TO,
THE MEMBERS OF KGN INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of KGN INDUSTRIES LIMITED, which
comprise the Balance Sheet as at 31/03/2026, the Statement of Profit and Loss, the
cash flow
statement for the year then ended, and a summary of the significant accounting
policies and other
explanatory information.
Auditors Opinion
In our opinion and to the best of our information and according to the explanations
given to us,
the aforesaid financial statements give the information required by the Act in the manner
so
required and giveua true and fair view in conformity with the accounting principles
generally
accepted in India, of the state of affairs of the Company as at 31/03/2026, and its
and itfs cash
flows for the year ended on that date.
Basis for Opinion
The books of account reflect income/receipts substantially in cash. However, the
supporting
documentary evidence and relevant deposit records in respect of such cash receipts have
not
been made available to us for verification for the past several years. Consequently, we
were
unable to obtain sufficient appropriate audit evidence regarding the completeness,
occurrence, accuracy and proper recording of such income/receipts and their corresponding
deposits.
In the absence of adequate supporting documentation and deposit records, we were unable
to
satisfy ourselves through alternative audit procedures as to whether any adjustments to
the
reported income, cash balances and related financial statement disclosures were necessary.
Accordingly, our opinion is qualified in respect of this matter.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The
other information comprises the information included in the Management Discussion and
Analysis,
Boards Report including Annexures to Boards Report,-Business Responsibility Report,
Corporate
Governance and Shareholders Information, but does nof include the standalone financial
statem^fe™^^
and our auditors report thereon. -
0/ N
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 the other information is materially
inconsistent
with the standalone financial statements or our knowledge obtained during the course of
our audit or
otherwise appears to be materially misstated.
When we read such other information as and when made available to us and if we conclude
that there
is a material misstatement therein, we are required to communicate the matter to those
charged with
governance
Responsibility of Management and Those Charged with Governance (TCWG)
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
financial statements 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, read with Rule 7 of the
Companies
(Accounts) Rules, 2014. 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 financial statements that give a true and fair view
and are free
from material misstatement, whether due to fraud or error.
In preparing the 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.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and
maintain
professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the 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 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
concemif 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 financial statements, including the
disclosures, and whether the 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 financial statements of the current period
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
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 statements 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 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 financial statements 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
31/03/2026 taken
on record by the Board of Directors, none of the directors is disqualified as 31/03/2026
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
"Aunexure B".
(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 disclosed the impact of pending litigations on its financial
position in
its financial statements.
ii. 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.
iii. . There has been no delay in transferring amounts, 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 if s 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 has represented, that, to the best of if s knowledge and belief,
other
than as disclosed in the notes to the accounts, 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; and
(c) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that the
representations under sub-clause (i) and (ii) contain anymaterial mis-statement.
v. The company has not declared or paid any dividend during the year in contravention
of
the provisions of section 123 of the Companies Act, 2013.
vi. Based on our examination, which includes test checks, the company has used an
accounting software for maintaining its books of account for the period ended 31st
March, 2026, 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.
As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from
April
1, 2024, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014
on preservation of audit trail as per the statutory requirements for record retention is
not
applicable for the period ended as on 31st March, 2026.
FOR KAMLESH BHOJANI AND ASSOCIATES
(Chartered Accountants)
Reg No. :0127505W
Date: 31/07/2026 KAMLESH BHANUBHAI BHOJANI
Place: Ahmedabad Proprietor
M.No.: 119808
UDIN : 26119808HXTOYF4415
"Annexure B" to the Independent Auditors Report of even date on the
Standalone Financial
Statements of KGN INDUSTRIES LIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the
Companies Act, 2013.
We have audited the internal financial controls over financial reporting of KGN
INDUSTRIES
LIMITED as of March 31,2026 in conjunction with our audit of the standalone financial
statements
of the Company forthe 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. 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial
reporting based oirour 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 amout the adequacy of
the internal
financial control system over financial reporting and their operating effectiveness. Our
audit of
internal financial controls over financial reporting, assessing the risk that a material
weakness exists,
and operating effectiveness of internal control based on the assessed risk. The procedures
selected
depend upon on the auditors judgment, 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 system over financial
reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting 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 control over financial reporting 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 acceptedaccounting 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
financial
statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, 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 over financial reporting to future periods are subject to the risk that
the internal
financial control over financial reporting may become inadequate because of changes in
conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
FOR KAMLESH BHO JANI AND ASSOCIATES
(Chartered Accountants)
leg No. :0127505W
Date: 31/07/2026 " KAMLESH BHANUBHAI BHOJANI
Place: Ahmedabad Proprietor
M.No.: 119808
UDIN: 26119808HXTOYF4415
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