1. We have audited the accompanying standalone financial
statements of Electronics Mart India Limited (‘the Company5),
which comprise the Standalone Balance Sheet as at 31 March
2026, the Standalone Statement of Profit and Loss (including
Other Comprehensive Income), the Standalone Statement of
Cash Flow and the Standalone Statement of Changes in Equity
for the year then ended, and notes to the standalone financial
statements, including material accounting policy information
and other explanatory information.
2. 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 Act5) in the manner so
required and give a true and fair view in conformity with
the Indian Accounting Standards (‘Ind AS’) specified under
Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015 and other accounting
8 principles generally accepted in India, of the state of affairs
of the Company as at 31 March 2026, and its profit (including
other comprehensive income), its cash flows and the changes
in equity for the year ended on that date.
BASIS FOR OPINION
3. We conducted our audit in accordance with the Standards
on Auditing 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 (‘ICAI’)
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
4. 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.
5. We have determined the matters described below to be the key
audit matters to be communicated in our report
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Key audit matters
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How our audit addressed the key audit matter
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Vendor incentives:
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Our audit procedures in relation to vendor incentives included,
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Refer note 3(A)(k) for material accounting policy information
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but
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were not limited to, the following:
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and note 43 for the related disclosures in the accompanying
standalone financial statements.
The Company is entitled to price support from its vendors
in the form of rebates (also referred to as ‘incentives’), under
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i)
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Assessed the appropriateness of Company’s material accounting
policy information with respect to recognition of vendor
incentives in accordance with requirements of applicable
accounting standards;
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various schemes offered by the vendors that are associated with
inventory purchases. There are various different types of rebate/
incentive programs, with specific terms for eligibility, as part of
arrangement and transactions with a large number of vendors.
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ii)
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Obtained an understanding of process followed by management
for ensuring accuracy and completeness of incentives received/
receivable, including their adjustment against purchase cost and
consequent impact on inventory valuation;
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These incentives are recorded as a reduction against the cost
of purchases recorded during the year and consequently, also
impacts the valuation of closing inventories of stock-in-trade.
Given the high volume of schemes and manual computations,
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iii)
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Evaluated the design and tested the operating effectiveness of
Company’s key internal financial controls over computation of
incentive eligibility and the recording of related receipts/accruals
against purchase cost of inventory;
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significant management effort is required to ensure the
completeness and accuracy of incentive accruals and related
adjustments to closing inventories and cost of goods sold.
Considering the materiality of amount of incentives recognised
and significant management and auditor efforts and judgements
required to ensure completeness and accuracy of incentives
received/ receivable, the matter has been identified as a key audit
matter in the current year’s audit.
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iv)
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Performed substantive testing on selected samples of incentives
recorded during the year as well as those recorded through
year-end accruals, by inspecting relevant communications with
vendors and underlying supporting documents in respect of such
schemes and contracts, to ensure the incentives are recorded by
the correct amount in the correct period;
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Key audit matters
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How our audit addressed the key audit matter
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4. Considering the volume and significance of manual
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v)
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On a sample basis, tested the year-end reconciliation performed
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intervention and the degree of judgment involved, we have
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by the management with respect to outstanding incentive
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identified recognition of such incentives as a key audit
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receivable balance with the subsequent vendor statements;
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matter, as this involved significant auditor attention for the
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vi)
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Assessed the adequacy of the disclosures made in the standalone
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current year audit.
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financial statements in accordance with the requirements of the
applicable accounting standards.
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Valuation of Inventories:
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Our
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audit procedures in relation to valuation of inventories
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Refer note 3(A)(g) for material accounting policy information
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included, but were not limited to the following:
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and note 10 for the related disclosures in the accompanying
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i)
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Enquired with management to understand the accounting
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standalone financial statements.
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policy adopted by the Company, and the process followed for
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Inventories as at 31 March 2026 comprises of stock-in-trade
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adjustment of rebates/discounts/incentives, in accordance with
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aggregating to '12,406.72 million, carried at net of adjustment
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the requirements of Ind AS 2, ‘Inventories’.
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towards realizable value (‘NRV’) and provision for slow moving
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ii)
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Evaluated the design and tested the operating effectiveness of
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inventory.
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Company’s key manual controls over:
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The inventory of stock in trade is also subject to appropriate
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o Valuation of inventories; and
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adjustments towards purchase rebates/incentives/discounts due
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o Accruals of rebates / incentives / discounts having impact
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from the vendors, which are linked and are subject to compliance
with the terms and conditions specified under various schemes
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iii)
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on the carrying value of inventories
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offered by vendors.
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Tested the purchase cost, on a sample basis, relating to purchase
transactions recorded during the year from underlying supporting
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Assessment of net realisable values of inventory of stock-in-
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documents such as contracts, invoices and shipping documents
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trade involves estimation of future selling price together with
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to ensure such purchases are recorded at the correct amount in
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assessment of incentives, if any, in the form of compensation
for lower realisation as per specific incentive schemes offered by
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iv)
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the correct period.
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Tested the carrying value of closing inventory on a sample basis
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vendors to the Company.
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by recomputing the weighted average cost applied for year-end
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Considering the significance of carrying value of inventories
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valuation, including adjustments for incentives relating to closing
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to the overall balance sheet, significant manual efforts by the
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inventories;
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management to assess the value of closing stock after considering
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v)
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Tested the inventory ageing on a sample basis from underlying
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impact of incentives, detailed assessment of provision required
relating to net realisable values and the judgements applied for
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source documents and examined the historical trend of obsolete
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determining the allowance for slow moving inventory, we have
identified valuation of the inventories as a key audit matter for
current year’s audit.
