INDEPENDENT AUDITOR'S REPORT

Report Date and Approval

The Financial Statements are approved by the Company's Board of Directors on 28th May, 2026. Auditor's report dated 28th May, 2026.

Qualified Opinion Basis

Auditors issued a qualified opinion due to three specific matters:

1. Note No. 3: Company has not presented ageing schedule and related disclosures for Capital Work-in-Progress (CWIP) of ₹189.96 lakhs as required under Schedule III, Division II to the Companies Act, 2013.

2. Note No. 35: Company has not obtained actuarial valuation for gratuity and other defined employee benefit obligations as required under Ind AS 19, and recognized a provision of ₹0.14 lakhs based on management's estimate. Company has not assessed impact of notified new Labour Codes on employee benefit obligations.

3. Bearer plants and Biological Assets have not been accounted for in accordance with Ind AS 16 and Ind AS 41 respectively.

Key Audit Matter

Contingent Liabilities and Commitments: Company has significant exposure towards direct and indirect tax litigations with high level of judgment required in estimating provisioning level and appropriateness of disclosure. Auditors addressed this through examination of outstanding litigations, regulatory correspondences, discussions with management, and validation of disclosures.

Financial Performance Summary (₹ in Lakhs)

  • Revenue from Operations: ₹6,417.50 (Sale of Finished Goods: ₹4,270.23; Sale of Trading Goods: ₹2,145.77; Export Incentives: ₹1.50)
  • Other Income: ₹46.54 (Interest Income: ₹22.37; Service Charges: ₹10.00; Resort Income: ₹6.71)
  • Total Expenses: ₹6,364.28
  • Profit Before Tax: ₹99.75
  • Tax Expense: ₹17.34 (Current Tax: ₹17.95; Deferred Tax: ₹(0.61))
  • Net Profit for the Year: ₹82.42
  • Other Comprehensive Income: ₹0.14
  • Total Comprehensive Income: ₹82.55
  • Earnings Per Share: Basic and Diluted ₹2.75

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

Assets

  • Non-current Assets: ₹345.60 (Property, Plant and Equipment: ₹126.18; CWIP: ₹189.96; Biological Assets: ₹7.25; Other Financial Assets: ₹0.05; Other Non-current Assets: ₹2.93)
  • Current Assets: ₹3,799.20 (Inventories: ₹926.36; Trade Receivables: ₹834.14; Cash and Cash Equivalents: ₹15.24; Loans: ₹328.00; Other Financial Assets: ₹117.80; Current Tax Assets: ₹4.99; Other Current Assets: ₹1,572.67)
  • Total Assets: ₹4,471.19

Equity and Liabilities

  • Equity: ₹1,984.95 (Share Capital: ₹300.00; Other Equity: ₹1,684.95)
  • Non-current Liabilities: ₹82.24 (Borrowings: ₹79.58; Deferred Tax Liabilities (Net): ₹0.26; Provisions: ₹2.40)
  • Current Liabilities: ₹2,403.99 (Borrowings: ₹1,954.95; Trade Payables: ₹363.47; Other Current Liabilities: ₹85.10; Provisions: ₹0.47)
  • Total Equity and Liabilities: ₹4,471.19

Significant Changes from Previous Year

  • Borrowings increased from ₹798.54 lakhs to ₹2,034.53 lakhs
  • Trade receivables increased from ₹172.97 lakhs to ₹834.14 lakhs
  • Other current assets increased from ₹951.67 lakhs to ₹1,572.67 lakhs
  • Inventories increased from ₹865.29 lakhs to ₹926.37 lakhs

Contingent Liabilities (₹ in Lakhs)

  • Claims under adjudication not acknowledged as debts: ₹774.25
  • TDS Defaults: ₹0.14 (AY 2022-23: ₹0.06; AY 2023-24: ₹0.06; AY 2024-25: ₹0.00; AY 2025-26: ₹0.02)
  • Income Tax Demands: ₹319.70 (AY 2012-13: ₹71.42; AY 2013-14: ₹246.42; AY 2017-18: ₹1.86)
  • Capital Commitments: ₹454.40 (net of advances)

Related Party Transactions

Company transacted with related parties including key managerial personnel and companies where KMP/relatives exercise control/significant influence. Significant transactions include:

  • Remuneration to KMPs: ₹22.98 lakhs
  • Sale of products to related parties: ₹24.97 lakhs
  • Purchase of stock-in-trade from related parties: ₹1,053.83 lakhs
  • Advances given to related parties: ₹882.70 lakhs
  • Advances received from related parties: ₹770.05 lakhs

Loan Details

  • Loans given: ₹328.00 lakhs (₹50.00 lakhs to related parties, ₹278.00 lakhs to others)
  • Loans repayable on demand: ₹3,328.00 lakhs (₹250.00 lakhs to related parties)

Employee Benefits

Company recognized gratuity provision of ₹2.88 lakhs (non-current: ₹2.40 lakhs, current: ₹0.47 lakhs) based on management estimate without actuarial valuation.

Segment Reporting

Company operates in single reporting segment of trading agricultural produce and its processing.

Capital Management

Debt-equity ratio increased from 0.42:1 to 1.02:1 due to significant increase in borrowings.

Internal Financial Controls

Auditors issued separate report in Annexure B stating company has adequate internal financial controls operating effectively as at 31st March, 2026.