1. We have audited the accompanying standalone financial statements of ASK Automotive 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.
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Key audit matters
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Revenue recognition
The Company’s revenue is derived primarily from manufacturing and sale of advance braking systems, aluminium
light weighting precision solutions and safety control cables (“products”) recognised in accordance with the
accounting policy described in note 2.2(o) to the accompanying standalone financial statements. Refer note 24
and 44 for details of revenue recognised during the year.
Revenue recognition for sale of products and services in accordance with the principles of Ind AS 115 ‘Revenue
from contracts with customers’ (Ind AS 115) involves certain keyjudgements such as identification of performance
obligations, determination of transaction price of the identified performance obligations including variable
consideration in the form of volume discounts, turnover discounts, scheme discounts and cash discounts
offered by the Company, assessment of satisfaction of the performance obligations using an appropriate basis to
measure the transfer of control of the products sold and services rendered to the customers.
Further, the Company recognises revenue from the sale of goods based on the agreed terms with the customers
which includes accruals/reversals relating to change in price of the products from customers on a periodic basis
due to change in material cost. These accruals/reversals form part of the revenue from the sale of goods in
accordance with the Ind AS 115 “Revenue from Contracts with Customers”.
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Key audit matters
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The Company and its external stakeholders focus on revenue as a key performance measure, which could be an
incentive or external pressures to meet expectations resulting in revenue being overstated or recognised before
control has been transferred. There were considerable auditor efforts involved in testing the revenue recognition
for the revenue recorded during the year.
Revenue is also a key performance indicator of the Company and is identified as a significant audit risk in
accordance with the standards on auditing primarily as there is a risk that revenue is recognised on sale of
products or services before the control is transferred. Accordingly, occurrence of revenue is a key focus area.
Considering the materiality of the amounts involved, the nature of arrangements and time involved in the initiation
and finalisation of amount with the customers, considerable auditor efforts involved in testing the revenue
recognition for the revenue recorded during the year and accordingly, the matter has been identified as KAM.
Impairment assessment of investment in joint venture
Refer note 2.2(j) to the accompanying standalone financial statements for accounting policies and note 5 for
financial disclosures with respect to carrying value of investment in joint venture.
The Company has made investment in joint venture whose carrying amount as at 31 March 2025 is Rs. 43.12 crores.
As at 31 March 2025, the carrying amount of investment in the joint venture is higher than the proportionate share
of net worth of the joint venture, which has been identified as an impairment indicator by the management in
accordance with the principles of Ind AS 36, Impairment of Assets (‘Ind AS 36’).
Accordingly, the management has performed detailed impairment testing for such investment in joint venture
by carrying out a valuation with the help of an independent valuation specialist as a management’s expert using
discounted cash flow (‘DCF’) method in order to determine the recoverable value of investment in such joint venture.
The impairment assessment of this investment is complex and highly judgmental due to the significant
estimation required to determine the value-in-use (VIU). In particular, the determination of the VIU is sensitive
to significant assumptions, such as changes in the discount rate, revenues, operating margin and terminal
value, which are affected by expectations about future market or economic conditions and other challenges.
Accordingly, the matter has been identified as a key audit matter for the current year.
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How our audit addressed the key audit matters
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Our audit procedures, related to revenue recognition, included, but were not limited, to the following:
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Obtained an understanding of the management’s processes and controls relating to revenue recognition.
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Assessed the appropriateness of the accounting policy for revenue recognition adopted by the Company in
accordance with Ind AS 115.
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Evaluated the design and implementation and tested the operating effectiveness of relevant key controls
relating to revenue recognition.
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Performed substantive testing of revenue transactions recorded during the year using statistical sampling by
verifying the underlying supporting documents such as invoices, customer contracts, purchase orders, sales
order, proof of dispatch and delivery, etc.
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Performed testing of samples of revenue transactions recorded closer to the year-end by verifying underlying
documents, to assess the accuracy of the period in which revenue was recognised.
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Performed analytical procedures which include variance analysis of current year revenue with previous year
revenue and corroborating the variance considering both qualitative and quantitative factors.
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Performed substantive testing of accruals/reversals relating to change in price of the products on sample
basis for (i) the credit / debit notes issued during the year to ensure the accuracy of price changes and (ii)
customer- wise verification of such provision for price adjustment recorded at year-end.
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Assessed appropriateness and adequacy of the disclosures made in the accompanying standalone financial
statements in accordance with the requirements of applicable financial reporting framework
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How our audit addressed the key audit matters
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Our audit procedures in relation to the impairment assessment of investment in joint venture included, but were
not limited to the following:
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Obtained an understanding of the management’s processes and controls for determining the recoverable
value of the investment including the identification of possible impairment indicators and assessed the same
in accordance with the accounting standards.
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Assessed the appropriateness of the accounting policy adopted by the management in accordance
with Ind AS 36.
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Evaluated the design and tested the operating effectiveness of controls around management’s assessment
of the impairment indicators and the testing performed.
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Obtained from the management of the Company, the approved future business plans of the joint venture
and held detailed discussions with the management to understand the assumptions used and estimates
made by them for determining the cash flow projections.
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Obtained the independent valuation report as at 31 March 2025 given by the management expert for the
fair value of the investment in joint venture and evaluated the objectivity, independence and competence
of such expert.
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Involved auditor’s expert to assess the appropriateness of the valuation methodology used for calculation of
the recoverable value in the valuation report obtained by the management.
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Performed sensitivity analysis on management’s calculated recoverable value by changing the significant
assumptions used in the calculation.
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Assessed the appropriateness and adequacy of the related disclosures in the standalone financial statements
in accordance with the applicable accounting standards.
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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.
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.
The Annual Report is not made available to us at the date of this auditor’s report. We have nothing to report
in this regard.
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
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;
• 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 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 A 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 A, 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 appears from our
examination of those books;
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) The modification relating to the maintenance
of accounts and other matters connected
therewith are as stated 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 standalone
financial statements of the Company as on 31
March 2025 and the operating effectiveness
of such controls, refer to our separate report
in Annexure B 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 37 to
the standalone financial statements, has
disclosed the impact of pending 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 45(c) 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
45(d) 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. As stated in note 14 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,
except for the instances mentioned below,
the Company, in respect of financial year
commencing on 1 April 2025, 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 exception
given below. Furthermore, the audit trail
has been preserved by the Company
as per the statutory requirements for
record retention.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Anamitra Das
Partner
Membership No.: 062191
UDIN: 25062191BMMMIF5263
Place: Gurugram
Date: 13 May 2025
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Nature of exception
noted
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Details of
Exception
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Instances of
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The audit
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trail
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accounting software
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feature was
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not
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for maintaining
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enabled at
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the
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books of account for
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database
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level
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which the feature
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for accounting
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of recording audit
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software to
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log
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trail (edit log) facility
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a ny direct
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data
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was not operated
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changes,
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used
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throughout the
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for maintenance
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year for all relevant
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of all accounting
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transactions recorded
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records by
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the
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in the software
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Company.
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