Kranti Industries Ltd Auditor Reports

ToTheMembersofKranti

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Kranti Industries Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (Including other comprehensive income), Statement of change in equity and the Statement of Cash Flows for the year ended on that date, and a summary of the information (hereinafter referred to as “the Standalone Financial Statements”).

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 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed (IND AS) under section 133 of the Act and other accounting principles generally accepted our in India, of the state of affairs of the Company as at March 31, 2023, and its profit and other comprehensive income and cash flows 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 under section under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made there under, and we have fulfilled with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is 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 of the current period. These matters were addressed in the context of our audit of Standalone Financial Statements 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 below to be the key audit matters to be communicated in our report.

Key Audit Matter

1 Revenue Recognition

(refer Note. 1.10 related to Revenue)

We focused on this area as a key audit matter due to the risk of incorrect timingof revenue recognition and estimation related to recording the discount and rebates. According to the Standalone Financial Statement accounting principles revenue is recognized accounting policies and other at a point in time when the control of the goods is transferred to the customer according to delivery terms. Due to variation of contractual sales terms and practices across the market and the pressure, the management may feel to achieve performance targets, there is a risk of material error.

Auditors Response

, To address this risk of material misstatement relating procedures included: torevenuerecognition

- Assessing the compliance of companys revenue recognitionpolicies with applicable accounting standards, including those related to discounts and rebates.

- Assessing the adequacy of relevant disclosures.

Information Other than the Standalone Financial Statements specified and Auditors Report Thereon 143(10) of the Act (SAs). Our responsibilities 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 not include the Standalone Financial Statements and our auditors report thereon. our other ethical responsibilities in accordance

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. 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.

Managements Responsibility 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 ffectiveness Statements of that give a true and fair view of the financialposition,financial performance and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; 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 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 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 The Board of Directors are responsible for overseeing the eporting Companysfinancial process

Auditors Responsibilities

Financial statements

Our objectives are to obtain reasonable assurance 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 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 opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,or the override of internal control.

Obtain an understanding of internal financialcontrols 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 controls. operating

Evaluate the appropriateness of accounting policies used and the reasonableness estimates and of accounting 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 selection exists related to events or conditions that may 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

Standalone 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 alternative but to do so. Statements represent the underlying transactions and events in a manner that achieves fair presentation. .

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 misstatements in the Standalone Financial Statements. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of 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 relationshipsand 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 of the current period and are therefore the key audit matters. We describe these matters or regulation precludes public disclosure about the matter or when, in extremely are 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 Section audit we report that: a) We have sought and obtained all the information and explanationswhich 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash

Flow dealt with by this Report are in agreement with the relevant books of account. d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specifiedunder Section 133of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. representations received e) Onthebasisof the written from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors disqualifiedas on March 31, 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 over financial reporting of the Company the operating effectiveness of such controls, to our separate Report in “Annexure A”. Our report expresses anunmodifiedopinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial g) With respect to the other matters to be included in the

Auditors Report in accordance with the requirements of section 197

(16) of the Act, as In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions ofsection 197 h) 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 positionin its itsfinancial Standalone 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 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, 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 ("Intermediaries"), with the understanding, whether recorded in writing that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities by or on behalf of the company ("Ultimatesecurity or the like on behalf of the Ultimate

(b) The management has represented, that, to the best of its 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 understanding, whether recorded in writingor otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities 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. .

(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 (a) and (b) contain any material mis-statement. v) The company has not declared or paid any dividend duringtheyearincontraventionof the provisions of section Act, 2013.

2) As required by the Companies (Auditors Report) Order, 2020 (“the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified and 4 of the Order.

For aDV & associates

Chartered Accountants

Firm Registration number: 128045W

Pratik Kabra

Partner

Membership number: 611401

UDIN: 23611401BGUOFJ7192

Mumbai

27^th May, 2023

anneXuRe a to tHe inDePenDent auDitoRs RePoRt

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of Kranti Industries Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

Managements Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria is 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 These responsibilitiesinclude the design,implementationand control over financial reporting maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and conduct of its business, include in adherence to respective companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completenessoftheaccountingrecords, and the timely preparation of reliable financialinformation,as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the internal financial 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”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10)ofthe controls Companies Act, 2013, to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about financial whether adequate internal financial reporting and if such controls reporting to future periods are subject operated effectively in all material respects.

