We have audited the accompanying Financial Statements of K I C METALIKS LIMITED (the "Company"), which comprise
the Balance Sheet as at March 31, 2026, 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 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 Indian Accounting Standards prescribed under Section 133 of the act, ("Ind AS")
and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026
and its profit, total 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 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
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 ("ICAI") together with the
ethical requirements that are relevant to our audit of the 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 obtained by us is sufficient and appropriate to provide
a basis for our audit opinion on the 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
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.
We have determined the matters described below to be the key audit matters to be communicated in our report.
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SI No.
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Key Audit Matters
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Auditor's Response
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1.
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Property, plant and equipment (including
capital work in progress)
As at 31st March, 2026 the Company has
Property, Plant and Equipment ('PPE') and Work-
in-Progress ('CWIP') with carrying value of ?
16,256.94 lakh and ? 1,137.69 lakh respectively
as disclosed in note 3 of the acCompanying
Financial Statement The Company incurred
significant expenditure on acquisition,
construction and improvement of assets during
the year.
The determination of whether expenditure
qualifies for capitalisation, the timing of
capitalisation, allocation of directly attributable
costs and assessment of useful lives involve
significant management judgment. Due to the
materiality of the balance and the judgment
involved, this matter was considered to be a key
audit matter.
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In view of the significance of the matter, we applied the
following audit procedures in this area, amongst others,
to obtain sufficient appropriate audit evidence:
Our audit procedures included, among others:
I. Evaluated the design and operating effectiveness of
controls over capital expenditure and asset capitalisation.
II. Tested on a sample basis, additions to supporting
documents such as invoices, contracts and approvals.
III. Assessed whether expenditures capitalised met the
recognition criteria prescribed under the Ind AS.
IV. Reviewed management's assessment of useful lives and
depreciation methods.
V. Verified on a sample basis, the physical existence of
significant assets.
VI. Assessed the adequacy of disclosures made in the financial
statements.
VII. Reviewed capital work-in-progress and assessed the
appropriateness of transfers to Property, Plant and
Equipment.
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SI No.
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Key Audit Matters
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Auditor's Response
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2.
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Inventory
As at 31st March 2026, inventories amounted to ?
18,568.55 lakhs as disclosed in note 7 represent a
significant portion of the Company's total assets.
Inventories comprise raw materials, finished
goods and stores and spares and are carried
at the lower of cost and net realisable value in
accordance with the applicable accounting
standards.
The determination of inventory quantities
involves physical verification conducted and
the assessment of net realisable value requires
management judgment, particularly for slow-
moving, obsolete and damaged inventories.
Considering the significance of inventory
balances and the judgment involved in
determining their valuation, this matter was
considered to be a key audit matter.
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In view of the significance of the matter, we applied the
following audit procedures in this area, amongst others,
to obtain sufficient appropriate audit evidence:
I. Evaluated the design and implementation of controls
relating to inventory management and valuation.
II. Attended physical inventory verification on a sample basis
and assessed the procedures followed by management.
III. Performed test counts and reconciled the results with
inventory records.
IV. Tested the costing methodology applied by the Company.
V. Assessed the appropriateness of provisions made for slow-
moving, non-moving and obsolete inventories.
VI. Evaluated the reasonableness of management's
assessment of net realisable value by comparing carrying
values with recent selling prices and other supporting
evidence.
VII. Assessed the adequacy of disclosures made in the financial
statements.
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Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the
information included in the Annual report, but does not include the financial statements and our auditors'report thereon.
Our opinion on the 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 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 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 financial statements
The Company's Board of Directors are 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 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 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, 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 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 scepticism
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 financial 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 with reference to 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 the 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 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 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 Requirements
1. 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 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 Statement of Cash Flows 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.
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 is 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 with reference to 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 Financial Statements.
g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements
of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according
to the 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.
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, 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 Financial
Statements. Refer Note 33 to the 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 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 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. The Company has neither declared nor paid dividend during the year.
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, 2026 which have
the 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.
2. 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, in our opinion and according to the information and explanations given to
us and examination of records we considered necessary, we give in "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
For Agarwal Maheswari & Co.
Chartered Accountants
(Firm's Registration No. 314030E)
Dhanpat Ram Agarwal
Partner
Place : Kolkata Membership No : 051484
Dated : The 26th Day of May, 2026 UDIN : 26051484SCCWVJ1984
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