1. We have audited the accompanying standalone
financial statements of KRBL 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, 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, 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 Qualified Opinion
3. As stated in Note 47(a)(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 H5, Revenue
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Our audit work included, but was not limited to, the following
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from Contract with Customers
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procedures:
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Refer Note 2(iii)(e) in the material accounting
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Ý Obtained an understanding of the management process
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policies and other explanatory information.
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for each revenue stream, particularly of sale of rice and
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The Company recognised revenue from
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by-products and evaluated the appropriateness of
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operations amounting to f 559,381 lacs for the
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the accounting policy adopted by the management in
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year ended 31 March, 2025, as disclosed in Note
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accordance with Ind AS 115;
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28 to the standalone financial statements.
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Ý Evaluated the design and tested the operating effectiveness
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Revenue primarily comprises of revenue from sale
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of internal controls over revenue recognition including pricing
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of manufactured goods (rice) and by products,
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and accounting of revenue transactions;
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which is recognized when control of such goods
is transferred to the customers and there is no
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Ý Performed substantive analytical procedures such as
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unfulfilled obligation in accordance with the
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variance analysis on revenue to identify any unusual trends;
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requirements of Ind AS 115 - Revenue from Contracts
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Ý Evaluated the terms and conditions of the contracts, including
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with Customers ('Ind AS 115'). Revenue is measured
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incoterms, with customers to ensure that the revenue
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at the amount of transaction price determined
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net of variable consideration pertaining to rebates
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recognition criteria are assessed by the management in
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and discounts given to the customers.
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accordance with the accounting standards;
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In accordance with Standards on Auditing, there
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Ý On a sample basis, tested revenue transactions recorded
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is a presumed fraud risk relating to revenue
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during the year, and revenue transactions recorded in the
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recognition. Accordingly, revenue recognition is
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period before and after year-end with supporting documents,
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a key focus area on account of the multiplicity
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such as invoices, sales contract with customers, proof of
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of Company's products, multiple channels for
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deliveries, and subsequent collection of payment to ensure
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sales, various categories of customers having
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revenue is recorded in the correct period with correct amount;
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varying terms of contracts, the volume of the
sales made to them and estimates involved in
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Ý Tested, on sample basis, the year-end accruals made by
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calculation of variable consideration.
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the management with respect to rebates and discounts
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Due to the above factors, we have identified testing
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in accordance with the terms of approved schemes
communicated to the customers of the Company;
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of revenue recognition as a key audit matter.
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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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Key audit matters
Inventory existence and valuation of
finished goods
Refer Note 2(iii)(d) in the material accounting
policies and other explanatory information.
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How our audit addressed the key audit matters
Our audit work included, but was not limited to the
following procedures:
Existence:
Ý Obtained an understanding of the management's process of
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Inventory of the Company consists primarily
of variety of rice, paddy and their by-products,
manufactured during the process of conversion
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inventory management and inventory physical verification
performed subsequent to year-end;
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of paddy into rice.
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Ý Evaluated the design and tested the operating effectiveness
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of internal controls over inventory management process/
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The Company held inventories amounting to
f 388,485 lacs as at 31 March, 2025, as disclosed
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inventory physical verification;
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in Note 11 to the standalone financial statements.
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Ý Reviewed the instructions given by management to stock
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The inventory primarily comprises of Paddy as
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count teams, including ensuring proper segregation of stock,
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raw material and finished goods in the form
of rice and by-products. Inventory holding is
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identification of damaged inventory, if any, etc;
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generally significant considering the finished
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Ý Observed physical count carried out by the management at
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goods are aged for 18-24 months and also due
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locations selected based on materiality of stock lying at such
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to seasonality of the purchase/produce. Such
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locations and, independently performed physical test count of
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inventory is stored in plants, warehouses, silos,
etc. High quantity of inventory makes inventory
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inventory items, on sample basis, at such selected locations;
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physical verification an extensive procedure for
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Ý Obtained inventory reports and results of management
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the management, at the year end.
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conducted count and reviewed reconciliation of differences, if any,
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The valuation of finished rice and by products
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between management physical count and inventory records;
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is carried out manually and involves complexity
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Ý For the inventory lying with the third party, obtained
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and estimation around determination of -
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independent confirmation, on sample basis, from such third
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Ý Allocable overheads and their
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parties and for the inventory lying at foreign ports, if any,
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absorption rates;
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tested the subsequent proof of deliveries, of the shipment
made to destination of the customers.
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Ý Net realisable value of different variety of rice
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Valuation:
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and by-products etc,
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Ý Obtained an understanding of management process of
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Accordingly, existence and valuation of the year-
end inventory balance, which is significant with
respect to the total assets held by the Company,
requires significant auditor attention owing to
the complexity and judgements involved in the
process of physical count and valuation and
therefore, inventory existence and valuation has
been identified as a key audit matter.
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inventory valuation and assessed the appropriateness of
the accounting policies relating to valuation of Inventory by
ensuring their compliance with Ind AS 2;
Ý Evaluated design and tested the operating 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;
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Ý Verified, on test check basis, reconciliation of opening inventory,
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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;
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Ý Compared key estimates, including those involved in
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computation of allocable overheads and their absorption
rate, to prior years and enquired reasons for any
significant variations;
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Ý Verified net realizable value of rice and by-products from
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actual sale proceeds near to the year-end and tested
arithmetical accuracy of valuation calculations;
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Ý Evaluated the adequacy of disclosure given in the standalone
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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. 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.
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, 2025 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, 2025
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 47(a) 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 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, 2025;
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, 2025 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,
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. Based on our examination which included
test checks, the Company, in respect of
financial year commencing on 1 April
2024, 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
Sd/-
Abhishek Lakhotia
Partner
Membership No.: 502667
UDIN: 25502667BMUJKH3531
Place: New Delhi
Date: 16 May 2025
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