We have audited the financial statements of KHANDELWAL EXTRACTIONS LIMITED ("the
Company”), which comprise the balance sheet as at 31st March 2024, and the statementof Profit
and Loss, statementof changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of material accounting policies and other
explanatory information.
Inouropinion and tothebestofourinfbrmation and accordingtotheexplanationsgrventous.the
aforesaid financial statements givethe information required by the Act in the manner so required
andgveatrueandfairviewin conformity with t he I rvd ia n Account i ng Standa rds pres crib ed u nde r
section 133 of the Act, read with the 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 March 31,2024, and profit, changes in equity and its cashflows for the
yearendedon 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 inthe Auditor's Responsibilities for the Audit ofthe Financial Statemerts section
of our re port. We a re i nde pende nt of the Compa ny i n accorda nee with the Code of Ethics is sued by
the Institute of Quartered Accountants of India together with the ethical requirements that are
re leva nt to our audit cf the f ina ntia I state me nts under the provis ion s of the Compan ies 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
obtainedissufficientandappropriatetoprovideabasisfor ouropinion.
Other Information
The Company's managemert and Board of Directors are responsible for the other information.
The other information comprises the information induded in the Company's annual report, but
does not include the financial statements and our auditors'report thereon. The annual report is
expectedtobe made avail able to us after the date of this auditors' report
Our opinion on the financial statements does not cover the other information and we do not
express any form of ass urance cone I us ion thereon.
In connection with our audit ofthe financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the
other information is materialy inconsistent with the financial statements or our knowledge
obtainedintheauditorothe rwis eappearstobemateriallymisstated.
When we read theannual report, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged with governance and take necessary
act ions, as applicable under the relevant laws and regulations.
Responsibility of Management for Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) ofthe
CompaniesAct, 2013 ("the Act”) with res pea tothe preparation of thesef inancial statements that
give a true and fair view of the financal position, financial performance, changes in equity and
cash flows of the Companyin accordance with the Ind AS andotheraccourting principles generally
accepted in India. This responsibilityalso includes maintenance of adequate accounting records in
accordance with the provisions of the Aa for safeguardingof the assets of the Company and for
preventing and deteaingfrauds and other irregParities; 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 cortrols, that were
operating effeaively for ensuring the accuracy and completeness ofthe accounting records,
relevant to the preparation and presertation ofthe financial statement that give a true and fair
view and a re free from material misstatement, whether duetofraud orerror.
In preparing the financial statemerts, 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 ether intends to liquidate
the Company orto cease operations, orhasnorealisticaltemative buttodoso.
The Board of Direaors are also responsible for overseeing the company's financial reporting
process.
Auditor's Responsibiitiesforthe Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whde are free from material misstatement, whether due to fraud or error and to issue an
auditor's reportthat indudes our opinion. Reasonableassuranceisahigh level of assurance, but is
not a guarantee that an audit conducted in accordance with SAs will always detea 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 expeaed to influence the
economic dec sons ofusers taken on the basis ofthesefmancial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticismthroughouttheaudit. We also:
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audt procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a bass for our
opinion. The riskof not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omiss io ns, misre presentations, or the ove rride of internal control.
• Obtain an understanding of internal control relevant tothe audit in order to desgn audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) ofthe
Companies Aa, 2013, we a re a Iso responsible for expressing ouropinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such control s.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and relateddisclosures 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 cortinueas agoing concern If we conclude thata material uncertaintyexists, 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
continueas agoing concern.
• Evaluate the overall presentation, struaure and content of the financial statements,
including thedisclosu res,and whetherthe financial statements rep resent the underlying
transaaions andevents ina mannerthat achieves feirpresentation.
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 ouraudit
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.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central
Governmert of India in terms of sub-section (11) of seaion 143 ofthe Companies Aa, 2013, we
giveinthe"Annexure A’ a statement on the matters specified in paragraphs 3 and 4 of the Order,
tothe extent appli cab le.
As req uiredby Seaion 143(3) ofthe Act, we report that:
a. We have sought and obtained all the information and explanations which to the bestof our
knowledge and belief were necessary for the purposes of ouraudit.
b. In ouropinion, proper books of accountas required by law have been kept by the Company
so far as it appears f romour exa mination 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 ofaccount
d In ouropinion, the aforesaid Ind AS finandal statements comply with the Accounting
Standard specified under Seaion 133 of the Aa, read with Companies (Indian Accounting
Standard) Rules 2015 as a mended.
e. On the basis of the written representations received from the direaors as on 31st March,
2024 taken on record by the Board of Direaors, none of the direaors is disqualified as on
31stMarch, 2024from being appointed as a direaorin terms ofSection 164(2) of the Aa
f. With res pea to the adequacy of the interna I financial controls over financial reporting of
the Company and the ope rating effectiveness of such controls, refer to our separate Report
in AnnexireB.
g. With respeato the other matters to be induded in the Auditor's Report in accordance with
therequiremertsof Seaion 197(16) of the Act, as amended:
In our opinion and tothe bestof our information and according tothe explanations
given to us, the remuneration paid by the Company to its direaors during the year is in
accordance with the provisions of seaion 197 of the Aa
h. With respeato the other matters to be induded in the Auditor's Report in accordance with
Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of
our information and accordingtotheexplanationsgiven tous:
i. The Company has disclosed the impaa of pending litigations on its finandal position in its
financial statements-Refer note no.29 to thefinandal statemerts
ii The Company did not have any long termcontracts in duding derivative cortraas forwhich
there were a ny material foneseea ble losses.
iii. There were no amounts which were required to be transferred to the Investor Education
and Proteaion Fund bytheCompany.
iv (a) The Management has represented that, to the best of it's knowledge and belief, as
disclosed in the note no.6.1tothe accounts, no funds have been advanced or loaned or
invested (either from bor rowed funds or share premium or any other sources or kind of
funds) by the Company toor in any other person(s) or entity(ies), including foreign entities
("Intermediaries”), with the understanding, whether recorded in writing orotherwise, that
the Intermediary shall, direaly 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.
iv (b) The Management has represented, that, to the best of it's knowledge and belief, other
than as dsdosed in the note no. 14. lto the accounts, no funds have been receved by the
Company from any person(s)orentity(ies), induding foreign entities (‘Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the Company shall,
direaly or indireaiy, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf ofthe Funding Party ("Ultimate Bervefiaaries") or provide any
guarantee, securityorthe likeon behalf of the Ultimate Beneficiaries
Based on such audit procedures we have considered reasonable and appropriate the
drcumstances; nothing has come to our notice that has caused us to believe that the
representations under sub-clause (iv)(a) and (iv) (b) above contain any material
misstatement
v The company has not declared o r pai d any div ide nd du n ng the year.
vi Based on our examination which included test checks, the company has used accounting
software for maintaining its books of account but audit trail feature of accounting
software used bythecompa ny is stil I under i mDlementatio n as on 31T Ma rch 2024.
For P. L Tandon & Co.
Chartered Accountants
Firm's Registration No.- 000186C
Place: Kanpur P.P.SNGH
Date: 27-05-2024 (Partner)
(Membership No.- 072754)
UDIN 24072754BKCRZH8162
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