We have audited the standalone financial statements of
IndiaMART InterMESH Limited (the "Company") which
comprise the standalone balance sheet as at 31 March 2025,
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 2025,
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
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.
Revenue Recognition - Web Services
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See Note 2.3(c) and 19 to standalone 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 generates revenue primarily from web services and
follows a prepaid model for its business.
Revenue from web services is recognised over the period of
the contract as and when the Company satisfies performance
obligations by actually rendering the promised services to its
customers.
These services are delivered using IT systems which manage very
high volume on daily basis and generate reports from which the
Company recognises revenue, and hence there is inherent risk
around the existence and accuracy of revenue recognition.
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In view of the significance of the matter, we applied the following
audit procedures in this area, among others to obtain sufficient
appropriate audit evidence:
i. We assessed the appropriateness of the revenue recognition
accounting policy and its compliance with applicable
accounting standards.
ii. We evaluated the design and implementation of key internal
financial controls and operating effectiveness of the relevant
key controls with respect to existence and accuracy of revenue
recognition on selected transactions.
iii. We, with the involvement of IT specialists, evaluated the design,
implementation and operating effectiveness of management's
general IT controls and key application controls over the
Company's IT systems which govern revenue recognition,
including access controls, controls over program changes and
interfaces between different systems.
iv. We selected a sample of transactions using statistical sampling
and performed tests of details including reading the contract,
identifying performance obligation and its link with actual rendition
to assess whether the criteria for revenue recognition are met.
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