To the Members of Dodla Dairy Limited Report on the Audit of the Standalone Financial Statements Opinion
(“the Company”), which comprise the Balance sheet as at March 31, 2024, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the
Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and
notes to the standalone financial statements, including a summary of material 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 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 March 31, 2024, its profit including other comprehensive loss, its cash flows and the 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 the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the ‘Auditors Responsibilities for the 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 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 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 financial statements for the financial year
ended March 31, 2024. These matters were addressed in the context of our audit of the
standalone 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
matter described below to be the key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditors responsibilities for the
audit of the standalone financial statements section of our report, including in relation
to this matter. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the standalone
financial statements. The results of our audit procedures, including the procedures
performed to address the matter below, provide the basis for our audit opinion on the
accompanying standalone financial statements.
|
Key audit matters |
How our audit addressed the key audit matter |
|
Impairment of Goodwill recognised (as described in note 3(d) |
|
| The carrying value of Goodwill aggregates to Rs. 433.37 million as at March 31, 2024. Goodwill is annually tested for impairment. The Company performs such assessment of Goodwill for each cash generating unit (CGU) to identify any indicators of impairment. |
Our audit procedures included and were not limited to the following: |
| The recoverable amount of the CGUs which is based on the higher of the value in use or fair value less costs to sell, has been determined using discounted cash flow models. These models use several key assumptions, including estimates of future sales volumes, prices, operational costs, capex, terminal value growth rates and the discount rate. |
Assessed the appropriateness of accounting policy for impairment testing of goodwill with the relevant accounting standards. |
| Considering the inherent uncertainty, complexity and judgment involved and the significance of the value of the asset, impairment assessment of Goodwill has been considered as a key audit matter. |
Evaluated the design and implementation of key internal financial controls of the Company with respect to the impairment assessment of Goodwill and tested operating effectiveness of such controls. |
| Gained an understanding of and evaluated the methodology used by management to prepare its cash flow forecasts and the appropriateness of the assumptions applied. In making this assessment, we also evaluated the competence, professional qualification and objectivity of Companys personnel involved in the process. |
|
| Tested budgeting procedures upon which the cash flow forecasts were based. We have also compared the actual past performances with the budgeted figures. |
|
| Involved our internal subject matter specialists to evaluate the appropriateness of key assumptions and methodology used by the Company, in particular, those relating to the forecast of the discount rate and terminal growth rate etc. |
|
| Performed sensitivity analysis of the key assumptions (growth rates, sales forecast, etc.) used to determine which changes to assumptions would change the outcome of impairment assessment; |
|
| Tested the arithmetical accuracy of the models. | |
| Assessed the adequacy of the disclosures in the standalone financial statements. |
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual report, but does not include
the standalone financial statements and our auditors report thereon. Our opinion on the
standalone 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
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.
Responsibilities of Management and Those Charged With Governance for the Standalone
Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone 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 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 financial statements, management is responsible for
assessing the Companys 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 Board of Directors are also responsible for
overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors 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 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 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 management.
Conclude on the appropriateness of managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors 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 auditors
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 financial
statements, including the disclosures, and whether the standalone 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 financial statements for the financial year ended March 31,
2024 and are therefore the key audit matters. We describe these matters in our auditors
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 (Auditors 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 1” a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report, to the extent applicable, 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 except for the matters
stated in the paragraph 2 (i) (vi) below on reporting under Rule 11(g);
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the 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 financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March
31, 2024 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2024 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
these standalone financial statements and the operating effectiveness of such controls,
refer to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2024 has
been paid by the Company to its directors in accordance with the provisions of section 197
read with Schedule V to the Act;
(h) The modification relating to the maintenance of accounts and other matters
connected therewith are as stated in the paragraph 2 (b) above on reporting under Section
143(3)(b) and paragraph 2 (i) (vi) below on reporting under Rule 11(g).(i) With respect to
the other matters to be included in the Auditors 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 standalone financial statements – Refer note 40 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, as
disclosed in the note 52 to the standalone financial statements, 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 persons or entities, 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 has represented that, to the best of its knowledge and belief, as
disclosed in the note 52 to the standalone financial statements, no funds have been
received by the Company from any persons or entities, 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; and
c) Based on such audit procedures performed 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 subclause (a) and (b) contain any material
misstatement.
v. No dividend has been declared or paid during the year by the Company.
vi. Based on our examination which included test checks, the Company has used
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 except that, audit trail feature is not
enabled for direct changes at database level when using certain access rights, as
described in note 50 to the standalone financial statements. Further, during the course of
our audit we did not come across any instance of audit trail feature being tampered with
in respect of the accounting software where audit trail has been enabled.
