We have audited the standalone financial statement Oi K,C,P Sugar and Industries Corporation
Limited ("the Company”), which comprise the standalone balance sheet as at March 31 2G25, the
standalone statement of profit and Joss [including other comprehensive income), the standalone
statement of changes in equity and standalone slalement of cash flows for the year Ihen ended, and
notes to the standalone financial statements, including a summary of significant accounting policies and
olher explanatory information thereinafter 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 sec 133 of the Act read with the Companies (Indian Accounting
Standards)Ru!es, 2015, as amertded.("lnd AS") and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31 2025, its loss and other comprehensive
income, its cash flows and me changes In equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with ihe Standards on
Auditing specified under section 143(10} of the Companies Act 2Q13 (SAs). Our responsibilities under
[hose Standards are further described in ihe Auditor's Responsibilities for Ihe 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 dCAIl together with the
independence requirements lhat are relevant to our audit of the standalone financial statements under
the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other
ethical responsibililies in accordance with these requirements and the iCAf ^ Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our audit
opinion on Ihe standalone financial statements
Key Audit Matters
Key audil matters are those matters that, in our professional judgment, were of most significance in our
audit of the standalone financial siatements of the current period These matters were addressed In the
context of our audit of the standalone financial statements as a whoEe, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
We have determined Ihe matters described be tow to be the key audit matters to be communicated In
our audit report:
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5.no
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Key Audit Matters
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How the matter was addressed in our audit
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1
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Determination of net realizable value of
inventory of sugar as at the year ended
March 31H 2025.
As on March 31, 2025 the Company has
inventory of sugar with the carrying value
Rs, 7 S13 15 lakhs The inventory of sugai
is valued at the lower of cost and net
realizable value We considered the
inventory valuation of sugar as a key audit
matter given the relative size of the
balance in the financial statement* end
significant judgment involved in the
consideration of factors such as monthly
quote, fluctuation in selling prices and the
related notifications of the Government in
determination of net realizable value.
Refer note 4 3 to the standalone financial
statements.
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Our audit procedures included the following
1 We understood and tested the design and
operating effectiveness of controls as established
by the management in determination of net
realizable value of inventory of sugar.
2 Assessing the appropriateness of Company's
accounting poiicy for valuation of finished goods
and compliance ol the policy with the requirements
or the prevailing accounting standards.
3 We considered venous factors including the actual
selling price prevailing around and subsequent to
the year-end, minimum selling price, monthly quota
and ether notifications of the Govern mem of India,
initiatives taken by the Government with respect to
sugar industries
4 Compared ths cosl of the finished goods with the
estimated net realizable value and checked if the
finished goods were recorded at net realizable
value where the cost was higher then the net
realizable value. For the purpose of determining
cosl. the Company has considered the prevailing
market conditions
Based on the above procedures performed, the
management's determination of the net realizable
value of the inventory of sugar as at the year end and
comparison wilh cast far valuation of inventory is
considered to be reasonable
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2,
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The Company s investments compose a
significant portion oi its total assets and are
classified and measured In accordance
with the requirements of fnd AS 109
a) Quuled Equity Instruments amounting
to Rs. 18,727.52 Lakhs measured at
Fair Value Through Profit or Loss
(FVTPL)
b} Mutual Funds amounting to
Rs 4,766.99 Lakhs measured at
FVTPL
c) Unquoted Equity instruments in
subsidiary companies amounting to
Rs285.0G Lakhs measured at
Amortized Cosl
d) Unquoted Equity Investments in other
companies amounting to Rs. 113.99
Lakhs measured at Amortized Cost
Refer note 5 and 9 to the standalone
financial statements
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Our audit procedures included the following
1 Understanding the process, evaluating the design
and testing the operating effectiveness of controls
over the classification and valuation of
investments.
2 Assessing the appropriateness of the Company's
accounting polities with respect to investment
classification in accordance with Ind AS 109.
