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Key Audit Matter
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Auditor's Response
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Revenue Recognition
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Our audit procedures include:
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The Company recognizes revenue at the point in time when control
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• Assessing the compliance of revenue recognition accounting
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of the goods is transferred to the customer at an amount that reflects
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policies, including those relating to discounts and rebates, with
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the consideration to which the Company expects to be entitled in
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reference to Ind AS 115 Revenue from contracts with customers
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exchange for those goods or services. In determining the transaction
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(applicable accounting standard);
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price for the sale, the Company consider the effects of variable
consideration and consideration receivable from the customer.
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• Evaluating the design, testing the implementation and operating
effectiveness of the Company's internal controls over recognition
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For the year ended March 31, 2026, the Company's Statement of
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of revenue and computing discounts and volume rebates in the
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Profit & Loss included Sales of ' 14478.05 Crores. Some terms of sales
arrangements are governed by Incoterms, including the timing of
transfer of control. The nature of rebates, discounts and sales returns,
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general ledger accounting system;
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Key Audit Matter
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Auditor's Response
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if any, involve judgment in determining sales revenues and revenue
cut-off. The risk is, therefore, that revenue may not be recognized in
the correct period or that revenue and associated profit is misstated.
Refer to accounting policies Note 1.3 (ix) and Note No. 26 of the
standalone Financial Statements.
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• Performing substantive testing (including for period end cut-off)
by selecting statistical samples of revenue transactions recorded
for the year and agreeing to the underlying documents, which
included sales invoices and shipping documents;
• Performing substantive testing by agreeing statistical samples of
discounts and rebate accruals and disbursements to underlying
documents; Performing a retrospective assessment of discounts
and rebate accruals with prior period to evaluate the historical
accuracy; and assessing manual journals posted to revenue to
identify unusual items.
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• Evaluating adequacy of disclosures given in Note to the
standalone financial statements.
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We have audited the accompanying standalone financial statements
of JK Tyre & Industries 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 financial statements, including a summary of the 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, the 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.
Emphasis of Matter
We draw attention to Note no. 48 to the accompanying financial
statements in respect of the Scheme of Amalgamation of
the Company's subsidiary Cavendish Industries Limited ("the
Amalgamating Company") with the Company ("the scheme"),
as further detailed in the said note. The comparative financial
statements for the year ended 31st March 2025 have been restated
in the accompanying standalone financial statements to give impact
of the Scheme from the appointed date in accordance with Ind
AS -103, Business Combinations.
Our opinion is not modified in respect of this matter.
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.
Information Other than the Standalone
Financial Statements and Auditor's Report
Thereon
The Company's Board of Directors is responsible for the preparation
of the other information. The other information comprises the
information included in the Management Discussion and Analysis,
Board's Report including Annexures to Board's Report, Business
Responsibility & Sustainability Report, Corporate Governance and
Shareholder's Information, 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
or 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 during the course of our 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, 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 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 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
Audit of Published audited Standalone Financial Statements for the
year ended 31st March 2025, before considering the impact of the
Scheme were carried out by the preceding auditors. They submitted
unmodified Audit Report dated 20th May, 2025.
Our opinion on the standalone financial statement is not modified in
respect of the above matter.
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) I n 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) With respect to the maintenance of accounts and other
matters connected therewith 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.
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:
I n 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 No.
34, 35 & 41 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 has been no delay in transferring amounts,
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, 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.
(b) 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.
(c) 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. As stated in Note No. 56 to the standalone
financial statements
(a) The final dividend proposed in the previous
year, declared and paid by the Company during
the year is in accordance with Section 123 of the
Act, as applicable.
(b) 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 amount
of dividend proposed is in accordance with
section 123 of the Act, as applicable.
vi. Based on our examination which included test
checks, the Company, in respect of financial year
ended March 31, 2026, the company has used an
accounting software for maintaining its books of
account which has feature of recording audit trail
(edit log) 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 the audit
trail feature being tampered with respect to the
accounting software, wherein this feature has been
enabled and the audit trail has been preserved by
the company as per the statutory requirements for
record retention.
For LODHA & CO LLP
Chartered Accountants
Firm Registration No. 301051E/E300284
N. K. Lodha
Partner
New Delhi, the 26th May, 2026 Membership No. 85155
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