|
For S.R. Batliboi & Associates LLP |
Sd/- |
|
Chartered Accountants |
Per Mitesh K Parikh |
| ICAI Firm Registration Number: 101049W/E300004 |
Partner |
| Place: Hyderabad | Membership Number: 225333 |
| Date: May 18, 2024 | UDIN: 24225333BKGRMD1179 |
Annexure 1 referred to in paragraph under the heading “Report on other legal and
regulatory requirements” of our report of even date
Re: Dodla Dairy Limited (“the Company”)
In terms of the information and explanations sought by us and given by the Company and
the books of account and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state that:
(i) a) A. The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
B. The Company has maintained proper records showing full particulars of intangibles
assets.
b) Property, Plant and Equipment have been physically verified by the management during
the year and no material discrepancies were identified on such verification.
c) The title deeds of all the immovable properties (other than properties where the
Company is the lessee and the lease agreements are duly executed in favour of the lessee)
are held in the name of the Company.
d) The Company has not revalued its Property, Plant and Equipment (including Right of
use assets) or intangible assets during the year ended March 31, 2024.
e) There are no proceedings initiated or are pending against the Company for holding
any benami property under the Prohibition of Benami Property Transactions Act, 1988 and
rules made thereunder.
(ii) a) The management has conducted physical verification of inventory (including
inventory lying with third parties) except goods-in-transit at reasonable intervals during
the year. In our opinion the coverage and the procedure of such verification by the
management is appropriate. No discrepancies were noticed on verification between the
physical stock and the book records that were more than 10% in aggregate for each class of
inventory.
b) As disclosed in note 45 to the financial statements, the Company has been sanctioned
working capital limits in excess of Rs. five crores in aggregate from banks and financial
institutions during the year on the basis of security of current assets of the Company.
Based on the records examined by us in the normal course of audit of the financial
statements, the quarterly returns/statements filed by the Company with such banks and
financial institutions are in agreement with the books of accounts of the Company.
(iii) a) During the year, the Company has provided loans and stood guarantee to
subsidiary as given below:
|
Particulars |
Guarantee | Loan |
| Aggregate amount granted during the year | ||
| – Orgafeed Private Limited | Nil | Rs. 56.00 million |
| Balance outstanding as at balance sheet date in respect of above cases | ||
| – Orgafeed Private Limited | Rs. 300 million | Rs. 310.50 million |
b) During the year, the terms and conditions of the grant of loans to subsidiary by the
Company are not prejudicial to the Companys interest. During the year, the Company has
not made investments, provided guarantees, provided security and granted advances in the
nature of loans to companies, firms, Limited Liability Partnerships or any other parties.
c) The Company has granted loans during the year to subsidiary where the schedule of
repayment of principal and payment of interest has been stipulated and the repayment or
receipts are regular. The Company has not granted advances in the nature of loans to
companies, firms, Limited Liability Partnerships or any other parties.
d) There are no amounts of loans and advances in the nature of loans granted to
companies, firms, limited liability partnerships or any other parties which are overdue
for more than ninety days.
e) There were no loans or advance in the nature of loan granted to companies, firms,
Limited Liability Partnerships or any other parties which was fallen due during the year,
that have been renewed or extended or fresh loans granted to settle the over dues of
existing loans given to the same parties.
f) The Company has not granted any loans or advances in the nature of loans, either
repayable on demand or without specifying any terms or period of repayment to companies,
firms, Limited Liability Partnerships or any other parties. Accordingly, the requirement
to report on clause 3(iii)(f) of the Order is not applicable to the Company.
(iv) There are no loans, investments, guarantees, and security in respect of which
provisions of sections 185 of the Companies Act, 2013 are applicable and accordingly, the
requirement to report on clause 3(iv) of the Order is not applicable to the Company.
Further, according to the information and explanations given to us, loans, investments,
guarantees and security in respect of which provisions of sections 186 of the Companies
Act, 2013 are applicable have been complied with by the Company.
(v) The Company has neither accepted any deposits from the public nor accepted any
amounts which are deemed to be deposits within the meaning of sections 73 to 76 of the
Companies Act and the rules made thereunder, to the extent applicable. Accordingly, the
requirement to report on clause 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant
to the rules made by the Central Government for the maintenance of cost records under
section 148(1) of the Companies Act, 2013, related to the manufacture of milk powder, and
are of the opinion that prima facie, the specified accounts and records have been made and
maintained. We have not, however, made a detailed examination of the same.
