We have audited the accompanying Standalone Financial Statements of Polycon International Limited (“the Company”), which comprise
the Balance Sheet as at 31stMarch 2025, and the Statement of Profit and Loss, Statement of Changes in Equity and Statement of Cash Flows
for the year ended on that date, notes to the 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 31st March,
2025, the net profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of Standalone Financial Statements 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 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 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.
Key Audit Matters
Key audit matters (‘KAM’) are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the 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-
|
S. No. Key Audit Matters
|
How our audit addressed the key audit matter
|
|
1. Accuracy of recognition, measurement,
estimation, presentation and disclosures in
respect of “Revenue from contracts with
Customers” under Ind AS 115
The application of this revenue accounting standard
involves certain key judgments relating to identification
of distinct performance obligations, determination of
transaction price of identified performance obligations,
the appropriateness of the basis used to measure
revenue recognized over a period, and disclosures
including presentations of balances in the financial
statements.
Estimated efforts is a critical estimate to determine
revenue, as it requires consideration of progress of the
contract, efforts incurred till date, efforts required to
complete the remaining performance obligation.
(Refer Note No. 25of financial statements and Item No.
2.3.5 of the Significant Accounting Policy Information to
the financial statements.)
|
Principal Audit Procedures Performed includes the
following:
Our audit approach consisted testing of the design and
operating effectiveness of internal controls and
procedures as follows:
• Evaluated the effectiveness of controls over the
preparation of information that are designed to
ensure the completeness and accuracy.
• Selected a sample of existing continuing contracts
and new contracts, and tested the operating
effectiveness of the internal control, relating to
identification of the distinct performance
obligations and determination of transaction price.
• Tested the relevant information, accounting
systems and change relating to contracts and
related information used in recording and
disclosing revenue in accordance with Ind AS 115.
• Reviewed a sample of contracts to identify
possible delays in achieving milestones, which
require change in estimated efforts to complete the
remaining performance obligations.
• Performed analytical procedures and test of details
for reasonableness and other related material
items.
|
|
2. Assessment of Contingent Liabilities
|
Principal Audit Procedures
|
|
The Company is subject to a number of legal, regulatory,
|
We have adopted the following audit procedures
|
|
arbitration and tax cases for which final outcome cannot
|
• Understood and tested the design and operating
|
|
be easily predicted and which could potentially result in
|
effectiveness of controls as established by the
|
|
significant liabilities. The assessment of whether a liability
|
management for obtaining all relevant information
|
|
is recognised as a provision or disclosed as a contingent
liability in the financial statements is inherently subjective
|
for pending litigation cases
|
|
and requires significant management judgement in
|
• Discussed with the management any material
|
|
determination of the cash outflows from the business,
|
developments and latest status of legal matters at
|
|
interpretation of applicable laws and regulations, and
|
the corporate office.
|
|
careful examination of pending assessments at various
|
• Read various correspondences and related
|
|
levels of regulatory authorities. We identified this as a key
|
documents pertaining to litigation cases and
|
|
audit matter because the estimates on which these
|
performed substantive procedures on calculations
|
|
amounts are based involve a significant degree of
|
supporting the disclosure of contingent liabilities
|
|
management judgement in interpreting the cases and it
|
Assessed the adequacy and completeness of
|
|
may be subject to management bias.
|
disclosures. Based on the above procedure
|
|
(Refer note no. 34 and Point No. 2.15 of the Material
|
performed, the estimations and disclosure of
|
|
Accounting Policy to the Financial Statements).
|
contingent liabilities are considered to be adequate
and reasonable.
|
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
Corporate Governance Report, and the information included in the
Directors' Report including Annexures, Management Discussion
and Analysis, Business Responsibility and Sustainability Report
and other company related information (but does not include the
Financial Statements and our auditors' report thereon), which are
expected to be made available to us after the date of this auditors'
report.
Our opinion on the Standalone Financial Statements does not cover
the other information and we do not and 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 such other information, as and when made available
to us and if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged
with governance and take appropriate actions, if required.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
The Company's management 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, total comprehensive income, changes in equity and
cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under section
133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015 as amended. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and other
irregularities; selection and application of appropriate
implementation and maintenance of 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 financial
statement that give a true and fair view and are free
from material misstatement, whether due to fraud or
error.
In preparing the 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
management 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
Financial Statements
Our objectives are to obtain reasonable assurance
about whether the 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 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 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 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 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 financial statements,
including the disclosures, and whether the
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 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
in terms of Section 143(11) of the Act and on the basis
of such checks of the books and records of the
company as we considered appropriate and according
to the information and explanations given to us, we
give in “Annexure A” a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
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.
(c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (Including Other
Comprehensive Income), the Standalone Statement of
Changes in Equity and the Standalone Statement of
Cash Flows 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 Indian Accounting Standards
(Ind AS) specified under Section 133 of the Act.
(e) On the basis of the written representations received
from the directors as on 31st March, 2025 taken on
record by the Board of Directors, none of the directors
is disqualified as on 31st March, 2025 from being
appointed as a director in terms of Section 164 (2) of
the Act.
(f) With respect to the adequacy of the internal financial
controls over financial reporting 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 over financial reporting.
(g) 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, the Company
has paid managerial remuneration in accordance with
the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the
Auditors 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 explanation given to us.
i. The Company has disclosed that there are no pending
litigations having effect on its financial position in its
standalone financial statements. - Refer Note No. 40
of the 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. During the year there is no requirement of any amount
to be transferred of an unclaimed dividend to the
Investor Education and Protection Fund under section
124(5) of the Companies Act, 2013.
iv. The Company has provided requisite disclosures in
the financial statements, on the basis of information
available with the Company. Based on audit
procedures and relying on the management
representation, we report that the disclosures are in
accordance with books of account maintained by the
Company and as produced to us by the Management.
v. (a) The management has represented that, to the best
of its knowledge and belief, as disclosed in the notes
to the Standalone Financial Statements, no funds have
been advanced or loaned or invested(either from
borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any
other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner
whatsoever by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries ;
(b) The management has represented that, to the best of
its knowledge and belief, as disclosed in the notes to
the Standalone Financial Statements,no funds have
been received by the Company from any person(s) or
entity(ies), including foreign entities (“Funding Parties”),
with the understanding, whether recorded in writing
or otherwise, that the Company shall, whether, directly
or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf
of the Funding Party(“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the
UltimateBeneficiaries ; and
(c) Based on such audit procedures that we considered
reasonable and appropriate in the
circumstances,nothing has come to our notice that
has caused us to believe that the representations
under subclause(a) and (b) contain any material
misstatement.
(v) No dividend has been declared and paid during the
year by the Company.
(vi) We have carried out an examination in accordance
with the Implementation Guidelines on Reporting on
Audit Trail by Auditors under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 (Revised
2024 Edition) issued by the Institute of Chartered
Accountants of India. Whereby, we have performed
test checks for the company whose Standalone Financial
Statements have been audited under the Act, we report
that the company has used an accounting software i.e.
Tally for maintaining its books of accounts, and the said
accounting software has a feature of recording audit
trail (edit log) facility and the said audit trail has operated
throughout the year for all the relevant transactions
recorded in the software. Further, based on the results
of specific audit checks performed during the course
of our audit, we did not come across any instance of
audit trail feature being tampered with. Additionally, the
audit trail has been preserved by the company as per
the statutory requirements for record retention.
For S R Goyal & Co.
Chartered Accountants
FRN: 001537C
Place:Jaipur A.K. Atolia
Date: 30-05-2025 (Partner)
UDIN: 25077201BMLJOT9171 M.No.: 077201
| 