1. We have audited the accompanying standalone
financial statements of KRBL Limited (‘the
Company’), which comprise the Standalone
Balance Sheet as at 31 March 2026, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Statement
of Cash Flows 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. I n our opinion and to the best of our information
and according to the explanations given to us,
except for the possible effects of the matter
described in the Basis for Qualified Opinion section
of our report, 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 2026, and its profit
(including other comprehensive income), its cash
flows and the changes in equity for the year ended
on that date.
Basis for Qualified Opinion
3. As stated in Note 47A(3) to the accompanying
standalone financial statements, the Enforcement
Directorate (‘ED’) is investigating Company’s Joint
Managing Director (‘JMD’) under the Prevention
of Money Laundering Act, 2002, for alleged
involvement in Agusta Westland case. Further,
the ED has filled criminal complaint and made
certain allegations against the Company, KRBL
DMCC (a subsidiary of the Company) and JMD.
As further described in the said note, a review
of the impact of the allegations was performed
by an independent professional firm appointed
by the Board of Directors and in our view, as
per the report of the independent professional
firm, there is no conclusive evidence to ascertain
impact of the aforesaid matter on the standalone
financial statements of the Company. Pending the
completion of ongoing investigation of the above
matter by regulatory authorities, we are unable
to comment on any adjustment that may be
required to the accompanying standalone financial
statements in this respect.
4. 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 qualified opinion.
Key Audit Matters
5. 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.
6. In addition to the matters described in the Basis for
Qualified Opinion, 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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Revenue recognition under Ind AS 115, Revenue from
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Our audit work included, but was not limited to, the
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Contract with Customers
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following procedures:
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Refer Note 2(viii) in the material accounting policies and
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Ý Obtained an understanding of the management
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other explanatory information.
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process for each revenue stream, particularly of
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The Company recognised revenue from operations
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sale of rice and by-products and evaluated the
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amounting to 1609,786 lacs for the year ended
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appropriateness of the accounting policy adopted by
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31 March 2026, as disclosed in Note 28 to the standalone
financial statements.
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the management in accordance with Ind AS 115;
Ý Evaluated the design and tested the operating
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Revenue primarily comprises of revenue from sale of
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effectiveness of internal controls over revenue
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manufactured goods (rice) and by products, which is
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recognition including pricing and accounting of
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recognized when control of such goods is transferred
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revenue transactions;
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to the customers and there is no unfulfilled obligation
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in accordance with the requirements of Ind AS 115 -
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Ý Performed substantive analytical procedures such
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Revenue from Contracts with Customers (‘Ind AS 115’).
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as variance analysis on revenue to identify any
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Revenue is measured at the amount of transaction price
determined net of variable consideration pertaining to
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unusual trends;
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rebates and discounts given to the customers.
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Ý Evaluated the terms and conditions of the contracts,
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In accordance with Standards on Auditing, there is a
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including incoterms, with customers to ensure
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presumed fraud risk relating to revenue recognition.
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that the revenue recognition criteria are assessed
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Accordingly, revenue recognition is a key focus area
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by the management in accordance with the
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on account of the multiplicity of Company’s products,
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accounting standards;
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multiple channels for sales, various categories of
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Ý On a sample basis, tested revenue transactions
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customers having varying terms of contracts, the volume
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of the sales made to them and estimates involved in
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recorded during the year, and revenue transactions
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calculation of variable consideration.
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recorded in the period before and after year-end
with supporting documents, such as invoices, sales
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Due to the above factors, we have identified testing of
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contract with customers, proof of deliveries, and
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revenue recognition as a key audit matter.
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subsequent collection of payment to ensure revenue
is recorded in the correct period with correct amount;
Ý Tested, on sample basis, the year-end accruals made
by the management with respect to rebates and
discounts in accordance with the terms of approved
schemes communicated to the customers of
the Company;
Ý Performed other substantive audit procedures
including obtaining debtor confirmations on a sample
basis, reviewed the subsequent collection and proof
of deliveries document of such selected debtors; and
Ý Evaluated the adequacy of disclosures given in
the standalone financial statements, including
disclosure of revenue recognition from sale of goods
for appropriateness in accordance with the Indian
accounting standards.
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Inventory existence and valuation of finished goods
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Our audit work included, but was not limited to the
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Refer Note 2(vii) in the material accounting policies and
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following procedures:
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other explanatory information.
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Existence:
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Inventory of the Company consists primarily of variety of
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Ý Obtained an understanding of the management’s
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rice, paddy and their by-products, manufactured during
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process of inventory management and inventory
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the process of conversion of paddy into rice.
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physical verification performed subsequent to year-end;
Ý Evaluated the design and tested the operating
effectiveness of internal controls over inventory
management process/ inventory physical verification;
Ý Reviewed the instructions given by management
to stock count teams, including ensuring proper
segregation of stock, identification of damaged
inventory, if any, etc;
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Key audit matters
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How our audit addressed the key audit matters
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The Company held inventories amounting to 1371,366
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Ý Observed physical count carried out by the
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lacs as at 31 March 2026, as disclosed in Note 11 to the
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management at locations selected based on materiality
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standalone financial statements. The inventory primarily
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of stock lying at such locations and, independently
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comprises of Paddy as raw material and finished goods
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performed physical test count of inventory items, on
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in the form of rice and by-products. Inventory holding is
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sample basis, at such selected locations;
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generally significant considering the finished goods are
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aged for 18-24 months and also due to seasonality of the
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Ý Obtained inventory reports and results of management
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purchase/produce. Such inventory is stored in plants,
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conducted count and reviewed reconciliation of
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warehouses, silos, etc. High quantity of inventory makes
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differences, if any, between management physical
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inventory physical verification an extensive procedure for
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count and inventory records; and
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the management, at the year end.
