We have audited the accompanying financial statements of INDIAN SUCROSE LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2025, the Statement of Profit and Loss and the Statement of Changes in Equity and the 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 financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, 2025, the profit,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the 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 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 financial statements under the provisions of the Act and the Rules made
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 financial statements.
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, 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 2.5 to the financial
statements.
The Company principally generates
revenue from sale of Sugar and sale of its
By-product.
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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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.
• 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.
• 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 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
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. 6
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Our audit procedures, amongst others, included the following:
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to the financial statements.
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• Assessing the appropriateness of Company's accounting policy for valuation of stock and
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We identified valuation of inventories as a
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compliance of the policy with the requirements of the prevailing accounting standards;
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key audit matter as it involves significant
management judgments in determining
the carrying value of stock.
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• Obtaining an understanding of internal controls over valuation of stock and testing, on a
sample basis, their design, implementation and operating effectiveness;
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• Obtaining an understanding and assessing reasonableness of the management's
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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
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• 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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Information Other than the 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 Report, Corporate
Governance and Shareholder's Information, but does not include the financial statements and our auditor's report thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the 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 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 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
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the 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 Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements 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 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 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 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 financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation
Materiality is the magnitude of misstatements in the 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 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 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 the 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 Balance Sheet, the Statement of Profit and Loss, 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 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, 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) 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 financial statements. (Refer Note no 33to 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 (2)(h)(iv) (a)
and (b) above, contain any material misstatement.
v. The Board of Directors of the Company have not paid any Interim dividend nor proposed any dividend.
vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of
accounts for the financial year ended March 31, 2025 which did not have the audit trail feature (edit log) enabled throughout the year.
As informed us the Audit trail feature is duly implemented as on the date of signing the report.
For SSVS& Co.,
Chartered Accountants,
Firm Registration No. 021648C
Place : Noida (Vipul Sharma) F.C.A
Dated : 30th May, 2025 Partner
M.No. 74437
UDIN: 25074437BMKWPD6675
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