We have audited the Financial Statements of KINGFA SCIENCE & TECHNOLOGY (INDIA) LIMITED (“the Company”), which comprise
the Balance Sheet as at March 31, 2025, and the Statement of Profit and Loss (including Other Comprehensive Income), Statement
of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the Financial Statements, including a
summary of Material Accounting Policies and other explanatory information (hereinafter referred to as “the Financial
Statements”).
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 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, 2025,
and its profit (including Other Comprehensive Income), changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the 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 Financial
Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial
Statements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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Key Audit Matters
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How our audit addressed the key audit matters
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Valuation of Trade Receivables
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Our audit procedures included, but not limited to,
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following -
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As disclosed in Note no 7 of the financial statements, Trade
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•
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We have evaluated and tested design and operating
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Receivables (net of allowance for bad and doubtful debts)
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effectiveness internal controls related to trade
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represent significant portion of the Total Assets as at 31
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receivables implemented by the management.
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March 2025. Assessment of the recoverability of trade
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•
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We performed audit procedures on existence of trade
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receivables is inherently subjective and requires significant
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receivables, which included reading and comparing
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management judgment. Timing of collection of dues from
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balance confirmations with books, testing subsequent
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the customers may differ from the actual credit period.
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receipts and sales transactions for the samples
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Significant judgment is required by the management to
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selected.
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estimate the amounts unlikely to be ultimately collected.
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•
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Where there were indicators that the trade receivables
were unlikely to be collected within contracted
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The recoverability of the Companies trade receivables and
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payment terms, we assessed the adequacy of the
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the valuation of the allowance for bad and doubtful debts
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allowance for bad and doubtful debts. To do this:
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is a key audit matter due to the judgement involved.
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a.
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We assessed the aging of trade receivables quantum of
claims with and from the customers.
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b.
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We have evaluated the independent confirmations
from customers and performed alternate audit
procedures on sample basis.
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c.
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We also considered historical reasonability of
forecasting the allowance for expected credit loss
against actual write-off.
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Valuation of Inventory
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Our audit procedures included, but not limited to,
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At the 31 March 2025, the value of inventories amounted to
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following :
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Rs. 30,114.57 lakhs representing around 26% of total
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• We have evaluated and tested the design and
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assets. Inventories have been considered key audit matter
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operating effectiveness of internal controls relating to
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due to the size of the balance, nature of the product, price
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inventory recording and valuation.
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volatility of raw material and finished product etc. and
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• We have conducted physical verification of inventory
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management judgements involved. Refer note 1(B.4.vii) to
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on a sample basis at the year-end in order to test the
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the Ind AS Financial Statements for accounting policy for
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existence assertion.
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valuation of inventories.
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• We have evaluated inventory costing methodology and
valuation policy established by management and
tested on a sample basis its compliance with the
applicable accounting standards.
• We have conducted analysis of net realisable value
(NRV) and cost of inventory on a sample basis in order
to ascertain that inventory is carried at lower of NRV
and Cost.
• We have evaluated on a test check basis the process
followed by the management to identify non-moving,
slow moving, obsolete inventory and we have
evaluated on a test check basis the appropriateness of
the estimates for impairment (if any) accounted for on
such inventory.
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Completeness and Valuation of Property, plant and
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Our audit procedures included, but not limited to,
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equipment and Capital Work in progress
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following :
• We have evaluated and tested the design and
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As disclosed in Note no 2 of the financial statements, total
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operating effectiveness of internal controls relating to
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value of Property Plant and Equipment and Capital Work in
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property, plant equipment (PPE) and capital work in
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Progress As at 31 March 2025 is Rs. 28,488.90 Lakh, which is
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progress (CWIP).
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25% of the total assets.
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• We have tested on sample basis accuracy of additions
to the CWIP and capitalization to PPE recorded by the
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We have considered this a Key Audit Matter considering the
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Company during the year.
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size of these balances in the financial statements,
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• We examined the useful life for individual assets to
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judgment involved in the valuation (including impairment
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determine whether it is consistent with the Company’s
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assessment if any) and corresponding disclosure
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accounting policy.
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requirement of revised schedule III of the Companies Act
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• We have verified report on periodic verification of PPE
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2013.
