We have audited the accompanying standalone financial statements of
Repro India Limited ("the Company"),which comprise the Balance Sheet as
at March 31, 2025, and the Statement of Profit and Loss, including Other
Comprehensive Income, Statement of Changes in Equity and Statement of Cash
Flows for the year then ended, and notes to the standalone financial statements,
including material accounting policy information and other explanatory
information (hereinafter referred to as the "standalone financial statements").
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 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 March 31, 2025, and loss (including other comprehensive Income, changes in
equity and its cash flows 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) 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 ("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 Code of Ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis for our opinion.
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
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. We
have determined the matters described below to be the key audit matters to be
communicated in our report.
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Key Audit Matter
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How the Key Audit Matter was
addressed in our audit
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A. impairment oF property, plant
and equipment, valuation oF
inventories, and adequacy oF
provision For employee dues in
the matter oF labour strike and
closure oF at Mahape plant oF
the Company. (ReFer to note 42
to the financial statement).
The workers at Mahape plant ('the
plant') of the Company have been on
strike since April 8, 2017. Further, The
Company has declared the factory as
closed consequent upon the order
from Hon'ble High Court of Bombay
with effect from May 6, 2020.
We have identified the following
as Key Audit Matters in connection
with the Mahape plant:
• The carrying value of moveable
assets situated at the plant
aggregating to INR 348 lakhs
which are not in use since the
commencement of the strike.
At the end of each reporting
period, the Company assesses
the recoverable value of the
property, plant and equipment
to determine the indications
of impairment of those assets
which is subject to significant
judgement and estimation
uncertainty considering the
value of these assets and the
fact that they have not been
in use for the past eight years.
The amounts involve significant
impact on standalone financial
statements.
• The Company also has
inventories aggregating to INR
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Our audit procedures in respect
of these matters included but not
limited to following:
• Understood the Company
policies and processes
and evaluated design
implementation and operating
effectiveness of controls relating
to impairment provision of
property, plant and equipment,
valuation of inventories and
provision for employee dues
arising on account of the strike/
closure of the plant.
• Assessing the valuation
methodology, evaluating, and
challenging the reasonableness
of the assumptions used by
independent valuer engaged
by the Company in impairment
assessment of property, plant
and equipment, with the
assistance of an internal expert.
• Obtained the physical
verification report from the
management and verified
the same with the books of
accounts.
• Examined valuation of inventory
at the lower of cost and net
realizable value, as conducted by
the Company.
• Verified net realizable value in
compliance with requirements
of Ind AS 2.
• With respect to the adequacy
of provision on account of
employee dues resulting from
the strike:
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Key Audit Matter
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How the Key Audit Matter was
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addressed in our audit
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590 lakhs at the plant which
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a)
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Verified the legal opinion
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have not been consumed
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obtained by the Company from
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since April 8, 2017, due to
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their external legal advisors
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Labour strike. Inventories are
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with respect to the potential
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valued at the lower of the
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employee dues resulting on
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cost and net realizable value.
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account of claims raised by the
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However, since there have
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striking employees.
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been no consumptions of these
inventory items during this
considerate time period, there
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b)
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Examined and inquired with
management about prior and
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is estimation uncertainty in
arriving at the Net Realizable
Value for these assets, which
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current year correspondence
related to strike with
authorities involved and labor
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would have a significant
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union.
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impact on standalone financial
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c)
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Verified worker dues in line
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statements.
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with the applicable laws and
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• As the employees are on strike,
the Company has made the
necessary provision in the books
on account relating to dues
payable to them towards the
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regulations and assessed
adequacy and reasonableness
of provision in the light of
payments made in settlement of
statutory dues till date; and
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settlement of claims raised by
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d)
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Performed inquiries with
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employees as per the statutory
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management on any
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provisions which is further based
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developments in matter post
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on reasonable estimates made
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year end and the Company's
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by Management that are subject
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assessment of possible outcome
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to key assumptions.
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of this matter and the resultant
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The Company applies significant
judgement and estimation in the
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impact thereof on the existing
provisions.
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impairment testing of property,
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•
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Assessed the completeness and
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plant and equipment, valuation of
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adequacy of disclosures in the
standalone financial statements
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inventories and in making provision
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relating to the above matters in
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for employee dues towards
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accordance with applicable Ind
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settlement of their claims.
