We have audited the standalone financial statements of Polycab India Limited (the
“Company”) which comprise the standalone balance sheet as at 31 March 2026, and the
standalone statement of profit and loss (including other comprehensive income), standalone
statement of changes in equity and standalone statement of cash flows for the year then
ended, and notes to the standalone financial statements, including material accounting
policies and other explanatory information.
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 (“Act”) in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company as
at 31 March 2026, and its profit and other comprehensive loss, 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 Act. Our responsibilities under those SAs 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 Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, 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.
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The key audit matter
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How the matter was addressed in our audit
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The Company generates revenues from
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To obtain sufficient appropriate audit evidence
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i. sale of Goods including Wires and Cables and
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with respect of recognition of revenue from sale
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FMEG, and
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of goods, our principal audit procedures, amongst
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ii. execution of EPC contracts
Revenue from sale of goods is recognised when
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others, include the following:
• Compared the accounting policies in respect of
revenue recognition with applicable accounting
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control of the product is transferred to the
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standards to test for compliance;
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customers and when there are no other unfulfilled
performance obligations. The actual point in time
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• Tested the design, implementation and
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when revenue is recognized varies depending on
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operating effectiveness of key internal financial
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the specific terms and conditions of the sales
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controls for revenue recognition, including
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contracts entered with customers.
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controls over period-end revenue recognition,
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Revenue is a key performance indicator for
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along with effectiveness of information
technology controls;
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the Company considered by all stakeholders
including management to evaluate performance
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• We verified the terms of the revenue contracts,
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of the Company resulting in the risk of revenue
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invoices, shipping documents and other
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being overstated by recognition before control is
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underlying records for a sample of the revenue
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transferred.
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recognized at the period end to test that the
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We have accordingly identified the recognition of
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revenue has been recognized in the correct
period; and
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revenue from sale of goods as at period end as a
key audit matter.
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• Tested journal entries related to revenue
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recognised during the year based upon
specified risk-based criteria, to identify unusual
or irregular items.
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The key audit matter
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How the matter was addressed in our audit
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Revenue from execution of EPC contracts is
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To obtain sufficient appropriate audit evidence
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recognized over a period of time which usually
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with respect to measurement of revenue from
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extend beyond a reporting period.
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execution of EPC contracts, our principal audit
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Contract revenue is measured based on the
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procedures, amongst others, include the following:
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proportion of contract costs incurred for work
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• Compared the accounting policies in respect of
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performed to date relative to the estimated
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revenue recognition with applicable accounting
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total contract costs. One of the key estimates
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standards to test for compliance;
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involved in recognizing EPC contract revenue is
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• Tested the design, implementation and
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the estimated total contract cost. It is used to
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operating effectiveness of key internal financial
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determine the percentage of completion of the
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controls in respect of recognition of revenue
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relevant performance obligation. This requires
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from execution of EPC contracts including
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the Company to perform an initial assessment of
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relevant information technology controls. These
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estimated total contract cost and further reassess
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include controls with respect to estimation
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these estimates on a periodic basis to include
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of total contract cost and measurement of
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future activities to be performed in the contract,
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cost incurred to date, contract assets and
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additional costs to be incurred and identification
of any loss contracts including at the end of each
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contract revenues;
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reporting period.
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• On a sample basis, inspected key contractual
terms with signed contracts and verified
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Considering the complexity of the estimate
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evidences of completed performance
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involved in measurement of total contract costs,
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obligations, costs incurred to date, invoices
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extent of management judgement and the
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raised on customers, progress reports, basis of
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significance of these amounts, we have considered
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estimated cost to complete and any relevant
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measurement of revenue from execution of EPC
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correspondences with customers in respect of
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contracts as a key audit matter.
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the said contracts;
• On a sample basis, evaluated reasonableness
of Management's judgements and assumptions
on an initial estimated cost to complete and
subsequent reassessments by using past
experience and compairing the variations in
estimated total contract costs on a periodic
basis; and
• Tested journal entries related to revenue
recognised during the year based upon
specified risk-based criteria, to identify unusual
or irregular items.
