To the Members of
KALPA COMMERCIAL LIMITED
Report on the Audit of the Standalone Ind AS Financial Statement
Opinion
We have audited the accompanying Ind AS Financial Statements of Kalpa Commercial
Limited ("the Company"), which comprise the Balance Sheet as at March 31,2023,
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 the significant accounting policies and other explanatory information
(hereinafter referred to as the Standalone Ind AS Financial Statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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 Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, the profit / ( loss) and
total comprehensive income, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the Ind
AS Financial Statement 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 Ind AS
Financial Statement under the provisions of the Companies Act, 2013 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 opinion.
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 Statement of the current
period. These matters were addressed in the context of our audit of the standalone Ind AS
Financial Statement as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. We have determined the matters described below to be
the key audit matters to be communicated in our report.
Emphasis of Matter
We draw attention to Note no. 6 of the Ind AS Financial Statement, which explains about
the fair valuation of investments as on reporting date on the basis of the previous
financial year audited financial statement of those companies where the company held its
investments. Our opinion is not modified in respect of this matter.
We draw attention to Note no. 3 of the IND AS Financial Statement regarding Trade
Receivables- These balances are unconfirmed and unreconciled and subject to confirmation
and consequential adjustment, if any. Our opinion is not modified in respect of this
matter.
We draw attention to Note no. 5 of the IND AS Financial Statement regarding Loan &
Advances - These balances are unconfirmed and unreconciled and subject to confirmation and
consequential adjustment, if any. Our opinion is not modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance for the Standalone Ind
AS Financial Statement
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Ind AS Financial Statement 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. 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 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 Ind AS Financial Statement, 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 Ind AS Financial Statement
Our objectives are to obtain reasonable assurance about whether the Ind AS Financial
Statement 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 Ind AS Financial Statement.
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 Ind AS Financial
Statement, 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 Companies Act, 2013, 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 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 Ind AS Financial Statement 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 Ind AS Financial
Statement, including the disclosures, and whether the Ind AS Financial Statement
represents the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone Ind AS Financial
Statement that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the standalone Ind AS Financial Statement
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 Ind AS Financial
Statement.
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.
Form the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Ind AS Ind AS Financial
Statement of the current period and are therefore the key audit matters. We describe these
matters in our auditors reports 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 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 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.
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 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 Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS Financial Statement comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 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
Ind AS Financial Statement 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 Companys internal
financial controls over financial reporting.
g) 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, in our opinion
and to the best of our information and according to the explanations given to us:
I. 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.
II. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
III. No dividend has been declared or paid during the year by the company.
IV. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31,2023.
For SGR & ASSOCIATES LLP
Chartered Accountants
FRN: 022767N
SANJEEV KUMAR
(PARTNER)
M. No. 507365
Place: New Delhi
Date:25/05/2023
UDIN: 23507365BGXJDS4633
Annexure ‘A
The Annexure referred to in paragraph 1 of Our Report on "Other Legal and
Regulatory Requirements".
We report that:
i. a. The company does not have any fixed assets.
b. The company does not have any intangible assets. Accordingly, clause 3(i) (a) of the
order is not applicable.
ii. (a) As explained to us, the inventory verified during the year by the management.
(b) According to the information and explanations given to us and based on the audit
procedures conducted by us, the Term and conditions of grant of such loans are not prima
facie prejudicial to the companys interest.
iii. In respect of loans, investments, guarantees, and security, provisions of section
185 and 186 of the Companies Act, 2013 have been complied with.
iv. The company has not accepted any deposits from the public covered under sections 73
to 76 of the Companies Act, 2013.
v. As per information & explanation given by the management, maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
vi. a. According to the records of the company, undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Service Tax, Custom Duty, Excise Duty, value added tax, cess and
any other statutory dues to the extent applicable, have generally been regularly deposited
with the appropriate authorities. According to the information and explanations given to
us there were no outstanding statutory dues as on 31st of March, 2023 for a period of more
than six months from the date they became payable.
b. According to the records of the Company, have no dues which are disputed.
vii. In our opinion and according to the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to a financial institution, bank, Government or debenture holders, as applicable to the
company.
viii. The company has not raised any money by way of initial public offer or further
public offer (including debt instruments) or by way of term loans during the year.
ix. According to the information and explanations given to us, we report that no fraud
by the company or any fraud on the Company by its officers or employees has been noticed
or reported during the year.
x. Based upon the audit procedure and the information and explanation given by the
management, managerial remuneration has been paid or provided by the company in accordance
with the provision of the section 197 of the Companies Act.
xi. The company is not a Nidhi Company. Therefore, clause (xii) of the order is not
applicable to the company.
xii. According to the information and explanations given to us, all 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 Financial Statements etc. as
required by the applicable accounting standards.
xiii. The company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year under review.
xiv. According to the information and explanation provided to us, The Company has not
entered into non-cash transactions with directors or persons connected with him.
Annexure ‘B
Report on Internal Financial Controls with reference to standalone financial statements
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 the standalone
financial statements of KALPA COMMERCIAL LIMITED ("the Company") as of March 31,
2023 conjunction with our audit of the standalone Ind AS financial statements of the
Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management and the Board of Directors are responsible for establishing
and maintaining internal financial controls based on the internal financial controls with
reference to standalone Ins AS financial statements criteria established by the Company
considering the essential components of internal control stated in the Guidance Note.
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 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 (hereinafter
referred to as "the Act").
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to the standalone financial statement 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, issued by ICAI and deemed to be prescribed under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls,
both applicable to an audit of Internal Financial Controls and, both issued by the
Institute of Chartered Accountants of India. 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 over financial
reporting 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 system with reference to standalone Ind AS financial
statement and their operating effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of internal financial controls
with reference to standalone Ind AS financial statement, 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 judgment, including the assessment of the risks of material
misstatement of the standalone Ind AS 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 systems
with reference to the standalone Ind AS financial statements.
Meaning of Internal Financial Controls with reference to Standalone Ind AS Financial
Statement
A companys internal financial controls with reference to the standalone Ind AS
financial statements is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of standalone Ind AS financial
statements for external purposes in accordance with generally accepted accounting
principles. A companys internal financial controls with reference to the standalone Ind
AS financial statements include those policies and procedures
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 the standalone financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls with reference to Standalone Ind AS
Financial Statement
Because of the inherent limitations of internal financial controls with reference to
the standalone Ind AS financial Statement, 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 the standalone Ind AS financial statement to future periods are
subject to the risk that the internal financial control with reference to the standalone
Ind AS financial statement 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, an adequate internal
financial controls system with reference to the standalone financial statement and such
internal financial controls with reference to standalone financial statement were
operating effectively as at March 31,2021, based on the internal control with reference to
the standalone financial statement criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls with reference to the standalone financial statement issued by the
Institute of Chartered Accountants of India.
For SGR & ASSOCIATES LLP
Chartered Accountants
FRN: 022767N
SANJEEV KUMAR
(PARTNER)
M. No. 507365
Place: New Delhi
Date:25/05/2023
UDIN: 23507365BGXJDS4633.
+91-9892691696