(vii) a) The Company is regular in depositing with appropriate authorities undisputed
statutory dues including goods and services tax, provident fund, employees state
insurance, income-tax, duty of customs, duty of excise, value added tax, cess and other
statutory dues applicable to it. According to the information and explanations given to us
and based on audit procedures performed by us, no undisputed amounts payable in respect of
these statutory dues were outstanding, at the year end, for a period of more than six
months from the date they became payable.
b) The dues of goods and services tax, provident fund, employees state insurance,
income-tax, duty of custom, value added tax, cess, and other statutory dues have not been
deposited on account of any dispute, are as follows:
(Rs. in mn)
|
Name of the statute |
Nature of dues | Amount | Amount paid under protest | Period to which the amount relates | Forum where dispute is pending |
| Income tax Act, 1961 | Tax and interest thereon | 1.68 | 0.69 | AY 08-09 | Deputy Commissioner of Income-tax |
| Income tax Act, 1961 | Tax and interest thereon | 6.42 | 6.42 | AY 11-12 | Commissioner of Income-tax (Appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 32.38 | 32.38 | AY 12-13 | Commissioner of Income Tax (appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 25.36 | 25.36 | AY 13-14 | Commissioner of Income Tax (appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 9.25 | 9.25 | AY 14-15 | Commissioner of Income Tax (appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 30.99 | – | AY 15-16 | Supreme Court |
| Income tax Act, 1961 | Tax and interest thereon | 60.75 | – | AY 16-17 | Commissioner of Income Tax (appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 54.02 | – | AY 17-18 | Commissioner of Income Tax (appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 71.33 | – | AY 18-19 | Income Tax Appellate Tribunal |
|
Name of the statute |
Nature of dues | Amount | Amount paid under protest | Period to which the amount relates | Forum where dispute is pending |
| Income tax Act, 1961 | Tax and interest thereon | 1.51 | – | AY 20-21 | Commissioner of Income Tax (appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 135.49 | – | AY 21-22 | Dispute Resolution Panel |
| Income tax Act, 1961 | Tax and interest thereon | 0.57 | – | AY 22-23 | Commissioner of Income Tax (appeals) |
| Income tax Act, 1961 | Tax and interest thereon | 10.91 | – | AY 23-24 | Assessing officer |
| Customs Act, 1962 | Custom duty and penalty thereon | 3.79 | 0.10 | Financial year 2015-16 | High Court of Karnataka |
| Goods and Services Tax Act, 2017 | Goods and Services Tax | 7.30 | 7.30 | July 2017 to March 2020 | Additional Commissioner (Appeals), Karnataka |
| Goods and Services Tax Act, 2017 | Goods and Services Tax | 7.50 | 7.50 | April 2020 to October 2021 | Additional Commissioner (Appeals), Karnataka |
| Goods and Services Tax Act, 2017 | Goods and Services Tax | 14.26 | 11.64 | July 2017 to March 2020 | Additional Commissioner (Appeals), Andhra Pradesh |
| Goods and Services Tax Act, 2017 | Goods and Services Tax | 30.86 | 30.86 | July 2017 to October 2021 | Commissioner of Central tax, Appeals, Telangana |
| TS Agricultural (Produce and Livestock) Act, 1966 | Agriculture Cess | 1.44 | – | April 2018 to March 2021 | Regional Vigilence Officer, Agri Market Committee, Choutuppal |
(viii) The Company has not surrendered or disclosed any transaction, previously
unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961
as income during the year. Accordingly, the requirement to report on clause 3(viii) of the
Order is not applicable to the Company.
(ix) a) The Company did not have any outstanding loans or borrowings or interest
thereon due to any lender during the year. Accordingly, the requirement to report on
clause ix(a) of the Order is not applicable to the Company.
b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
c) The Company did not have any term loans outstanding during the year hence, the
requirement to report on clause 3(ix)(c) of the Order is not applicable to the Company.
d) On an overall examination of the financial statements of the Company, no funds
raised on short-term basis have been used for long-term purposes by the Company.
e) On an overall examination of the financial statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries, associates or joint ventures.
f) The Company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies. Hence, the requirement to report
on clause (ix)(f) of the Order is not applicable to the Company.
(x) a) The Company has not raised any money during the year by way of initial public
offer / further public offer (including debt instruments) hence, the requirement to report
on clause 3(x)(a) of the Order is not applicable to the Company.
b) The Company has not made any preferential allotment or private placement of shares
/fully or partially or optionally convertible debentures during the year under audit and
hence, the requirement to report on clause 3(x)(b) of the Order is not applicable to the
Company.
(xi) a) No fraud/ material fraud by the Company or no fraud / material fraud on the
Company has been noticed or reported during the year. b) During the year, no report under
sub-section (12) of section 143 of the Companies Act, 2013 has been filed by us in Form
ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government.
c) As represented to us by the management, there are no whistle blower complaints
received by the Company during the year.
(xii) a) The Company is not a nidhi company as per the provisions of the Companies Act,
2013. Therefore, the requirement to report on clause 3(xii)(a) of the Order is not
applicable to the Company.
b) The Company is not a nidhi company as per the provisions of the Companies Act, 2013.
