We have audited the Standalone Financial Statements of Kabra Extrusiontechnik Limited (“the Company”), which comprises
the Standalone Balance Sheet as at 31st March 2026, the Standalone Statement of Profit and Loss (including the Statement of
Other Comprehensive Income), the Standalone Statement of Changes in Equity, the Standalone Statement of Cash Flows for
the year ended on that date and notes to the financial statements, including a summary of material 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,as amended (“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
Companies (Indian Accounting Standards) Rules, 2015 as amended (“Ind AS”) and other accounting principles generally accepted
in India, of the state of affairs of the Company as at 31st March 2026, its loss, other comprehensive income 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
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 (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 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.
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Sr.
No.
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Key audit matters
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How our audit addressed the key audit matter
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A.
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Revenue Recognition
The company recognizes revenue from sale of goods and services
measured at the amount of transaction price (net of variable
consideration), when it satisfies its performance obligation at
a point in time which is when products are delivered to buyer
whereas sale of services includes maintenance services provided
to various customers. Accordingly, revenue recognizes when all
significant risk and rewards of ownership of goods are passed on
to the customer.
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Our audit procedures to assess the revenue recognition
includes the following:
i. Testing of the design and implementation of
controls involved in the determination of the
estimates used as well as their operating
effectiveness;
ii. Testing a sample of Pos and SLA for appropriate
identification of performance obligations and
verification of contract value;
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iii.
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For the sample selected, matching the revenue,
actual invoices recorded and actual cost incurred
against each project on the basis of which
revenue is recognized;
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iv.
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Evaluated the process followed by the
management for revenue recognition including
understanding and testing of key controls related
to recognition of revenue in correct period
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v.
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Performed analytical procedures for reasonable¬
ness of revenues disclosed by type and
service offerings and we have ensured that the
disclosures provided in notes are in accordance
with the Ind AS 115 and Companies Act, 2013.
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Sr.
No.
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Key audit matters
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How our audit addressed the key audit matter
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B.
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Valuation of Inventory
Refer to Note 7 of the Standalone Financial Statements, where
inventory forms a significant part of company's assets as on 31st
March, 2026.
Inventory is comprised of raw material and work in progress which
are valued as per IND AS 2.
We focus on this area because of its size, the assumptions used
in valuation and the complexity of the project completion, which
are relevant while determining the amounts recorded.
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Our audit procedures to assess the valuation of
inventory includes the following:
i. Attending the stock counts at locations to observe
the stock count process and evaluate the
condition of site work in progress.
ii. Testing the valuation methods used by the
management in valuation of raw material and
work in progress.
iii. Comparing on sample basis specific purchases
with underlying supporting documents.
iv. Evaluating the appropriateness of the basis
and processes used by the Management in
determining the net realizable value of work in
progress and cost for the raw material.
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C.
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Contingent Liability
The Company has duties and taxes litigations that are pending
with various tax authorities. Whether a liability is recognized
or disclosed as a contingent liability in the financial statements
is inherently judgmental and dependent on assumptions and
assessments. We placed specific focus on the judgements in
respect to these demands against the Company. Determining
the amount, if any, to be recognized or disclosed in the financial
statements, is inherently subjective. Therefore, it is considered to
be a key audit matter.
(Refer Note 41(a) to Standalone Financial Statements)
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Our procedures included, but were not limited to, the
following:
• Obtained an understanding from the management
with respect to process and controls followed by
the Company for identification and monitoring
of significant developments in relation to the
litigations, including completeness thereof.
• Obtained the list of litigations from the
management and reviewed their assessment of
the likelihood of outflow of economic resources
being probable, possible or remote in respect of
the litigations.
• Assessed management's discussions held
with their legal consultants and understanding
precedents in similar cases;
• Our own assessment on the adequacy and
appropriateness of the disclosures made by the
management in the financial statements.
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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 Director's 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.
Responsibility of Management and those charged with governance for the Standalone Financial Statements
The Company's Management and 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), 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 Companies ( Indian Accounting Standards) Rules 2015 , as amended.
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 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 are 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 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.
• 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 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 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 Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”) issued by the Central Government in terms of
Section 143(11) of the Act, we give in “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit 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 purpose 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 the Statement of Other
Comprehensive Income, Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flow
dealt with by this report are in agreement with the relevant books of account;
d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of
the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the directors as on 31st March 2026 taken on record by the
Board of Directors, none of the directors are disqualified as on 31st March 2026 from being appointed as a director in
terms of Section 164 (2) of the Act.
f) Based on our examination of the books of accounts, there are no qualification, reservation or adverse remark relating
to the maintenance of accounts and other matters connected therewith on reporting under Rule 11(g);
g) With respect to the adequacy of the internal financial controls with reference to the Standalone Financial Statements
of the Company 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/provided by the company to its directors for the current year is in accordance with the provisions
of section 197 of the Act and remuneration paid/provided 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, as amended in our opinion and to the best of our information and
according to the explanations given to us:
i. The Standalone Financial Statements disclose the impact of pending litigations on the financial position of the
company- Refer Note 41(a) to the Standalone Financial Statement.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
iii. There has been no delay in transferring the amounts required to be transferred, to the Investor Education and
Protection Fund by the Company.
iv. With respect to clause (e) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended:
a. The Management has represented to us that, to the best of its knowledge and belief other than as disclosed
in notes to accounts to the Standalone 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 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 audit procedures, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect to the previous year is in accordance with section
123 of the Companies Act 2013 to the extent it applies to payment of dividend.
vi. Based on our examination which included test checks, the company has used ERP for maintaining its books of account
for the financial year ended March 31, 2026 which has feature of recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant transactions recorded in the software system.
Further, 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 incorporated in India as per the statutory requirement for record retention.
For Kirtane & Pandit LLP
Chartered Accountants
Firm Registration No.105215W/W100057
Akshay B. Purandare
Partner
Place: Mumbai Membership No.: 141984
Date: May 28, 2026 UDIN: 26141984DPWZQZ2443
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