Our audit may become inadequate because involves performing procedures of changes in to obtain audit evidence about the adequacy of the internal financial reporting controlssystem over financial effectiveness. Our audit of internal financial financial of internalfinancialreporting,assessing the risk that a material weakness exists, and testingand evaluating the design and operating effectiveness based on the assessed risk. statements of the Company

The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud controls were or error.

We believe that the audit evidence we have obtained, is

opinion on the internal financialcontrols system over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control over financialreporting a process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactionsdispositionsof the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition controls over financial reporting of the companys assets of the Company material effect on the Standalone Financial Statements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial over financial 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 to the risk that the internal financial reporting conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

We have audited the internal financial controls with reference to standalone financial statements of Kranti Industries Limited (“the Company”) as of 31 March 2023 in conjunction with our of internal control audit of the standalone financial as at and for the year ended on that date. In our opinion, the Company has, in all material respects, adequate internal financial with reference to standalone financial operating statements and such internal financial effectively as at 31 March 2023, based on the internal financial controls with reference to standalone financial statements 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 Accountants issuedbytheInstitute of India.

For aDV & associates

Chartered Accountants

Firm Registration number: 128045W

Pratik Kabra

Partner

Membership number: 611401

UDIN: 23611401BGUOFJ7192

Mumbai

27^th May, 2023

anneXuRe B to tHe inDePenDent auDitoRs RePoRt

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of Kranti Industries Limited of even date) i) In respect of the Companys Property, Plant and Equipments and Intangible Assets: (a) 1. According to the information given to us, the Company has maintained proper records showing full quantitative details and situation ) Act, 1988 (as

2. The Company has maintained proper records showing full particulars of intangible assets. by (b) The Fixed Assets have been physically verified the management in a phased manner which, in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the program, a portion of the fixed asset has been physically verifiedby the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.

(c) According to the information to us and the records examined by us and based on the examination of the registered sale deed provided to us, we reportthat,thetitledeeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.

(d) The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets during the year. explanations

(e) No proceedings have been initiated during the year or are pending against the Company as at March including offixedassets; 31, 2023 for holding any benami property under theBenamiTransactions amended in 2016) and rules made there under.

ii) a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were 10% or more in the aggregate for each class of inventory.

b) According to the information and explanations to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. Variances between the quarterly returns or statements filed with such banks are in agreement are as follows;

Quarters ending on	June 22	September 22	December 22	March 23
Current Assets submitted to Banks	1800.19	2120.78	1491.09	1736.93
Current Assets as per books	1800.47	2166.87	1526.42	1760.99
Difference	-0.02%	-2.13%	-2.31%	-1.37%

iii) According the information and explanations given to us, During the year the company has made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, parties: LimitedLiabilityPartnershipsoranyother (a) During the year the company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided security to any other entity

To Whom	the aggregate amount During the year	Balance outstanding at the Balance sheet Date
	(In Lakhs)	(In Lakhs)
parties other than subsidiaries, joint ventures and associates	60.00	60.00
subsidiaries, joint ventures and associates	20.00	20.00
total	80.00	80.00

(b) According to the information and explanation given to us, the investments made, guarantees provided, security given of the grant of all loans and advances in the nature of loans and guarantees provided are andtheterms andconditions not prejudicial to the companys interest;

(c) schedule of repayment of the principal amount and the payment of the interest havenotbeenstipulated and hence we are unable to comment as to whether receipt of the principal amount and the interest is regular;

(d) According to the information and explanation to us, no amount is overdue in these respect;

(e) According to the information and explanation given transactions, previously unrecorded as income in to us, in respect of any loan or advance in the nature of loan granted which has fallen due during the year, none has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties;

