We have audited the accompanying Standalone
Financial Statements of Crompton Greaves Consumer
Electricals Limited (“the Company”), which comprise
the Balance Sheet as at March 31, 2026, and the
Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in
Equity and the Statement of Cash Flows for the year
then ended, and notes to the Standalone Financial
Statements, including material accounting policy
information and other explanatory information
(hereinafter referred to as the “Standalone Financial
Statements”).
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 Companies Act, 2013 (“the Act') in
the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with
Companies (Indian Accounting Standards) Rules, 2015,
as amended (“Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the
Company as at March 31, 2026, and its loss (including
other comprehensive income), changes in equity and its
cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the
Act. Our responsibilities under those SAs are further
described in the Auditor's Responsibilities for the Audit
of the Standalone Financial Statements section of
our report. We are independent of the Company in
accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our
audit of the Standalone Financial Statements under
the provisions of the Act and the Rules thereunder,
and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code
of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the Standalone Financial Statements of
the current period. These matters were addressed in
the 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 opinion
on these matters. We have determined the matters
described below to be the key audit matters to be
communicated in our report.
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Sr. No.
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Key Audit Matters
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How the Key Audit Matters were addressed in our audit
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1.
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Impairment of investments in Butterfly
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Our audit procedures with respect to this matter included, but
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Gandhimathi Appliances Ltd. and associated
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were not limited to, the following:
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trademarks
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a)
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Obtained an understanding of the Company’s policies
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(Refer Notes 2E and 3A to the Standalone
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and procedures in respect of identification of impairment
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Financial Statements)
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indicators, performing the impairment testing and
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During the year, as part of the annual impairment
testing over the carrying value of investment in
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recording and disclosing impairment charge along with key
controls over this area.
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subsidiary Butterfly Gandhimathi Appliances
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b)
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Evaluated the design, implementation and operating
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Ltd (“BGMAL”) and associated trademark
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effectiveness of internal controls over the Company's
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balances, management identified certain
internal and external indicators. Consequently,
basis an independent valuation exercise, an
impairment loss aggregating to I 716.04 crores
was recognised by management. The impairment
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c)
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review of the impairment testing exercise.
Assessed reasonableness of management’s forecasting
accuracy by comparing the estimated revenue and margin
projections, with the actuals achieved.
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charge encompasses an impairment of the
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d)
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Assessed the competence, capability, independence and
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carrying value of investment in BGMAL amounting
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objectivity of valuation expert engaged by management.
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to I 683.13 crores and further an impairment of
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e)
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Involved our valuation experts to assist in examining
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the associated trademarks amounting to I 32.91
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and challenging the reasonableness of the Company’s
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crores.
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valuation model and reviewing the underlying basis for key
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An impairment exercise involves a comparison
of the expected recoverable values with
the underlying carrying values of the assets.
In accordance with Ind AS 36, recoverable
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f)
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assumptions, including exit multiplier and discount rate.
Performed sensitivity analysis of changes to key
assumptions and its impact on the recoverable amount.
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amount of investment was based on value in
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g)
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Verified the future operating cash flow forecasts with the
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use (ViU) determined based on a discounted
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business plan and budgets approved by the Board and
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cash flows with exit multiple. Determination of
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tested the mathematical accuracy of management’s
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ViU involves significant estimates, assumptions
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calculations.
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and judgements as regards reasonableness of
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h)
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Assessed the adequacy and appropriateness of the
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assumptions involved in developing projections of
entity’s financial performance, exit multiples, and
discount rates to be considered.
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disclosures made in the Standalone Financial Statements.
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Considering the complexity of a valuation exercise
which involves uncertainties with respect to
forecasting future cash flows and significant
judgements over key assumptions, we considered
this to be a significant risk requiring auditor
judgement and specialist involvement, and hence
a key audit matter.
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2.
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Impairment of goodwill recognised on account
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Our audit procedures with respect to this matter included, but
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of demerger of the Consumer Business from
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were not limited to, the following:
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Crompton Greaves Limited (now CG Power and
Industrial Solutions Limited) and Crompton
Greaves Consumer Electricals Limited in FY 2015
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a)
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Obtained an understanding of the process of impairment
assessment and evaluated the design, implementation
and operating effectiveness of internal controls over the
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(Refer Notes 2D and 34 to the Standalone
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accounting and impairment for goodwill arising out of
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Financial Statements)
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business reconstruction transaction.
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The goodwill balance as of March 31, 2026
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b)
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Assessed reasonableness of the future revenue and margin
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of I 779.41 crores pertains to demerger of the
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projections and the historical accuracy of the estimates.
