1. We have audited the accompanying financial statements
of Vesuvius India Limited ("the Company"), which
comprise the Balance Sheet as at December, 31, 2024,
and the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in
Equity and the Statement of Cash Flows for the year then
ended, and notes to the 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
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 accounting principles generally accepted in India,
of the state of affairs of the Company as at December
31, 2024, and total comprehensive income (comprising
of profit and other comprehensive income), changes in
equity and its cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit 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 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 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 judgement, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our audit
of the 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 our audit addressed the key audit matter
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Appropriateness of Recognition of Revenue under Ind AS Our audit procedures in relation to revenue recognition included
115 [Refer Note 2.3 and Note 26 to the financial statements] the following:
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The Company recognises revenue from sale of goods and
rendering of services when control is transferred to the
customer.
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- We obtained an understanding of processes and controls on
revenue recognition and tested the operating effectiveness of
the relevant controls;
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Recognition of revenue depends on the performance
obligations related to sale of products and rendering
of services and total consideration (including variable
consideration) determined, which vary across contracts
with customers. Accordingly, the amount and timing of
recognition of revenue is assessed by the Company based on
the timing of the satisfaction of the performance obligations
under each contract. There is a risk of inappropriate revenue
recognition if revenue is not accounted for in accordance
with contractual terms of the respective arrangements with
the customers.
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- Performed testing of sample contracts / purchase orders,
shipping documents (e.g. lorry receipts, bill of lading, etc.)
and customer acknowledgments, as applicable to ensure the
revenue transactions have been appropriately recorded on
fulfilment of the related performance obligations as per the
selected contracts;
- Tested appropriateness of adjustments made for variable
consideration;
- Examined material non-standard journal entries and other
adjustments posted to revenue accounts;
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The appropriateness of recognition of revenue is a key audit
matter considering the significance of the amounts involved.
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- Assessed adequacy of presentation and disclosure.
Based on the above stated procedures, no exceptions were
noted by us in revenue recognition including those relating to
presentation and disclosures as required by the applicable
accounting standard.
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Other Information
5. 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 financial statements and our auditor's
report thereon.
Our opinion on the financial statements does not cover
the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial statements,
or our knowledge obtained 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 and those
charged with governance for the financial
statements
6. 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 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 financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.
7. In preparing the financial statements, management
is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either
intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so. Those Board
of Directors are also responsible for overseeing the
Company's financial reporting process.
Auditor's responsibilities for the audit of the
financial statements
8. Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is
not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal 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 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 financial statements
or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's
report. However, future events or conditions may
cause the Company to cease to continue as a
going concern
• Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in
a manner that achieves fair presentation.
10. 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.
11. 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.
12. From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the financial statements
of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on other legal and regulatory
requirements
13. 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 B a statement on the
matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
14. 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 the backup of certain books and
papers maintained in electronic mode has not been
maintained on a daily basis on servers physically
located in India for the period January 1, 2024 to
July 9, 2024 and the backup for certain other books
and papers maintained in electronic mode has
not been maintained on a daily basis on servers
physically located in India during the year and the
matters stated in the paragraph 14(h)(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 other comprehensive income), the
Statement of Changes in Equity and the Statement
of Cash Flows dealt with by this Report are in
agreement with the books of account.
(d) In our opinion, the aforesaid 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, taken on record by the Board of
Directors, none of the directors is disqualified as
on December 31, 2024, 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, reference is
made to our remarks in paragraph 14(b) above on
reporting under Section 143(3)(b) and paragraph
14(h)(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 financial statements of the
Company and the operating effectiveness of such
controls, refer to our separate Report in "Annexure
A".
(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 has disclosed the impact of
pending litigations on its financial position in
its financial statements - Refer Note 36 to the
financial statements;
ii. The Company was not required to recognise
a provision as at December 31,2024 under the
applicable law or accounting standards, as it
does not have any material foreseeable losses
on long-term contract. The Company did not
have any derivative contracts as at December
31 ,2024.
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.
iv. (a) The management has represented
that, to the best of its knowledge and
belief, as disclosed in Note 55 (a) to the
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 55(b) to
the 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 that we
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 dividend declared and paid during the
year by the Company is in compliance with
Section 123 of the Act.
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 that has operated throughout
the year for all relevant transactions recorded
in the software, except that no audit trail has
been enabled at the database level to log
any direct data changes. During the course
of performing our procedures, other than the
audit trail not enabled for aforesaid database
where the question of our commenting does not
arise, we did not notice any instance of audit
trail feature being tampered with.
15. The Company has paid/ provided for managerial
remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with
Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Rajib Chatterjee
Partner
Gurugram Membership Number: 057134
February 26, 2025 UDIN: 25057134BMTCOE3905
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