We have audited the standalone financial statements of GOKUL
AGRO RESOURCES LIMITED ("the Company"), which comprise
the Balance Sheet as at March 31,2025, and the Statement of Profit
and Loss (including Other Comprehensive Income), Statement
of Changes in Equity and Statement of Cash Flows for the year
then ended, and notes to the Financial Statements, including a
summary of Significant Accounting Policies and other Explanatory
Information (hereinafter referred to as the "Standalone Financial
Statements").
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act,
2013 (the "Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS")
and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2025, and its profit,
total comprehensive income, changes in equity and its cash flows
for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Companies
Act, 2013. Our responsibilities under those Standards are further
described in the Auditor's Responsibilities for the Audit of the
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 together with the
ethical requirements that are relevant to our audit of the financial
statements under the provisions of the Companies Act, 2013
and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
ICAI Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion on Standalone Financial Statement.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in
the context of our audit of the 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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Sr. No. Key Audit Matters
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How the Matter was addressed in our Audit
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1 Revenue Recognition: -
Material estimation by the company is involved in
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Our audit procedures to assess the appropriateness of revenue
recognized included the following;
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recognition and measurement of its revenue. The value
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Our audit procedures, considering the significant risk of
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and timing of revenue recognition for sale of goods
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misstatement related to revenue recognition, included amongst
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varies from contract to contract, and the activity can span
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other:
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beyond the year end.
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- Obtaining an understanding of an assessing the design,
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Revenue from sale of goods is recognized when control is
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implementation and operating effectiveness of the
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transferred to the customers and when there are no other
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Company's key internal controls over the revenue
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unfulfilled obligations. This requires detailed analysis of
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recognition process.
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each sale agreement/ contract/customer purchase order
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- Examination of significant contracts entered into close to
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regarding timing of revenue recognition.
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year end to ensure revenue recognition is made in correct
period.
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Inappropriate assessment could lead to a risk of revenue
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- Testing a sample of contracts from various revenue streams
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being recognized on sale of goods before the control in
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by agreeing information back to contracts and proof of
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the goods is transferred to the customer.
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delivery as appropriate and ensure revenue recognition
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Subsequent adjustments are made to the transaction
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policy is in accordance with principles of Ind AS 115.
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price due to grade mismatch/slippage of the transferred
goods.
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Our testing as described above showed that revenue has been
recorded in accordance with the terms of underlying contracts
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The variation in the contract price if not settled mutually
between the parties to the contract is referred to third
party testing and the Company estimates the adjustments
required for revenue recognition pending settlement of
such dispute.
Such adjustments in revenue are made on estimated basis
following historical trend.
Inappropriate estimation could lead to a risk of revenue
being overvalued or undervalued.
Accordingly, timing of recognition of revenue and
adjustments for quality variances involving critical
estimates is a key audit matter.
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and accounting policy in this area.
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2 Inventory and Valuation of Inventories and Physical
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Our audit procedures included the following;
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Verification of Inventories: -
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- We understood and tested the design and operating
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The carrying value of inventory as at March 31, 2025 is
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effectiveness of controls as established by the management
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'1,87,444.45 Lakhs. The inventory is valued at the lower of
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in determination of net realizable value of inventory.
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cost and net realizable value.
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- Assessing the appropriateness of Company's accounting
policy for valuation of stock-in-trade and compliance of
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We considered the value of inventory as a key audit
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the policy with the requirements of the prevailing Indian
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matter given the relative size of its balance in the financial
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accounting standards.
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statements and significant judgment involved in the
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- We considered various factors including the actual selling
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consideration of factors in determination of selling prices
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price prevailing around and subsequent to the year-end.
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such as fluctuation of raw materials prices in the market
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- Compared the cost of the finished goods with the estimated
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and in determination of net realizable value (Refer Note
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net realizable value and checked if the finished goods were
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No. 8 to the Standalone Financial Statement).
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recorded at net realizable value where the cost was higher
than the net realizable value.
