We have audited the accompanying standalone financial
statements of Cyient DLM Limited ("the Company"), which comprise
the Balance sheet as at 31 March, 2025, the Statement of Profit and
Loss, including the statement of Other Comprehensive Income, the
Cash Flow Statement and the Statement of Changes in Equity for the
year then ended, and notes to the standalone financial statements,
including a summary of material accounting policies and other
explanatory information.
In our opinion and to the best of our information and according
to the explanations given to us , the aforesaid standalone financial
statements give the information required by the Companies Act,
2013, as amended ("the Act") in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as at
31 March, 2025, its profit including other comprehensive income, its
cash flows and the changes in equity 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), as specified
under section 143(10) of the Act. Our responsibilities under those
Standards 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 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 audit opinion
on the standalone financial statements.
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 for the financial year ended 31 March, 2025.
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. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have determined the matters described below to be the key
audit matters to be communicated in our report. We have fulfilled
the responsibilities described in the Auditor's responsibilities for
the audit of the standalone financial statements section of our
report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the standalone
financial statements. The results of our audit procedures, including
the procedures performed to address the matters below, provide
the basis for our audit opinion on the accompanying standalone
financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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Revenue recognition (as described in Note 20 of the standalone financial statements)
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Revenue from contracts with customers is recognised, on the
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Our audit procedures included the following:
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basis of approved contracts, when control of the goods or services
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• We evaluated the Company's accounting policies pertaining to
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are transferred to the customer at an amount that reflects the
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revenue recognition and assessed compliance with the policies
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consideration entitled in exchange for those goods or services.
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in terms of Ind AS 115 - Revenue from Contracts with Customers.
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The Company has high sales volume at period end and has varied
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• Tested the design and implementation of key internal financial
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types of sales arrangements with customers including delivery
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controls with respect to revenue recognition and tested
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specifications and incoterms etc. which may affect the timing
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operating effectiveness of such controls.
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of transfer of risk and rewards and may lead to recognition of
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• Performed substantive testing on a sample basis of revenue
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revenue in incorrect periods.
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transactions recorded during the year by checking the
underlying documents such as invoice, sales contracts and
shipping documents to test evidence for satisfaction of the
criteria for recognition of revenue during the year.
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Key audit matters
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How our audit addressed the key audit matter
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We have identified recognition of revenue as a key audit matter
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• Test checked significant manual journals posted to revenue
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considering high sales volume at period end and there is risk
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to identify any unusual items and sought explanations from
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that revenue may not be recognised in the correct period or that
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Management.
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revenue is overstated.
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• Test checked sales transactions near to year-end, post year-end
and credit notes issued post year-end to determine whether the
revenue recognition during the year is appropriate.
• We assessed the adequacy of relevant disclosures made within
the standalone financial statements.
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Inventory-obsolescence (as described in Note 9 of the standalone financial statements)
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The Company holds an inventory balance of R4,844.79 million as
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Our audit procedures included the following:
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at 31 March, 2025.
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• We obtained an understanding of how the management
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Inventory obsolescence allowance is determined using
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identifies the slow-moving and obsolete inventories and
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policies/ methodologies that the Company deems appropriate
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assesses the amount of allowance for inventories.
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to the business. Significant judgement is exercised by the
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• We assessed and tested the design and operating effectiveness
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management in identifying the slow-moving and obsolete
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of the Company's internal financial controls over the allowance
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inventories and in assessing whether provision for obsolescence
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for inventory obsolescence.
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for slow moving, excess or obsolete inventory items should be
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• We observed the inventory count performed by management
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recognized considering the production plan, forecast inventory
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and assessed the physical condition of the inventories on sample
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usage, committed and expected orders, alternative usage, etc.
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basis.
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Considering that the aforesaid assessment process is complex and
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involves significant estimates and judgements and the balance of
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• We have assessed the management's evaluation of inventories
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inventory is material, we have identified this as a key audit matter.
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against future usage based on the expected orders on hand and
other contractual terms agreed with customers and tested the
same on a sample basis.
• We further tested the ageing of the inventories and the
computation of the obsolescence level on a sample basis.
• We have tested sample inventory items for significant
components to assess the cost and test the basis of determination
of net realizable value of inventory.
• We assessed the Company's disclosures concerning this in Note
2.3 on accounting estimates and judgements and Note 9 on
inventories to the standalone financial statements.
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Valuation of investments (as described in Note 6A and Note 32.1.4 of the standalone financial statements)
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As at 31 March, 2025, the Company has non-current investments of
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Our audit procedures included the following:
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R1,563.64 million. The valuation of such investments are significant
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• We tested the design and operative effectiveness of
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to audit, because of the materiality of the investments to the
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management's key internal controls over valuation of
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separate financial statements of the Company and the sensitivity
thereof to the various unobservable valuation inputs, uncertain
future cash flows and assumptions that require considerable
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investments.