3. For investments measured at fair value:
Obtaining external confirmations for existence and
verified the fair value of quoted equity using
markei prices as of the balance sheet date ^nd
mutual fund investments using NAV as of the
balance shael date.
4 Evaluated the basis for measuring unquoted
equity insLrumenls at amortized cosl Verified
whether such classification complies with the
business model and cash flow characteristics lost
under Ind AS 109
5 Obtain and review the latest audited financial
statements of Investee companies, where
available, and identify key financial attributes and
potential indicators of impairment for Unquoted
Equity 1 n vest men is.
6. Reviewed the adequacy and completeness of
disclosures in the financial statements related to:
* Investments measured at fair value
* Invesiments measured at amortized cosl
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The Company's Management and Board of Directors are responsible for the other information. The
other information comprises the information included In the Management Discussion and Analysis,
Board s Report including Annexures to Boards Report, Corporate Governance and Shareholders
Information, but does not include the slandalone financial statements and our auditor's report theraon
Our opinion on the standalone financial statements does not cover the olher information and we do not
express any form of assurance conclusion thereon.
In connection wjth our audit of the standalone financial statements, our responsibility is to read the
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
When we read the annuat report, if we conclude lhat there is a material misstatement therein, we are
required to communicate to those charged with governance and take necessary actions as required
under applicable laws and regulations.
Management's and Board of Directors Responsibilities for Standalone Financial Statements
The Company’s Management and Board of Directors are responsible for Ihe mailers slated in Section
134(5) of the Companies Ad, 2013 ("the Ad") with respect to the preparation of Ihese standalone
financial statements lhat give a (rue and fair view of the financial position, financial performance
including other comprehensive income i toss, changes in equity and cash ffows of the Company in
accordance with accounting principles generally accepted In India, including the Indian Accounting
Standards (Ind AS^ specified under section 133 of the Act. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions ol Ihe 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 Lhat are reasonable
and prudent; and Ihe design, implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and completeness of ihe accounting records,
relevant to the preparation and presentation of ihe standalone financial statements that give a irue arid
fair view and are free from material misstatement, whether due to fraud or error.
In preparing ihe standalone financial statements. the Management and Board of Directors are
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 Ihe 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 Standalone 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 repen lhat
includes our opinion Reasonable assurance is a high revel of assurance, hut is not a guarantee that an
audit conducted in accordance wilh SAs will always delect a material misstatement when il exists.
Miss I elements can arise from fraud or error and are considered material it, individually or in Ihe
aggregate, they could reasonably he expected to influence the economic decisions of users taken on
the basis of these standalone financial statements.
As pari of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit We also
Identify and assess ihe risks of material misstatement of the financial statements, whelhar 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 ol noi
detecting a material misstatemenl resulting from fraud is higher than far one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the oveiride
of internal control.
* Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures Ibai are appropriate in the circumstances. Under section 143(3)fi) 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.
* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management and Board of Directors,
* Conclude on ;he appropriateness of the Management and Board of Directors 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 It we conclude that & material uncertainty exisls, we arc
required lo draw attention in our auditor's report lo the rotated disclosures in the standalone
financial statements or. if such disclosures are inadequate, to modify our opinion. Our conclusions
ere based on the audit evidence obtained up to the date of our auditor's report. However, future
evenls 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 staiemenls represent the
underlying transachons and events in a manner lhat achieves fair presentation
Materiality is the magnitude of misstatements in lhe financial statements that, rndividually or in
aggregate, makes it provable 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 (!) planning the scope of nur audit work and in evalualing the results of our work and (it) to
evaluate the effect of any identified misstatements in trie 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 thal we have complied with relevant
ethical requirements regarding independence, and to communrcate with Ihem allretelionships and other
mailers that may reasonably be Ihought lo 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 m the audit of the standalone financial statements of the currenl 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 lhar a matter should not be communicated in our repori because Hie 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
l As required by the Compai.ies (Auditor's report! Order, 2020 f'lhe Order") issued by tite Central
Government of India in terms of subjection (1 I) of section M3 oi the Act, we give in the Annexure
A, a siatemen! on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act. we report that
is) W© have sought and obtained all ih© information and explanations which lo the besl of our
knowledge and belief were necessary tor the purpose of our audit.