Based on the above procedures performed, the management's
determination of the net realizable value of the inventory as at
the year end and comparison with cost for valuation of inventory
is considered to be reasonable.
It is not possible for us to physically verify the Inventories of Raw
Materials, Inventory of Stores and Spares, and Packing and Other
Materials at the year end. As per the information given to us by the
management, that the management of the company physically
verify the inventories at regular intervals. We have relied on the
valuation done by the management of the company.
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3 Carrying Value of Trade Receivables and Advances: -
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Our audit procedures included the following;
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The collectability of the company's Trade Receivables
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- We assessed a sample of trade receivables and advances.
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and Advances (Including Trade Advances), the valuation
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- We assessed the ageing of trade receivables and advances,
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of allowance for impairment of trade receivables and
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the customer's historical payment patterns and whether
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provision for bad and doubtful debt require significant
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any post year-end payments have been received up to the
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management judgment. As per the current assessment
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date of completing our audit procedures.
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of the situation based on the Internal and external
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- We also discussed with the management regarding
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information available up to the date of approval of these
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any disputes between the parties involved, attempts by
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financial results by the Board of Directors, the Company
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management to recover the amounts outstanding and
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believes that there is no indication of any material impact
on the carrying value.
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on the credit status of significant counterparties wherever
available.
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Management uses this information to determine whether
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In assessing the appropriateness of the overall provision for
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a provision for impairment or for bad debt is required
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impairment, we considered the management's application of
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either for a specific transaction or for a customer's balance
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policy for recognizing provisions.
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overall. Accordingly, it has been determined as a key audit
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We assessed the Company's provisioning policy and comparing
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matter.
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the Company's provisioning against historical collection data.
Based on our procedures, we also considered the adequacy of
disclosures in respect of trade receivables and advances in the
financial statements.
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4 Assessment of litigations and related disclosure of
contingent liabilities: -
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Our audit procedures included the following;
- Understanding the process followed by the company/
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management for assessment and determination of the
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(Refer to Note 3.16, significant accounting policies to the
Standalone financial statements)
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amount for provisions and contingent liabilities relating to
taxation, litigations and claims.
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The provisions and contingent liabilities relate to ongoing
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- We understood, assessed and tested the design and
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litigations and claims with various authorities. These relate
to direct tax, various indirect taxes, claims and general
legal proceedings arising in the regular course of business.
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operating effectiveness of key controls surrounding
assessment of litigations relating to the relevant laws and
regulations;
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- We discussed with management and those charged with
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The assessment of a provision or contingent liability
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the governance, the recent developments and the status of
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requires significant judgement by the company because
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the material litigations which were reviewed and noted;
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of the inherent complexity in estimating future costs.
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- We performed our assessment on a test basis on the
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underlying calculations supporting the contingent
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The amount recognized as a provision is the best
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liabilities/other significant litigations disclosed in the
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estimate made by the management. The provisions
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Standalone Financial Statements;
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and contingent liabilities are subject to changes in the
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- We evaluated management's assessment around those
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outcomes of litigations and claims and the positions
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matters that are not disclosed or not considered as
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taken by the company. It involves significant judgement
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contingent liability, as the probability of material outflow is
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and estimation to determine the likelihood and timing
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considered to be remote by the management; and
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of the cash outflows and interpretations of the legal
aspects, tax legislations and judgments previously made
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- We assessed the adequacy of the Company's disclosures.
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by authorities.
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Based on the above work performed, the assessment in respect
of litigations and related disclosures relating to contingent
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(Refer Note - 33 to the Standalone Financial Statements
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liabilities/other significant litigations in the Standalone Financial
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- "Contingent Liabilities & Commitments and Note - 34
"Pending Litigation")
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Statements is considered to be reasonable.
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5 Capitalization and useful life of tangible assets: -
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Our audit procedures include the following:
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Significant judgment and estimates are involved with
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Assessed the design and operating effectiveness of the controls
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respect to the following matters of tangible assets;
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with respect to capital expenditure incurred on various projects
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During the year ended March 31,2025, the Company has
incurred capital expenditure on various projects included
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included in capital work in progress, intangible assets.