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Ý For the inventory lying with the third party, obtained
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The valuation of finished rice and by products involves
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independent confirmation, on sample basis, from such
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complexity and estimation around determination of -
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third parties and for the inventory lying at foreign
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Ý Allocable overheads and their absorption rates;
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ports, if any, tested the subsequent proof of deliveries,
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Ý Net realisable value of different variety of rice
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of the shipment made to destination of the customers.
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and by-products etc,
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Valuation:
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Accordingly, existence and valuation of the year-end
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Ý Obtained an understanding of management process of
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inventory balance, which is significant with respect to
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inventory valuation and assessed the appropriateness
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the total assets held by the Company, requires significant
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of the accounting policies relating to valuation of
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auditor attention owing to the complexity and judgements
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Inventory by ensuring their compliance with Ind AS 2;
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involved in the process of physical count and valuation
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and therefore, inventory existence and valuation has
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Ý Evaluated design and tested the operating
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been identified as a key audit matter.
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effectiveness of internal controls over inventory
valuation process;
Ý Tested the key inputs used in the valuation process
from underlying source documents/ general
ledger accounts;
Ý Verified, on test check basis, reconciliation of opening
inventory, purchase/ production, sales and year-end
inventory to validate the rice yield during the year.
Compared the yield between current year and prior
year to identify abnormalities, if any;
Ý Compared key estimates, including those involved
in computation of allocable overheads and their
absorption rate, to prior years and enquired reasons
for any significant variations;
Ý Compared key estimates, including those involved
in computation of allocable overheads and their
absorption rate, to prior years and enquired reasons
for any significant variations;
Ý Verified net realizable value of rice and by-products
from actual sale proceeds near to the year-end
and tested arithmetical accuracy of valuation
calculations; and
Ý Evaluated the adequacy of disclosure given in the
standalone financial statements, including disclosure
of inventory year-end balance in the standalone
financial statements, in accordance with the Indian
accounting standards.
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Information other than the Standalone Financial
Statements and Auditor’s Report thereon
7. 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. The Annual Report is 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 we 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 when it
becomes available 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.
When we read the Annual Report, if we conclude
that there is a material misstatement therein, we
are required to communicate the matter to those
charged with governance.
Responsibilities of Management and Those
Charged with Governance for the Standalone
Financial Statements
8. 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.
9. I n 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.
10. 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
11. 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.
12. 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:
Ý 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;
Ý 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;
Ý Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by management;
Ý 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
Ý 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.
13. 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.
14. 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.
15. 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
16. 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.
17. 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.
18. 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 except for the matter
described in the Basis for Qualified Opinion
section, 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
18(i)(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) Except for the possible effects of the
matter described in the Basis for Qualified
Opinion section, in our opinion, the aforesaid
standalone financial statements comply with
Ind AS specified under section 133 of the Act;
e) The matter described in paragraph 3 under
the Basis for Qualified Opinion section, in our
opinion, may have an adverse effect on the
functioning of the Company;
f) 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 2026
from being appointed as a director in terms of
section 164(2) of the Act;
g) The qualification relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 18(b)
above on reporting under section 143(3)(b)
of the Act and paragraph 18(i)(vi) below on
reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014 (as amended);
h) With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company as on 31 March
2026 and the operating effectiveness of
such controls, refer to our separate report in
Annexure ‘B’ wherein we have expressed an
unmodified opinion; and
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. Except for the possible effect of the
matter described in paragraph 3 of the
Basis for Qualified Opinion section, the
Company, as detailed in note 47A to
the standalone financial statements,
has disclosed the impact of pending
litigations on its financial position as at 31
March 2026;
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 2026;
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
ended 31 March 2026;
iv. a. The management has represented
that, to the best of its knowledge and
belief, as disclosed in note 50(v) 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 or entity, 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
50(vi) to the standalone financial
statements, no funds have been
received by the Company from any
person or entity, 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 final dividend paid by the Company
during the year ended 31 March 2026 in
respect of such dividend declared for
the previous year is in accordance with
section 123 of the Act to the extent it
applies to payment of dividend.
As stated in note 43 B to the accompanying
standalone financial statements, the
Board of Directors of the Company have
proposed final dividend for the year
ended 31 March 2026 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. Based on our examination which included
test checks, the Company, in respect of
financial year commencing on 1 April
2025, has used 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
except that, audit trail feature was not
enabled at database level for accounting
software used for maintaining books of
accounts as described in Note 52 to the
standalone financial statements. Further,
during the course of our audit we did not
come across any instance of audit trail
feature being tampered with in respect
of the accounting software where such
feature is enabled. Furthermore, except
for instance mentioned above 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
Abhishek Lakhotia
Partner
Membership No.: 502667
UDIN: 26502667EJBSWV1356
Place: Noida
Date: 14 May 2026
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