TO THE MEMBERS OF KRYPTON INDUSTRIES LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Krypton Industries Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory 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 accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024 and its profit and other comprehensive income, the changes in equity and its 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 (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 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 standalone financial statements 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 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 the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Description of Key Audit Matter
The Key Audit Matter | How the matter was addressed in our audit |
Revenue Recognition | Our audit procedures included the following:- |
Refer Note 32 to the Financial Statements. Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. During the year ended March 31, 2024, the company has recognised revenue amounting to Rs. 2862.15 Lakhs & Rs. 1275.22 Lakhs from domestic and export sales respectively. Terms of sales arrangements, including the timing of transfer of control, delivery specifications including terms in case of exports, timing of recognition of sales require significant judgment in determining revenues. The risk is, therefore, that revenue may not get recognised in the correct period or that revenue and associated profit may be misstated. | Considering Companys revenue recognition policy and its compliance in terms of Ind AS 115 Revenue from contracts with customers. |
Accordingly, due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 Revenue from contracts with customers, it has been determined to be a key audit matter in our audit of the standalone Ind AS financial statements. | Assessing the design and tested the operating effectiveness of internal controls related to revenue recognition. |
Testing samples of individual sales transaction and tracing to sales invoices, sales orders, (received from customers) and other related documents including terms and conditions, if any. | |
Selecting sample of sales transactions made pre- and post-year end, agreeing the period of revenue recognition to underlying documents. | |
Performing analytical review of revenue to identify any unusual trends. | |
Assessing the relevant disclosures made within the standalone financial statements. | |
The Key Audit Matter | How the matter was addressed in our audit |
Inventories | Our audit procedures included the following:- |
Refer Note 10 to the Financial Statements. Total Inventory as at 31.03.2024 was Rs. 1659.54 Lakhs and Finished goods of Rs. 549.21 Lakhs comprise 33.09 per cent of such inventory holdings. Total Inventories are 40.11 per cent of the total turnover of the company for FY 2023-2024. | Obtaining an understanding of and assessing the design, implementation and operating effectiveness of managements key internal controls over inventories including sample based physical verification. |
The inventories are counted by the company on a cyclical basis and accordingly provisions for obsolescence including revision in valuation to Net Realizable Value, if any, of inventories are assessed and recognized by the management in the financial statements based on management estimation as at the end of the reporting period. Significant degree of judgment is thereby required to assess the net realizable value of the inventories and appropriate level of provisioning for items which may be ultimately sold below cost. Such judgment includes managements expectations for future sale volumes, inventory liquidation plans and future selling prices less cost to sell. | Verifying for a sample of individual products that costs have been correctly recorded. |
Such high holdings, existence and valuation of inventories make it a key audit matter. | Performing a review of the provisions for inventories by examining movements in the balance during the current year; |
Assessing, on a sample basis, the net realizable value of inventories as calculated by management with reference to prices achieved and costs to sell after the financial year end. | |
Assessing the relevant disclosures made within the standalone financial statements. |
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 Companys 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 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 Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements to give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows 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. 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 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.
The Board of Directors is 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 financial controls 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 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 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 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 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 Requirement
1. As required by the Companies (Auditors Report) Order, 2020, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, 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 except for the matters stated in paragraph 2(h)(vi) below on reporting under Rule 11(g).
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the standalone statement of changes in equity and the Standalone Cash Flow Statement 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.
(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 over financial reporting 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) The qualification 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(h)(vi) below on reporting under Rule 11(g).
(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 knowledge and belief and according to the information and explanations given to us:
(i) The Company, as detailed in Note 43 to the standalone financial statements has disclosed the impact of pending litigations as on March 31, 2024 on its financial position in its 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 to us that, to the best of its knowledge and
belief, as disclosed in the note 57(vi) to the 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 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 to us that, to the best of its knowledge and belief, as disclosed in the note 57(vii) to the financial statements, 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 our audit procedures that are considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided under paragraph 2(g) (iv)(a) & (b) above, contain any material misstatement.
