We have audited the accompanying Standalone Financial Statements of UTTAM SUGAR MILLS LIMITED ("the
Company"), which comprise the Standalone Balance Sheet as at March 31, 2026, the Standalone statement of Profit
and Loss and the Standalone statement of Changes in Equity and the standalone statement of Cash Flows for the
year ended on that date and notes to financial statement including a summary of the material 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 as amended ("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 read with the Companies (Indian Accounting Standards) Rules 2015, as amended ,thereof
("Ind AS ") and other accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2026, the standalone profit, changes in equity and its cash flows 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 (SAs)
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 Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Standalone Financial Statements.
Emphasis of Matter
Attention is drawn regarding note no.37(c) which explains that based on management assessment in respect of
the unsecured loan of '656.68 Lakhs in the nature of one-time assistance received from the State Government of
Uttarakhand in January, 2008. Keeping in view that no demand has ever been raised by the State Government and
the application for waiver of outstanding loan and interest thereon has been filed with the appropriate authority,
company has pending the final outcome of the matter has not accounted for interest on the said loan after 31.03.2024
which aggregates to '52.52 lakh up to the year ended 31st March, 2026 C 26.26 Lakh for previous year ended
31st March, 2025).
Our opinion is not modified in respect of this matter.
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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S. NO
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KEY AUDIT MATTERS
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AUDITOR'S RESPONSE
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1.
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Revenue recognition
Refer to note no 2.4 to the Standalone Financial
Statements.
The Company principally generates revenue from
sale of Sugar (domestic and Export) and sale of its
By-products, sale of distillery products, and sale of
Power in domestic market.
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Our audit procedures, amongst others, included
the following:
• Obtaining an understanding of the process
relating to recording of sales and testing
the design, implementation and operating
effectiveness of relevant key internal controls
over recording of sales.
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We identified revenue recognition as a key audit
matter because it is one of the key performance
indicators of the Company and gives rise to an
inherent risk of misstatement to meet expectations
or targets.
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• Assessing the appropriateness of the
Company's accounting policy for recording
of sales and compliance of the policy with
applicable accounting standards.
• Comparing a sample of sale transactions
recorded during the year with sales orders,
sales invoices, delivery challans and other
relevant underlying documents.
• Comparing a sample of sale transactions
recorded near the year end with the sales
orders, sales invoices, delivery challans and
other relevant underlying documentation
to assess if the sale was recorded in the
appropriate accounting period.
• Comparing a sample of electricity sales
transactions with energy invoices duly
verified by Central Power Purchasing
Agency (Guarantee) Limited (''CPPA-G'') and
assessed whether the sale was recorded in
the appropriate accounting period.
• Inspecting on a sample basis, credit notes
issued near to and subsequent to year end
to evaluate whether the adjustments to
sales had been accurately recorded in the
appropriate accounting period; and
• Scanning for any manual journal entries
relating to sales recorded during and near
the year end which were considered to be
material or other specific risk-based criteria
for inspecting underlying documentation.
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2.
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Capitalization of property, plant and equipment
Refer note no.3 to the Standalone Financial
Statements. The Company has made significant
capital expenditure on New Plant, modernization
and replacement of plant and equipment.
We identified capitalization of property, plant and
equipment as a key audit matter because there is a
risk that amounts being capitalized may not meet
the capitalization criteria with related implications
on depreciation charge for the year.
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Our audit procedures, amongst others, included
the following:
• Obtaining an understanding of and testing
the design, implementation and operating
effectiveness of management's key internal
control over capital expenditure;
• Comparing on sample basis, the costs incurred
on projects with supporting documentation
and contracts;
• Assessing the nature of costs incurred for
the capital projects for appropriateness
by comparing, on sample basis, amounts
recorded with underlying documentation and
considering that the expenditure meets the
criteria for capitalization as per the applicable
accounting standards;
• Inspecting supporting documents for the
date of capitalization when project assets
were ready for its intended use to assess
that depreciation commenced and further
capitalization of costs ceased from that date
and to assess the useful life assigned by
management including testing the calculation
of related depreciation.
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3.
