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Key audit matter
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How our audit addressed the key audit matter
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Revenue recognition from sale of products
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Our audit procedures in relation to revenue from sale of
products included, but were not limited to the following:
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Refer notes 2(i) and 21 to the standalone financial statements for
accounting policy and revenue related disclosures respectively.
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» Obtained understanding of the revenue business process of
the Company;
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The Company recognizes revenue from the sale of products
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» Assessed the appropriateness of revenue recognition policy
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when control of products being sold is transferred to the customer
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of the Company and ensured that it is in line with Ind AS 115
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and when there are no pending performance obligations.
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‘Revenue from Contracts with Customers';
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The Company has a large number of customers operating in
various geographies and the sales contracts/arrangements
with such customers have distinct/varying commercial terms
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» Evaluated the design and tested the operating effectiveness
of key manual and automated internal controls over revenue
recognition;
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that determine actual point in time for recognition of revenue.
Accordingly, significant management efforts are required
in determining the timing of transfer of control for revenue
recognition in accordance with Ind AS 115, Revenue from
Contracts with Customers (‘Ind AS 115'). The management is
required to apply judgement in determining transaction price,
including variable price considerations, in accordance with Ind
AS 115, on account of rebates and discounts extended to the
customers. Further, adjustments are also made to revenue
contracts with related parties to ensure appropriate margins in
line with transfer pricing regulations of Income-tax Act, 1961 are
maintained by the Company.
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» Performed substantive analytical procedures which includes
ratio analysis and period-on-period variance analysis, on
revenue recognised during the year to identify any unusual
indicators/trends;
» Performed test of details by selecting samples of revenue
transactions pertaining to sale of products during the year
and during specified period before and after year end. For
the samples selected, verified the underlying supporting
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documents including contracts, agreements, sales invoices
and dispatch/shipping documents to ensure correct amount
of revenue is recorded in the correct period;
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Key audit matter
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How our audit addressed the key audit matter
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The Company considers revenue as key benchmark for
evaluating performances and hence, there is risk of revenue
being overstated due to pressure to achieve targets and earning
expectations and accordingly, in line with the requirements
of the Standards on Auditing, revenue is determined to be an
area involving significant risk which requires significant auditor
attention.
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» Tested all the manual sales-related adjustments made
to revenue including year-end accruals to ensure the
appropriateness of revenue recognition during the year; and
» Evaluated the appropriateness and adequacy of the related
presentation and disclosures in the standalone financial
statements in accordance with the applicable accounting
standards.
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Owing to the amounts involved, volume of sales transactions,
distinct/varied terms of contracts with customers and involvement
of significant management judgment and auditor attention,
revenue from sale of products is considered to be a key audit
matter for current year's audit.
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Additions to capital work-in-progress and capitalisation of
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» Our audit procedures in relation to additions to capital
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property, plant and equipment
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work-in-progress and capitalisation of property, plant and
equipment included, but were not limited to the following:
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Refer notes 2(c) and 3 to the standalone financial statements
for accounting policy and property, plant and equipment and
capital work-in-progress related presentation and disclosures
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» Obtained understanding of the business process relating to
accounting for various capital projects;
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respectively.
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» Assessed the appropriateness of property, plant and
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equipment and capital work-in-progress policy of the
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During the year, the Company has added ' 2,073.08 million
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Company and ensured that it is in line with Ind AS 16
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to capital work in progress and capitalized ' 1,908.86 million
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‘Property, Plant and Equipment';
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of property, plant and equipment towards setting up of various
manufacturing facilities.
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» Evaluated the design and tested the operating effectiveness
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of key manual and automated internal controls relating to
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The above additions required significant management efforts and
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capitalisation of various costs;
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judgement to identify costs incurred that meet the recognition
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» Performed test of details by selecting samples of additions
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criteria under Ind AS 16, Property, Plant and Equipment,
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during the year, and verified the underlying supporting
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including allocation of overheads, employee costs and borrowing
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documents including contracts, agreements and invoices
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costs to capital projects, determine timing of capitalisation and
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to ensure capital work-in-progress is recorded accurately in
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classification of property, plant and equipment in various asset
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the correct period. Further, tested the classification of the
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classes, estimate related useful lives and assign residual values
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items capitalised in the current year including timing of such
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to various items capitalised as property, plant and equipment.