(v) No dividend has been declared by the company during the period under audit and hence compliance under Section 123 of The Companies Act, 2013 is not applicable.
(vi) According to the information and explanations given to us and based on our examination which included appropriate test checks, we report that the company has used an accounting software for maintaining its books of account which has the feature of recording audit trail (edit log) facility but the same did not operate throughout the year. Since the audit trail feature did not operate throughout the year, we are unable to comment upon instances of tampering of the audit trail feature during the course of our audit.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, 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 year ended March 31, 2024.
3. With respect to the matter to be included in the Auditors Report under Section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
For P. K. Luharuka & Co. | |
Chartered Accountants | |
Place : Kolkata | Firm Registration No.: 322020E |
Dated : The 30th Day of May, 2024 | Pradeep Kumar Luharuka |
Partner | |
Membership No. 055782 | |
UDIN : 24055782BKARHH3626 |
Annexure "A" to Independent Auditors Report On the Standalone Financial Statements of Krypton Industries Limited for the year ended 31st March 2024
Referred to in Paragraph 9 under "Report on other Legal and Regulatory Requirements" of our report of even date to the Financial Statements of the Company for the year ended March 31, 2024
(i) In respect of its Property, Plant and Equipment:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The Company has a regular programme of physical verification of its property, plant & equipment by which property, plant & equipment are verified in a phased manner over a period of three years. In accordance with this program, certain property, plant & equipment were verified during the year and no material discrepancies were noticed on such physical verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties (other than the properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) as disclosed in the financial statements are held in the name of the Company.
(d) According to the information and explanations given to us, the Company has not revalued its property, plant and Equipment (including Right of Use assets) and its intangible assets. Accordingly, the requirements under paragraph 3(i)(d) of the Order are not applicable to the Company.
(e) According to the information and explanations given to us, no proceeding has been initiated or pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder. Accordingly, the provisions stated in paragraph 3(i) (e) of the Order are not applicable to the Company.
(ii) (a) During the year, the inventories have been physically verified by the management. In our opinion, the frequency of verification, coverage & procedure of such verification is reasonable. No discrepancies were noticed between physical stocks and the book records that were more than 10% in aggregate of each class of inventory.
(b) The Company has been sanctioned working capital limits in excess of Rs. 5 crores in aggregate from Banks or financial institutions on the basis of security of current assets. In our opinion, Quarterly returns or statements filed with such Banks or financial institutions are in agreement with the books of account except the following:-
Quarter | Name of the Bank | Particulars | Amount as per Books of Accounts | Amount as Reported in Quarterly Return/ Statement | Difference |
June, 2023 | Bank of Baroda | Book debt plus Stock less Creditors | 1472.12 | 1626.29 | 154.17 |
September, 2023 | Bank of Baroda | Book debt plus Stock less Creditors | 1508.82 | 1514.61 | 5.79 |
December, 2023 | Bank of Baroda | Book debt plus Stock less Creditors | 1381.01 | 1639.57 | 258.56 |
March, 2024 | Bank of Baroda | Book debt plus Stock less Creditors | 1545.95 | 1654.64 | 108.69 |
(iii) (a) According to the information explanation provided to us and on the basis of our examination of the records of the Company, the Company has made investment in companies and granted loans to companies and other parties, in respect of which the requisite information is given below. The Company has not provided any guarantee or security to companies, firms, limited liability partnerships or any other parties during the year. The Company has not made investments in firms, limited liability partnerships or any other parties during the year.
Based on our audit procedures carried on by us and as per the information and explanations given to us, the Company has provided loans, as mentioned below:-
Particulars | Loans (Rs. in Lakhs) |
Aggregate amount granted/provided during the year | |
- Subsidiaries | 0.51 |
- Others | 40.00 |
Balance Outstanding as at balance sheet date | |
- Subsidiaries | |
- Others | 0.52 |
309.96 |
( b) In our opinion the rate of interest and other terms and conditions on which the loans had been granted were, prima facie, not prejudicial to the interest of the company.