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Consumer Business from Crompton Greaves
Limited (now CG Power and Industrial Solutions
Limited) and Crompton Greaves Consumer
Electricals Limited in FY 2015.
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c)
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Involved our valuation experts to assist in examining
and challenging the reasonableness of the Company’s
valuation model and reviewing the underlying basis for key
assumptions, including terminal growth rates and discount
rates.
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Sr. No. Key Audit Matters
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How the Key Audit Matters were addressed in our audit
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Carrying value of goodwill is material as at
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d)
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Evaluated the competence of management’s experts who
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March 31, 2026 and inherent uncertainty is
involved in forecasting and discounting future
cash flows, determination of discount and
terminal growth rates for computing the value
and the assessment of its recoverability. This
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e)
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assisted in the valuation.
Performed sensitivity analysis and evaluated whether any
reasonably possible changes in assumptions could lead to
impairment.
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audit area is considered a key audit matter.
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f)
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Compared the reasonableness of future operating
cash flow forecasts with the business plan and budgets
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The Company has carried out an impairment
assessment using the value-in-use (ViU)
calculations which is based on Discounted Cash
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approved by the Board and tested the mathematical
accuracy of management’s calculations.
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Flow with Exit Multiple Method. Determination of
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g)
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Assessed the adequacy and appropriateness of the
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ViU involves significant estimates, assumptions
and judgements as regards reasonableness of
assumptions involved in developing projections of
entity’s financial performance, exit multiples, and
discount rates to be considered.
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disclosures made in the Standalone Financial Statements.
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3. Provision for warranties
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Our audit procedures with respect to this matter included, but
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(Refer Note 13 to Standalone Financial
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were not limited to, the following:
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Statements)
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a)
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Obtained an understanding of the warranty claims process
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The Company’s business involves the sale of
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and evaluated the design, implementation and operating
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products under warranty. The Company also has
back-to-back contractual arrangements with its
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effectiveness of internal controls over the provision for
warranties.
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vendors for reimbursement of costs relating to
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b)
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Reviewed the historical data of warranty costs incurred in
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products supplied by the vendors.
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regard to the product sales, the trend of claims over the
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Warranty provisions, which are inherently
judgmental in nature, are provided by the
Company to record an appropriate estimate of
the costs of repairing and replacing products and
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warranty period and the comparison between provisions
previously recognised and actual expenses. Also reviewed
the historical data of recoveries from vendors against
warranty claims and defective returns.
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spares within the warranty period. The Company
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c)
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Reviewed reconciliations of sales made during the year
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estimates and provides for liability for product
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with sales register to determine completeness on which
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warranties in the year in which the products are
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warranty obligation is determined.
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sold. Further, the timing of outflows will vary based
on the actual warranty claims made during the
warranty period in the future.
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d)
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Performed enquiry procedures and reviewed relevant
documents in evaluating the accuracy of historical
information prepared by the management (including cost
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The above estimations of warranty provision
require significant judgement considering the
nature and timing of the cash outflows. Also,
there is estimation uncertainty as regards to the
timing and the amount of the actual warranty
claims that may devolve over the warranty period.
Accordingly, provision for warranties has been
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e)
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of repairs and returns).
Reviewed the recognition and appropriateness of
provisions by verifying the computation of defect
rates, vendors recovery and mathematical accuracy of
management calculations and obtaining management
statements, evidence and supporting documents.
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determined by us to be a key audit matter.
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f)
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Assessed the adequacy and appropriateness of the
relevant disclosures made in the Standalone Financial
Statements.
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Information Other than the Standalone
Financial Statements and Auditor’s Report
Thereon
The Company’s Management and Board of Directors
are responsible for the other information. The other
information comprises the information included in the
Management Discussion and Analysis and Director’s
report, but does not include the Standalone Financial
Statements and our auditor’s report thereon, which we
obtained prior to the date of this auditor’s report.
Our opinion on the Standalone Financial Statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the Standalone
Financial Statements, our responsibility is to read the
other information identified above and, in doing so,
consider whether the other information is materially
inconsistent with the Standalone Financial Statements
or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the
work we have performed on the other information that
we obtained prior to the date of this auditor’s report, w
conclude that there is a material misstatement of this
other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Board
of Directors for the Standalone Financial
Statements
The Company’s Management and Board of Directors
are responsible for the matters stated in section
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, changes in equity and cash flows of the
Company in accordance with the accounting principle:
generally accepted in India, including the Indian
Accounting Standards specified under section 133 of
the Act. This responsibility also includes maintenance o'
adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent;
and design, implementation and maintenance of
adequate internal financial controls, that were
operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to
the preparation and presentation of the Standalone
Financial Statement that give a true and fair view and
are free from material misstatement, whether due to
fraud or error.