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capitalisation;
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Given the significance of overall capital expenditure and
estimates/judgement involved as mentioned above, addition to
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» In respect of allocated internal costs, test checked the
reasonableness and appropriateness of allocation;
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capital work-in-progress and capitalisation of property, plant and
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» Examined the useful life for individual assets to determine
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equipment has been determined as a key audit matter.
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whether it is consistent with the Company's accounting
policy, technical evaluation, and applicable regulatory
guidance; and
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» Evaluated the appropriateness and adequacy of the related
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presentation and disclosures in the standalone financial
statements in accordance with the applicable accounting
standards.
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1. We have audited the accompanying
standalone financial statements
of Jubilant Ingrevia Limited (‘the
Company'), which comprise the
Standalone Balance Sheet as at
31 March 2025, the Standalone
Statement of Profit and Loss
(including Other Comprehensive
Income), the Standalone Statement
of Cash Flow and the Standalone
Statement of Changes in Equity for
the year then ended, and notes to
the standalone financial statements,
including material accounting policy
information and other explanatory
information.
2. 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
(‘Ind AS') specified under section 133
of the Act read with the Companies
(Indian Accounting Standards) Rules,
2015 and other accounting principles
generally accepted in India, of the
state of affairs of the Company as
at 31 March 2025, and its profit
(including other comprehensive
income), its cash flows and the
changes in equity for the year ended
on that date.
Basis for Opinion
3. We conducted our audit in accordance
with the Standards on Auditing
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 we have
obtained is sufficient and appropriate
to provide a basis for our opinion.
Key Audit Matters
4. 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.
5. We have determined the matters
described below to be the key audit
matters to be communicated in our
report.
Information other than the Standalone
Financial Statements and Auditor's
Report thereon
6. The Company's Board of Directors are
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. The
Annual 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 identified above when it
becomes available and, in doing so,
Act, we are also responsible for
expressing our opinion on whether
the Company has adequate internal
financial controls with reference to
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 Board of Directors' 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; and
» 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.
12. 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.
13. 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
appears from our examination of
those books. Further, the back¬
up of the books of accounts and
other books and papers for one
of the software of the Company
maintained in electronic mode has
not been maintained on servers
physically located in India, on a
daily basis;
c) The standalone financial
statements dealt with by this report
are in agreement with the books of
account;
d) In our opinion, the aforesaid
standalone financial statements
comply with Ind AS specified under
section 133 of the Act;
e) On the basis of the written
representations received from the
directors and taken on record by
the Board of Directors, none of the
directors is disqualified as on 31
March 2025 from being appointed
as a director in terms of section
164(2) of the Act;
f) With respect to the maintenance
of accounts and other matters
connected therewith, refer to our
comments in paragraph 17(b)
above on reporting under section
143(3)(b) of the Act and paragraph
17(h)(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 financial statements of
the Company as on 31 March 2025
and the operating effectiveness of
such controls, refer to our separate
report in Annexure II wherein we
have expressed an unmodified
opinion; and
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 (as amended), in
our opinion and to the best of our
information and according to the
explanations given to us:
i. The Company, as detailed
in note 38 to the standalone
financial statements, has
disclosed the impact of pending
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 annual report, if
we conclude that there is a material
misstatement therein, we are required
to communicate the matter to those
charged with governance.
Responsibilities of Management and
Those Charged with Governance for
the Standalone Financial Statements
7. The accompanying standalone
financial statements have been
approved by the Company's Board
of Directors. The Company's Board
of Directors are responsible for the
matters stated in section 134(5) of the
Act with respect to the preparation
and presentation of these standalone
financial statements that give a true
and fair view of the financial position,
financial performance including
other comprehensive income,
changes in equity and cash flows
of the Company in accordance with
the Ind AS specified under section
133 of the Act 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 statements that give a
true and fair view and are free from
material misstatement, whether due to
fraud or error.