(c) According to the information explanation provided to us and on the basis of our examination of the records of the Company, in case of loans given, in our opinion, the repayment or receipt wherever applicable, have been regular except for the following cases where there is no stipulation of schedule of repayment of principal and payment of interest and accordingly, we are unable to comment on the regularity of principal and payment of interest.
Name of the Entity | Amount (Rs. in Lakhs) | Remarks |
Innovative Agents Private Limited | 7.00 | Loan is repayable on demand. As informed to us, the company has not demanded repayment of the loan during the year. Thus, there is no default on the part principal amount. |
Mani Square Private Limited | 2.88 | |
M.H. Consultancy Services | 8.02 | |
Ind Global Multicommodity (P) Ltd. | 17.36 |
(d) According to the information explanation provided to us and on examination of records of the Company, there is no overdue amount for more than ninety days in respect of loans given.
(e) According to the information explanation provided to us, the loan or advance in the nature of loan granted has not fallen due during the year. Hence, the requirements under paragraph 3(iii) (e) of the Order are not applicable to the Company.
(f) According to the information explanation provided to us, the Company has not any granted loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment except for the following loans:-
Particulars | All Parties | Promoters | Related Parties |
Aggregate amount of loans/ advances in nature of loans | |||
- Repayable on demand (A) | 54.85 | - | - |
- Agreement does not specify any terms or period of repayment (B) | - | - | - |
Total (A+B) | 54.85 | - | - |
Percentage of loans/advances in nature of loans to the total loans | 17.67% | - | - |
(iv) In our opinion and to the best of information and explanations given to us the Company has complied with the provisions laid down under sections 185 or 186 of the Act with respect to loans and investments made in the current year. However, Opening balance of such loans granted to "persons in whom the director is interested" before the commencement of Section 185 still exists on Balance Sheet date.
(v) According to the information and explanations given to us, the Company has not accepted any deposit or amounts which are deemed to be deposits from the public. Therefore, the provisions of Clause (v) of Paragraph 3 of the Order are not applicable.
(vi) We have broadly reviewed the cost records maintained by the company as prescribed by the Central Government under section 148(1) of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) In respect of Statutory Dues:
(a) According to the information and explanations given to us and on the basis of examination of records given to us, amounts deducted/accrued in the books of accounts in respect of undisputed statutory dues including Goods & Service Tax , Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Custom Duty, Excise Duty, Value Added Tax, cess and other statutory dues have been generally regularly deposited during the year by the company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax, Goods & Service Tax, Sales Tax, Custom Duty, Excise Duty, Value Added Tax, cess and other statutory dues were in arrears as at 31st March, 2024 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us, the dues of Goods & Service Tax, sales tax, income tax, duty of customs, duty of excise, service tax and value added tax which have not been deposited on account of disputes as at 31.03.2024 are set out below:-
Sr. No. | Name of the Statute | Nature of the Dues | Amount of Demand / Dispute ( Rs. in Lakhs) | Period to which the amount relates | Forum where the dispute is pending |
1. | Income Tax Act, 1961 | Income Tax | 13.88 | AY 2013-14 | Appeal u/s 246A before CIT (Appeals) |
2. | Income Tax Act, 1961 | Income Tax | 6.03 | AY 2011-12 | Appeal u/s 246A before CIT (Appeals) |
(viii) According to the information and explanations given to us, there are no transactions which are not accounted in the books of account which have been surrendered or disclosed as income during the year in Tax Assessment of the Company. Also, there are no previously unrecorded income which has been now recorded in the books of account. Hence, the provision stated in paragraph 3(viii) of the Order is not applicable to the Company.
(ix) (a) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of loans or borrowings to any financial institution, bank or government.
(b) 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 been declared a wilful defaulter by any bank or financial institution or government or government authority.
(c) In our opinion and according to the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that no funds raised on short-term basis have been used 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, associates or joint ventures as defined under Companies Act, 2013.
