, to the best ofits knowledge and belief, as disclosed in note 51(f) tothe standalone financial statements, no funds havebeen received by the Company from any person(s)or entity(ies), including foreign entities ('the FundingParties'), with the understanding, whether recorded inwriting or otherwise, that the Company shall, whetherdirectly or indirectly, lend or invest in other persons orentities identified in any manner whatsoever by or onbehalf of the Funding Party ('Ultimate Beneficiaries') orprovide any guarantee, security or the like on behalf ofthe Ultimate Beneficiaries; and
(c) Based on such audit procedures performed asconsidered reasonable and appropriate in thecircumstances, nothing has come to our noticethat has caused us to believe that the managementrepresentations under sub-clauses (a) and (b) abovecontain any material misstatement.
v. The Company has not declared or paid any dividend duringthe year ended March 31 2025.
vi. Based on our examination which included test checks, theCompany, in respect of financial year commencing on April01 2024, has used accounting software for maintaining itsbooks of account which has a feature of recording audit trail(edit log) facility and the same has operated throughout theyear for all relevant transactions recorded in the softwareexcept that, audit trail feature was not enabled at databaselevel for accounting software to log any direct data changes,as described in note 52 to the financial statements. Further,during the course of our audit we did not come across anyinstance of audit trail feature being tampered with and theaudit trail has been preserved by the Company as per thestatutory requirements for record retention other than theconsequential impact of the exception given above.
For Walker Chandiok & Co LLP
Chartered AccountantsFirm's Registration No.: 001076N/N500013
Kartik Gogia
Partner
Membership No.: 512371UDIN: 25512371BMNUDD9131
Place: GurugramDate: May 13 2025