8. In preparing the standalone financial
statements, the Board of Directors
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.
9. The Board of Directors is also
responsible for overseeing the
Company's financial reporting
process.
Auditor's Responsibilities for the
Audit of the Standalone Financial
Statements
10. 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 Standards on Auditing 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.
11. As part of an audit in accordance
with Standards on Auditing, specified
under section 143(10) of the Act, 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
thought to bear on our independence,
and where applicable, related
safeguards.
14. 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 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
15. As required by section 197(16) of the
Act, based on our audit, we report that
the Company has paid remuneration
to its directors during the year in
accordance with the provisions of and
limits laid down under section 197
read with Schedule V to the Act.
16. 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 I, a statement on
the matters specified in paragraphs
3 and 4 of the Order, to the extent
applicable.
17. Further to our comments in Annexure
I, as required by section 143(3) of the
Act, based on our audit, we report, to
the extent applicable, 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 purpose of our audit of the
accompanying standalone financial
statements;
b) Except for the matters stated in
paragraph 17(h)(vi) below on
reporting under Rule 11(g) of the
Companies (Audit and Auditors)
Rules, 2014 (as amended), in our
opinion, proper books of account
as required by law have been
kept by the Company so far as it
litigations on its financial
position as at 31 March 2025;
ii. The Company did not have any
long-term contracts including
derivative contracts for which
there were any material
foreseeable losses as at 31
March 2025;
iii. There were no amounts which
were required to be transferred
to the Investor Education
and Protection Fund by the
Company during the year ended
31 March 2025;
iv. (a) The management has
represented that, to the best
of its knowledge and belief,
as disclosed in note 44 to the
standalone financial statements,
no funds have been advanced
or loaned or invested (either
from borrowed funds or
securities premium or any other
sources or kind of funds) by the
Company to or in any person(s)
or entity(ies), including foreign
entities (‘the 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 (‘the
Ultimate Beneficiaries') or
provide any guarantee, security
or the like on behalf the Ultimate
Beneficiaries;
(b) The management has
represented that, to the best
of its knowledge and belief,
as disclosed in note 44 to
the standalone financial
statements, no funds have been
received by the Company from
any person(s) or entity(ies),
including foreign entities
(‘the 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 as
considered reasonable
and appropriate in the
circumstances, nothing has
come to our notice that has
caused us to believe that the
management representations
under sub-clauses (a) and (b)
above contain any material
misstatement.
v. The interim dividend declared
and paid by the Company
during the year ended 31 March
2025 and until the date of this
audit report is in compliance
with section 123 of the Act.
Further, as stated in note
35(b) to the accompanying
standalone financial statements,
the Board of Directors of the
Company have proposed final
dividend for the year ended 31
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. As stated in Note 46 to
the standalone financial
statements and based on our
examination which included
test checks, other than the
instances mentioned below,
the Company, in respect of
financial year commencing
on 1 April 2024, 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 been
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,
other than the consequential
impact of the points given
below. Furthermore, the
audit trail has been preserved
by the Company as per the
statutory requirements for
record retention, other than the
consequential impact of the
following:
(a)The Company has used
accounting software for
maintenance of accounting
records which have the audit
trail feature enabled at the
database level from 01 April
2024 to 28 January 2025,
however, we are unable to
comment on the completeness
of the audit logs. Further, the
audit trail feature was not
enabled at the database level
for accounting software to log
any direct data changes from
29 January 2025 onwards.
(b)The Company has also used
another accounting software for
maintaining its books of account
which is operated by a third-
party software service provider.
The ‘Independent Service
Auditor's Assurance Report
on the Description of Controls,
their Design and Operating
Effectiveness' (‘Type 2 report'
issued in accordance with
ISAE 3402, Assurance Reports
on Controls at a Service
Organization) does not provide
any information on existence
of audit trail (edit logs) for any
direct changes made at the
database level. Accordingly,
we are unable to comment on
whether audit trail feature at
the database level was enabled
and operated throughout the
year.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Madhu Sudan Malpani
Partner
Membership No. 517440
UDIN: 25517440BMLKDP4650
Place : Noida
Date : 13 May 2025
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