We have audited the accompanying standalone financial
statements of Redington Limited (the “Company”), which
comprise the Balance Sheet as at March 31, 2026, and the
Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Cash Flows and the Statement of
Changes in Equity for the year ended on that date, and notes
to the financial statements, including a summary of 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 (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, (“Ind AS”)
and other accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2026, its
profit and other comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing (“SAs”) specified
under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the Auditor's
Responsibility 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 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 obtained by us is sufficient and appropriate
to provide a basis for our audit 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 Matter
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Auditor’s Response
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c) Performed review of the rebates recorded subsequent
to the year end to validate the appropriateness of the
rebates accrued as at the Balance Sheet date.
d) Tested the vendor-wise reconciliation for select vendors
to identify unrecorded rebates, if any.
Reviewed the ageing of rebate receivables on a sample basis
and tested subsequent collections and adjustments.
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2
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Inventory Provisioning
The Company is primarily engaged in the sale of
communication products, consumer and enterprise
electronic products and components. However, due to
rapid changes in technology, the short life cycle of electronic
products, and the prices being highly affected by market
fluctuation, there is a high risk of incurring inventory valuation
losses. As management’s judgement on determining net
realizable value of inventory is relatively subjective and the
amount of inventory is material to the financial statements,
we have considered provision for inventory as one of the
key audit matters. See note 2(e)(iv), 3(f) and 14 to the
standalone financial statements.
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The principal audit procedures performed by us in respect of the
key audit matter is summarized below:
• Obtained the Inventory ageing report and performed tests to
validate the ageing.
• Evaluated the design and implementation and tested
operating effectiveness of controls, relating to provisioning for
inventory.
• Performed retrospective review of inventory ageing and
obtained information related to aged inventory which has
been subsequently sold, on a sample basis.
• Assessed whether the provisioning policy of the management
has been determined on an appropriate basis and is applied
in a manner consistent between comparative and current
periods of the financial statements and discuss with the
management to test exceptions, if any.
• Assessed if the provision is adequate in comparison to the
net realisable value of inventories. For selected samples,
verified underlying documents to support accuracy of the net
realisable value considered.
• Calculated the days since last sale for inventory items and
item-wise inventory holding days to identify slow moving
inventory, if any, and assess the adequacy of management
provision for the same.
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Sr.
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Key Audit Matter
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Auditor’s Response
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1
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Supplier Rebates
The Company is entitled to price support from the suppliers
in the form of rebates (also referred to as backend income).
The Company estimates rebates that are recognized
in accordance with the percentage of achievement of
the rebate contract terms as at the end of the reporting
period. There are various types of rebate programs, with
unique terms, transactions with different suppliers and the
calculation of which involves manual process.
The quantum of rebates recorded against cost of purchase
of traded goods / services are significant in relation to
the profits. Accordingly, determination of the Company’s
entitlement to such rebates, its accuracy and completeness
of rebates recorded, were areas of focus for our audit and
were identified as one of the key audit matters. See note
2(e)(v) to the standalone financial statements.
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The principal audit procedures performed by us in respect of the
key audit matter is summarized below:
• Obtained an understanding of the processes relating to
recognition and measurement of supplier rebates.
• Evaluated the design and implementation and tested
operating effectiveness of controls, relating to recognition and
measurement of supplier rebates.
• Obtained the rebate tracker maintained by the Management
and reconciled the same with the books of account to ensure
all eligible rebates have been accounted for in the reporting
period.
• On a sample basis:
a) Perused the schemes announced through various
channels to assess the eligibility of the supplier rebates to
be recorded.
b) Verified the supplier rebate scheme workings with the
underlying documents to test accuracy of the amount
recorded.
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Information Other than the Financial Statements
and Auditor's Report Thereon
• The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Board's Report, Management
Discussion and Analysis Report, Corporate Governance
Report and Business Responsibility & Sustainability
Report, 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 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 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.
Responsibilities of Management and Board of
Directors for the Standalone Financial Statements
The Company's Board of Directors is 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 financial position, financial performance
including other comprehensive income, cash flows and
changes in equity of the Company in accordance with the
accounting principles generally accepted in India, including 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
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 standalone financial statements, 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 intend to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Company's Board of Directors is also 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 with reference to standalone
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.
• 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.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the Company and its branch to
express an opinion on the standalone financial statements.
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 financial controls 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 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 Balance Sheet, the Statement of Profit and
Loss including Other Comprehensive Income, the
Statement of Cash Flows and Statement of Changes
in Equity 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.
e) On the basis of the written representations received
from the directors as on March 31, 2026 taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2026 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 with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in “Annexure A”. 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.
g) With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of section 197(16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations 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,
as amended in our opinion and to the best of our
information and according to the explanations given
to us:
i. The Company has disclosed the impact of
pending litigations on its financial position in
its standalone financial statements - Refer Note
36 to the standalone financial statements;
ii. The Company did not have any long¬
term contracts including derivative
contracts for which there were any material
foreseeable losses.
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company
iv. (a) The Management has represented
that, to the best of its knowledge and
belief, as disclosed in the Note 46 to
the 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.
(b) The Management has represented,
that, to the best of its knowledge and
belief, as disclosed in the Note 46 to
the 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 Party (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed
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(e),
as provided under (a) and (b) above,
contain any material misstatement.
v. The final dividend proposed in the previous
year, declared and paid by the Company during
the year is in accordance with section 123 of
the Act, as applicable.
As stated in Note 48 to the standalone
financial statements, the Board of Directors
of the Company has proposed final dividend
for the year which is subject to the approval
of the members at the ensuing Annual
General Meeting. Such dividend proposed
is in accordance with section 123 of the Act,
as applicable.
vi. 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, 2026 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 that was enabled and operated for the
previous years, since commencement of audit
trail requirements from April 01,2023 has been
preserved by the company as per the statutory
requirements for record retention.
2. 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, we give in “Annexure
B” a statement on the matters specified in paragraphs 3
and 4 of the Order.
For Deloitte Haskins & Sells
Chartered Accountants
(Firm's Registration No. 08072S)
Ananthi Amarnath
Partner
Place: Chennai Membership No. 209252
Date: May 13, 2026 UDIN: 26209252KLDRJI8178
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