(f) The company has granted loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment, required details in respect thereof are as below:

the aggregate amount	Percentage thereof to the total loans granted	aggregate amount of loans granted to Promoters, related parties as defined in clause (76) of section 2 of the CompaniesAct,2013
80.00	100%	20.00

iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections in respect of grant of loans, making investments and providing guarantees and securities, as applicable. v) The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2023 and therefore, the provisions of the clause 3

(v) of the Order are not applicable to the Company. vi) The Central Government of India has not prescribed the maintenance of cost records under sub-section of section 148 of the Act for any of the activities of the company and accordingly paragraph 3

(vi) of the order is not applicable. vii) According to the information and explanations given to us, in respect of statutory dues: a) According to information and us and on the basis of our examination of the books of account, and records, the Company has generally been regular in depositing dues including Income-Tax, Goods and Services Tax and any other material statutory dues applicable to it with the appropriateauthorities. b) According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2023 for a period of more than six months from the date on when they become payable.

c) According to the information and explanations given to us, there are no dues of income tax, duty of excise and service tax and value added tax have not been deposited with the appropriate authorities account of any dispute. viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any the books of account, in the tax assessments under the Income-tax Act, 1961 as income during the year. ix) (a) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks and financial institutions.

(b) According to the information and explanations given to us and on the basis of our audit procedures, we report that the Company has not been declared Wilful Defaulter by any bank or financialinstitution or government or any government authority. (c) In our opinion, and according to the information and explanations given to us, the term loans have been applied, on an overall basis, for the purposes for which they were obtained.

(d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements of the Company, funds raised on short-term basis have, 185 and 186 of the Act prima facie, not been used during the year for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the Order is not (1) applicable.

(f) According to the informationand explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in given to its subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3

(ix)

(f) of the Order is not applicable. x)

(a) The Company has not raised any moneys by way of initial debt instruments). Accordingly, clause 3

(x)

(a) of the Order is not applicable.

(b) According to the information and explanationsgiven to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partlyconvertibledebentures during the year. Accordingly, clause 3

(x)

(b) of the Order is not applicable. xi)

(a) Based upon the audit procedures performed and the informationand explanations the management, we report that no fraud by the Company or on the Company by its officers employees has been noticed or reported during the year.

(b) No report under sub-section(12) of section the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report. (c) The company has not received any whistle blower complaints during the year (and upto the date of this report). xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company. xiii) In our opinion, alltransactions with the related parties are in compliance with section 177 and Act, 2013 and the details have been disclosed in the

Financial Statements as required by the applicable accounting standards. xiv) (a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in determining the nature, timing and extent of xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence, provisions of Section192 of the Companies Act, 2013 are not applicable to the Company. xvi) (a) In our opinion, the Company is not required to be Bank registered under section under clause of IndiaAct, 1934. Hence, reporting 3(xvi)(a) of the Order is not applicable.

(b) The Company has not conducted non-banking financial / housing finance Accordingly,thereportingunder Clause 3(xvi)(b) of the Order is not applicable to the Company. (c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the

Reserve Bank of India. Accordingly, the reporting under Clause 3

(xvi)

(c) of the Order is not applicable to the Company. given

(d) byIn our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, accordingly reportingunder clause 3

(xvi)

(d) of the Order is not applicable. xvii) The Company has not incurred cash losses during the 143 of financial year covered by our audit and the immediately preceding financial year. xviii) There has been no resignation of the statutory auditors of the Company during the year. xix) On the basis of the financial ratios,ageing dates of realisation of financialassets and payment of financial liabilities, other information financial statements and 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 Companies of the audit report indicating that Company is not capable of meeting its liabilitiesexistingat 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. audit procedures. xx) Theprovisionofsub-section

(5) of Section 135 of the Companies Act, 2013 not applicable to the company. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

For aDV& associates

Chartered Accountants

Firm Registration number: 128045W

Pratik Kabra

Partner

year.

Membership number: 611401

UDIN: 23611401BGUOFJ7192

Mumbai

27^th May, 2023