Independent Auditor's Report for Octavius Plantations Limited

Qualified Opinion Basis

Auditors issued a qualified opinion citing three specific areas of non-compliance:

1. Note 3 - Capital Work-in-Progress Disclosures: Company failed to present ageing schedule and related disclosures for Capital Work-in-Progress amounting to ₹189.96 lakhs as required under Schedule III, Division II of Companies Act, 2013.

2. Note 35 - Employee Benefits: Company did not obtain actuarial valuation for gratuity and other defined employee benefit obligations as required under Ind AS 19. Recognized provision of ₹0.14 lakhs based on management estimate without assessing impact of new Labour Codes.

3. Bearer Plants and Biological Assets: Not accounted for in accordance with Ind AS 16 and Ind AS 41 respectively.

Financial Performance Highlights (₹ in Lakhs)

  • Revenue from Operations: ₹6,417.50 (Previous year: ₹2,826.83)
  • Other Income: ₹46.54 (Previous year: ₹48.75)
  • Total Income: ₹6,464.04 (Previous year: ₹2,875.58)
  • Profit Before Tax: ₹99.75 (Previous year: ₹95.26)
  • Tax Expense: ₹17.34 (Previous year: ₹8.25)
  • Net Profit for the Year: ₹82.42 (Previous year: ₹87.01)
  • Total Comprehensive Income: ₹82.55 (Previous year: ₹87.11)
  • Earnings Per Share (Basic & Diluted): ₹2.75 (Previous year: ₹2.90)

Financial Position as at 31st March, 2026 (₹ in Lakhs)

Assets:

  • Total Assets: ₹4,471.19 (Previous year: ₹2,996.40)
  • Non-current Assets: ₹671.97 (Previous year: ₹595.80)
  • Current Assets: ₹3,799.20 (Previous year: ₹2,400.60)
  • Inventories: ₹926.37 (Previous year: ₹865.29)
  • Trade Receivables: ₹834.14 (Previous year: ₹172.97)
  • Cash & Cash Equivalents: ₹15.24 (Previous year: ₹33.90)
  • Loans (Unsecured): ₹328.00 (Previous year: ₹258.00)

Liabilities and Equity:

  • Equity Share Capital: ₹300.00 (Unchanged)
  • Other Equity: ₹1,684.95 (Previous year: ₹1,602.40)
  • Total Equity: ₹1,984.95 (Previous year: ₹1,902.40)
  • Non-current Liabilities: ₹82.24 (Previous year: ₹96.81)
  • Current Liabilities: ₹2,403.99 (Previous year: ₹997.16)
  • Secured Borrowings: ₹2,034.53 (Previous year: ₹798.54)

Key Audit Matters

Contingent Liabilities and Litigations:

  • Significant exposure to direct and indirect tax litigations
  • Company disclosed impact of pending litigations in financial statements (Refer Note 32)
  • Tax disputes include:
  • AY 2012-13: ₹1.86 lakhs
  • AY 2013-14: ₹246.42 lakhs
  • AY 2017-18: ₹71.42 lakhs
  • TDS defaults from AY 2022-23 to AY 2025-26 totaling ₹0.13 lakhs

Related Party Transactions (₹ in Lakhs)

Key Related Parties: LMJ Services Limited, Octavius Industries Limited, Thriving Developers Private Limited, Auroile Logistics Private Limited, Uricity India Private Limited, Bajrang Devcon Private Limited, OTIL Logistics Private Limited, Asterisk Industries Private Limited, LMJ Energy Infra logistics Limited, Lansdowne Business Centre Private Limited

Transaction Summary:

  • Purchases from Related Parties: ₹1,027.35 from Nyasylee Tea Estate Private Limited
  • Sales to Related Parties: ₹24.97 to Octavius Tea & Industries Limited
  • Advances Given: ₹854.00 to OTIL Logistics Private Limited
  • Advances Received: ₹704.36 from LMJ Services Limited
  • Remuneration to KMPs: ₹22.98 to Raj Kumar Jain, Nagaraj Mramachandra Rao, and Suman Negi

Capital Structure Impact

  • No change in share capital during the year
  • Equity shares: 30,00,000 equity shares of ₹10 each fully paid up
  • Promoter holding: 46.42% (Shalini Jain: 33.80%, Akshita Jain: 9.50%, Madanlall Jain: 3.12%)

Cash Flow Implications

  • Cash from Operating Activities: ₹165.73 (Previous year: negative ₹497.40)
  • Cash used in Investing Activities: ₹1,293.62 (Previous year: ₹101.66)
  • Cash from Financing Activities: ₹1,109.23 (Previous year: ₹583.53)
  • Net decrease in Cash: ₹18.66 (Previous year: ₹15.53)

Internal Financial Controls

Auditors reported adequate internal financial controls with reference to financial statements operating effectively as at 31st March, 2026 (Annexure B).

Other Material Disclosures

  • Working Capital Facilities: Sanctioned limits of ₹2,000 lakhs from banks secured by current assets
  • Contingent Liabilities: ₹774.25 lakhs (Previous year: ₹733.96 lakhs)
  • Capital Commitments: ₹454.40 lakhs for property, plant and equipment
  • Micro, Small and Medium Enterprises: No dues outstanding
  • CSR: Not applicable for the financial year
  • Dividend: Not declared or paid during the year

Forward-looking Information

No forward-looking guidance or management commentary provided in the auditor's report.