We have audited the accompanying standalone financial statements of TOLINS TYRES
LIMITED(formerly known as Tolins Tyres Private Limited) ("the Company"), which comprise the
balance sheet as at 31st March 2025, the Statement of Profit and Loss Account (including other
comprehensive income), the statement of changes in equity and statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information (herein and after referred to as "Standalone Financial Statement").
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid 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 accounting standards prescribed
under section 133 of the Act read with the companies(Indian Accounting Standards) rule 2015, as amended,
('Ind AS') and generally accepted accounting principles in India, of the state of affairs of the Company as
at 31st March 2025 and its profit, 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 standalone financial statements in accordance with the standards on auditing
(SA's) 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 (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 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 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 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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Key Audit Matters
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Our Response
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1
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The company uses several systems for its
overall financial reporting and there is a large
volume of transactions being recorded at
multiple locations daily. In addition, there are
increasing challenges to protect the integrity of
the company's systems and data since cyber
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Due to the automated controls and high degree
of dependence in information systems, there is a
risk that the financial accounting and reporting
records may be misstated in case of any control
lapses in the IT system related controls. We have
designed our audit procedures in accordance
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Sl No
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Key Audit Matters
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Our Response
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security has become a more significant risk in
recent periods.
Due to the pervasive nature and complexity of
the IT environment as well as its importance in
relation to accurate and timely financial
reporting, we have identified this area as a Key
Audit Matter.
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with the guidelines laid down in the Standards
on Auditing (SA 530) and tested the controls in
the Information Technology Systems on a sample
basis which has an impact on the financial
accounting and reporting records. We have also
tested on a sample basis the controls related to
access management including user rights in
passing entries, approval for authorizing entries,
authorization for reversing entries, segregation
of duties, system password protection, external
software/hardware access rights etc. Based on
our sample review, no material weakness was
identified in the IT related systems and controls.
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2
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The company holds a significant amount of
inventory, including raw materials, work-in¬
progress, and finished goods, across various
locations and manufacturing plant. The
valuation of these inventories is critical as it
directly impacts the company's financial
results. The complexity arises from the need to
correctly allocate costs, determine the net
realizable value, and assess the potential
obsolescence of inventory.
Given the scale of operations and diversity of
products, the valuation process requires
significant management judgment, particularly
in estimating the recoverable amounts of
inventory items that may be slow-moving or
obsolete.
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We have assessed the effectiveness of the
company's internal controls over inventory
management, including physical counts and the
valuation process.
We have attended physical inventory counts at
key locations to observe the procedures and
ensure that the inventory quantities recorded
were accurate.
Reconciliation of physical inventory counts to the
inventory records was conducted, along with
testing a sample of inventory items for valuation
accuracy. Reliance was placed on stock audit
report made for the purpose of valuation of
inventory.
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3
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Completeness in identification and disclosure
of related party transactions in accordance with
the applicable reporting framework.
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We have accessed the laid down systems and
processes of the Company in identifying related
party transactions and its ultimate disclosure in
financial statements in accordance with the
applicable reporting framework. We have
designed the audit procedures in accordance
with the guidelines prescribed in Standards on
Auditing (SA 550) to identify the risks of material
misstatement arising from an entity's failure to
appropriately account for or disclose material
related party transactions. We have also
reviewed the minutes of meetings of the board in
the course of the audit to identify any
transactions that may require disclosure in
accordance with the applicable reporting
framework.
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Sl No
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Key Audit Matters
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Our Response
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4
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Effective oversight and control over capital
expenditure (capex) is essential to ensure the
accuracy and completeness of financial
reporting related to property, plant and
equipment (PPE). The complex nature of capex,
often involving multiple locations, stages of
execution and stakeholders, increases the risk
of misclassification, cut-off errors or omission
of assets under construction.
Furthermore, the accounting for PPE requires
management to exercise significant judgement
and estimation in areas such as capitalization of
costs, determination of useful lives, residual
value computation and assessment of
impairment indicators. These judgements have
a material impact on the carrying value of PPE
in the balance sheet and the related charges to
profit and loss.
Given the financial significance of capex and
the extent of management judgement involved,
this area was considered a key audit matter in
our audit.