• We gained an understanding of and evaluated the methodology
used by management to prepare its cash flow forecasts and
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judgement. The management assesses at least annually the
existence of impairment indicators of each investment. The
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the appropriateness of the assumptions applied. In making this
assessment, we also evaluated the competence, professional
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determination of recoverable amounts of the investments
relies on management's estimates of future cash flows and their
judgement with respect to the investees' performance.
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qualification, objectivity and independence of Company's
specialists and Company's personnel involved in the process.
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Key audit matters
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How our audit addressed the key audit matter
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Accordingly, valuation of investments is considered a key audit
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• With the assistance of our specialists, we assessed the
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matter because of the assumptions on which the tests are based
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assumptions on the key drivers of the cash flow forecasts
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are highly judgmental and are affected by future market and
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including discount rates, expected growth rates and terminal
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economic conditions which are inherently uncertain, and because
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growth rates used; in consideration of the current and estimated
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of the materiality of the balances to the Standalone Financial
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future economic conditions.
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Statements as a whole.
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• We assessed the historical accuracy of management's forecast
by comparing actual financial performance to management's
previous forecasts.
• We tested the arithmetical accuracy of the impairment
assessments models.
• We assessed the adequacy of the related disclosures in Note 2.3
on accounting estimates and judgements and Note 6A and Note
32.1.4 to the Standalone Financial Statements.
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Other Information
The Company's Board of Directors is responsible for the other
information. The other information comprises the information
included in the Annual report, but does not include the standalone
financial statements and our auditor's report thereon.
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 and, in doing so,
consider whether such other information is materially inconsistent
with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on
the work we have performed, we 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 Those Charged with
Governance for the Standalone Financial Statements
The Company's Board of Directors is 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 including
other comprehensive income, cash flows and changes in equity
of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015,
as amended. This responsibility also includes maintenance of
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
the 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
statements 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, management is
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
management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those 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.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the
standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with
reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management's use of the
going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt
on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required
to draw attention in our auditor's report to the related
disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the
underlying transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements for
the financial year ended 31 March, 2025 and are therefore the key
audit matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be 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 1" 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 to the
extent applicable, 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;
(b) In our opinion, proper books of account as required by
law have been kept by the Company so far as it appears
from our examination of those books, except for the
matters stated in the paragraph 2 (i) (vi) below on
reporting under Rule 11(g);
(c) The Balance Sheet, the Statement of Profit and Loss
including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules, 2015,
as amended;
(e) On the basis of the written representations received from
the directors as on 31 March, 2025 taken on record by the
Board of Directors, none of the directors is disqualified as
on 31 March, 2025 from being appointed as a director in
terms of Section 164 (2) of the Act;
(f) The modification relating to the maintenance of accounts
and other matters connected therewith are as stated in
paragraph 2 (b) above on reporting under Section 143(3)
(b) and paragraph 2 (i) (vi) below on reporting under Rule
11(g);
(g) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements and the operating effectiveness of such
controls, refer to our separate Report in "Annexure 2" to
this report;
(h) In our opinion, the managerial remuneration for the
year ended 31 March, 2025 has been paid / provided
by the Company to its directors in accordance with the
provisions of section 197 read with Schedule V to the Act;
(i) 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, as amended
in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations
which would impact its financial position;
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses;
iii. There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company;
iv. a) The management has represented that, to the
best of its knowledge and belief, other than
as disclosed in the note 36 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 persons or entities, including
foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
whether, 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) The management has represented that, to
the best of its knowledge and belief, no funds
have been received by the Company from any
persons or entities, including foreign entities
("Funding Parties"), with the understanding,
whether recorded in writing or otherwise,
that the Company shall, whether, 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; and
c) Based on such 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 (a) and (b) contain any material
misstatement.
v. No dividend has been declared or paid during the
year by the Company;
vi. Based on our examination which included test
checks, the Company has used accounting software
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 accounting
software except for direct changes to data made
using certain access rights in accounting software,
where the audit trail feature is enabled only
during the period 07 January, 2025 to 31 March,
2025, as described in note 38 to the standalone
financial statements. Further, during the course of
our audit we did not come across any instance of
audit trail feature being tampered with, in respect
of accounting software where the audit trail has
been enabled. Additionally, the audit trail of prior
year has been preserved by the Company as per
the statutory requirements for record retention
to the extent it was enabled and recorded in the
respective year.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
Per Shankar Srinivasan
Partner
Place of Signature: Hyderabad Membership Number: 213271
Date: April 22, 2025 UDIN: 25213271BMISPL2174
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