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Sr.
Key Audit Matter
No.
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Auditor’s Response
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1 Supplier rebates
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The principal audit procedures performed by us in respect
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The Company is entitled to price support from the suppliers
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of the key audit matter is summarized below:
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in the form of rebates (also referred to as backend income).
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• Obtained an understanding of the processes relating
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The Company estimates rebates that are recognized
in accordance with the percentage of achievement of
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to recognition and measurement of supplier rebates.
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the rebate contract terms as at the end of the reporting
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• Evaluated the design and implementation and tested
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period. There are various types of rebate programs, with
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operating effectiveness of controls, relating to
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unique terms, transactions with different suppliers and the
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recognition and measurement of supplier rebates.
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calculation of which involves manual process.
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• Obtained the rebate tracker maintained by the
Management and reconciled the same with the books
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The quantum of rebates recorded against cost of purchase
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of account to ensure all eligible rebates have been
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of traded goods / services are significant in relation to
the profits. Accordingly, determination of the Company's
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accounted for in the reporting period.
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entitlement to such rebates, its accuracy and completeness
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• On a sample basis:
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of rebates recorded, were areas of focus for our audit and
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a) Perused the schemes announced through various
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were identified as one of the key audit matters. See note 2(e)
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channels to assess the eligibility of the supplier
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(v) to the standalone financial statements.
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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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Sr.
No.
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Key Audit Matter
|
Auditor’s Response
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| |
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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 realizable 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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We have audited the accompanying standalone financial
statements of Redington Limited (the "Company"), which
comprise the Balance Sheet as at March 31, 2025, 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, 2025, and its profit, total
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 ("SA"s) 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.
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 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 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 during the course of
our audit or otherwise appears to be materially misstated.
• If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor's report, 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 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 in 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, 2025 taken on
record by the Board of Directors, none of the directors
is disqualified as on March 31, 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 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 37
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 stated
in the note 48 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 stated
in the note 48 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 49 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,
2025 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.
Additionally, the audit trail that was enabled
and operated for the year ended March 31,2024
has been preserved by the Company as per the
statutory requirements for record retention, as
stated in note 50 to the financial statements.
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: 008072S)
Ananthi Amarnath
Partner
Place: Chennai (Membership No. 209252)
Date: May 19, 2025 UDIN: 25209252BMTCNX2611
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