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The key audit matter
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How the matter was addressed in our audit
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Copper and aluminum-based inventory forms a
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Our audit procedures over inventory valuation
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significant part of the Company's inventory. The
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included the following:
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Company adopts a structured approach to the
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• We tested the design, implementation and
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identification, quantification and hedging of risk
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operating effectiveness of key internal financial
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of fluctuations in prices of copper and aluminum
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controls, including controls over valuation of
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through commodity derivative contracts.
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inventory and accounting of derivative and
hedging transactions;
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Inventories are measured at the lower of cost and
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• On a sample basis, tested the accuracy of
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net realizable value. For inventories qualifying as
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cost of inventory by verifying the actual
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hedged items in a fair value hedge relationship,
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purchase cost;
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these are measured at cost, adjusted for the
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• On a sample basis, tested the hedging
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hedging gain or loss on the hedged item.
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relationship of eligible hedging instruments
and hedged items and the corresponding
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We have considered Inventory Valuation as a key
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adjustment of hedging gain or loss to the
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audit matter because of its size, the assumptions
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hedged item; and
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used in the valuation and the complexity, which
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• We used the work of specialists for assistance
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are relevant when determining the amounts
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in verifying hedge effectiveness requirements
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recorded.
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of Ind AS 109, including the economic
relationship between the hedged item and the
hedging instrument.
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Other Information
The Company's Management and Board of Directors are responsible for the other information.
The other information comprises the information included in the Company's annual report, but
does not include the financial statements and 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
in the 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 Directors Responsibilities for the Standalone
Financial Statements
The Company's Management and Board of Directors are 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 state of affairs, profit/ loss and other
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. 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, the Management and 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 is 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 control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act,
we are also responsible for expressing our opinion on whether the company has adequate
internal financial controls with reference to financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Management and Board
of Directors.
• Conclude on the appropriateness of the Management and Board of Directors use of the
going concern basis of accounting in preparation of standalone financial statements 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.
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” 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 except for the
matter stated in the paragraph 2(B)(f) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
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 books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Ind
AS specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors dated 01
April 2026 and 02 April 2026 taken on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2026 from being appointed as a director in
terms of Section 164(2) of the Act.
f. The modification relating to the maintenance of accounts and other matters
connected therewith are as stated in the paragraph 2(A)(b) above on reporting
under Section 143(3)(b) of the Act and paragraph 2(B)(f) 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 statements of the Company and the operating effectiveness of such
controls, refer to our separate Report in “Annexure B”.
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, 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 litigations as at 31 March 2026
on its financial position in its standalone financial statements - Refer Notes 35A and
36 to the standalone financial statements.
b. 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 - Refer Note 12B and 21B to the standalone
financial statements.
c. There were no amounts which were 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 their knowledge and
belief, as disclosed in the Note 11(G) 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 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.
(ii) The management has represented that, to the best of their knowledge and
belief, as disclosed in the Note 11(G) 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 directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Parties (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances performed, 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 (i) and (ii) above, contain any material misstatement.
e. The final dividend paid by the Company during the year, in respect of the same
declared for the previous year, is in accordance with Section 123 of the Act to the
extent it applies to payment of dividend.
As stated in Note 47(i) to the standalone financial statements, 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
dividend declared is in accordance with Section 123 of the Act to the extent it applies
to declaration of dividend.
f. Based on our examination which included test checks, the Company has used an
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. Further, during the
course of our audit, we did not come across any instance of audit trail feature being
tampered with. Additionally, where audit trail (edit log) facility was enabled and
operated in the previous years, 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 Section 197(16) of
the Act:
In our opinion and according to the information and explanations given to us, the
remuneration paid/payable 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/payable
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 B S R & Co. LLP
Chartered Accountants
Firm's Registration No.:101248W/W-100022
Sreeja Marar
Partner
Place: Mumbai Membership No.: 111410
Date: 06 May 2026 ICAI UDIN:26111410UCBGPS9321
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