We have audited the accompanying Standalone Ind-AS financial statements of Uniroyal Industries Limited (“the Company”),
which comprise the Standalone Balance Sheet as at 31st March 2024, the Standalone statement of Profit and Loss (including
Other Comprehensive Income),the Standalone Statement of Changes in Equity and the Standalone statement of Cash Flow for
the year then ended and a summary of significant 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 Ind-AS
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 31 March 2024, 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 in accordance with the Standards on Auditing 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 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 independence 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.
Key Audit matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone
Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the Standalone Ind
AS financial statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on these matters.
For each matter below, our description of how our audit addressed the matter is provided in that context
Litigations and contingencies:
See note 4 to the financial statements:
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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 is exposed to a variety of
different Central and state laws, regulations
and interpretations thereof. In this regulatory
environment, there is an inherent risk of
litigations and claims.
• In the normal course of business, provisions
and contingent liability disclosures for
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Our procedures included:
Ý Inquiring the status of significant known
actual and potential litigation with the
Company's in -house Legal Counsel and
other senior management personal who
have knowledge of these matters and
critically assessing their responses.
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litigations and claims may arise from direct
and indirect tax proceedings, legal
proceedings, including regulatory and other
government/department proceedings, as
well as investigations by authorities and
commercial claims.
• At 31st March 2024, the Company’s
contingent liabilities were Rs. 62.00 lacs
(31,March 2023 : Rs.62.00) (refer note 4 to
Notes to financial statements)
• These estimates could change substantially
over time as new facts emerge and each
legal case progresses
• Given the inherent complexity and
magnitude of potential exposures across the
Company and the judgement necessary to
estimate the amount of provisions required
or to determine required disclosures, this is
a key audit matter.
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Ý Obtaining, on a sample basis, written
responses from the Company’s in-house
legal counsel, containing their views and
conclusions on material exposures and any
related litigation and considered the same in
evaluating the appropriateness of the
Company’s provisions or disclosures on
such matters.
Ý Reading the latest correspondence between
the Company and the various tax/legal
authorities or plaintiffs and attorneys where
applicable, for matters selected on sample
basis for detailed evaluation.
Ý For the most significant of the matters, we
assesse relevant historical and recent
judgments passed by the court authorities
and considering legal opinion, where
obtained by management from external
lawyers, to challenge the basis used for the
provisions recorded and the disclosures
made by the Company.
Ý Challenging the decisions and rationale for
provisions held or for decisions not to record
provisions or make disclosures.
Ý For those matters where management
concluded that no provisions should be
recorded, we have reviewed the adequacy
and completeness of the Company’s
disclosures.
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• The company has recognised deferred tax
liability amounting to Rs. 64.41 lacs
(31 March, 2024 (31, March 2023 :
Rs. 91.39) for temporary differences, In the
value of assets as per Books of Accounts &
as per Income Tax Act.
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Ý Reconciling tax losses and tax credits and
its expiry dates to tax returns filed with tax
authority.
Ý With respect to tax matters, involving our
tax specialists, and discussing with the
Company's tax officers, their views and
strategies on significant cases, as well as
the related technical grounds relating to
their conclusions based on applicable tax
laws.
Ý Assessing the accuracy of forecast future
taxable profits approved by the Board, by
evaluating historical forecasting accuracy
and comparing the assumptions, such as
projected growth rates, with our own
expectations of those assumptions derived
from our knowledge of the industry and our
understanding obtained during our audit,
including where applicable their consistency
with business plans.
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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 Annexures
to Board's Report, Business Responsibility 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 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.
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 RESPONSIBILITY 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 Companies
Act, 2013 (“the Act”) with respect to the preparation & presentation of these Standalone Ind-AS financial statements that give a
true and fair view of the financial position, financial performance including 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) prescribed 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 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 financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the 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 are responsible for overseeing the Company's financial reporting process.
AUDITORS' RESPONSIBILITY FOR AUDIT OF 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.
A further description of the auditor's responsibilities for the audit of the Ind AS financial statements is included in Annexure A. This
description forms part of our auditor's report.
For GOPAL BHARGAWA & Co.
Chartered Accountants
Firm's Regn. No. 026816N
Panchkula Gopal Bhargawa
17th May, 2024 Proprietor
Membership No. 531619
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