We have audited the accompanying Financial Statements of M/s KINETIC TRUST
LIMITED, which comprise the Balance Sheet as at 31st March 2024, the Statement
of Profit & Loss (including Other Comprehensive Income), the Statement of Changes
in Equity and the Cash Flow Statement for the period then ended and a summary of
significant accounting policies and other explanatory information.
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 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 31st March, 2024, and its Profit, total comprehensive
income, the 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 specified under section 143(10) of the Act (SAs). 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
independence requirements that are relevant to our audit of the standalone 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. However, there are no key audit matters to be
reported separately for the current period.
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 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.
Management Responsibility for the Standalone 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 standalone financial
statements that give a true and fair view of the financial position, financial
performance, total 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. 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 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 is responsible for overseeing the Company’s financial
reporting process.
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 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 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 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 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 & Regulatory requirements
1) As required by the Companies (Auditor’s Report) Order, 2020 issued by the
Central Government of India in terms of sub-section (11) of Section 143 of the
Companies Act, 2013, and on the basis of such checks of the books and records
of the company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure -A, a statement to the
matter specified in paragraph 3 and 4 of the said 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 Statement of Profit and Loss including
Other Comprehensive Income, Statement of Changes in Equity and the
Statement of Cash Flow 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.
(e) On the basis of the written representations received from the directors as on
31st March, 2024 taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2024 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”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the
Company’s internal financial controls over financial reporting and
(g) With respect to the other matters to be included in the Auditor’s Report in
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,
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.
(ii) The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(iv) (i) Management has represented that, to the best of it’s knowledge and
belief, other than as disclosed in the notes to the accounts, 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(, 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;
(ii) Management has represented, that, to the best of it’s knowledge and
belief, other than as disclosed in the notes to the accounts, no funds have
been received by the company from any person(s) or entity (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
(iii) Nothing has come to our notice that has caused us to believe that the
representations made by management under sub-clause (i) and (ii) contain
any material mis-statement.
(v) No dividend has been declared or paid by the company during the year
is therefore compliance check with section 123 of the Companies Act,
2013 is not applicable.
(vi) Based on our examination, which included test checks, the company
has used in accounting software for maintaining its books of account
for the year ended March 31st 2024 and which have feature of recording
audit trail (edit log) facility during the year w.e.f 11.12.2023.
3) As required by the Non-Banking Financial Companies Auditor’s Report (Reserve
Bank) directions and on the basis of such checks of the books and records of the
company as we considered appropriate and according to the information and
explanations given to us, we give our observations as under: -
a)
(i) The Company is registered as NBFC with the Reserve Bank of India as
required U/S 45-A of the Reserve Bank of India Act, 1934 and the
Certificate of the registration has been granted.
(ii) The company is entitled to hold COR issued by Bank in terms its assets
and income patterns as on 31 March of the applicable year.
(iii) This company is classified as Loan Company; therefore, this clause is
not applicable to the company.
(iv) This company is not classified as NBFC - Micro Finance Institutions,
therefore this clause is not applicable to the company.
The company has met the requirement of minimum Net Owned Fund (NOF)
as laid down in and Master Direction of the Bank in respect of NBFC-ND.
(v) As the Company is not accepting/holding public deposits, clause 'B' of
paragraph 3 of the NBFC Auditor's Report (Reserve Bank) Directions,
2008 is not applicable to this company.
b)
(i) The Board of Directors has passed a resolution for the non-acceptance
of any public deposits.
(ii) The Company has not accepted any public deposits during the relevant
year.
(iii) The Company has complied with the prudential norms relating to
income recognition, accounting standards, assets classification and
provisioning for bad & doubtful debts as applicable to it.
(iv) As the Company is not a “Systematically Important Non-Deposit Taking
NBFC”, Sub-clause 'IV' of paragraph C of the NBFC Auditor's Report
(Reserve Bank) Directions, 2008 is not applicable to this company.
c) The company has not received any specific direction from banks, clause 'D' of
the paragraph 3 of NBFC Auditor's Report (Reserve Bank) Directions, 1998 is
not applicable to the company.
For Sunita Agrawal & Co
Chartered Accountants
FRN: 515225C
Sunita Agrawal
M. No.:095196
UDIN : 24095196BKEMMP7943
Place: New Delhi
Date: 27.05.2024
| 