We have audited the accompanying standalone financial statements ofEveready Industries India Limited ("the Company"), which comprise thebalance sheet as at March 31, 2025, the statement of profit and loss,(including the statement of other comprehensive income), the statement ofchanges in equity and the cash flow statement for the year then ended, andnotes to the standalone financial statements, including a summary of materialaccounting policies and other explanatory information (The "standalonefinancial statements").
In our opinion and to the best of our information and according to theexplanations given to us, the aforesaid standalone financial statementsgive the information required by the Companies Act, 2013 ("the Act") inthe manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules, 2015, as amended,("Ind AS") and other accounting principles generally accepted in India, of thestate of affairs of the Company as at March 31,2025, its profit including totalcomprehensive income, the changes in equity and its cash flows for the yearthen ended.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordancewith the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the standalone financial statements'
section of our report. We are independent of the Company in accordance withthe 'Code of Ethics' issued by the Institute of Chartered Accountants of India(ICAI) together with the ethical requirements that are relevant to our audit ofthe standalone financial statements under the provisions of the Act and theRules there under, and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
Emphasis of Matter
We draw attention to Note 30.1 to the standalone financial statementswhich relates to the penalty of ' 17,155.00 Lakhs levied by the CompetitionCommission of India for non-compliance with provisions of the CompetitionAct 2002, against which an appeal has been filed by the Company with theNational Company Law Appellate Tribunal (NCLAT), New Delhi and stay hasbeen granted by NCLAT. As per legal advice obtained by the Company, theamount of penalty cannot be reliably estimated at this stage owing to theuncertainty of the future outcome of the litigation. Accordingly, no provisionhas been made and the same has been disclosed as contingent liability. Ouropinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, wereof most significance in our audit of the standalone financial statements forthe financial year ended March 31, 2025. These matters were addressed inthe context of our audit of the standalone financial statements as a whole,and in forming our opinion thereon, and we do not provide a separate opinionon these matters. For each matter below, our description of how our auditaddressed the matter is provided in that context.
Descriptions of Key Audit Matter
How we addressed the matter in our audit
A. Valuation of inventories
(Refer to note 10 to the standalone financial statements).
The Company is having Inventory of ' 28,733.08 lakhs as on March31,2025. Inventories are to be valued as per Ind AS 2. As describedin the accounting policies in note 10 to the standalone financialstatements, inventories are carried at the lower of cost and netrealisable value. Further the management applies judgment indetermining the appropriate provisions against inventory of Stores,Raw Material, Finished goods and Work in progress based upon adetailed analysis of old inventory, net realisable value below costbased upon future plans for sale of inventory.
We obtained assurance over the appropriateness of the management's assumptions
applied in calculating the value of the inventories and related provisions by:
Ý Completing a walkthrough of the inventory valuation process and assessed the designand implementation of the key controls addressing the risk.
Ý Verifying the effectiveness of key inventory controls operating over inventories;including sample based physical verification.
Ý Reviewing the document and other record related to physical verification of inventoriesdone by the management during the year.
Ý Verifying for a sample of individual products that costs have been correctly recorded.
Ý Comparing the net realisable value to the cost price of inventories to check forcompleteness of the associated provision.
Ý Reviewing the historical accuracy of inventory provisioning and the level of inventorywrite-offs during the year. Also Reviewing the estimate and basis of provision madeon specific inventories.
Ý Recomputing provisions recorded to verify that they are in line with the Companypolicy.
Our Conclusion:
Based on the audit procedures performed, we did not identify any material exceptions in
the Inventory valuation.
B. Revenue Recognition
As part of our audit, we understood the Company's policies and processes, control
(Refer to note 22 to the standalone financial statements).
mechanisms and methods in relation to the revenue recognition, estimation of discounts
Revenue is one of the key profit drivers and is therefore susceptible
and
incentive and provision for warranty and evaluated the design and operative
to misstatement. Cut-off is the key assertion in so far as revenue
effectiveness of the financial controls for the above through our test of control procedures.
recognition is concerned, since an inappropriate cut-off can
Ý
Our audit procedures with regard to revenue recognition included testing controls,
result in material misstatement of results for the year. Revenue
automated and manual, around dispatches/deliveries, inventory reconciliations and
is recognized when the control of the underlying products has
circularization of receivable balances, substantive testing for cut-offs and analytical
been transferred to customer along with the satisfaction of
review procedures.
