We have audited the accompanying Standalone Ind AS financial statements of SAKUMA EXPORTS LIMITED, (“the Company”),
which comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss (Including Other Comprehensive Income),
the Cash Flow Statement and the Statement of changes in Equity for the year then ended and notes to the 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, the aforesaid standalone Ind AS
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 accounting principles generally accepted in India, of the state of affairs of the
Company as at 31st March, 2025, its Profit including other comprehensive income its cash flows and the changes in equity for the
year ended on that date.
Basis of Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as 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 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 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 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 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 for the financial year ended 31st March, 2025. 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 each matter 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 the 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 standalone 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 standalone Ind AS financial statements.
|
Key Audit Matters
|
How our audit addressed the key audit matter
|
|
1. Assessment of impairment of investment in subsidiaries,
(Refer Note 5 of the Standalone Ind AS Balance Sheet)
|
|
|
As at 31st March, 2025 the Company balance sheet includes
investment in subsidiaries & associates of Rs. 11,116.71 lakhs,
In accordance with Indian Accounting Standards (Ind-AS), the
management has allocated these balances to their respective cash
generating units (CGU) and tested these for impairment using
a discounted cash flow model. The management compares the
carrying value of these assets with their respective recoverable
amount. A deficit between the recoverable amount and CGU’s net
assets would result in impairment. The inputs to the impairment
testing model which have most significant impact on the model
includes:
a) Sales growth rate;
b) Operating margin;
c) Working capital requirements;
d) Capital expenditure; and
e) Discount rate applied to the projected cash flows.
The impairment test model includes sensitivity testing of key
assumptions.
The annual impairment testing is considered a significant
accounting judgment and estimate and a key audit matter because
the assumptions on which the tests are based are highly judgmental
and are affected by future market and economic conditions which
are inherently uncertain, and because of the materiality of the
balances to the financial statements as a whole.
|
As a part of our audit we have, carried out the following
procedures:
a) We assessed the Company’s methodology applied in
determining the CGUs to which these assets are allocated.
b) We assessed the assumptions around the key drivers of the
cash flow forecasts including discount rates, expected growth
rates and terminal growth rates used.
c) We also assessed the recoverable value by performing
sensitivity testing of key assumptions used.
d) We tested the arithmetical accuracy of the models
e) Performed analysis of the disclosures related to the
impairment tests and their compliance with Indian
Accounting Standard (Ind-AS).
|
|
2. Revenue Recognition (Refer to the accounting policies in
Note 2 to the financial statements)
|
|
|
Revenue from the sale of goods is recognised upon the transfer
of control of the goods to the customer. The Company uses a
variety of shipment terms across its operating markets, and this
has an impact on the timing of revenue recognition. There is a
risk that revenue could be recognised in the incorrect period for
sales transactions occurring on and around the year-end, therefore
revenue recognition has been identified as a key audit matter.
|
a) Our audit procedures included reading the Company's
revenue recognition accounting policies to assess compliance
with Ind AS 115 “Revenue from contracts with customers”.
b) We performed test of controls of management’s process of
recognizing the revenue from sales of goods with regard to
the timing of the revenue recognition as per the sales terms
with the customers.
c) We performed test of details of the sales transactions testing
based on a representative sampling of the sales orders to test
that the related revenues and trade receivables are recorded
taking into consideration the terms and conditions of the
sale orders, including the shipping terms.
d) We also performed audit procedures relating to revenue
recognition by agreeing deliveries occurring around the year
end to supporting documentation to establish that sales and
corresponding trade receivables are properly recorded in the
correct period.
e) Assessing and testing the adequacy of presentation and
disclosures.
|
Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in the Directors report but does not include the 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 such other information is materially inconsistent with the 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 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity 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. 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 the 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 statements 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.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements
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 the
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 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 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 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.
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 Ind AS financial statements for the financial year ended 31st March 2025 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
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 Companies Act, 2013, we give in the Annexure - A, a statement on the matters specified
in paragraphs 3 and 4 of the Order to the extent applicable.
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 appears from our
examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including the statement of Other Comprehensive Income, Cash Flow Statement
and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian 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 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 over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate report in Annexure - B.
(g) In our opinion, the managerial remuneration for the year ended 31st March 2025 has been paid / provided by the Company to
its directors in accordance with the provisions of section 197 read with Schedule V to 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:
a. The company has disclosed the impact of pending litigations on its financial position in its financial statement - Refer Note
No. 37.
b. The Company has made provision, as required under the applicable law or Ind AS, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
c. There is no amount to be transferred to the Investor Education Undertaking Protection Fund by the Company.
d. (i) 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;
(ii) 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;
(iii) 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 (a) and (b) above, contain any material misstatement.
e. (i) 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.
(ii) The Company has not declared and paid any other Dividend during the year ended on 31st March 2025 as per section
123 of the Company’s Act, 2013. Hence, we have nothing to report in this regard.
f. Based on our examination which included test checks, the company has used an accounting software for maintaining its
books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the
year for all 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, the audit trail has been preserved by the company as
per the statutory requirements for record retention.
For M. L. Sharma & Co,
Firm Reg. No. 109963W
Chartered Accountants
(Jinendra D. Jain)
Partner
Place of Signature: Mumbai Membership No. 140827
Date: 30th May 2025 UDIN: 25140827BMOYHS1988
| 