We have audited the accompanying Standalone
Financial Statements of THE KCP LIMITED (“the
company”), which comprise the Balance Sheet
as at March 31, 2025, the Statement of Profit and
Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement
of Cash Flows for the year ended on that date, notes
to the financial statements, including a summary
of the material accounting policies and other
explanatory information (herein after 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
accompanying 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 under section 133 of the
Act read with the Companies (Indian Accounting
Standard) Rules, 2015, as amended, (“Ind AS”) and
other accounting principles generally accepted in
India, of the state of affairs of the Company as at
March 31,2025, and its loss and other comprehensive
loss, changes in equity and its cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit of the financial statements
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 responsibility for the
Audit of 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 (ICAI)
together with the ethical requirements that are
relevant to our audit of financial statements under the
provisions of the Act and the Rules made thereunder,
and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the ICAI’s
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. We have determined that there are no
key audit matters to communicate in our report.
Information Other than the Standalone Financial
Statements and Auditor’s Report Thereon
The Company’s 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, Board’s Report
including Annexures to Board’s Report, Business
Responsibility and Sustainability Report, Corporate
Governance and Shareholder’s Information, 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 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 that give
a true and fair view of the financial position, financial
performance including other comprehensive income,
cash flows and changes in equity of the Company in
accordance with the Indian Accounting Standards (Ind
AS) prescribed under Section 133 of the Companies
Act, 2013 read with relevant rules issued there under
and other accounting principles generally accepted in
India.
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 the 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 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, the
management and Board of Directors are 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 the Board of Directors
either intends to liquidate the company or to cease
operations, or has no realistic alternative but to do so.
The Company’s Board of Directors is also responsible
for overseeing the Company’s financial reporting
process.
Auditor’s Responsibility 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.
?I OI btain 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 with reference to
Standalone Financial Statements 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.
?I CI onclude 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
Standalone 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 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
financial controls 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
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 the
paragraph 3 and 4 of the Order, to the extent
applicable.
2) As required by Section 143(3) of the Companies
Act,2013 we report that:
a) we have sought and obtained all the
information and explanations which to the
best of our knowledge and belief were
necessary for the purposes of our audit;
b) in our opinion, proper books of account
as required by law have been kept by the
Company so far as it appears from our
examination of those books;
c) the Balance Sheet, the Statement of Profit
and Loss including Other Comprehensive
Income, 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 Standalone
Financial Statements comply with the Indian
Accounting Standards (Ind AS) prescribed
under Section 133 of the Companies
Act, 2013 read with Rule 7 of Companies
(Accounts) Rules, 2014;
e) on the basis of written representations received
from the directors as on 31st March, 2025 taken
on record by the Board of Directors, none of
the directors is disqualified as on 31st March,
2025 from being appointed as a director in
terms of Section 164(2) of the Act;
f) with respect to the adequacy of internal
financial controls with reference to Standalone
Financial Statements 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 company’s internal financial controls
with reference to Standalone Financial
Statements;
g) With respect to Managerial Remuneration
to be included in the Auditor’s 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 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.
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
Auditor’s) 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 on its financial position
in its Standalone Financial Statements -
Refer Note 37 to the 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 but did not have
derivative contracts—Refer Note 47 to the
Standalone Financial Statements
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company.
iv. (a) The Management has represented
that, to the best of its knowledge and
belief, no funds (which are material
either individually or in the aggregate)
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 or entity, including
foreign entity (“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 (which are material
either individually or in the aggregate)
have been received by the Company
from any person or entity, including
foreign entity (“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;
(c) Based on the audit procedures that
have been 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. a) The final dividend of the previous year,
declared and paid by the Company
during the year is in accordance with
Section 123 of the Act, as applicable.
b) The Board of Directors of the Company
have recommended a dividend of
Rs. 0.25 (25%) per share for the year
which is subject to the approval of the
members at the ensuing Annual General
Meeting. The dividend recommended
is in accordance with section 123 of
the Act, as applicable. (Refer Note No
48 Notes to accounts of Standalone
Financial Statements)
vi. Based on our examination, which included
test checks, the Company has used
accounting software systems for maintaining
its books of account for the financial year
ended March 31,2025 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 systems.. Further, during
the course of our audit we did not come
across any instance of the audit trail feature
being tampered with and the audit trail has
been preserved by the Company as per the
statutory requirements for record retention.
for K.S.RAO & CO
Chartered Accountants
Firm Regn.No.003109S
K. VAMSI KRISHNA
Partner
Camp: Tanuku ICAI Mem No: 238809
Date : May 28, 2025 UDIN 25238809BMHZQQ3395
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