We have audited the accompanying standalone financial
statements of Gokul Agro Resources Limited (the
"Company"), which comprise the Balance Sheet as at
March 31, 2026, and the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of
Changes in Equity and Statement of Cash Flows for the year
ended on that date, and notes to the Financial Statements,
including a summary of Significant Accounting Policies 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,
("Ind AS") and other accounting principles generally accepted
in India, of the state of affairs of the Company as at March 31,
2026, and its profit, total comprehensive income, its cash flows
and the changes in equity 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 ("SA"s) specified
under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the Auditor's
Responsibility 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 made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the ICAI's Code of Ethics. We believe that
the audit evidence obtained by us is sufficient and appropriate
to provide a basis for our audit opinion on the standalone
financial statements.
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 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. 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 matter was addressed in our Audit
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1
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Revenue Recognition: -
Revenue recognition involves material estimation and
significant management judgment, both in terms of the
timing and measurement of revenue from sale of goods.
The value and timing of revenue recognition varies from
contract to contract, and certain activities may span
beyond the financial year end.
Revenue from sale of goods is recognised when control
of the goods is transferred to the customer and when
no unfulfilled performance obligations remain. This
necessitates a detailed and careful analysis of each sale
agreement, contract, or customer purchase order to
determine the appropriate point of revenue recognition.
An inappropriate assessment could result in revenue being
recognised before control of the goods has actually been
transferred to the customer.
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Our audit procedures to assess the appropriateness of
revenue recognised in the standalone financial statements
included, among others, the following:
• Understanding and Evaluation of Internal Controls:
We obtained an understanding of and assessed the
design, implementation, and operating effectiveness
of the Company's key internal controls over the
revenue recognition process, including controls over
contract review, dispatch documentation, and quality
adjustment mechanisms.
• Journal Entry Testing: We performed journal entry
testing over revenue-related accounts by identifying
and testing manual and unusual journal entries posted
during the year, particularly those recorded near period
end.
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Key Audit Matter
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How the matter was addressed in our Audit
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Further, subsequent adjustments to the transaction price
are required on account of grade mismatch or slippage
of the transferred goods. Where variations in the contract
price are not mutually settled between the parties, the
matter is referred to third-party testing, and the Company
estimates the adjustments required for revenue recognition
pending resolution of such disputes. Such adjustments are
made on an estimated basis, following historical trends.
Inappropriate estimation in this regard could result in
revenue being either overstated or understated.
In view of the above, the timing of revenue recognition and
adjustments for quality variances both involving critical
accounting estimates and judgments have been identified
as a Key Audit Matter.
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• Credit Note Testing: We tested credit notes and
sales return transactions issued during the year and
subsequent to the reporting date on a sample basis. The
testing included verification of supporting documents,
approvals, linkage to original sales invoices, and
assessment of whether the adjustments were recorded
in the appropriate accounting period.
• Cut-off Testing: We examined significant contracts
entered into close to the year end to evaluate whether
revenue has been recognised in the correct accounting
period, ensuring no premature or delayed recognition
has occurred.
• Sample-Based Contract Testing: We tested a sample
of contracts across various revenue streams by agreeing
the relevant information back to underlying contracts,
customer purchase orders, and proof of delivery
documentation, as appropriate. We assessed whether
the revenue recognition policy applied by the Company
is in accordance with the principles of Ind AS 115.
• Assessment of Price Adjustments: We evaluated
the basis and reasonableness of adjustments made to
the transaction price on account of quality variances,
including grade mismatch and slippage. This involved
assessing the Company's estimation methodology,
testing it against historical trends, and reviewing the
status of disputes referred to third-party testing.
Our testing, as described above, confirmed that revenue
has been recorded in accordance with the terms of the
underlying contracts and the Company's accounting policy,
which is consistent with the requirements of Ind AS 115.
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2
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Carrying Value of Trade Receivables and Advances:
The assessment of the carrying value of Trade Receivables
and Advances (including Trade Advances) involves
significant management judgment in evaluating
collectability and determining the appropriateness of
allowances for impairment and provisions for bad and
doubtful debts.
Based on internal and external information available up to
the date of approval of the standalone financial statements
by the Board of Directors, management has concluded that
there is no indication of any material impact on the carrying
value of such balances. Given the degree of estimation and
judgment involved in determining whether a provision for
impairment or bad debt is required, whether in relation to
a specific transaction or a customer's overall outstanding
balance, this matter has been identified as a Key Audit
Matter.
