Core Viewpoint - Apple's India facility, Apple Operations India, has faced auditor scrutiny for gaps in statutory compliance during its first year of business, particularly regarding daily backups and audit trails [13]. Group 1: Compliance Issues - The auditor, SR Batliboi & Associates, reported that Apple Operations India did not maintain daily backups of its accounting records in electronic mode from April to October 5, 2024, but complied with backup requirements afterward [13]. - The company failed to preserve the audit trail for the year ended March 31, 2024, as per statutory requirements, raising concerns about record retention [2][3][13]. - The audit trail feature of the main accounting software was not enabled for certain changes made with privileged access rights, leading to questions about the integrity of the audit trail [3][8][13]. Group 2: Financial Performance - In FY25, Apple Operations India reported a net profit of ₹28 crore on revenue of ₹314 crore, with significant management fees of ₹137 crore paid to related parties and capital expenditures of ₹248 crore likely on equipment from group companies [11][13]. - The entire work conducted by Apple Operations India in FY25 was for the parent company's global operations, indicating its role in supporting Apple's broader business strategy [11][13]. Group 3: Operational Insights - The lack of daily backups and unverifiable IT trails in a business handling sensitive R&D work suggests operational immaturity, according to industry experts [10][13]. - Apple Operations India is primarily focused on procuring engineering equipment, leasing facilities, and providing R&D services for Apple's group companies [9][13].