1. We have audited the accompanying standalone financial statements of Harrisons Malayalam 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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How our audit addressed the key audit matters
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Land litigations
The Plantation Company holds significant land for its
operations as disclosed in note 3 to the standalone financial
statements. The significant land holdings are inherently
prone to litigation risk.
As disclosed in note 42(A) of the standalone financial
statements, the Company has pending litigations with
various courts, involving 17,318.21 hectares of land,
which is significant considering the total area of cultivable
land. The land litigations involve interpretation of various
land laws applicable in the States of Kerala and Tamil
Nadu. Accordingly, unexpected adverse outcomes may
significantly impact the operations of the Company.
Considering the eventual outcome of the litigations is
uncertain and the positions taken by the management are
based on the application of the material judgement and
reliance on legal opinions obtained, land litigations has been
considered as a key audit matter for the current year audit.
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Our audit procedures included, but were not limited to,
the following:
• Obtained an understanding of the management process
for ascertaining the outcome of the land litigations
and process performed by the management for its
assessment ;
• Evaluated the design and tested the operating
effectiveness of internal controls around management's
assessment of the outcome of the land litigations ;
• Obtained an understanding of the nature of litigations
pending against the Company and discussed the key
developments during the year for key litigations with
the management and respective legal counsels handling
such cases on behalf of the Company and tested the
independence, objectivity and competence of such
management experts involved;
• Monitored and considered the external information
sources to confirm our understanding of litigations;
• Obtained and reviewed on a sample basis the necessary
evidence which includes correspondence with the external
legal counsels and where necessary, inspected minutes of
case proceedings available, to support the decisions and
rationale of such litigation selected for testing;
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Reviewed each attorney response obtained as above
to ensure that the conclusions reached are supported
by sufficient legal rationale and adequate information
is included for the management to determine the
appropriate accounting treatment of such cases in the
standalone financial statements; and
Evaluated the adequacy and appropriateness of
disclosures made relating to provisions and contingent
liabilities in the accompanying standalone financial
statements in accordance with the requirements of the
applicable accounting standards.
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Valuation of finished goods including standing crops
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Our audit procedures included, but were not limited to,
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Refer to note 2(j) for accounting policy for valuation
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the
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following:
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of inventory and significant estimates and accounting
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Obtained an understanding of the management process
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judgements, assumptions related thereto and the note 7 of
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for valuation of finished goods and ensured that the
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the standalone financial statements for details of inventory.
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same is consistently applied;
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As at 31 March 2025, the Company held Rs. 1994.28 lakhs
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•
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Evaluated the design and tested the operating
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of inventories. Inventories mainly consist of finished goods
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effectiveness of the internal controls relating to the
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and standing crops, which is valued at lower of cost or net
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valuation of inventories;
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realizable value.
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Obtained an understanding on the computation of the
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The Company values its finished goods inventory of tea and
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net realizable values of the finished goods and tested the
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rubber (including biological assets) at lower of cost and net
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reasonableness of the significant judgements applied by
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realizable value (estimated selling price less estimated cost
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the management;
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to sell). Standing crops for tea and rubber at the reporting
date are valued at their fair value less cost to sell at the point
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•
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Compared the estate wise actual realization subsequent
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of harvest. The fair valuation so arrived at becomes the cost
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to reporting date and assessed the reasonableness
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of Inventory. Considering that there is always a volatility
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of the net realizable value that was estimated and
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in the selling price of tea and rubber, which is dependent
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considered by the management;
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upon various market conditions, determination of the net
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Verified the actual costs incurred to sell after the year
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realizable value for these commodities involves significant
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end and assessed the reasonableness of the cost to sell
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management judgement. Moreover, the selling price fetched
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that was estimated and considered by the management;
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by tea produced at different estates are different.
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Compared the cost of the finished goods with the
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Owing to the significance of the carrying value of
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estimated net realizable value and checked if the finished
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finished goods (including biological assets) inventory the
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goods were recorded at net realizable value where the
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complexities discussed above and the fact that any changes
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cost was higher than the net realizable value; and
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in the management's judgement or assumptions is likely to
have a significant impact on the ascertainment of carrying
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Assessed the appropriateness and adequacy of
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values of inventories, valuation of finished goods (including
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disclosures related to finished goods inventory in
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biological assets) have been considered as a key audit
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accordance with the with the requirements of the
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matter for current year audit.
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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 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 the other information identified
above 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. 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 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 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 are 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 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 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 appears from our examination of those books. Further, the back-up of the books of accounts and
other books and papers 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) The qualification 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 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 33 and 42 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 46(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 46(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. The Company has not declared or paid any dividend during the year ended 31 March 2025; and
vi. As stated in note 47 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 2024, has used an accounting software for maintaining its books of account which have a feature of recording
audit trail (edit log) facility and the same have 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. The audit trail has not been preserved by the Company as per the statutory
requirements for record retention. Further, due to absence of any information on preservation of audit trail of the
Type 2 report, we are unable to comment on preservation of audit trail at the database level.
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Nature of exception noted
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Details of exception
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Instances of accounting software for
maintaining books of account which did not
have a feature of recording audit trail (edit log)
facility
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The accounting software used for maintenance of property, plant and equipment
and worker wages records of the Company did not have a feature of recording
audit trail (edit log) facility
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Instances of accounting software maintained
by a third party where we are unable to
comment on the audit trail feature
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i) The accounting software used for maintenance of books of accounts of
the Company is operated by a third-party software service provider. In
the absence of any information on existence of audit trail (edit logs) at
database level in 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 Organisation), we are unable to comment on whether
audit trail feature with respect to the database of the said software was
enabled and operated throughout the year.
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ii) The accounting software used for maintaining staff and executive payroll
records of the Company is operated by a third-party software service
provider. The ‘Independent Service Auditor's Report on the Description of
the Service Organization's System and the Suitability of the Design and
Operating Effectiveness of Controls' (based on the criteria for description
of a service organization's system as set forth in DC Section 200, 2018
Description Criteria for a Description of a Service Organization's System in
a SOC 2 Report, in AICPA Description criteria), does not provide information
on retention 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 with respect to the database of the said software was operated
throughout the year.
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For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Rrajesh Raghvan
Partner
Place: Kochi Membership No.: 400510
Date: 23 May 2025 UDIN: 25400510BMTEIG6338
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