We have audited the accompanying standalone Ind AS financial statements of Crop Life Science
Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2025, the Statement
of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity
and the Statement of Cash Flows for the year ended on that date, and a summary of significant
accounting policies, notes forming part of Standalone Ind AS Financial Statements including a
summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us,
except for the effects of the matters described in the 'Basis for Opinion' section of our report, the
aforesaid Standalone Ind AS 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 accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31, 2025 and its profit, total comprehensive income, changes in equity and
its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Ind AS Financial Statement in accordance with the
Standards on Auditing (“SA” s) specified under section 143(10) of the Companies Act, 2013. Our
responsibilities under those Standards are further described in the Auditor's Responsibilities for
the Audit of Standalone Ind AS 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 together with the ethical requirements that are relevant to our audit of the
Standalone Ind AS Financial Statements under the provisions of the Companies Act, 2013 and the
Rules made 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 on the Standalone Ind AS
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 standalone Ind AS financial statements of the current year. These matters were
addressed in the context of our audit of the standalone Ind AS financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
For these matters below, our description of how our audit addressed the matter is provided in
that context.
We have determined the matters described below to be the key audit matters to be communicated
in our report. We have fulfilled the responsibilities described in the Auditor's responsibilities for
the audit of Standalone Ind AS financial statements section of our report, including in relation to
these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the Ind AS financial
statements. The results of our audit procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion on the accompanying Ind AS financial
statements.
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Key Audit Matters
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How our audit addressed the key audit
matter
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Revenue recognition (as described in Note 27 of Ind AS FS)
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The existence of revenue recognized during
the year and at the period end is relevant to
the performance of the Company.
We identified existence of revenue
recognized as a key audit matter because of
the quantum of revenue and the time and
audit effort involved in auditing the terms
of the customers contract and the revenue
recognized.
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Our audit procedures included:
• We as sess e d the compliance of the revenue
recognition accounting policies against the
requirements of Indian Accounting Standards
(“Ind AS”).
• We evaluated the design and operating
effectiveness of the relevant key financial
controls with respect to revenue recognition
on selected transactions
• Using statistical sampling, we tested the
terms of the revenue contracts against the
recognition of revenue based on the
underlying documentation and records and
evaluated accuracy and existence of the
revenue being recognized in the correct
accounting period.
• We tested the accuracy and existence of
revenue recognized at year end. On a sample
basis, we evaluated the revenue being
recognized in the correct accounting period.
• We assessed the adequacy of disclosures in
the standalone financial statements against
the requirements of Ind AS 115, Revenue
from contracts with customers.
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Rebates and sales returns (as described in Note 34 of Ind AS FS)
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The Company provides rebates to various
customers in terms of formal agreements.
The recognition and measurement of
rebates, including establishing an accrual
at year end, involves significant judgement
and estimates, particularly the expected
level of rebates of each of the customers.
The value of rebates and sales returns
together with the level of judgement
involved resulted in rebates and sales
returns being a key audit matter.
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Our Audit procedure/testing included:
• Understanding the process followed by the
Company for identifying and determining the
value of rebates and sales returns.
• We evaluated the design and tested the
operating effectiveness of the relevant key
financial controls with respect to recognition
and accrual of the rebate expense and sales
returns.
• We have examined the rebate and sales
return roll forward and tested the data used
by the Company in assessing the provision for
rebates and sales return for completeness
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and accuracy by agreeing the invoices for the
rebate and sales return to the formal
agreements.
• On a sample basis, we evaluated the basis of
rebate and sales return provision by agreeing
amounts recognized to the terms of
agreements and approvals.
• We assessed the assumptions and
judgements used in the sales return provision
by comparing against historical trends
returns and subsequent actual sales returns.
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Related Party Transactions (as describee
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in Note 44 of Ind AS FS)
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The company has undertaken transactions
with its related parties in the ordinary
course of business at arm's length. These
include lending loans to related parties;
sales and purchase to and from related
parties, etc. as disclosed in note 44 to the
Ind As financial statements.
We identified the accuracy and
completeness of the related party
transactions and its disclosures as set out
in respective notes to the Ind AS financial
statements as a key audit matter due to the
significance of transactions with related
parties and regulatory compliances
thereon, during the year ended 31st March,
2025.
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Our procedures/testing included the following:
• Obtained and read the company's policies,
processes and procedures in respect of
identifying related parties, obtaining
approval, recording and disclosures of
related party transactions;
• Read minutes of shareholders' meetings,
board meetings and minutes of meeting of
those charged with governance in connection
with company's assessment of related party
transactions being in the ordinary course of
business at arm's length;
• Agreed the related party information
disclosed in the Ind AS financial statements
with the underlying supporting documents,
on sample basis.
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Information Other than Standalone Ind AS Financial Statements and Auditor's Report
Thereon
The Company's 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 Board's Report, Business Responsibility Report,
Corporate Governance and Shareholder's Information, but does not include standalone Ind AS
financial statements and our auditor's report thereon.
Our opinion on the standalone Ind AS 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 standalone Ind AS 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 Ind AS 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 and Those Charged with Governance's Responsibility for the Ind AS
Financial Statements
The Company's Board of Directors are responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these Standalone Ind AS
Financial Statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, change in equity and cash flows of the Company in
accordance with the Indian Accounting Standards (Ind AS) and accounting principles generally
accepted in India, specified under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules,2015, as amended. 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 Ind AS
financial statement that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the Standalone Ind AS 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 charged with Governance are also responsible for overseeing the company's financial
reporting process.
Auditor's Responsibility for the Audit of Standalone Ind AS Financial Statement
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS 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 aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these standalone Ind AS 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 Ind AS 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 Companies Act, 2013, we are also responsible for expressing our opinion
on whether the company has internal financial controls with reference to Standalone Ind
AS 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 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
Standalone Ind AS 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 Ind AS
Financial Statements, including the disclosures, and whether the Standalone Ind AS
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Ind AS 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.
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 the paragraph 3 and 4 of the
order.
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 purpose 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.
c. The Balance Sheet, the Statement of Profit and Loss including the Other
Comprehensive Income, Statement of Changes in Equity and the Cash Flow
Statement dealt with by this Report are in agreement with the 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
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 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 current 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, 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 37 to the
Standalone Financial Statements;
II. The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
III. There were no amounts which were required to be transferred to the
investor Education and Protection Fund by the Company.
IV. (a) The Management has represented that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, 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;
(b) The management of the company has represented that, to the best of
its knowledge and belief, 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
(i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain
any material misstatement.
V. The Company has not declared or paid any dividend during the year.
VI. The reporting under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014 is applicable from 1st April 2023. Based on our examination
which included test checks, the Company has used accounting software
for maintaining its books of account, which have a feature of recording
audit trail (edit log) facility and the same has operated throughout the
year for all relevant transactions recorded in the respective software:
Further, for the periods where audit trail (edit log) facility was enabled
and operated throughout the year for the respective accounting
software, we did not come across any instance of the audit trail feature
being tampered with.
For Shah & Shah
Chartered Accountants
(ICAI Firm's Registration Number 131527W)
Per Tejas C. Shah
Partner Date: May 29, 2025
Membership No. 135639 Place: Ahmedabad
UDIN: 25135639BMISVN7250
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