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Our audit procedures in respect of the carrying value of
Trade Receivables and Advances included, among others,
the following:
• Recoverability Testing: We selected and assessed a
sample of trade receivables and advances to evaluate
their recoverability on an individual basis.
• Expected Credit Loss (ECL): We evaluated the
Company's Expected Credit Loss (ECL) methodology
under Ind AS 109, including assumptions relating to
ageing, historical loss patterns, customer-specific risk
factors, and subsequent collections.
• Ageing and Collection Pattern Analysis: We
reviewed the ageing profile of trade receivables and
advances and assessed customer collection patterns.
We have, on a sample basis, conducted subsequent
testing against specific receivables.
• Management Discussions: We held discussions with
management regarding disputes between the parties
concerned, the steps taken by management to recover
outstanding amounts, and the credit standing of
significant counterparties, wherever such information
was available.
• Provisioning Policy Assessment: We evaluated the
appropriateness of management's application of its
provisioning for recognising impairments and bad
debt provisions.
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Key Audit Matter
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How the matter was addressed in our Audit
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• Adequacy of Disclosures: We considered whether
the disclosures made in the standalone financial
statements in respect of trade receivables and
advances are adequate and in accordance with the
applicable financial reporting framework.
Based on the procedures performed, we found the carrying
value of Trade Receivables and Advances and the related
provisions to be reasonable, and the disclosures in the
standalone financial statements to be adequate.
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3
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Capitalization and Depreciation of Property, Plant &
Equipment: -
The Company capitalises expenditures incurred on
Property, Plant & Equipment based on management's
assessment of whether such costs meet the recognition
criteria prescribed under the applicable accounting
standards. Significant judgment is involved in determining
whether expenditures relating to repairs and maintenance,
upgrades, replacements, and project-related costs should
be capitalised or charged to the Statement of Profit and
Loss.
The Company uses SAP HANA for computation of
depreciation. This requires appropriate configuration
and controls within the system to ensure depreciation
is computed accurately and in accordance with the
Company's accounting policy and Ind AS 16 Property, Plant
& Equipment.
Due to the significant judgment involved in determining
the nature of expenditure to be capitalised and dependence
of depreciation calculation on SAP HANA, this area was
considered a Key Audit Matter.
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Our audit procedures in relation to the capitalisation of
Property, Plant & Equipment and Depreciation expense,
included, among others, the following:
• Obtained an understanding and evaluated the design
and implementation of key internal controls relating
to identification and approval of capital expenditure;
distinction between capital and revenue expenditure
and asset capitalisation process in SAP HANA.
• Tested, on a sample basis, expenditures capitalised
during the year by examining supporting documents
such as vendor invoices, purchase orders, contracts,
work completion certificates, and management
approvals to assess whether the expenditures met the
criteria for capitalisation as per Ind AS 16.
• Evaluated management's judgment for selected
expenditures capitalised during the year and assessed
whether any repairs and maintenance expenses were
inappropriately capitalised.
• Performed substantive testing of additions to
property, plant and equipment and reconciled the
same with underlying accounting records and fixed
asset register.
• Tested the accounting system configuration as internal
controls over financial reporting, for depreciation
computation.
• Recomputed depreciation for selected assets on a
sample basis and verified the accuracy of depreciation
charged during the year.
• Evaluated the adequacy of disclosures made in the
financial statements in respect of property, plant and
equipment, capitalisation policy and depreciation
methodology.
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Key Audit Matter
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How the matter was addressed in our Audit
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4
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Assessment of litigations and related disclosure of
contingent liabilities: -
(Refer to Note 3.16, significant accounting policies to the
Standalone financial statements)
The provisions and contingent liabilities relate to ongoing
litigations and claims with various authorities. These relate
to direct tax, various indirect taxes, claims and general legal
proceedings arising in the regular course of business. The
assessment of a provision or contingent liability requires
significant judgement by the company because of the
inherent complexity in estimating future costs. The amount
recognized as a provision is the best estimate made by the
management. The provisions and contingent liabilities
are subject to changes in the outcomes of litigations and
claims and the positions taken by the company. It involves
significant judgement and estimation to determine
the likelihood and timing of the cash outflows and
interpretations of the legal aspects, tax legislations and
judgments previously made by authorities.
