We have audited the Standalone Financial Statements of Indsil Hydro Power and Manganese Limited ("the
Company”), which comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Changes in Equity and Statement of Cash Flow for the year then
ended, and notes to the Standalone Financial Statements, including 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 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 31st March, 2025, and
total comprehensive income (comprising of profit and other comprehensive income), changes in equity and cash
flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the standards on auditing (SA’s) specified under section 143 (10) of the
Act. Our responsibilities under those SA’s 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 Statement.
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.
Information other than the financial statements and auditors’ report thereon
• The Company’s Board of Directors is responsible for other information. The other information comprises the
information included in the Annual 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 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 in the 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 the fact. We have nothing to report in this regard.
Responsibilities of Management and those charges with governance for the standalone financial statements
The Company’s Board of Directors are 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 State of Affairs,
profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the
Ind AS and other accounting principles generally accepted in India. 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, the 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 the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Company’s 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 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.
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. 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
Other Matter
On 19th May, 2024, the Company sold its entire stake held in its Joint Venture: Al-Tamman Indsil Ferro Chromes
(FZC) LLC for the consideration of ' 146.51 Crore as mentioned in the financials.
As stated in Note 2.29 to the accompanying Standalone Financial Statements, which state that the Company’s
recognition of a liablity towards Fuel & Power Purchase Cost Adjustment (FPPCA) in respect of Financial Years 2022¬
23, 2023-24 and 2024-25, pursuant to an order issued by the Andhra Pradesh Electricity Regulatory Commission.
This liability has been recognized in the Financial Year 2024-25.
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 Section 143(11) of the Act, we give in the "Annexure A”, a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
2. A As required by Section 143(3) of the Act, 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 Changes in Equity and the Statement of Cash Flow 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 Ind AS specified under
Section 133 of the Act.
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 with reference to the Standalone Financial
Statement of the 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 Control with reference to the Standalone Financial Statement.
B. 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 7 of Annexure A to the Independent auditor’s report.
ii. The Company did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses; and
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 to us that, to the best of its knowledge and belief, 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(s), 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 to us that, to the best of its knowledge and belief, no funds have
been received by the Company from any person(s) or entity(s), 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 Parties ("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. As stated in Note 2.34 to the accompanying Standalone Financial Statements, the Board of Directors of
the Company have proposed final dividend for the year ended 31st March, 2025 which is subject to the
approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance
with Section 123 of the Act to the extent it applies to declaration of dividend.
vi. Based on our examination which included test checks, the Company in respect of the financial year
commencing on 1st April, 2024 has used accounting software for maintaining its Books of Accounts which
have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in respective software. Further, during the course of our audit we did not
come across any such instances of the audit trail feature being tampered with for the period where audit
trail is enabled and operated. Furthermore, the audit trail has been preserved by the Company as per the
statutory requirements for record retention where the audit trail feature was enabled.
C. With respect to the matters to be included in the Auditor’s Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the
company to its directors during the current year is in accordance with the provisions of section 197 read with
Schedule V of the Act. The remuneration paid is not in excess of the limit laid down under section 197 of the
Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which
are required to be commented upon by us.
For DIVYA K.R. AND ASSOCIATES
Chartered Accountants
Firm Registration No: 027280S
DIVYA K.R.
Place: Coimbatore Proprietor
Date: 28 05 2025 Membership No : 228896
UDIN: 25228896BMLWUY3174
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