We have audited the accompanying Standalone Financial Statements of BANCO PRODUCTS (INDIA) LIMITED
(hereinafter referred to as "the Company"), which comprise the Balance Sheet as at March 31, 2025, the Statement of
Profit and Loss (including other comprehensive income), Cash Flow Statement and 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 (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 31,2025, and its profit, other comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the
Companies Act, 2013. 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 Standalone Financial Statements under the provisions of the Companies Act, 2013 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 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 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 Matters
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Auditor's Response
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1
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Revenue Recognition
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The Company recognizes revenues when control
of the goods is transferred to the customer at an
amount that reflects the consideration to which
the Company expects to be entitled in exchange
for those goods. In determining the sales price,
the Company considers the effects of rebates and
discounts (variable consideration). The terms of ar¬
rangements in case of domestic and exports sales,
including the timing of transfer of control, the nature
of discount and rebates arrangements, delivery
specifications including incoterms, create complex¬
ity and judgment in determining sales revenues.
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Audit procedures included the following:
• Considered the adequacy of the Company’s revenue
recognition policy and its compliance in terms of Ind AS
115 'Revenue from contracts with customer's.
• Assessed the design and tested the operating
effectiveness of internal controls related to revenue
recognition.
• Performed sample tests of individual sales transaction and
traced to sales invoices and other related documents. In
respect of the samples selected, tested that the revenue
has been recognized as per the incoterms in accordance
with Ind AS 115.
• Selected sample of sales transactions made pre and
post- year end, agreed the period of revenue recognition
to underlying supporting documents.
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The risk is, therefore, that revenue is not recognized
in the correct period in accordance with terms of Ind
AS 115 'Revenue from contracts with customer's,
and accordingly, it was determined to be a key
audit matter in our audit of the Standalone Ind AS
Standalone Financial Statements.
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• Assessed the relevant disclosures made in the
Standalone Ind AS Standalone Financial Statements.
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2
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Valuation of Inventory
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As disclosed in Note 9 [Inventories] to the Stand¬
alone Financial Statements, the Company holds
Inventories of ' 27,725.69 lakhs which represent
25.73% of total assets of the Company as at the
Balance sheet date. Considering the number of lo¬
cations and the level of inventory held across its
factories, as well as the physical verification of in¬
ventory at these locations on different dates, the
potential risk of existence of such inventory and the
identification of non-moving, obsolete / damaged
inventory is a significant area of audit importance.
Inventories are valued at the lower of cost and net
realizable value. The inventory valuation also re¬
quires management estimates towards write-down
of inventory items to its net realizable value (wher¬
ever applicable) and allowance for slow moving or
non-moving inventory.
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Our audit procedures to verify the existence of inventories
consisted of testing the relevant internal controls, including
in specific the testing of the inventory physical verification
process that are performed by the management at various
point in time at their factories.
As required under SA 501 "Audit Evidence - Additional
Considerations for Specific Items”, we have observed the
physical verification of Inventory, conducted by management,
in certain factories selected by us based on our professional
judgment. Our procedures in this regard included:
• observing compliance of stock count instructions by
management personnel; observing steps taken by
management to ascertain the existence of inventory on
the date of the count (including identification of non¬
moving, obsolete / damaged inventory),
• performing independent inventory counts on sample
basis and reconciling the same to the management
counts and reviewing the reconciliation of the differences
in inventory quantity between the physical count and the
books of accounts, and
We tested sample of inventory purchases throughout the audit
period with purchase invoice and other supporting documents
to ensure if the inventory is valued as per the Company's
accounting policy.
We performed cut off testing for purchase and sales
transactions made near the reporting date to assess whether
transactions are recorded in the correct period by testing
shipping records, sales / purchase invoices, etc., for sample
transactions.
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3
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Investment in Subsidiaries
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As disclosed in Note 4 [Non-Current Investments]
to the Standalone financial statements, the
Company's equity investments in subsidiaries,
amounted to ' 18,694.54 lakhs as at March 31,
2025. Such investments are carried at cost as per
Ind AS 27 - Separate Financial Statements.
The carrying value of investments in subsidiaries
was considered to be a key audit matter as these
are material and significant to the net worth of
the Company and is dependent on the future
performance of the subsidiaries.
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Our procedures included, but were not limited to, the following:
• We obtained the audited financial statements of the
subsidiaries, and evaluated the assessment carried
out by the Company with regard to net worth of those
respective subsidiaries with the carrying value of the
investments made in those entities.
• We also obtained the Management’s documentation and
tested its assessment on whether there were indicators
for impairment if any, of the aforesaid investments, as
required by Ind AS 36, Impairment of Assets.
Based on above procedures performed, we found the
management's assessment of carrying value of investments
in subsidiaries, to be reasonable.
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Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's management and Board of Directors are responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board's. Report including
Annexure to Board's Report, Business Responsibility and Sustainability Report, Report on Corporate Governance and
Shareholder’s Information, but does not include the consolidated financial statements, 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 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.
Management's and Board of Director's Responsibilities for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
("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 and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014. 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.
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.
The Board of Directors is responsible for overseeing the Company’s financial reporting process.
Auditor's Responsibility 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 Standalone 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 Standalone
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.
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 statement on the matters specified in paragraphs
3 and 4 of the Order to the extent applicable.
2. (A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
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.
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, 2025 taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being
appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to adequacy of the internal financial controls over financial reporting and the operating
effectiveness of such controls, refer to our separate report in "Annexure- B" attached herewith. Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal
financial controls with reference to Standalone Financial Statements.
(B) 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:
a) The Company has disclosed the impact of pending litigation on its financial position in its financial statement.
Refer Note 33 of the Standalone Financial Statements;
b) The Company did not have any long-term contracts including derivative contracts; for which there were
any material foreseeable losses; and
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
d) (i) The management has represented that, to the best of its knowledge and belief, 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:
• directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or
• provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) 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:
• directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under subclause
(d) (i) and (d) (ii) contain any material mis-statement.
e) As per Standalone Financial Statements:
a. The interim dividend declared and paid by the Company during the year and until the date of this
report is in compliance with Section 123 of the Act.
f) Based on our examination, which included test checks, the Company has used accounting software systems
for maintaining its books of account for the financial year ended March 31,2025 which have the feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software systems. Further, during the course of our audit we did not come
across any instance of the audit trail feature being tampered with and the audit trail has been preserved
by the Company as per the statutory requirements for record retention.
(C) With respect to the matter to be included in the Auditor's Report under Section197(16) of the Act, as amended:
In our opinion and according to the information and explanations given to us, the remuneration paid by the
Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act.
The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required
to be commented upon by us.
For PARIKH SHAH CHOTALIA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Reg. No. 118493W
CA. Sharadkumar G. Kothari
PARTNER
Mem. No. 168227
UDIN : 25168227BMJLEB6255
VADODARA, 17TH May, 2025
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