Assessed the nature of the additions made to property, plant and
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in capital work in progress. Further, items of property,
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equipment, intangible assets and capital work-in-progress on a
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plant and equipment that are ready for its intended use
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test check basis to test whether they meet the recognition criteria
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as determined by the management have been capitalized.
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as set out Ind AS 16 - Property, Plant and Equipment and Ind AS
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Judgment is involved to determine that the aforesaid
capitalization meet the recognition requirement under
Ind AS including determination of whether the criteria for
intended use of the management has been met. (Refer
Note 4 of the Standalone financial statements).
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38 - Intangible Assets, including intended use of management.
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Information Other than Standalone Financial
Statements and Auditor's Report Thereon
The company's Board of Directors are responsible for the
preparation and presentation of the other information. The
other information comprises the information included in the
Management Discussion and Analysis, Board's Report including
the Annexure to the board's Report, Share Holder's Information
etc., but does not include the standalone financial statement and
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 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 material misstatement of this information; we are required to
report that fact. We have nothing to report in this regard.
Responsibility of the Management and those charged
with the Governance for the Standalone Financial
Statements
The Company's Management and Board of Directors of the
Company are responsible for the matters stated in section 134(5)
of the Act with respect to the preparation and presentation of
these standalone financial statement that gives 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 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 fraud 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 statement that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors are
also responsible for assessing the Company's ability to continue as
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
the Board of Directors either intend to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the
financial reporting process of the Company.
Auditor's Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether
the 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 a part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the
audit.
We also:
(a) I dentify and assess the risks of material misstatement of the
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.
(b) Obtain an understanding of internal financial control relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, 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.
(c) Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
(d) Conclude 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.
(e) Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, and
whether the financial statements represent the 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 Section 143(3) of the Act, 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.
(b) I n our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books except
for the matters stated in the paragraph (2)(i)(vi) below
on reporting under Rule 11(g) of the Companies (Audit
and Auditors) Rules,2014 (as amended).
(c) The Balance Sheet, the Statement of Profit and Loss
(Including Other Comprehensive Income), Statement
of Change in Equity and the Statement of Cash Flow
dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards specified under Section 133 of the Act read
with the Companies (Indian Accounting Standards)
Rules, 2015, as amended.
(e) On the basis of the written representations received from
the directors as on March 31,2025 taken on record by the
Board of Directors, none of the directors is disqualified as
on March 31,2025 from being appointed as a director in
terms of Section 164(2) of the Act.
(f) The modification relating to the maintenance of
accounts and other matters connected therewith, is
as stated in paragraph (b) above on reporting under
Section 143(3)(b) and paragraph (2)(i)(vi) below on
reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules,2014 (as amended).
(g) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our
separate Report in "Annexure - A". Our report expresses
an unmodified opinion on the adequacy and operating
effectiveness of the company's internal financial
controls over financial reporting.
(h) 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:
(i) In our opinion and to the best of our information
and according to the explanations given to us, the
managerial remuneration paid by the Company to
its directors during the year is in accordance with the
provisions of section 197 of the Act read with Schedule
V to the Act.
(j) 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, 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. 34
to the Standalone Financial Statement.
(ii) The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.
(iii) There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the company.
(iv) (a) The Management has represented that, to
the best of their 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 their 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) The company has not declared or paid dividend
during the year, hence compliance with section
123 of the Companies Act, 2013 is not applicable.
(vi) Based on our examination, the company has used
accounting software for maintaining its books of
accounts for the financial year ended on March
31, 2025 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 where audit trail feature is tempered
with.
2. As required by the Companies (Auditor's Report) Order, 2020
("the Order"), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Companies
Act, 2013, we give in the "Annexure - B", a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
For, Surana Maloo & Co.
Chartered Accountants
Firm Reg. No. 112171W
Per, Vidhan Surana
Partner
Date : May 20, 2025 Membership No. - 041841
Place : Ahmedabad UDIN: 25041841BMJBBV3771
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