We have audited the accompanying standalone financial statements of Line Limited (Formerly
known as Linc Pen & Plastics Limited) "the Company"), which comprise the Balance sheet
as at March 31,2025, the Statement of Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity
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, as amended ("the 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 March 31,2025, its profit including 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), as specified under section 143(10) of the Act. Our responsibilities
under those Standards 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 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 for the financial year ended
March 31,2025. 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. For each matter below, our description of how our audit
addressed the matter is provided in that context.
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Key audit matters
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How our audit addressed the key audit
matter
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Revenue from sale of goods (as described in Note 26 to the standalone financial
statements)
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The Company recognizes revenues when
control of the goods is transferred to the
customer at an amount that reflects the
consideration to which the Company expects
to be entitled in exchange for those goods.
In determining the sales price, the Company
considers the effects of rebates and discounts
(variable consideration). During F.Y. 2024¬
25, the Company's Statement of Profit and
Loss included Sales of INR 52,762.58 lakhs.
The terms of sales arrangements, including
the timing of transfer of control, the nature
of discount and rebates arrangements and
delivery specifications, create complexity and
judgment in determining sales revenues.
The risk is, therefore, that revenue is not
recognised in accordance with Ind AS 115
'Revenue from contracts with customers',
and accordingly, it was determined to
be a key audit matter in our audit of the
standalone financial statements.
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Our audit procedures included the following:
Ý Considered the appropriateness of
Company's revenue recognition policy
and its compliance in terms of Ind AS 115
'Revenue from contracts with customers';
Ý Assessed the design and tested the
operating effectiveness of internal
controls related to sales and related
rebates and discounts;
Ý Performed sample tests of individual sales
transaction and traced to sales invoices,
sales orders and other related documents.
In respect of the samples selected, tested
that the revenue has been recognized as
per the sales agreements;
Ý Selected sample of sales transactions
made pre- and post-year end, agreed
the period of revenue recognition to
underlying documents; and,
Ý Assessed the relevant disclosures
made within the standalone financial
statements.
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Valuation of Inventories (as described in Note 11 to the standalone financial
statements)
The company held inventories amounting Our audit procedures included the following:
to H9,003.46 lakhs as at the Balance Sheet
Ý Obtained a detailed understanding and
date, which represent 2/.26 % of total assets.
evaluated the design and implementation
As described in the accounting policies of controls that the company has
in note 1.3(K) to the standalone financial established in relation to inventory
statements, inventories are carried at the valuation.
lower of cost and net realizable value.
Ý Comparing the net realizable value to
Inventories valuation is a significant audit
the cost price of inventories to check for
risk as inventories may be held for long
completeness of the associated provision.
periods of time before being sold making
it vulnerable to obsolescence. As a result, Ý Recomputing provisions recorded to
the management applies judgment in verify that they are in line with the
determining the appropriate provisions Company policy.
for obsolete stock based upon a detailed
analysis of old inventory, net realizable value
below cost based upon future plans for sale
of inventory.
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Other Information
The Company's Board of Directors is responsible for the 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 and, in doing so, consider whether such 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 that fact. We have nothing to report in this regard.
Responsibilities of Management 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 the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended. 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 the 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 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 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.
Those 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:
Ý 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.
Ý 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 with reference to standalone financial statements in
place and the operating effectiveness of such controls.
Ý Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Ý 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.
Ý 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.
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 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
for the financial year ended March 31,2025 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"), issued by
the Central Government of India in terms of sub-section (11) of section 143 of the Act,
we give in the "Annexure 1" 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, 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, except for
the matters stated in paragraph 2(i)(vi) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 (as amended) ("the Rules");
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Cash Flow Statement and Statement of Changes
in Equity 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
Accounting Standards specified under Section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on April
1,2025 to April 17,2025 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) The modifications relating to the maintenance of accounts and other matters
connected therewith, reference is made to our remarks in paragraph 2(b) above
on reporting under Section 143(3)(b) of the act and paragraph 2(i)(vi) below on
reporting under Rule 11(g) of the Rules;
(g) With respect to the adequacy of the internal financial controls with reference to these
standalone financial statements and the operating effectiveness of such controls,
refer to our separate Report in "Annexure 2" to this report;
(h) 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 managerial remuneration for the year ended March 31,2025 has been paid
/ provided by the Company to its directors in accordance with the provisions of
section 197 read with Schedule V to 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.
(i) 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(b) 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 during the year
ended March 31,2025.
iv. (a) The management has represented that, to the best of its knowledge and
belief, as disclosed in the note 49(i) to the standalone 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, 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, as disclosed in the note 49(i) to the standalone 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, 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; and
(c) Based on such 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 (a) and (b) contain any material misstatement.
v. (a) The final dividend paid by the Company during the year in respect of the
same declared for the previous year is in accordance with section 123 of
the Act to the extent it applies to payment of dividend.
(b) As stated in note 17(g) to the standalone financial statements, the Board
of Directors of the Company have proposed dividend for the year 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 has
used accounting software for maintaining its books of account 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 software, except
that the feature recording audit trail (edit log) facility was not enabled at the
database level to log any direct data changes, as described in note 49 (vii) to
the standalone financial statements. Further, during the course of our audit we
did not come across any instance of audit trail feature being tampered with and
the same has been preserved by the Company as per the statutory requirements
for record retention in respect of the accounting software where edit log facility
was enabled and operated throughout the year.
For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
Ankit Dhelia
Partner
Place: Kolkata Membership No. 069178
Date: May 07, 2025 UDIN: 25069178BMNXEJ2814
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