In preparing the Standalone Financial Statements, the
Management and Board of Directors of the Company
are 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 of accounting unless the Board of
Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to
do so.
The Management and Board of Directors are also
responsible for overseeing the Company's financial
reporting process.
Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance
about whether the Standalone Financial Statements
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 high level of assurance, but is not a guarantee
that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
Standalone Financial Statements.
We give in “Annexure A” a detailed description of
Auditor’s responsibilities for Audit of the Standalone
Financial Statements.
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 “Annexure B” a
statement on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable.
2. 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
the best of our knowledge and belief were
necessary for the purposes of our audit of the
aforesaid Standalone Financial Statements.
(b) In our opinion, proper books of account as
required by law relating to preparation of the
aforesaid Standalone Financial Statements
have been kept by the Company so far as it
appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit
and Loss (including other comprehensive
income), the Statement of Changes in Equity
The Board of Directors of the Company
have proposed final dividend for the year
which is subject to the approval of the
members at the ensuing Annual General
Meeting. The dividend declared is in
accordance with section 123 of the Act
to the extent it applies to declaration
of dividend. (Refer Note 10(h) to the
Standalone Financial Statements)
vi. Based on our examination, which
included test checks, the Company
has used certain accounting softwares
for maintaining its books of account
which has a feature of recording audit
trail (edit log) facility and the same has
operated throughout the year for all
relevant transactions recorded in the
software. Further, during the course of
our audit we did not come across any
instance of audit trail feature being
tampered with. Additionally, the audit
trail has been preserved by the Company
as per the statutory requirements for
record retention.
and the Statement of Cash Flows dealt
with by this Report are in agreement with
the books of account maintained for the
purpose of preparation of the Standalone
Financial Statements.
(d) In our opinion, the aforesaid Standalone
Financial Statements comply with the Ind AS
specified under Section 133 of the Act.
(e) On the basis of the written representations
received from the directors as on
March 31, 2026 taken on record by the
Board of Directors, none of the directors are
disqualified as on March 31, 2026 from being
appointed as a director in terms of Section 164
(2) of the Act.
(f) With respect to the adequacy of the
internal financial controls with reference
to Standalone Financial Statements of the
Company and the operating effectiveness of
such controls, refer to our separate Report in
“Annexure C”.
(g) 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:
i. The Company has disclosed the impact
of pending litigations on its financial
position in its Standalone Financial
Statements - Refer Note 27 to the
Standalone Financial Statements.
ii. The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses.
iii. There has been no delay in transferring
amounts, to the Investor Education and
Protection Fund by the Company during
the year ended March 31, 2026.
iv. a. To the best of our knowledge and
belief, as disclosed in the note 45 to
the Standalone Financial Statements,
no funds have been advanced or
loaned or invested (either from
borrowed funds or share premium or
any other sources or kind of funds)
by the Company to or in any other
person(s) or entity(ies), including
foreign entities (“Intermediaries”),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, directly
or indirectly lend or invest in other
persons or entities identified in
any manner whatsoever by or on
behalf of the Company (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
b. To the best of our knowledge and
belief, as disclosed in the note
45 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, whether
recorded in writing or otherwise,
that the Company shall, directly
or indirectly, lend or invest in other
persons or entities identified in any
manner whatsoever by or on behalf
of the Funding Party (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
c. Based on the audit procedures
performed that have been
considered reasonable and
appropriate in the circumstances,
nothing has come to our notice that
has caused us to believe that the
representations under sub-clause
(i) and (ii) of Rule 11(e) contain any
material mis-statement.
v. The final dividend paid by the Company
during the year in respect of the same
declared for the previous year is in
accordance with section 123 of the
Companies Act 2013 to the extent it
applies to payment of dividend.
3. In our opinion, according to information,
explanations given to us, the remuneration paid or
provided by the Company to its directors is within
the limits laid prescribed under Section 197 read
with Schedule V of the Act.
For M S K A & Associates LLP
(Formerly known as M S K A & Associates)
Chartered Accountants
ICAI Firm Registration No.: 105047W/W101187
Vishal Vilas Divadkar
Partner
Membership No.: 118247
UDIN: 26118247WFMHA3301
Place: Mumbai
Date: May 13, 2026
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