Independent Auditor''s Report on Annual Financial Results of the company pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (As ....
Awaiting price reaction for this filing.
The statutory auditor (Dagliya & Co.) issued a qualified opinion on RKB Agro Industries' financial results for the quarter and year ended 31 March 2025. Two key issues were flagged: (1) the company has not provisioned Rs. 73 lakhs of interest payable under the MSMED Act for delayed payments to MSME suppliers, which understates liabilities and overstates profit by the same amount; and (2) retirement gratuity has been accounted on a cash basis instead of actuarial valuation as required by Ind AS 19, with the consequential impact unascertainable. Revenue from operations for FY25 stood at Rs. 7,753.95 lakhs, down sharply from approximately Rs. 10,903.95 lakhs in FY24 — a decline of roughly 29%. Despite this, full-year net profit rose to about Rs. 33.51 lakhs from Rs. 18.70 lakhs in FY24 (~79% growth), driven by lower raw material costs and reduced stock adjustments.
Shareholders should treat the qualified opinion as a governance and accounting quality red flag — the MSMED interest omission directly inflates reported profit, and the gratuity treatment deviates from prescribed standards. While headline PAT growth looks positive, it is partly cosmetic, and the steep revenue drop signals real demand or pricing weakness in the core cotton trading and oil business.