Indo Rama Synthetics (India) Limited Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Indo Rama Synthetics (India) Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2026, 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 policies 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 the 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 profit and total 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 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 made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s 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 Matter
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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Key Audit Matter
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How our audit addressed the key audit matter
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Recoverability of deferred tax assets (refer note 47 to the
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Our audit procedures in relation to the recoverability of
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accompanying standalone financial statements)
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deferred tax assets included, but were not limited to, the following:
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As described in Note 47 to the accompanying standalone
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• Evaluated the design and tested the operating effectiveness
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financial statements, the Company has recognised net deferred
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of key internal controls implemented by the Company over
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tax assets amounting to Rs. 258.61 crores as at March 31, 2026.
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the recognition and assessment of recoverability of deferred
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The recoverability of these deferred tax assets is dependent
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tax assets.
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upon the Company’s ability to generate sufficient future
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• Assessed management’s evaluation of the Company’s ability
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taxable profits within the period permitted under the Income-
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to generate sufficient future taxable profits within the period
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tax Act, 1961 for utilisation of carried forward tax losses and
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prescribed under the Income-tax Act, 1961 for utilisation of
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unabsorbed depreciation.
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carried forward tax losses and unabsorbed depreciation.
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The assessment of recoverability involves significant
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• Reconciled the projected taxable profits and cash flow
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management judgment and estimation in forecasting future
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forecasts with the business plans approved by the
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taxable profits and cash flows, including assumptions relating
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management and those charged with governance, where
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to future growth rates, expected operational improvements,
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applicable.
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market conditions, industry-specific trade policies and
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• Evaluated the key assumptions used in the forecasts, including
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successful implementation of the Company’s expansion
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projected growth rates, expected cost savings, improved
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plans. Changes in these assumptions could materially affect
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plant utilisation and other operational assumptions, by
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the carrying value of the deferred tax assets recognised in the standalone financial statements.
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comparing them with historical performance, current industry trends, external market data and our understanding
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Considering the materiality of the deferred tax assets recognised
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of the business and economic environment.
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and the significant degree of judgment and estimation involved
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• Tested the arithmetical accuracy of the underlying
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in assessing their recoverability, we identified this matter as a
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computations, including sensitivity analyses performed by
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key audit matter for the current year audit.
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the management.
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Key Audit Matter
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How our audit addressed the key audit matter
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The related disclosures in the accompanying standalone
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• Performed independent sensitivity analyses to evaluate the
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financial statements are also fundamental to users’
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impact of reasonably possible changes in key assumptions
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understanding of the aforesaid matter.
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on the recoverability assessment.
• Assessed the historical accuracy of management’s forecasting process by comparing prior period forecasts with actual results.
• Evaluated the appropriateness of management’s assessment regarding the period available for utilisation of deferred tax assets under the provisions of the Income-tax Act, 1961 and the compliance of the accounting treatment with the requirements of Ind AS 12, Income Taxes.
• Assessed the adequacy and appropriateness of the related disclosures made in the standalone financial statements in accordance with the applicable financial reporting framework.
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Provisions and contingent liabilities relating to litigations
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Our audit procedures in relation to the assessment of
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(refer note 20 and note 35 to the accompanying standalone
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litigations and provisions included, but were not limited to,
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financial statements)
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the following:
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As described in Note 20 and Note 35 to the accompanying
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• Obtained an understanding of the management’s process for
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standalone financial statements, the Company is exposed to
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identification, evaluation and monitoring of litigations and
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various litigations relating to matters including income tax,
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claims, including the process for determination of provisions
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excise duty, service tax, customs duty, goods and services
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and contingent liabilities in accordance with Ind AS 37.
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tax and other regulatory matters. These litigations involve
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• Evaluated the design and tested the operating effectiveness
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significant management judgment and could have a material
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of key internal controls relating to completeness, assessment
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impact on the financial position of the Company if the potential
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and measurement of litigations, provisions and contingent
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exposures were to materialize.
