We have audited the accompanying Standalone financial statements of Birla Cotsyn India Limited (“the Company”) which comprise the
Balance Sheet as at 31st March 2026, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and notes to
the 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 financial statements, give
the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India,
a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2026
b) In the case of the Statement of Profit and Loss, of the loss for the year ended on that date; and
c) In the case of the Cash Flow Statement, 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 Companies Act, 2013
(“Act”). Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of Financial Results
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 financial statements under the
provisions of the Companies Act, 2013 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 obtained by us in is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters (‘KAM’) 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.
Description of Key Audit Matters
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The Key Audit Matters
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How our audit addressed the matter
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Accounting treatment for the effects of the
Resolution Plan
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Principal Audit Procedures
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Refer Note 26 to the standalone Financial
Statements for the details regarding
the resolution plan implemented in the
Company pursuant to a corporate insolvency
resolution process concluded during the year
ended 31st March 2026 under Insolvency
and Bankruptcy Code, 2016.
Accounting for the effects of the resolution
plan is considered by us to be a matter of
most significance due to its importance
to intended users understanding of the
Financial Statements as a whole and
materiality thereof.
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Our audit procedures included the following substantive procedures to determine
whether the effect of Resolution Plan has been appropriately recognised in the Financial
Statements:
• Reviewed management’s process for review and implementation of the Resolution
Plan.
• Reviewed the provisions of the Resolution Plan to understand the requirements of the
said Plan and evaluated the possible impact of the same on the financial statements.
• Verified the balances of liabilities as on the date of approval of Resolution Plan from
supporting documents and computations on a test check basis.
• Verified the payment of funds on test check basis as per the Resolution Plan.
• Tested the implementation of provisions of the Resolution Plan in computation of
balances of liabilities owed to financial and operational creditors.
• Evaluated whether the accounting principles applied by the management fairly
present the effects of the Resolution Plan in financial statements in accordance with
the principles of Ind AS.
Tested the related disclosures made in notes to the financial statements in respect of the
implementation of the resolution plan.
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Capitalisation and Deletion of Property, Plant
& Equipment
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Principal Audit Procedures
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During the year ended 31st March, 2026, the
Company has incurred significant capital
expenditure. Further the total additions to
property, plant and equipment at various
locations of the Company was ^ 705.04 Lacs
in the current year as set out in Note No.2.
Moreover, total deletions to property, plant
and equipment at various locations of the
Company was ^ 912.08 Lacs in the current
year.
Significant level of judgement is involved to
ensure that the aforesaid capital expenditure/
additions and deletions meet the recognition
criteria of Ind AS 16 - Property, Plant and
Equipment.
As a result, the aforesaid matter was
determined to be a key audit matter.
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Our audit procedures included the following substantive procedures:
• We assessed the capitalisation process and tested the design and operating
effectiveness of the controls in the process.
• Assessed the nature of the additions made to property, plant and equipment and
capital work-in-progress on a test check basis to test that they meet the recognition
criteria as set out in para 16 to 22 of Ind AS 16.
• Reviewed the project completion details provided by the management to determine
whether the asset is in the location and condition necessary for it to be capable of
operating in the manner intended by the management.
• Assessed the nature of the deletions made to property, plant and equipment on a test
check basis to test that they meet the recognition criteria as set out in para 67 to 71 of
Ind AS 16.
Based on the above procedures, management’s assessment in respect of Capitalisation
of property, plant and equipment in the Standalone Financial Statements are considered
to be adequate
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Transactions with Related Parties
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Principal Audit Procedures
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During the year, the Company has undertaken
transactions with related parties including
subsidiary company, associate concerns
and other related parties. Such transactions,
includes among others, the rental agreement
and loans and advances as mentioned in
Note 35 of the Notes to Accounts.
Accounting and disclosure of such related
party transactions has been identified as a
key audit matter due to
a) Significance of such related party
transactions;
b) Risk of such transactions being executed
without proper authorizations;
c) Risk of material information relating
to aforesaid transactions not getting
disclosed in the standalone financial
statements.
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• Our audit procedures included the following:
• Obtained and read the Company’s policies, processes and procedures in respect of
identification of such related parties in accordance with relevant laws and standards,
obtaining approval, recording and disclosure of related party transactions and
identified key controls. For selected controls we have performed tests of controls.
• On sample basis tested some related party transactions and balances with the
underlying contracts, confirmation letters and other supporting documents provided
by the Company.
• Examined, where applicable the approvals of the board and audit committee of these
transactions.
• Obtained and read the reports including the review of arms-length pricing issued by the
experts engaged by the management.
• Assessed the competence and objectivity of the external experts.
• Held discussions and obtained representations from the management in relation to
such transactions.
• Read the disclosures made in this regard in the standalone financial statements and
assessed whether relevant and material information have been disclosed.
Based on the above procedures, management’s assessment in recognition and disclosure
in respect of Related Party Transactions in the Standalone Financial Statements are
considered to be adequate.
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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 preparation of the other information. The other information comprises the
information included in the Management Discussion and Analysis, Board’s report including the Annexures to Board’s Report, Corporate
Governance and Shareholder’s Information, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the 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 Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with
respect to the preparation of the Financial Statements that give a true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of The Companies (Accounts) Rules, 2014. 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 the 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 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 Responsibility
Our objectives are to obtain reasonable assurance about whether the 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 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 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 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 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 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 financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the 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 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 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”), as issued by Central Government of India in terms of Sub
Section (11) of Section 143 of the Act, we hereby give in the “Annexure A” 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 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 accounts 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 and the Cash Flow Statement dealt with by this Report are in agreement
with the books of accounts;
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards referred to in Section 133 of the Act
read with Rule 7 of The Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the Directors and taken on record by the Board of Directors, none of the
Directors is disqualified as on 31st March 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 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 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, 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 27 to the Standalone Financial Statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material
foreseeable losses;
iii. There were no 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, 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, 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 (e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note 31 to the Standalone Financial Statements, the company has neither declared nor paid any dividend
during the year.
vi. Based on our examination, which included test checks, the Company has used accounting softwares maintaining its
books of account for the financial year ended March 31,2026 which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year for all relevant transactions recorded in the softwares. 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 has been preserved by the Company as per the statutory requirements for record retention.
For Jain Kothari & Co.
Chartered Accountants
FRN:022340C
Prinkit Jain
Partner
M. No. 160496
Date: 25-05-2026
Place: Mumbai
UDIN: 26160496CLYOFQ7458
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