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Kaira Can Company Ltd.

BSE: 504840 Sector: Industrials
NSE: N.A. ISIN Code: INE375D01012
BSE 00:00 | 06 Feb 2265.90 -52.55
(-2.27%)
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NSE 05:30 | 01 Jan Kaira Can Company Ltd
OPEN 2318.00
PREVIOUS CLOSE 2318.45
VOLUME 336
52-Week high 4473.00
52-Week low 1701.00
P/E 27.20
Mkt Cap.(Rs cr) 208
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2318.00
CLOSE 2318.45
VOLUME 336
52-Week high 4473.00
52-Week low 1701.00
P/E 27.20
Mkt Cap.(Rs cr) 208
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kaira Can Company Ltd. (KAIRACAN) - Auditors Report

Company auditors report

To

The Members of

KAIRA CAN COMPANY LIMITED

Report on the Audit of the Standalone

Financial Statements

Opinion

We have audited the accompanying standalone financial statements of KAIRACAN COMPANY LIMITED ("the Company") which comprise the Balance Sheet as atMarch 312022 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 onthat date notes to the financial statements and a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "thestandalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312022the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor?s Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical / independence requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI?s Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditor?s Response
1 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of Ind AS 115 "Revenue from Contracts with Customers". Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows;
The application of the revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognised over a period. Additionally standard contains disclosures which involve collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. 1. Evaluated the design of internal controls relating to the revenue recognition.
2. Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation re-performance and inspection of evidence in respect of operation of these controls.
3. Selected a sample of continuing and new contracts and performed the following procedures:
• Read analysed and identified the distinct performance obligations in these contracts.
• Compared these performance obligations with those identified and recorded by the Company.
• Considered the terms of the contracts to determine basis of recognising the revenue 'at a point' or 'over the period' the transaction price including any variable consideration to verily the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
• Verified whether the revenue has been recognised only post the fulfilment of the performance obligations and related conditions. Verified whether the revenue is appropriately recognised only after the transfer of control over the said goods.
2. Consumption and Inventory Valuation: We have performed the following procedures in relation to the accuracy of consumption booked and inventory recorded:
Accuracy of recording of inventory & related consumption at appropriate values:
Understood evaluated and tested the key controls over the recording of inventory and booking of consumption. We selected a sample of transactions and:
• Checked the GRNs and material issue slips on a sample basis to ensure correct recording of materials receipts & consumption.
• Tested and verified the weighted average rate of inputs at which consumption was recorded.
• Tested and verified the Overhead absorption rate calculation used for inventory valuation.
• Reviewed the process of physical verification of inventories carried out by the management at various location by participating in the said process.
• Verified and analyzed the physical verification report of inventory carried out by the management and corrective actions taken to rectify the identified discrepancies (if any).
3. Assessment of contingent liabilities and provisions related to Taxation Litigations and claims: Our audit procedures included:
The assessment of the existence of the present legal or constructive obligation analysis of the probability of the related payment and analysis of a reliable estimate requires management's judgement to ensure appropriate accounting or disclosures. Due to the level of judgement relating to recognition valuation and presentation of provisions and contingent liabilities this is considered to be a key audit matter. Reference note 2.B.(xiii) and 35 to the financial statements. • As part of our audit procedures we have assessed Management's processes to identify new possible obligations and changes in existing obligations for compliance with company policy and Ind AS 37 requirements.
• We have analysed significant changes from prior periods and obtain a detailed understanding of these items and assumptions applied.
• We have obtained relevant status details and Management representations on the major outstanding litigations.
• As part of our audit procedures we have reviewed minutes of board meetings (including the Audit Committee).
• We have held regular discussions with Management and internal legal department.
• We challenged the assumptions and critical judgements made by management which impacted their estimate of the provisions required considering judgements previously made by the authorities in the relevant jurisdictions or any relevant opinions given by the Company?s advisors and assessing whether there was an indication of management bias.
• We discussed the status in respect of significant provisions with the Company?s internal tax and legal team.
• We performed retrospective review of management judgements relating to accounting estimate included in the financial statement of prior year and compared with the outcome.

Information Other than the Standalone Financial Statements andAuditor?s Report Thereon

The Company?s Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board?s Report includingAnnexures to Board?s Report Business Responsibility Report Corporate Governance andShareholder?s Information but does not include the standalone financial statementsand our auditor?s report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

When we read other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and describe actions applicable in the applicable laws and regulations. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany?s financial reporting process.

Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

I. As required by the Companies (Auditor?s Report) Order 2016("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 statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

II. As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept 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 othercomprehensive income) the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Financial Statements complywith the Ind AS specified under Section 133 of the Act read with Rule 3 of the Companies(Indian Accounting Standards) Rules 2015.

e) On the basis of the written representations received from thedirectors as on March 312022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312022 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B" to this report.

g) With respect to the other matters to be included in theAuditor?s Report under section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

h) With respect to the other matters to be included in theAuditor?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 accordingto the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements - Refer Note No. 35 to theStandalone Financial Statements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there are any material foreseeable losses: and

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education & Protection Fund by the company.

iv.

a) the Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen advanced or loaned or invested (either from borrowed funds or share premium or anyother sources or kind of funds) by the company to or in any other person or entityincluding foreign entity ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the company ("Ultimate Beneficiaries") or provide anyguarantee security or the like on behalf of the Ultimate Beneficiaries;

b) the Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the company from any person or entity including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries; and

c) Based on audit procedures that have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material mis-statement

v. The final dividend proposed in the previous year declared and paidby the Company during the year is in accordance with Section 123 of the Act asapplicable.

The interim dividend has not been declared and paid by the Companyduring the year.