the Company's performance obligation under a contract with
Performing procedures to ensure that the revenue recognition criteria adopted by
customer. Terms of sales arrangements, including the timing of
Company for all major revenue streams is appropriate and in line with the Company's
transfer of control, delivery specifications including Incoterms in
accounting policies.
case of exports, timing of recognition of sales require significant
Obtaining and inspecting, on a sample basis, supporting documentation for discounts,
judgment in determining revenues. The risk is, therefore, that
incentives and rebates recorded and disbursed during the year as well as credit notes
revenue may not get recognised in the correct period.
issued after the year end to determine whether these were recorded appropriately.
Due to the Company's presence across different marketing regions
Our audit procedures included, among other things, the evaluation of the process
within the country and the competitive business environment, the
to calculate the provision for product warranties and the evaluation of the relevant
estimation of the various types of discounts and incentive schemes
assumptions and their derivation for the measurement of the provisions.
to be recognised based on sales made during the year is material
Based on historical data used by the Company to estimate its provisions for product
and considered to be complex and judgmental.
warranties, we assessed the permanence of methods used, the relevance and
The provision for warranty is computed based on sales volume and
reliability of underlying data, and calculations applied.
historical information about product failures (and consequential
We also compared costs incurred to the previously recognized provisions to assess the
repairs and returns), adjusted for the key developments occurring
quality of the management estimates. Based on the evidence obtained, we concluded
during the year which may affect the liability.
that management's process for identifying and quantifying warranty provisions was
Due to the significant risk associated with revenue recognition in
appropriate and that the resulting provision was reasonable.
accordance with terms of Ind AS 115 'Revenue from contracts
Performed procedures to identify any unusual trends of revenue recognition.
with customers 'and the judgments and estimates involved in
Traced disclosure information to accounting records and other supporting
making the estimation of discounts and incentive and provision for
documentation.
warranty, we determined the recognition of revenue, estimation of
discounts and incentive and provision against warranty as a key
Based on the audit procedures performed, we did not identify any material exceptions
audit matter.
in the revenue recognition, estimation of discounts and incentive and provision against
warranty.
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of theother information. The other information comprises the information includedin the Management Discussion and Analysis, Board's Report includingAnnexures to Board's Report, Business Responsibility and SustainabilityReport, Corporate Governance and Shareholder's Information, but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, ourresponsibility is to read the other information and, in doing so, considerwhether the other information is materially inconsistent with the standalonefinancial statements, or our knowledge obtained during the course of ouraudit or otherwise appears to be materially misstated. If, based on the workwe have performed, we conclude that there is a material misstatement ofthis other information; we are required to report that fact. We have nothingto report in this regard.
Responsibilities of Management and Those Charged withGovernance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated insection 134(5) of the Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial position,financial performance including other comprehensive income, changes inequity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India, including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules, 2015, as amended. Thisresponsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design,implementation and maintenance of adequate internal financial controls, thatwere operating effectively for ensuring the accuracy and completeness ofthe accounting records, relevant to the preparation and presentation of thestandalone financial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsiblefor assessing the Company's ability to continue as a going concern, disclosing,as applicable, matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate theCompany or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurancebut is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgmentand maintain professional scepticism throughout the audit. We also:
Ý Identify and assess the risks of material misstatement of the standalonefinancial statements, whether due to fraud or error, design and performaudit procedures responsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override ofinternal control.
Ý Obtain an understanding of internal control relevant to the audit in orderto design audit procedures that are appropriate in the circumstances.Under section 143(3) (i) of the Act, we are also responsible for expressingour opinion on whether the company has adequate internal financialcontrols with reference to standalone financial system in place and theoperating effectiveness of such controls.
Ý Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures madeby management.
Ý Conclude on the appropriateness of management's use of the goingconcern basis of accounting and, based on the audit evidence obtained,whether a material uncertainty exists related to events or conditionsthat 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 to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report.However, future events or conditions may cause the Company to ceaseto continue as a going concern.