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Valuation of Inventories
Refer note no.7 to the Standalone Financial
Statements.
We identified valuation of inventories as a key
audit matter as it involves significant management
judgments in determining the carrying value of
stock.
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Our audit procedures, amongst others, included
the following:
• Assessing the appropriateness of Company's
accounting policy for valuation of stock and
compliance of the policy with the requirements
of the prevailing accounting standards;
• Obtaining an understanding of internal
controls over valuation of stock and testing, on
a sample basis, their design, implementation
and operating effectiveness;
• Obtaining an understanding and assessing
reasonableness of the management's
determination of net realizable value (NRV)
and the key estimates adopted, including
future selling prices and costs necessary to
make the sales and their basis; and
• Comparing the NRV, on a sample basis, to the
cost of stock-in-trade to assess whether any
adjustments are required to the value of stock
in trade in accordance with the accounting
policy.
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4.
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Investments in Subsidiary
Refer Note. 34(g) to the Standalone Financial
Statements
The Company has during the year been issued/
purchased shares of Uttam Distillery Limited
(Subsidiary Company) in the following manner:
• a sum of '1550 lakhs in 8% non-cumulative
preference shares.
• Purchased equity shares for '2562.70 lakhs.
We identified the investment as key management
matter as it involves significant judgements for
acquisition & fair valuation of shares which requires
the use of specialists /experts.
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Our audit procedures, amongst others, included
the following:
• We examined the terms & conditions of the
agreement.
• We assessed the company's determination
of the fair value of equity and preference
shares acquired at arm's length price & the
matters used to value them by considering
the valuation report of the appointed external
valuation specialist/expert.
• Evaluating appropriateness of adequate
disclosures in accordance with the appropriate
Indian Accounting Standards.
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Information Other than the Standalone Financial Statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board's Report including Annexures
to Board's Report, Business Responsibility and sustainability Report, Corporate Governance and Shareholder's
Information, 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 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
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.
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.
Management's Responsibility for the Standalone Financial Statements
The Company's 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, changes in equity and cash flows of the Company in accordance with the accounting principles generally
accepted in India including the Indian accounting standards (Ind AS) specified under section 133 of the Act, read with
the Companies(Indian Accounting Standards) Rules,2015 as amended thereof.
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 Standalone 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 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 management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities 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 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 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 system 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 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 control 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 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 A" a statement on the matters specified in paragraphs
3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit we report 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 of aforesaid financial statement.
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.
c) The Standalone Balance Sheet, the Standalone statement of Profit and Loss, the standalone statement of
Changes in Equity and the standalone statement of Cash Flow 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 Ind AS specified under Section
133 of the Act, read with Companies (Indian Accounting Standards) relevant Rules,2015, as amended,
thereof.
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) With respect to the adequacy of the internal financial controls over financial reporting of the Company
and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal
financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements
of section 197(16) of the Act, as amended. 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.
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 has disclosed the impact of pending litigations on its financial position in its Standalone
Financial Statements. (Refer Note no.23 to the financial statement).
ii. The Company did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses.
iii. The company was not required to transfer, any amount to the Investor Education and Protection Fund.
iv. (a) The Management has represented that, to the best of its knowledge and belief, 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 or entity, including foreign entity ("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 ("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, no funds (which are
material either individually or in the aggregate) have been received by the Company from any person
or entity, including foreign entity ("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;
(c) Based on the audit procedures 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. (i) The final dividend which was proposed in the previous year, declared, and paid by the Company
during the year is in accordance with Section 123 of the Act, as applicable.
(ii) The Board of Directors of the Company have proposed final dividend for the year which is subject
to the approval of the members at the ensuing Annual General Meeting. The amount of dividend
proposed is in accordance with section 123 of the Act, as applicable.
vi. Based on our examination, which included test checks, the Company has used accounting software 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.
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.
For B. K. Kapur and Co.,
Chartered Accountants,
Firm Registration No.00852C
Place : New Delhi (M.S.Kapur) F.C.A.
Dated : 15th May, 2026 Partner
M.No.074615
UDIN : 26074615VNKHHC4956
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