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liabilities.
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The Company has recognised provisions amounting to Rs. 27.41
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• Obtained an understanding of significant developments
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crores as at March 31, 2026 in respect of certain litigations,
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during the year in ongoing litigations and inspected
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based on management’s assessment of the likelihood of
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supporting documentation including notices, demand
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present obligations resulting in probable cash outflows. Other
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orders, legal submissions and correspondence with
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matters, where the possibility of outflow is considered possible
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regulatory authorities and external legal counsels.
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but not probable, have been disclosed as contingent liabilities
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• Held discussions with the management and evaluated the
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in the standalone financial statements.
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basis of management’s assessment regarding the likelihood
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The assessment of provisions and contingent liabilities in
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of outflow of economic resources and the estimated exposure
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accordance with Ind AS 37, Provisions, Contingent Liabilities and
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in respect of material litigations.
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Contingent Assets, involves significant judgment in evaluating
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• Assessed the competence, capabilities, independence and
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the outcome of litigations, interpretation of applicable laws and
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objectivity of external legal and tax experts engaged by the
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regulations, assessment of judicial precedents and estimation
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management, where applicable.
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of the timing and amount of potential cash outflows.
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• Exercised professional judgment, with the involvement of
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Considering the materiality of the amounts involved, the
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auditor’s internal tax specialists and subject matter experts
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significant degree of judgment and estimation uncertainty
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where considered necessary, to evaluate the reasonableness
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and the involvement of legal and tax experts in the assessment
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of management’s assumptions, interpretation of applicable
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process, we identified this matter as a key audit matter for the
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laws and assessment of likely outcomes based on available
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current year audit.
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judicial precedents and industry practices.
• Reviewed significant movements in provisions during the year and tested the underlying calculations supporting the amounts recognised and disclosed in the standalone financial statements.
• Assessed the adequacy and appropriateness of the disclosures made in respect of provisions and contingent liabilities in the standalone financial statements in accordance with the requirements of the applicable financial reporting framework.
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Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
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 will 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 when it becomes available 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
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, total comprehensive income, changes in equity and cash flows of the Company in accordance with Ind AS 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 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.
In preparing the standalone financial statements, the Board of Directors 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 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 financial controls 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 system 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 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.
• 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.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
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 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.
Other Matter
The financial statements of the Company for the year ended 31 March 2025 were audited by the predecessor auditor, Walker Chandiok & Co LLP, who have expressed an unmodified opinion on those financial statements vide their audit report dated 13 May 2025.
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 section 143 (11) 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, based on our audit, 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.
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 paragraph 2 (i) (vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
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 is disqualified as on March 31, 2026 from being appointed as a director in terms of Section 164 (2) of the Act.
f) The modifications relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2 (b) above on reporting under Section 143(3)(b) of the Act and paragraph 2 (i)(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 financial statement of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls with reference to financial statement.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of 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 has disclosed the impact of pending litigations as on March 31, 2026 in its financial position in its standalone financial statements. Refer Note 20 & 35 to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
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. The Management has represented that, to the best of its knowledge and belief, as disclosed in note 51 (e) to the Standalone Financial Statements, no funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity (“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.
a) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“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.
b) Based on the audit procedures 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), as provided under (a) and (b) above, contain any material misstatement.
v. The Company has not declared or paid any dividend during the year ended March 31 2026.
vi. Based on our examination which included test checks, the Company, in respect of financial year commencing on April 01 2025, 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 software except that, audit trail feature was not enabled at database level for accounting software to log any direct data changes, as described in note 52 to the financial statements.
Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention other than the consequential impact of the exception given above.
For S S Kothari Mehta & Co. LLP
Chartered Accountants Firm Registration Number: 000756N/N500441
Vijay Kumar
Partner
Membership Number: 092671 UDIN: 26092671XYPGYV3991 Place: New Delhi Date: May 25, 2026
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