Ý Evaluate the overall presentation, structure and content of thestandalone financial statements, including the disclosures, andwhether the standalone financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financialstatements that, individually or in aggregate, makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalonefinancial statements may be influenced. We consider quantitative materialityand qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, amongother matters, the planned scope and timing of the audit and significantaudit findings, including any significant deficiencies in internal control thatwe identify during our audit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence,and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable,related safeguards.
From the matters communicated with those charged with governance, wedetermine those matters that were of most significance in the audit of thestandalone financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when, in extremelyrare circumstances, we determine that a matter should not be communicatedin our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) Order, 2020 ("the
Order") issued by the Central Government of India in terms of sub¬section (11) of section 143 of the Act, we give in the "Annexure A" a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary forthe purposes of our audit;
(b) In our opinion, proper books of account as required by lawhave been kept by the Company so far as it appears from ourexamination of those books;
(c) The standalone balance sheet, the standalone statement of profitand loss including the statement of other comprehensive income,the standalone statement of changes in equity and the standalonecash flow statement dealt with by this report are in agreementwith the books of account;
(d) In our opinion, the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section133 of the Act., read with Companies (Indian AccountingStandards) Rules, 2015, as amended from time to time;
(e) On the basis of the written representations received from thedirectors, taken on record by the Board of Directors, none ofthe directors are disqualified as on March 31, 2025 from beingappointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of theCompany and the operating effectiveness of such controls, referto our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectivenessof the Company's internal financial controls with reference tostandalone financial statements.
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) ofthe Act, as amended:
In our opinion and to the best of our information and according tothe explanations given to us, the remuneration paid/provided bythe Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit andAuditors) Rules, 2014, as amended, in our opinion and to the bestof our information and according to the explanations given to us:
I. The Company has disclosed the impact of pending litigationson its financial position in its standalone financial statements- Note 30.1 to the standalone financial statements;
II. The Company did not have any long-term contracts includingderivative contracts for which there were any materialforeseeable losses as on March 31,2025;
III. There were no amount which were required to betransferred to the Investors Education and Protection Fundby the Company.
IV. (a) The management has represented to us that, to the
best of its knowledge and belief, no funds have beenadvanced or loaned or invested (either from borrowedfunds or share premium or any other sources or kindof funds) by the company to or in any other person orentity, including foreign entities ("Intermediaries"),with the understanding, whether recorded in writingor otherwise, that the Intermediary shall, whether,directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or onbehalf of the company ("Ultimate Beneficiaries") orprovide any guarantee, security or the like on behalfof the Ultimate Beneficiaries;
(b) The management has represented to us that, to thebest of its knowledge and belief, no funds have beenreceived by the company from any person or entity,including foreign entities ("Funding Parties"), withthe understanding, whether recorded in writing orotherwise, that the company shall, whether, directlyor indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalfof the Funding Party ("Ultimate Beneficiaries") orprovide any guarantee, security or the like on behalfof the Ultimate Beneficiaries; and
(c) Based on our audit procedures that are consideredreasonable and appropriate in the circumstances,nothing has come to our notice that has caused usto believe that the representations under sub-clause
(i) and (ii) of Rule 11(e) as provided under paragraph2(h) (iv)(a) &(b) above, contain any material mis¬statement.
V. The dividend proposed in the previous financial year,declared and paid by the Company during the year is inaccordance with Section 123 of the Act, as applicable. Asstated in Note 13 to the standalone financial statements,the Board of Directors of the Company has proposeddividend for the year which is subject to the approval ofthe members at the ensuing Annual General Meeting. Thedividend proposed is in accordance with section 123 of theAct, as applicable.
VI. Based on our examination which included test checks, theCompany, in respect of financial year commencing on 1 April2024, has used accounting softwares 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 softwares,as described in note 30.10 to the standalone financialstatements. Further, during the course of our audit we didnot come across any instance of audit trail feature beingtampered with in respect of the accounting softwares andthe audit trail has been preserved by the Company as perthe statutory requirements for record retention, where suchfeature is enabled.
For Singhi & Co.
Chartered AccountantsFirm Registration Number: 302049E
(Navindra Kumar Surana)
Partner
Place: Kolkata Membership Number: 053816
Date: May 9, 2025 UDIN: 25053816BMLLYW8590