(b) fn our opmlon, proper books of accounts as required by tew have been kept by the Company so
far as il appears from our examination of (hose books
(C) The standalone balance sheet, standalone statement of profit and loss, {including the other
comprehensive incomeJ, the standalone statement of changes in equity and the standalone
statement of cash flows dealt with by Ihis Report are in agreement with the books of account
id) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting
Standards specified under section 133 of the Act.
(e) On the basis of written representations received from the directors as on March 31, 2025, and
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 1o ihe adequacy of the internal financial controls over financial reporting of rhe
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure 6" to this report.
(g) With respect to the matter to be included in the Auditor's Report in accordance with the
requirements of section 197( 1G) of the Act, as amended:
fn our opinion and to the best of our information and according to the explanations given to us,
the managerial remuneration of INR 60.53 lakhs paid by the Company to its Managing Director
and the Chairman during rhe year represents the minimum remuneralion for the fifth consecutive
financial year of their tenure. Schedule V of the Act restricts the payment of minimum
remuneration to a period of three years In ihe absence of adequate profils. I'he above
remuneration paid is compliant with section 197 and Schedule V of the Act, subject to approval
by the shareholders in its general meeting. Refer note 54 to the standalone financial statements.
(h) With respect to Ihe other matters to be included in the Auditor's Reporl in accordance wilh Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the bosl of our
information and according lo the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position. Refer
note 45b to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which
I he re were any material foreseeable losses
iiir I’here were no delay In transferring the amounls which were required to be transferred to the
Investor Education and Protection Fund by Ihe Company
iv. (a) The management has represented, lo the best of its knowledge and belief, as disclosed In
note 63 to the standalone financial statements. Ibai no funds (which are material either
individually or in 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 ui entities identified in any manner
whatsoever by or on behalf of Ihe Company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of Ihe Ultimate Beneficiaries -
(h) The management has represented, to the best of its knowledge and belief, as disclosed in
note 69 to ihe standalone financial statements, that no funds [wrhich are material either
individually or in aggregate) have been received by the Company from any person or entity,
including foreign entity (“Funding Parlies"), with the understanding, whelher 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 hy or on behalf of the Funding
Party ("Ultimate Beneficiaries"j 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 pi) of Rule 11(e) as provided under (a) ano (b)
above, contain any material missiatemenh
v (a) The final dividend proposed in the previous year, declared and paid by the Company during
the year is in accordance, with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed final dividend for the year which is
subject to the approval of the members at Ihe ensuing Annual General Meeting The amount
of dividend proposed is in accordance with section 123 of the Act. as applicable
iv> Based on our examination which included res! checks, Ihe company has used an
accounting software for maintaining its books of account which has a feature of recording
audit trail (edit Jog) facility and the same has operated throughout Ihe year for aJI relevant
transactions recorded In the software. Further, during the course of our audit we did not
come across any instance of audit trail feature being tampered with Additionally, iiie audit
trail has been preserved by ihe company as per the stalutory requirements for record
retention Our examination of the audit trail was in the context of an audit of financial
slaremenss carried out in accordance with the Standard of Auditing and only to the extent
required by Rule 11(g) of ihe Companies {Audit and Auditors) Rules. 2Q14. We have not
earned out any audit or examination of the audit trail beyond ihe mailers required by the
aforesaid Rule 11(g) nor have we carried out any standalone audit or examination of the
audit trail
For B. Purushottam & Co.
Chartered Accountants
Firm's Registration No. 0028Q35
B Mahidhar Krrishna
Partner
Membership No. 243632
UDIN: 25243 632BMKYGY1550
Place: Chennai
Date: 26/05/2025
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