We have audited the accompanying Ind AS financial
statements of Page Industries 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/ (loss), the Cash Flow
Statement and the Statement of Changes in Equity for
the year then ended, and notes to the Ind AS 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
Ind AS 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/ (loss), its cash flows and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS 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 Ind AS 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 Ind
AS 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 Ind AS 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
Ind AS financial statements for the financial year ended
March 31, 2025. These matters were addressed in the
context of our audit of the Ind AS 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.
We have determined the matters described below to
be the key audit matters to be communicated in our
report. We have fulfilled the responsibilities described in
the Auditor's responsibilities for the audit of the Ind AS
financial statements section of our report, including in
relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to
our assessment of the risks of material misstatement of
the Ind AS financial statements. The results of our audit
procedures, including the procedures performed to
address the matters below, provide the basis for our audit
opinion on the accompanying Ind AS financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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Revenue recognition (as described in note 25 and 2.3 (c) of the Ind AS financial statements)
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As described in the accounting policy in note 2.3
(c) to the Ind AS financial statements, revenue
from sale of goods is measured at fair value of the
consideration received or receivable, net of returns
and allowances, trade discounts and volume
rebates / incentives.
The Company has various incentive schemes for
its retailers and distributors which are based on
volume of sales achieved during the stipulated
period. The estimate of sales likely to be achieved
by each retailer / distributor requires judgment.
The Company also makes provision for sales
returns, based on historic trends and assessment
of market conditions.
Further, as per Ind AS 115, revenues are deferred in
cases where the performance conditions have not
been met.
Considering the judgment and estimates involved
in revenue recognition, it is considered to be a key
audit matter.
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Our audit procedures included, among others the following:
- We have read and evaluated the Company’s accounting policy
for revenue recognition, including the policy for recording
returns, and discounts in accordance with Ind AS 115 ‘Revenue
from Contracts with Customers’.
- We assessed and tested on sample basis the design and
operating effectiveness of internal financial controls including
application controls of the Company’s system over Company’s
revenue recognition process.
- We discussed and obtained an understanding from the
management on the key assumptions applied and inputs used
in estimating provisions for discounts, sales incentives and sales
returns and compared the same with the past trends and the
provision made by the management.
- We tested on a sample basis invoices raised / credit note issued
prior to year-end and post year end to assess whether revenue is
recognized appropriately based on the performance conditions
met, in line with Ind AS 115.
- We read and assessed the relevant disclosures made in the Ind
AS financial statements including disclosures on significant
accounting judgments, estimates and assumptions.
- We performed analytical procedures to identify any unusual
trends and items.
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Provision on Inventories (as described in note 10 and 2.3 (j) of the Ind AS financial statements)
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The Company held an inventory balance of
'8,588.66 million as at March 31, 2025, as disclosed
in Note 10 and is a material balance for the Company.
Inventory obsolescence allowance is determined
using policies/ methodologies that the Company
deems appropriate to the business. Significant
judgement is exercised by the management
in identifying the slow-moving and obsolete
inventories and in assessing whether provision for
obsolescence should be recognized. Considering
that the aforesaid assessment process is complex
and involves significant estimates and judgements
and the balance of inventory is material, we have
identified this as a key audit matter.
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Our audit procedures included, among others the following:
- We obtained an understanding of how the management identifies
the slow-moving and obsolete inventories and assesses the
amount of allowance for inventories;
- We assessed and tested the design and operating effectiveness
of the Company’s internal financial controls over the allowance for
inventory obsolescence;
- We observed the inventory count performed by management and
assessed the physical condition of the inventories;
- We also assessed the allowance policy based on historical sales
performance of the products and comparing the actual loss to
historical allowance recognized, on a sample basis;
- We further tested the ageing of the inventories and the
computation of the obsolescence level on a sample basis;
- We have tested a sample of inventory items for significant
components to assess the cost and tested the basis of
determination of net realizable value of inventory, on a sample
basis;
- We also assessed the Company’s disclosures concerning this in
Note 2.3 (j) on significant accounting estimates and judgements
and Note 10 on Inventories to the Ind AS financial statements.
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We have determined that there are no other key audit matters to communicate in our report.
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 Ind AS financial statements and
our auditor's report thereon. The other information is
expected to be made available to us after the date of
this auditor's report.
Our opinion on the Ind AS 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 Ind AS financial
statements, our responsibility is to read the other
information identified above when it becomes
available and, in doing so, consider whether such other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
Responsibilities of Management for the
Ind AS 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 Ind AS financial statements that
give a true and fair view of the financial position, financial
performance including other comprehensive income/
(loss), 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 Ind AS financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the Ind AS 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 Responsibilities for the Audit of the
Ind AS Financial Statements
Our objectives are to obtain reasonable assurance
about whether the Ind AS 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 Ind AS 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 Ind AS 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 with reference to
Ind AS 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 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 Ind AS 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 Ind AS financial statements, including
the disclosures, and whether the Ind AS 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 Ind AS 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.
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 that in case of one application, the
backup of the books of account has not been
maintained on servers physically located in India
on daily basis as stated in note 48 of the Ind AS
financial statements, and for the matters stated
in the paragraph (f) and (i(vi)) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014, as amended;
(c) The Balance Sheet, the Statement of Profit
and Loss including the Statement of Other
Comprehensive Income/ (loss), 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 Ind AS 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 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) The modification relating to the maintenance of
accounts and other matters connected therewith
are as stated in paragraph (b) above on reporting
under Section 143(3)(b) and paragraph (i(vi))
below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014, as
amended;
(g) With respect to the adequacy of the internal
financial controls with reference to these Ind
AS financial statements and the operating
effectiveness of such controls, refer to our
separate Report in “Annexure 2” to this report;
(h) I n our opinion, 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; and
(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 Ind AS financial statements - Refer Note
40(b) to the Ind AS 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 and
as disclosed in the note 47 (v) to the Ind AS
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 or entity, including
foreign entity (“Intermediary”), 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 Beneficiary”) or provide
any guarantee, security or the like on behalf of
the Ultimate Beneficiary;
b) The management has represented that, to the
best of its knowledge and belief and as disclosed
in the note 47 (vi) to the Ind AS financial
statements, no funds have been received
by the Company from any person or entity,
including foreign entity (“Funding Party”), 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 Beneficiary”) or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiary; 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. The interim dividend declared and paid by the
Company during the year and until the date of
this audit report is in accordance with section
123 of the Act. Further, no final dividend has
been proposed by the Board of Directors of
the Company.
vi. Based on our examination which included test
checks, the Company has used accounting
softwares, 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, audit
trail feature is not enabled for certain changes
made, if any, using privileged/ administrative
access rights as described in note 49 to the
Ind AS financial statements. Further, during
the course of our audit we did not come
across any instance of audit trail feature being
tampered with respect to the accounting
softwares where audit trail has been enabled.
Additionally, the audit trail of prior year(s) has
been preserved by the Company as per the
statutory requirements for record retention
to the extent it was enabled and recorded in
the respective years, except in the case of one
application where the audit trail has not been
preserved by the Company as per the statutory
requirements for record retention as stated in
note 49 to the financial statements.
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
per Sandeep Karnani
Partner
Membership Number: 061207
UDIN: 25061207BMNTVS4132
Place of Signature: Bengaluru, India
Date: May 15, 2025
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