(f) According to the information and 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 its subsidiaries, joint ventures or associate companies (as defined under Companies Act, 2013)
(x) (a) The Company did not raise any money by way of Initial Public Offer or Further Public Offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is Not Applicable.
(b) According to the information and explanations given to us and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xi) (a) Based on our audit procedures and on the information and explanations given by the management, no material fraud on or by the Company by its officer or employees has been noticed or reported during the course of our audit.
(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Act has been filed by the cost auditor/secretarial auditor or by us in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government during the year.
(c) As represented to us by the management, there are no whistle-blower complaints received by the Company during the year. Accordingly, the provisions stated in paragraph (xi)(c) of the Order is not applicable to company.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence reporting under Clause (xii) (a) to (c) of the Order is not applicable here.
(xiii) According to the information and explanations given to us and on the basis of examination of records of the Company the transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and details of such transactions has been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) (a) In our opinion and based on our examination, the Company has an internal audit system commensurate with the size and nature of its business.
(b) We have considered the internal audit reports of the Company issued till the date of audit report, for the period under audit
(xv) According to the information and explanations given to us and on the basis of examination of records of the Company the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly paragraph 3(xv) of Order is not applicable
(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank
of India Act, 1934. Hence the provisions stated in paragraph clause 3 (xvi) (a) of the order are not applicable to the company
(b) In our opinion, the Company has not conducted any Non-Banking Financial or Housing Finance activities without any valid Certificate of Registration from Reserve Bank of India. Hence the provisions stated in paragraph clause 3 (xvi) (b) of the order are not applicable to the company.
(c) The Company is not a Core investment Company (CIC) as defined in the regulations made by Reserve Bank of India. Hence, the reporting under paragraph clause 3 (xvi)(c) of the Order are not applicable to the Company.
(d) The Company does not have any CIC as part of its group. Hence the provisions stated in paragraph clause 3 (xvi) (d) of the order are not applicable to the company.
(xvii) Based on the overall review of standalone financial statements, the Company has not incurred cash losses in the current financial year and in the immediately preceding financial year. Hence, the provisions stated in paragraph clause 3 (xvii) of the Order are not applicable to the Company.
(xviii) There has been no resignation of the statutory auditors during the year. Hence, the provisions stated in paragraph clause 3 (xviii) of the Order are not applicable to the Company.
(xix) According to the information and explanations given to us and on the basis of the financial ratios (Refer note 56 to the financial statements), ageing and expected dates of realisation 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) According to the information and explanations given to us, the provisions of section 135 of the Act are not applicable to the Company. Hence, the provisions of paragraph (xx)(a) to (b) of the Order are not applicable to the Company.
(xxi) According to the information and explanations given to us and on the examination of records of the company, the Company has an overseas Subsidiary wherein Reporting under Companies (Auditors Report) Order is Not Applicable to the respective Auditor, Hence. reporting under clause 3(xxi) of the Order is not applicable.
For P. K. Luharuka & Co. | |
Chartered Accountants | |
Firm Registration No.: 322020E | |
Pradeep Kumar Luharuka | |
Place: Kolkata | Partner |
Membership No. 055782 | |
Dated: The 30th Day of May, 2024 | UDIN : 24055782BKARHH3626 |
Annexure "B" to Independent Auditors Report On the Standalone Financial Statements of Krypton Industries Limited for the year ended 31st March 2024
Referred to in Clause (f) of Paragraph 1 under "Report on other Legal and Regulatory Requirements" of our report of even date to the financial statements of the company for the year ended March 31, 2024.
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")
We have audited the internal financial controls over financial reporting of Krypton Industries 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 and as on March 31, 2024.
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 (the "Guidance Note") 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 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 over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note and the Standards on Auditing 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 Control, 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 over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 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 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 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.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2024, based on the internal financial 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.
For P. K. Luharuka & Co. | |
Chartered Accountants | |
Firm Registration No.: 322020E | |
Pradeep Kumar Luharuka | |
Place: Kolkata | Partner |
Dated: The 30th Day of May, 2024 | Membership No. 055782 |
UDIN : 24055782BKARHH3626 |
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