Therefore, the requirement to report on clause 3(xii)(b) of the Order is not applicable to
the Company.
c) The Company is not a nidhi company as per the provisions of the Companies Act, 2013.
Therefore, the requirement to report on clause 3(xii)(c) of the Order is not applicable to
the Company.
(xiii) Transactions with the related parties are in compliance with sections 177 and
188 of Companies Act, 2013 where applicable and the details have been disclosed in the
notes to the financial statements, as required by the applicable accounting standards.
(xiv) a) The Company has an internal audit system commensurate with the size and nature
of its business.
b) The internal audit reports of the Company issued till the date of the audit report,
for the period under audit have been considered by us.
(xv) The Company has not entered into any non-cash transactions with its directors or
persons connected with its directors and hence requirement to report on clause 3(xv) of
the Order is not applicable to the Company.
(xvi) a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of
1934) are not applicable to the Company. Accordingly, the requirement to report on clause
(xvi)(a) of the Order is not applicable to the Company.
b) The Company is not engaged in any Non-Banking Financial or Housing Finance
activities. Accordingly, the requirement to report on clause 3(xvi)(b) of the Order is not
applicable to the Company.
c) The Company is not a Core Investment Company as defined in the regulations made by
Reserve Bank of India. Accordingly, the requirement to report on clause 3(xvi) of the
Order is not applicable to the Company.
d) There is no Core Investment Company as a part of the Group, hence, the requirement
to report on clause 3(xvi)(d) of the Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current year and in the
immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year and
accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the
Company.
(xix) On the basis of the financial ratios disclosed in note 51 to the financial
statements, ageing and expected dates of realization of financial assets and payment of
financial liabilities, other information accompanying the financial statements, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
Company is not capable of meeting its liabilities existing at the date of balance sheet as
and when they fall due within a period of one year from the balance sheet date. We,
however, state that this is not an assurance as to the future viability of the Company. We
further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due
within a period of one year from the balance sheet date, will get discharged by the
Company as and when they fall due.
(xx) a) In respect of other than ongoing projects, there are no unspent amounts that
are required to be transferred to a fund specified in Schedule VII of the Companies Act
(the Act), in compliance with second proviso to sub section 5 of section 135 of the Act.
This matter has been disclosed in note 36 to the financial statements.
b) All amounts that are unspent under section (5) of section 135 of Companies Act,
pursuant to any ongoing project, has been transferred to special account in compliance of
with provisions of sub section (6) of section 135 of the said Act. This matter has been
disclosed in note 36 to the financial statements.
|
For S.R. Batliboi & Associates LLP |
Sd/- |
|
Chartered Accountants |
Per Mitesh K Parikh |
| ICAI Firm Registration Number: 101049W/E300004 |
Partner |
| Place: Hyderabad | Membership Number: 225333 |
| Date: May 18, 2024 | UDIN: 24225333BKGRMD1179 |
Annexure 2 to the Independent Auditors report of even date on the standalone financial
statements of Dodla Dairy Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls with reference to standalone financial
statements of Dodla Dairy Limited (“the Company”) as of March 31, 2024 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India (“ICAI”). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the Companys policies, the safeguarding
of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to these standalone financial statements based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting (the “Guidance Note”) and the Standards on
Auditing, as specified under section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls, both issued by ICAI. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
with reference to these standalone financial statements was established and maintained and
if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls with reference to these standalone financial statements
and their operating effectiveness. Our audit of internal financial controls with reference
to standalone financial statements included obtaining an understanding of internal
financial controls with reference to these standalone financial statements, assessing the
risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Companys internal financial controls with reference to these
standalone financial statements.
Meaning of Internal Financial Controls With Reference to these Standalone Financial
Statements
A companys internal financial controls with reference to standalone financial
statements is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A companys internal
financial controls with reference to standalone financial statements includes those
policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls With Reference to Standalone
Financial Statements
Because of the inherent limitations of internal financial controls with reference to
standalone financial statements, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the internal financial
controls with reference to standalone financial statements to future periods are subject
to the risk that the internal financial control with reference to standalone financial
statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial
controls with reference to standalone financial statements and such internal financial
controls with reference to standalone financial statements were operating effectively as
at March 31, 2024, based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note issued by the ICAI.
|
For S.R. Batliboi & Associates LLP |
Sd/- |
|
Chartered Accountants |
Per Mitesh K Parikh |
| ICAI Firm Registration Number: 101049W/E300004 |
Partner |
| Place: Hyderabad | Membership Number: 225333 |
| Date: May 18, 2024 | UDIN: 24225333BKGRMD1179 |