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inventory together with our understanding of current year
developments to form an expectation of the reasonableness of
management provision for slow moving inventory;
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vi)
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On sample basis, tested management’s estimate of ‘net realisable
value’ of inventory based on expected future selling prices by
verifying the sale prices of inventory sold near to and subsequent
to year end along with related incentives entitlement, if any;
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vii)
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Assessed the adequacy of the disclosures made in the standalone
financial statements in accordance with the requirements of the
accounting standards;
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INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR’S REPORT
THEREON
6. The Company’s Board of Directors are 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. The Annual Report, is expected to be made
available to us after 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
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.
When we read the Annual Report, if we conclude that
there is a material misstatement therein, we are required to
communicate the matter to those charged with governance.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
STANDALONE FINANCIAL STATEMENTS
7. The accompanying standalone financial statements have
been approved by the Company’s Board of Directors.
The Company’s Board of Directors are responsible for the
matters stated in Section 134(5) of the Act with respect to
the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial
position, financial performance including other comprehensive
income, changes in equity and cash flows of the Company in
accordance with the Ind AS specified under Section 133 of
the Act and other accounting principles generally accepted
in India. 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 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.
8. In preparing the standalone financial statements, the Board of
Directors 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 the Board of Directors either intends
to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
9. The Board of Directors is also responsible for overseeing the
Company’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF
THE STANDALONE FINANCIAL STATEMENTS
10. 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 Standards on Auditing 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.
11. As part of an audit in accordance with Standards on Auditing,
specified under Section 143(10) of the Act, 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 Board of Directors’
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 standalone 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; and
• 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.
12. 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.
13. 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.
14. 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
of the current period 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 REGULATORYREQUIREMENTS
15. As required by Section 197(16) of the Act, based on our audit,
we report that the Company has paid remuneration to its
directors during the year in accordance with the provisions of
and limits laid down under Section 197 read with Schedule V
to the Act.
16. As required by the Companies (Auditor’s Report) Order, 2020
(‘the Order1) issued by the Central Government of India in
terms of Section 143(11) of the Act we give in the Annexure I
a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
17. Further to our comments in Annexure I, as required by Section
143(3) of the Act based on our audit, 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 purpose of our audit of the
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 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;
c) The standalone financial statements dealt with by this
report are in agreement with the books of accounts;
d) In our opinion, the aforesaid standalone financial
statements comply with Ind AS specified under Section
133 of the Act;
e) On the basis of the written representations received
from the directors and taken on record by the Board of
Directors, none of the directors is disqualified as on 31
March 2026 from being appointed as a director in terms
of Section 164(2) of the Act;
f) The qualification relating to the maintenance of accounts
and other matters connected therewith are as stated
in paragraph 17(b) above on reporting under Section
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 financial
controls with reference to standalone financial statements
of the Company as on 31 March 2026 and the operating
effectiveness of such controls, refer to our separate
report in Annexure II wherein we have expressed an
unmodified opinion; and
h) 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, as detailed in note 34 to the
standalone financial statements, has disclosed
the impact of pending litigations on its financial
position as at 31 March 2026;
ii. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses as at 31
March 2026;
iii. There were no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company during the year
ended 31 March 2026;
iv. a. The Management has represented that, to the
best of its knowledge and belief, as disclosed
in note 39 (i) to the standalone financial
statements, no funds have been advanced
or loaned or invested (either from borrowed
funds or securities premium or any other
sources or kind of funds) by the Company
to or in any person(s) or entity(ies), including
foreign entities (‘the 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 (‘the Ultimate Beneficiaries’) or
provide any guarantee, security or the like on
behalf the Ultimate Beneficiaries;
b. The Management has represented that,
to the best of its knowledge and belief, as
disclosed in note 39(ii) to the standalone
financial statements, no funds have been
received by the Company from any person(s)
or entity(ies), including foreign entities (‘the
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
as considered reasonable and appropriate
in the circumstances, nothing has come to
our notice that has caused us to believe that
the Management representations under sub¬
clauses (a) and (b) above contain any material
misstatement.
v. The Company has not declared or paid any
dividend during the year ended 31 March 2026.
vi. As stated in Note 40 to the standalone financial
statements and based on our examination which
included test checks, except for instances mentioned
below, the Company, in respect of financial year
commencing on or after 1 April 2025, has used
accounting software for maintaining its books of
account which have a feature of recording audit trail
(edit log) facility and the same have been 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, other than the consequential impact of the
exceptions given below. Furthermore, the audit
trail has been preserved by the Company as per the
statutory requirements for record retention, except
in respect of audit trail (edit log) facility at database
level.
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Nature of Exception
noted
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Details of Exception
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Instances of accounting
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The audit trail (edit
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software for maintaining
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logs) was not retained
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books of accounts for
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for the period 1 April
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which the feature of
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2025 to 21 April 2025
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recording audit trail
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at the database level
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(edit log) facility was not
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for the accounting
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operated throughout
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software to log any
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the year for all relevant
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direct data changes,
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transactions recorded in
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used for recording of
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the software.
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transactions.
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For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Hemant Maheshwari
Partner
Membership No.: 096537
UDIN: 26096537AADAFQ8844
Place: Hyderabad
Date: 22nd May 2026
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