We have audited the standalone financial statements
of JK Agri Genetics Limited (“the Company”),
which comprise the Standalone Balance Sheet as at
31st March, 2025, the Standalone Statement of Profit
and Loss (including Other Comprehensive Loss), the
Standalone Statement of Cash Flows and Standalone
Statement of Changes in Equity for the year then ended
and notes to the Standalone financial statements,
including a material accounting policies and other
explanatory information (herein after referred to as
"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 other accounting principles
generally accepted in India, of the standalone state
of affairs of the Company as at 31st March, 2025,
and its loss (including Other Comprehensive Loss),
standalone changes in equity and its standalone 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 Act (SAs). 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 ICAI’s Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Emphasis of Matter
Attention is invited to note no 47.2 c (ii) of the audited
standalone financial statements at year ended
31st March, 2025 regarding overdue trade receivables
of ' 1,823.61 lakhs and security deposit of ' 121.68
lakhs from Rajasthan State Seeds Corporation
(RSSC), where legal action have been initiated by
the Company in earlier year. The petition filed by the
Company in earlier year for arbitration proceedings
was adjudged against the Company on grounds of
limitation. The Company’s application u/s 34 of the
Arbitration and Conciliation Act before the Learned
Commercial Court, Jaipur has been accepted and
proceedings are going on. During the previous year
RSSC had filed Special Leave Petition (SLP) before
the Hon’ble Supreme Court against the orders of High
Court of Rajasthan in miscellaneous application which
was dismissed in Company's favour.
As per the legal opinion obtained by the Company,
in the opinion of the management the Company
has creditable case in its favour. Hence, the stated
outstanding amount have considered good and
recoverable and no provision there against is
considered by the management.
Our opinion is not modified in respect to above matter.
Other Matter
The comparative financial statements of the Company
for the year ended 31st March, 2024 included in these
standalone financial statements, are based on the
previously issued financial statements which were
audited by the predecessor auditor whose report for
the year ended 31st March, 2024 dated 20th May, 2024
expressed an unmodified opinion on those financial
statements.
Our opinion is not modified in respect of above 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
for the financial year ended 31st March 2025. 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.
In addition to the matter described in the “Emphasis of Matter” section we have determined the matters described
below to be the key audit matters to be communicated in our report:-
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Description of Key Audit Matters
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How our audit addressed the key audit matters
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Revenue From Operations
As disclosed in Note 1.3 (x) to the standalone financial
statements, revenue is measured based on transac¬
tion price, which is the consideration, after deduction
of estimated sales returns, discounts and indirect
taxes. Estimation of sales returns involves significant
judgement and estimates. The estimation is depen¬
dent on various internal and external factors. These
factors include, for example, the length of time when
a sale is made and when the sales return takes place,
some of which are beyond the control of the Company.
We identified the evaluation of accrual for sales re¬
turns and discounts as a key audit matter because:
The recognition and measurement of discounts in¬
volves significant judgement and estimates, particu¬
larly the expected level of claims of each of the cus¬
tomers. Assumption of level of customer wise claims
for discounts relates to estimating which of the Com¬
pany’s customers will ultimately be subject to a related
discount. Evaluating the assumption of expected re¬
turns based on experience and level of customer wise
claims for discounts underlying the estimate of accrual
involves challenging auditor judgment.
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Our audit procedures included following:
• Understanding the process followed by the
Company to determine the amount of accrual of
sales returns and discounts;
• Evaluating the accounting policies of the Company
regarding accounting for sales returns and
discounts and its compliance with the applicable
financial reporting framework;
• Performing substantive testing by checking
underlying inputs used for estimating sales return
accruals. Performing substantive testing by
selecting samples of discounts recorded during
the year as well as period end discounts and
matching the parameters used in the computation
with the relevant source documents;
• Comparing actual returns and discounts post
year-end to the estimated accruals to assess the
historical accuracy of management's estimates.
• Assessing the adequacy of the related disclosures
in the financial statements.
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Inventories
Various procedures are involved in validating inventory
quantities across locations. The provisions are made
as per policy which requires significant judgement.
Given the level of judgement involved and the potential
financial impact, we identified this area as a key audit
matter.
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Our audit approach was a combination of test of
internal controls and substantive procedures which
included the following:
• Assessed and tested the design and operating
effectiveness of key controls over inventory
management and valuation.
• Identified and assessed slow moving material
for valuation and the process of revalidation to
identify obsolescence.
• Item wise Inventory reconciliation considering
opening & closing stock, purchases, sales,
revalidation losses and provisions.
• Reviewed the policy of physical verification of
inventory by the management and its operational
implementation.
• Independent and signed confirmations from
Carrying & Forwarding agents, other third parties
for confirmation of inventory in their possession.
• Assessed the appropriateness and completeness
of the related disclosure.
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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 other information. The other information comprises
the information included in the Management
Discussion and Analysis, Board’s Report including
annexures to Board’s Report, Report on Corporate
Governance and Shareholder’s Information, but does
not include the standalone financials statements and
our auditor's report thereon.
Our opinion on the standalone financial statement
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the 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.
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 including
other comprehensive loss, changes in equity and cash
flows of the Company in accordance with the Indian
Accounting Standards (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 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.
Those Board of Directors are also 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 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 standalone
financial Statements 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 ability of the Company 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
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 of India in terms of sub-section (11) of
Section 143 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.
2. 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) 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, except for the
matters stated in paragraph 2(h)(vi) below on
reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014 (as
amended) ("the Rules").
c) The Balance Sheet, the Statement of Profit
and Loss including other comprehensive loss,
the Statement of Changes in Equity and the
Statement of Cash Flows 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 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 31st March,
2025 taken on record by the Board of
Directors, none of the directors is disqualified
as on 31st March, 2025 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 with respect to standalone
financial statements 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 maintenance of accounts
and other matters connected therewith,
reference is made to our remarks in paragraph
2(h)(vi) below on reporting under Rule 11(g)
of the Rules.
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 34 to the standalone
financial statements;
ii. The Company has made provision, as
required under the applicable law or
Indian accounting standards, for material
foreseeable losses, if any, on long-term
contracts including derivative contracts.
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 31st March, 2025.
iv. (a) The management has represented
that (as stated in note 56(e)(ii) of the
standalone financial statement), to
the best of its knowledge and belief,
no funds 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(s) or entity(ies), including
foreign entities (“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 (read with note no.
56(e)(i) of the standalone financial
statements for the funds advanced or
loaned invested in one of the subsidiary
company which is registered as NBFC
with RBI and whose business is to
provide and service loans and provide
ancillary services).
(b) The management has represented
that (as stated in note no. 56(e)(ii) of
the standalone financial statement),
no funds have been received by
the company from any person(s)
or entity(ies), including foreign
entities (“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 such audit procedures that
we have 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
(a) and (b) contain any material mis¬
statement.
v. The Company has not declared or
proposed any dividend during the year
and until the date of this report.
vi. Based on our examination, the Company
has used accounting software for
maintaining its books of account, which
includes a feature for recording an audit
trail (edit log). However, this feature did
not operate throughout the year at the
database level and the application level,
where not all relevant data tables were
enabled to track changes.
For the periods wherever audit trail (edit log) facility
was enabled and operated throughout the period for
the respective accounting software, 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.
3. 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.
For Lodha & Co LLP
Chartered Accountants
Firm’s Registration No. 301051E/E300284
(Shyamal Kumar)
Place: New Delhi Partner
Date: 16th May, 2025 Membership No. 509325
UDIN: 25509325BMINTJ5950
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