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Our audit process consisted testing of the design
and operating effectiveness of the internal
controls and substantive testing as follows:
We assessed Company's process regarding
maintenance of records and accounting of
transactions pertaining to property, plant and
equipment including capital work in progress
with reference to Ind AS 16. We have carried out
substantive audit procedures at financial and
assertion level to verify the capitalization of
assets as Property, Plant & Equipment
We have reviewed management judgement
pertaining to estimation of useful life, residual
value and depreciation of the Property, Plant and
Equipment in accordance with Schedule II of the
Companies Act, 2013.
We have relied on physical verification
conducted by management and the technical
certificate produced to us.
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5
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The Company has significant trade receivables,
including balances denominated in foreign
currencies. The realisability of these receivables
involves management judgment in assessing
credit risk. Foreign currency balances are
subject to translation under Ind AS 21, and
material portions require external confirmation,
particularly from overseas customers. Due to
the estimation uncertainty, foreign exchange
volatility and the reliance on third-party
evidence, we identified this as a key audit
matter.
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We assessed the design and implementation of
internal controls over receivables management
and performed substantive procedures on trade
receivables, including those denominated in
foreign currencies. We tested ageing and
reviewed subsequent collections. For balances
selected for external confirmation where
responses were not received, we applied
alternative audit procedures in accordance with
SA 505.
We also reviewed the foreign currency
retranslation of receivables under Ind AS 21 and
noted certain balances not translated properly.
The recalculated adjustments are to be effected
fully. Accordingly, we obtained audit evidence to
a reasonable extent; however, due to the absence
of confirmations and incomplete retranslation, a
residual risk of misstatement remains, which has
been reported to those charged with governance.
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6
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The Company recognises revenue from the
sales of products when control over goods is
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In view of the significance of the matter we
applied the following audit procedures in this
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Key Audit Matters
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Our Response
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transferred to the customer based on specific
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area, among others to obtain sufficient
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terms and conditions of sale contracts with
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appropriate audit evidence:
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respective customers.
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We assessed the appropriateness of the policies
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We have identified recognition of revenue on
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in respect of revenue recognition by comparing
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sale of products as a key audit matter as
revenue is a key performance indicator; and
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with applicable accounting standards.
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there is a presumed fraud risk of revenue being
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We performed testing of design, implementation
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overstated through manipulation of the timing
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and operating effectiveness of the Company's
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of transfer of control
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key manual controls around revenue recognition.
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We also performed substantive testing (including
year-end cut-off testing) of recognition of
revenue in the correct period by selecting
statistical samples of revenue transactions
recorded during and at the end of the financial
year. We reviewed the underlying documents
such as sales invoices/ contracts and dispatch/
shipping documents for the selected transactions.
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We assessed manual journals posted in revenue
ledger to identify any unusual items
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Information other than the standalone financial statements and auditors' 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 annual report, Board's Report including Annexures
to Board's Report and Business responsibility report 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.
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 responsibility for the standalone financial statements
The Company's 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 of these Standalone 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 IND AS and including other
accounting principles generally accepted in India. (accounting standards specified under section 133 of the
Act, read with the companies (accounting standards) rule,2006, 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 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 Statement 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 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 control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies
Act, 2013, 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 sub-section (11) of section 143 of the Companies Act, 2013, we give in
the " Annexure - 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 Companies Act, 2013, 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
as 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 cash flow statement if any 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 Indian accounting
standards(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 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 the
requirement of Section 197 (16) of the Act, as amended. In our opinion and to the best of our information
and according to the explanation 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.
(h) 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 does not have pending litigations which impact on its standalone financial
position in its Standalone Financial Statements.
b. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses to the standalone financial statements; 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. (a) The Management has represented that, to the best of its knowledge and belief, other than
disclosed in notes to accounts, 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, other than
disclosed in notes to accounts, 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(d), as provided under (a) and (b)
above, contain any material misstatement.
e. The company has not declared or paid any dividend during the year in contravention of
provision section 123 of the Companies Act, 2013.
f. Based on our examination, which included test checks, the Company has used accounting
software for maintaining its books of account for the financial year ended March 31, 2025 which
has 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 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.
For Krishnan Retna & Associates
Chartered Accountants
Firm Registration No. 001536S
Sd/-
Nikhil R Kumar
Partner
Membership No. 231162
Date : 03-Sept-2025
Place : Ernakulam
UDIN : 25231162BMISCM1409
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