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performed by the management and tested the
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Refer note 1(B.4.ii) to the Ind AS Financial Statements for
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reconciliation between physical verification reports
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accounting policy for valuation of property, plant and
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and fixed assets registers on a sample basis to
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equipment.
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determine any adjustments that may be required
thereon.
• We have also tested the ageing of items in CWIP as at
year end from valuation and presentation and
disclosure perspective.
• We have evaluated the impairment assessment
performed by the management to confirm impairment
provision, if any, that may be required in the financial
statements.
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Other Information
The Company’s Board of Directors is responsible for the other information. The other information comprises the information
included in Management Discussion and Analysis, Board of Director’s Report along with Annexures, but does not include the
Financial Statements and our auditor’s report thereon.
In connection with our audit of the Financial Statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a mate¬
rial misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these Financial Statements that give a true and fair view of the financial position, financial performance (including 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 read with the Compa¬
nies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate account¬
ing 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, the management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
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 auditor’s 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 judgment 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 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 disclo¬
sures made by management.
• Conclude on the appropriateness of management’s 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
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s 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 auditor’s 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 auditor’s 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
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Act, 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 that the back-up of part of the books of account and other relevant books and papers
maintained in electronic mode has been maintained on servers physically located in India and except for the matters stated
in the paragraph 2(i)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014. Also refer
note 40B to the Financial Statements.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in
Equity 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 Indian Accounting Standards specified under Section 133
of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164
(2) of the Act.
f) With reference to the maintenance of accounts and other matters connected therewith, refer to our comment in Paragraph 2
(b) above, the back-up of part of the books of account and other relevant books and papers maintained in electronic mode
has been maintained on servers physically located in India and refer to our comment in paragraph 2(i)(vi) below, on reporting
under rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014.
g) With respect to the adequacy of the internal financial controls with reference to financial statements and the operating
effectiveness of such controls, refer to our separate Report in “Annexure B”.
h) As required by section 197 (16) of the Act; in our opinion and according to information and explanation provided to us, the
remuneration paid by the company to its directors is in accordance with the provisions of section 197 of the Act and
remuneration paid to directors is not in excess of the limit laid down under this section.
i) With respect to the other matters to be included in the Auditor’s 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 - Refer Nol
31A to the Financial Statements
(ii) The Company did not have any long-term contracts including derivative contracts as at March 31, 2025.
(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 41(vi) to th
financial statements, if any, 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 behal
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 41(vi) to th
Financial Statements, if any, no funds have been received by the Company from any person(s) or entity(ies), including foreig
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 beha
of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
(c) Based on the information and explanation given to us and audit procedures performed as considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations
made by the management and as mentioned under sub-clause (iv)(a) and (iv)(b) above contain any material misstatement.
(v) The dividend paid during the year by the Company is in compliance with section 123 of the Act.
(vi) Based on our examination, the Company, has used accounting software for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and, at the application layer, the audit trail feature has been enabled and
operated throughout the year, except in case of direct changes to data tables where edit log did not capture complete detail
Further audit trail at application layer is not tamper proof however due to lack of sufficient information, we are not able to
comment whether there was any instance of the audit trail feature been tampered with. Further audit trail functionality is n
enabled at database layer to log any direct data changes, therefore, the question of our commenting on whether the audit
trail has been tampered with does not arise. Further the audit trail, to the extent available, has been preserved by the
Company as per the statutory requirements for record retention.
With respect to web applications, due to lack of availability of sufficient information, we are not able to comment whether
audit trail functionality is enabled and operated throughout the year. Consequently, the question of our commenting on
whether the audit trail has been tampered with does not arise.
Further, with respect to another accounting software used for payroll processing, based on the service organisation report
(SOC Type 2 Report) provided to us, aforesaid software 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. Additionally, due to lack of specific
mention in SOC Type 2 Report, we are not able to comment whether the audit trail has been preserved by the Service
Organisation as per the statutory requirements for record retention.
For P G BHAGWAT LLP
Chartered Accountants
Firm Registration Number: 101118W/W100682
Abhijit Shetye
Partner
Membership Number: 151638
UDIN: 25151638BMUIHZ8249
Pune
May 28, 2025
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