(Refer Note - 33 to the Standalone Financial Statements -
"Contingent Liabilities & Commitments and Note - 34
"Pending Litigation")
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Our audit procedures in respect of assessment of litigations
and related disclosures included the following;
• Understanding the process followed by the company
for assessment and determination of the amount
for provisions and contingent liabilities relating to
taxation, litigations and claims.
• We understood, assessed and tested the design and
operating effectiveness of key controls surrounding
assessment of litigations relating to the relevant laws
and regulations;
• We discussed with management the recent
developments and the status of the material litigations
which were reviewed and noted;
• We evaluated management's assessment around
those matters that are not disclosed or not
considered as contingent liability, as the probability
of material outflow is considered to be remote by the
management; and
We assessed the adequacy of the Company's disclosures.
Based on the above work performed, the assessment in
respect of litigations and related disclosures relating to
contingent liabilities/other significant litigations in the
Standalone Financial Statements are considered to be
reasonable.
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Information Other than the 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 Board's Report, Management
Discussion and Analysis, Corporate Governance Report
and Business Responsibility and Sustainability Report,
but does not include the standalone financial statements
and our auditor's report thereon. These reports are
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 will not express any
form of assurance conclusion thereon.
• In connection with our audit of the standalone financial
statements, our responsibility is to read other information
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially
misstated.
• When we read the Board report, Management Discussion
and Analysis, Corporate Governance report and Business
responsibility and sustainability report, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to those charged
with governance as required under SA 720 'The Auditor's
responsibilities Relating to Other Information'.
Responsibilities of Management and Board of Directors
for the Standalone Financial Statements
The Company's Management and 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 including other comprehensive
income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted
in India, including Ind AS 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 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.
In preparing the standalone financial statements, 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 intend to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
The Company's Board of Directors is also responsible for
overseeing the Company's financial reporting process.
Auditor's Responsibility 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.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional scepticism
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 financial controls
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 the 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 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.
• 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.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements
may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the standalone
financial statements.
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 financial controls that we
identify during our audit.
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.
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
1. As required by Section 143(3) of the Act, 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 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 for the matters
stated in the paragraph (1 )(i)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and Auditors)
Rules,2014 (as amended)
c) The Balance Sheet, the Statement of Profit and Loss
including Other Comprehensive Income, the Cash Flow
Statement and Statement of Changes in Equity dealt with
by this Report are in agreement with the relevant books of
account.
d) In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting Standards
specified under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as
amended.
e) On the basis of the written representations received from
the directors as on March 31,2026 taken on record by the
Board of Directors, none of the directors is disqualified as
on March 31, 2026 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, is as stated in
paragraph (b) above on reporting under Section 143(3)
(b) and paragraph (1)(i)(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 and the operating effectiveness of such
controls, refer to our separate Report in "Annexure A". Our
report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's internal
financial controls over financial reporting.
h) In our opinion and to the best of our information
and according to the explanations given to us, the
remuneration paid by the Company to its directors during
the year is in accordance with the provisions of section
197 of the Act read with Schedule V to the Act.
i) 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 standalone
financial statements - Refer Note 34 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 were no amounts which were required to be
transferred to the Investor Education and Protection
Fund by the Company.
iv. (a) The Management has represented that, to the
best of its knowledge and belief, as disclosed
in the Note 54 to the financial statements no
funds (which are material either individually
or in the aggregate) 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.
(b) The Management has represented, that, to the
best of its knowledge and belief, as disclosed
in the Note 54 to the financial statements, no
funds (which are material either individually
or in the aggregate) 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,
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.
(c) Based on the audit procedures performed
that have been 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 (i)
and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. The company has not declared or paid dividend
during the year, hence compliance with section 123
of the Companies Act, 2013 is not applicable.
vi. Based on our examination, the Company has used
an accounting software system for maintaining its
books of account for the financial year ended March
31, 2026 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 system. Further, during
the course of our audit we did not come across any
instance of the audit trail feature being tampered
with and the audit trail has been preserved by the
Company as per the statutory requirements for
record retention, as applicable.
2. As required by the Companies (Auditor's Report) Order,
2020 ("the Order") issued by the Central Government in
terms of Section 143(11) of the Act, we give in "Annexure
B" a statement on the matters specified in paragraphs 3
and 4 of the Order.
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