We have audited the Standalone Financial Statements of
Vakrangee Limited (hereinafter referred to as "the Company”),
which comprise the Standalone Balance sheet as at March
31,2026, the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), Standalone
Statement of Changes in equity, and Standalone Statement
of Cash flows for the year then ended on that date, and
notes to the Standalone Financial Statements, including
material accounting policy information 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 Indian
Accounting Standards ("Ind AS”) prescribed under Section
133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at March 31,2026, its profit, its total
comprehensive income, its changes in equity and its cash
flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under section 143(10) of
the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor's
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
(the "ICAI”) 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 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. We have determined the matters described
below to be the key audit matters to be communicated in our
reports.
1. Estimates Involving in Capitalisation of Capital
Expenditure, and determining their useful lives (Refer
Note 2 "Material Accounting Policy Information”, Critical
Accounting Estimates and Note 4 "Property, Plant and
Equipment” for details)
The Company has capitalised additions to Property, Plant
and Equipment (PPE), mainly related to the Automated
Teller Machine (ATM) purchased newly from the OEM.
Expenditure such as freight cost and cost to bring
the asset to the location and new acquisition cost are
capitalised. Identification and allocation of the related
expenditures involves judgment and estimation of future
economic benefit.
The useful lives of PPE items are based on management's
estimates regarding the period during which the asset or
its significant components will be used. The estimates
are based on historical experiences, market practice and
group decision on technical evaluation of useful lives of
the ATM.
The Capital expenditure and new acquisition is not
considered to be an area of significant risk for our audit but
as it requires considerable time and resource to audit due
to its magnitude, it is considered to be a key audit matter.
Principal Audit Procedure
We assessed whether the Company's accounting policy
in relation to the capitalisation of expenditures are in sync
and in compliance with Ind AS and found them to be
consistent.
We obtained a listing of capital expenditures and major
acquisition during the year and, on a sample basis,
checked whether the assets were undertaken based on
internal purchase order that had been properly approved
by the key person with such authority with no material
exceptions noted. We inspected a sample of contracts
and underlying invoices to determine whether the
classification between capital and operating expenditure
was appropriate. We noted no material exceptions.
We evaluated whether the useful lives of the component
determined and applied by the management were in line
with historical experience, group assessment and the
market practice.
We checked whether the depreciation of PPE items
was commenced timely, by comparing the date of the
reclassification from work in progress to asset in use, with
the date of the act of completion of the work. We noted no
material exceptions.
Reference to related disclosures
The Company has provided information on the disclosure
of the addition, deletion of PPE and depreciation for the
year on such addition and existing asset in Note 4 of the
Standalone Financial Statements.
2. Expected Credit Loss
As described in Note 2 (B) (xi) (d) of the Standalone
financial statements for the year ended March 31,2026,
the management has determined the allowance for credit
losses based on historical loss experience adjusted
to reflect the impact of the economic conditions. The
allowance for credit loss model requires consideration
of the customers' business operations/ability to pay
dues. Based on such analysis the Company has recorded
an allowance aggregating to ' 1.00 lakhs as at March
31,2026 considered in Note 7 & 12 of the Standalone
Financial Statements. We identified allowance for credit
losses as a key audit matter because the Company
exercises significant judgment in calculating the expected
credit losses.
Principal Audit Procedure
We have performed the following procedures:
i) Evaluated the design and implementation including
the operating effectiveness of the controls over:
• Basis of consideration of the impact of the
economic conditions;
• Completeness and accuracy of the data used in
estimation of probability of default;
• Computation of the expected credit loss allowance
ii) Tested the completeness and accuracy of the ageing
of accounts receivable data.
iii) Further in addition to the above process, a forward
looking expected loss impairment model as prescribed
in Ind AS 109 "Financial Instruments” was also applied
by the Company. This involves judgment as the
expected credit losses must reflect information about
past events, current conditions, and forecasts of future
conditions.
iv) Selected a sample of the customers, and
• Verified publicly available credit reports and
other information relating to the Company's
customers to test if the management had correctly
considered the adjustments to credit risk.
• Obtained and verified the details of credit period
extension granted to the customers and developed
an expectation of similar extensions across other
customers of the Company.
v) Recomputed the expected credit loss allowance
considering the above determined input data and
compared the amounts so recomputed with the
amounts recorded by the management to determine
if there were any material differences individually or in
the aggregate.
Information other than the Standalone Financial
Statements and Auditors' Report thereon
The Company's Management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Annual Report but
does not include the Standalone Financial Statements and our
auditor's 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.
Responsibilities of Management and Those Charged
with Governance for the Standalone Financial
Statements
The Company's Management and Board of Directors are
responsible for the matters stated in section 134(5) of the
Companies Act, 2013 with respect to the preparation of these
Standalone 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 Ind AS and other
accounting principles generally accepted in India, including
the accounting Standards specified under section 133 of the
Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate implementation
and maintenance of 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
statement 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 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.
The Board of Directors is also responsible for overseeing the
Company's financial reporting process.
Auditor's 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 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 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 control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company has
adequate internal financial controls system in place and
the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of 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
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 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 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.
Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the consolidated financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the
Standalone Financial Statements.
We believe that the audit evidence obtained by us is sufficient
and appropriate to provide a basis for our audit opinion on the
Standalone Financial Statements.
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 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 Require¬
ments
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 Companies Act, 2013, we give in the "Annexure A” a
statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books.
c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), Standalone Statement of
Changes in Equity, and the Standalone Statement of
Cash Flows 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, read with Rule
7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received
from the directors as on March 31,2026 taken on
record by the Board of Directors, none of the directors
are disqualified as on March 31, 2026 from being
appointed as a director in terms of Section 164 (2) of
the Act.
f) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to
our separate Report in "Annexure B”.
g) In our opinion and according to the information and
explanations given to us, the managerial remuneration
for the year ended Mach 31, 2026, has been paid
/ provided by the Company to its directors is in
accordance with the provisions of Section 197 read
with Schedule V to the Act.
h) 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 does not have any pending
litigations which would impact its financial position
except as referred in Note 40 to the 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. According to the information and explanations
given to us, there has been a delay/non-transfer
in transferring amount of ' 7.52 lakhs pertaining
to the financial year 2017-18, to the Investor
Education and Protection Fund, as required under
the Companies Act, 2013, as disclosed in Note 54
to the Standalone Financial Statements.
iv. (A) The Management has represented that, to the
best of its knowledge and belief, no funds have
been advanced or loaned or invested (either from
borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in
any other person(s) or entity(ies), including foreign
entities ("Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the
company ("Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(B) The Management has represented, that, to
the best of its knowledge and belief, 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 such audit procedures that we
have 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 (a) and (b) above,
contain any material misstatement.
v. No dividend has been declared or paid during the
year by the Company.
vi. Based on our examination which included test
checks, the Company has used accounting
software for maintaining its books of account
which has a feature of recording audit trail (edit
log) facility and the same has operated throughout
the year for all relevant transactions recorded in
the software. Further, during the course of our
audit we did not come across any instance of audit
trail feature being tampered with and the same
has been preserved as per statutory requirements
of record retention.
For S K Patodia & Associates LLP
Chartered Accountants
Firm's Registration Number: 112723W/W100962
Dhiraj Lalpuria
Partner
Membership Number: 146268
UDIN: 26146268CADNEI4314
Place : Mumbai
Date : April 29, 2026
|