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AS requirements.
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In view of the above, these matters
have been identified as Key Audit
Matters.
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Key Audit Matter
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How the Key Audit Matter was
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addressed in our audit
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B. Significant judgement and
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Our audit procedures included and
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estimates are involved with
respect to the following
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were not limited to the following: -
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matters of intangible assets
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• Understood the Company policies
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and intangible assets under
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and processes and evaluated
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development (Refer Note 4b to
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the design, implementation
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the financial statements).
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and operating effectiveness
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• In the year ended March 31,
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of the controls with respect
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2025, the Company has further
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to assessment criteria for
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incurred capital expenditure on
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recognition and measurement
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Technology project amounting
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of the expenditure incurred
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to ' 1,478 lakhs (March 31, 2024
- '1,341 lakhs) and ' 1,523 lakhs
have been capitalised under
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on the technology project, in
Intangible assets, and whether to
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Intangible Assets (March 31, 2024
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be capitalised as Intangible assets
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- ' NIL) and balance of ' 2,077
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under development.
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lakhs (March 31, 2024 - ' 2,122
lakhs) represents Intangible
Assets under development
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• Assessed the nature of the
capitalisation and development
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as on March 31, 2025. This is
on account of development
of technology which would
generate future economic
benefits to the Company and
enable the Company to meet
the ever-growing demand of the
customers and help to generate
revenue to the Company.
• At the times of recognition of
Intangible asset, significant
management judgement is
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cost made to Intangible assets
and Intangible assets under
development and performed
verification of underlying records
and information of capital and
development cost on sample
basis to test whether they meet
the recognition and measurement
criteria as set out in Ind AS
38- Intangible Assets, including
evaluation of reasonableness of
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required to determine whether
the said expenditure meets
the recognition criteria for
capitalisation as Intangible asset
or internally generated intangible
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estimation of future economic
benefits and intended use of the
Intangible assets and Intangible
assets under development.
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assets under development in
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• Computed the mathematical
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accordance with I nd AS.
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accuracy of the amortization
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Due to the materiality of the
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charge and reasonableness of
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assets recognized and the level of
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useful life of Intangible asset.
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management judgement involved
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Evaluated the adequacy of
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being significant, initial recognition
and measurement of intangible
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disclosures made by the Company in
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and internally generated intangible
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the financial statements in view of
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assets is a key audit matter.
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the requirements as specified in the
Indian Accounting Standards.
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information Other than the Standalone Financial Statements and Auditor's
Report Thereon
The Company's Board of Directors is responsible for the other information. The
other information comprises the information included in the Director's report
but does not include the standalone financial statements and our auditor's
report thereon. The Director's report is expected to be made available to us
after the date of this auditor's report.
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 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.
When we read the Director's report if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those
charged with governance under SA 720 'The Auditor's responsibilities Relating to
Other Information'.
Responsibilities of Management and Those Charged with Governance 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, changes in equity 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. 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 and Board
of Directors are 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.
The 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.
We give in “Annexure A" a detailed description of Auditor's responsibilities for
Audit of the Standalone Financial Statements.
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 "Annexure B" 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.
(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 Accounting Standards specified under Section 133 of the Act.
(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 are disqualified as on March 31, 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 standalone financial statements of the Company and the
operating effectiveness of such controls, refer to our separate Report in
"Annexure C".
(g) 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
41 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.
iv. 1) The Management has represented 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(ies),
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.
2) The Management has represented, that, to the best of its
knowledge and belief, 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, as on the date of this audit
report, 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 Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
3) Based on the audit procedures performed that have been
considered reasonable and appropriate in the circumstances,
and according to the information and explanations provided to
us by the Management in this regard 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 (1)
and (2) above, contain any material mis-statement.
v. 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 an 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. Further, during the course
of our audit, we did not come across any instance of audit trail
feature being tampered with. Additionally, the audit trail has been
preserved by the Company as per the statutory requirements for
record retention.
3. In our opinion, according to information, explanations given to us, the
remuneration paid by the Company to its directors is within the limits laid
prescribed under Section 197 read with Schedule V of the Act and the rules
thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Amrish Vaidya
Partner
Membership No. 101739
UDIN: 25101739BMIKFR4817
Place: Noida
Date: May 19, 2025
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