We have audited the accompanying Financial Statements of KKV Agro Powers
Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2025, the
Statement of Profit and Loss and the Statement of Cash Flows for the year that ended,
and notes to the Financial Statements including a summary of significant accounting
policies and other explanatory information (hereinafter referred to as "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 informati6n required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2025, including the Accounting
Standards prescribed under section 133 of the Act read with Rule 7 of the Companies
(Accounting) Rules, 2014, its profit and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with 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 Companies Act, 2013 and Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
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 as a
who forming our opinion thereon, and we do not provide a separate opinion on these
matters.
We have determined that there are no Key Audit Matters to communicate in our
report.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Management and the Board of Directors are responsible for the
preparation of the other information. The other information comprises the
information included in the Annual report, for example Director's Report and
Management analysis including annexures thereon but does not include the Financial
Statements and our Auditor's Report thereon. The other information is expected to be
made available to us after the date of our Audit report.
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.
When we read the other information, as stated above, which is expected to be received
after the date of our audit report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance
and take necessary actions, as applicable under applicable laws and regulations.
The Company's Management and the Board of Directors are responsible for the
matters stated in section 134(5) of the Act with respect to the preparation and
presentation of these Financial Statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Accounting
Standards specified under section 133 of the Act, read with relevant rules issued
thereunder. 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 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, 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 Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Management and Board of Directors are also 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 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 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 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 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 the management and the
Board of Directors.
• Conclude on the appropriateness of the 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) evaluating 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 diverse 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 section 143(11) of the Act, we give
in "Annexure -1", a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
(2) (A) 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;
c) The Balance Sheet, the Statement of Profit and Loss, and the Statement of Cash
Flows dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid Financial Statements comply with the Accounting
Standards specified under section 133 of the Act read with relevant rules
issued thereunder;
e) On the basis of the 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 to the adequacy of the internal financial controls with reference
to Financial Statements of the Company and the operating effectiveness of
such controls, we give our separate report in "Annexure 2".
(B) 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, 2021, in our
opinion and to the best of our information and according to the explanations given to
us:
(i) The Company does not have any pending litigations as on March, 31, 2025
which would impact its financial position adversely;
(ii) The Company has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term
contracts including derivative contracts.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company during the year.
(iv) a) The Management has represented that, to the best of its knowledge and
belief, as disclosed in the note no. 2.44(ii) to the Financial Statements, 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 persons or
entities, including foreign entities, Intermediaries with the understanding,
whether recorded in writing or otherwise, that the intermediary shall :
• Directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the
Company or
• Provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
c) Based on the audit procedures as 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 iv (a) and (b) contain any material
mis-statement.
(v) The final dividend proposed with respect to previous year, declared and paid
by the company during the year is in compliance with section 123 of the
Companies Act 2013 as applicable.
As stated in note 2.35 to the Financial Statements, the Board of Directors of the
Company have proposed final dividend for the year which is subject to the
approval of the members at the ensuing Annual General Meeting. The amount
of dividend proposed is in accordance with section 123 of the Act, as applicable.
(vi) Based on our examination, which included test checks, the company has used
accounting software's for maintaining its books of account for the financial year
ended March 31, 2025, which has a feature of recording audit trail facility and
the same has operated throughout the year for all relevant transactions
recorded in the software's. Further, the during course of audit we did not come
across any instance of the audit trail feature being tampered with.
(C) 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/provided by the Company to its directors during
the year is in accordance with the provisions of section 197 of the Act. The
remuneration paid to any director is not in excess of the limit laid down under Section
197 of the Companies Act.
For B. Thiagarajan & Co.,
ICAI Firm Registration No.004371S
K. Balamanikandan
Partner
Membership No.213537
UDIN.:25123537BMKQSY6180
Place: Chennai
Date: 30th May 2025
|