As stated in note 16.2 to the financial statementsThe Board ofDirectors of the Company have proposed final dividend for the year which is subject to theapproval of the members at the ensuing Annual General Meeting. The amount of dividendproposed is in accordance with section 123 of the Act as applicable.

ANNEXURE - A to the Independent Auditors? Report on StandaloneFinancial Statements of Kaira Can Company Limited

(Referred to in paragraph I under the heading "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members of KairaCan Company Limited on the Standalone Financial Statements for the year ended March 312022)

i. a) 1) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipment.

2) The Company has maintained proper records showing full particularsof intangible asset

b) As informed to us the fixed assets having substantive value havebeen physically verified by the management during the period according to a phasedprogramme. In our opinion such programme is reasonable having regard to the size of theCompany and the nature of its assets. We have been further informed that no materialdiscrepancies were noticed on such verification by the management between the book recordsand physical verification.

c) According to the information and explanations given to us and basedon the records produced the title deeds of the immovable properties held by the Companyare in the name of the Company.

d) The company has neither revalued its PPE (including Right of Useassets) nor intangible assets or both during the year.

e) As per the information and explanation provided to us noproceedings have been initiated or are pending against the company for holding any benamiproperty under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules madethereunder.

ii. a) The inventory has been physically verified during the year bythe Management. In our opinion the frequency of verification is reasonable. No materialdiscrepancies were noticed on such physical verification.

b) According to the information and explanations given to us and basedon the records produced company has availed working capital limits from banks on thebasis of security of current assets. There were no material discrepancies were observed inbooks of accounts and amounts reported in quarterly statement submitted by the company tobanks.

iii. According to the information and explanations given to us theCompany has neither granted any loans secured or unsecured nor made any investments incompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013. Accordingly the provisions ofsub clauses (a) (b) (c) (d) & (e) of clause (iii) of the order are not applicableto the company.

iv. In our opinion and according to the information and explanationgiven to us the company has complied with the section 185 and section 186 of the Act inrespect of loans given and investments made and guarantee provided. According to theinformation and explanation given to us the company has not provided any guarantee orsecurity.

v. In our opinion and according to the information and explanationsgiven to us the Company has complied with the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 or any other relevant provisions of the Actand the rules framed there under to the extent applicable. We are informed by theManagement that no order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other Tribunal in this regard.

vi. We have broadly reviewed accounts and records maintained by theCompany pursuant to rules made by the Central Government for the maintenance of costrecords under Section 148(1) of the Act in respect of Company?s products to whichthe said rules are made applicable and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of records with a view to determine whether they are accurate.

vii a) According to the information and explanations given to us andaccording to the records of the Company examined by us in our opinion the Company isgenerally regular in depositing with the appropriate authorities undisputed statutory duesincluding Provident Fund Employees? State Insurance Income-tax Sales Tax ServiceTax Goods and Service Tax duty of Custom duty of Excise Value Added Tax Cess and anyother statutory dues wherever applicable. According to the information and explanationsgiven to us no undisputed amounts payable in respect of aforesaid dues were outstandingas at March 312022 for a period of more than 6 months from the date they became payable.

b) According to the information and explanations given to us therewere no dues in respect of Income Tax Duty of Excise Duty of Customs Sales Tax ServiceTax Goods and Service Tax and Value Added Tax which have not been deposited on account ofany dispute except the following:

(Rs. In Lakhs)

Name of the Statue Nature of Dues Forum where the case is pending Period to which the Amount relates (Financial Year) Gross Amount Involved Amount Paid in Protest
Central Excise Act 1944 Excise Duty Commissioner of Excise Appeals - III and Additional Director General FY 2001-02 to 2016-17 1999.63 153.32
Service Tax (Finance Act1994) Service Tax Commissioner of Service Tax FY 2007-08 to 2011-12 290.28 21.77
Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal/ Commissioner of Income Tax Appeal/ High Court 1989-90 to 2015-16 348.88 108.10
Bombay Sales Tax Act Sales Tax Deputy Commissioner of Sales Tax Appeals Mumbai 1993-94 2.50 1.00

viii. According to the information and explanations given to us notransactions or income not recorded in the books of account have been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act 1961(43 of 1961).

ix. a) In our opinion and according to the information and explanationgiven to us the company has not defaulted in repayments of dues or other borrowings or inthe payment of interest thereon to any lender during the year.

b) According to the information and explanation given to us thecompany has not been declared as wilful defaulter by any bank or Financial Institution orany lender.

c) According to the information and explanation given to us thecompany has not borrowed new term loans during the year. Therefore requirement of thisclause is not applicable to the Company.

d) According to the information and explanation given to us thecompany has not utilized any funds raised on short term basis for long term purposes.Therefore requirement of this clause is not applicable to the Company.

e) According to the information and explanation given to us theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures. Therefore requirement ofthis clause is not applicable to the Company.

f) According to the information and explanation given to us theCompany has not raised any loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies. Therefore requirement of this clauseis not applicable to the Company.

x. a) According to the information and explanations given to us and onthe basis of examination of records of the Company the company has not raised any moneyby way of initial public offer or further public offer (including debt instruments) duringthe year. Hence the reporting requirement under clause (x) (a) of the Order is notapplicable to the company.

b) According to the information and explanations given to us and on thebasis of examination of records of the Company the company has not made any preferentialallotment or private placement of shares or convertible debentures (fully partially oroptionally convertible) during the year. Hence the reporting requirement under clause(x)(b) of the Order is not applicable to the company.

xi. a) According to the information and explanation given to us nofraud on or by the company has been

noticed or reported during the course of our audit.

b) To the best of our knowledge no report under sub-section (12) ofsection 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13of Companies (Audit and Auditors) Rules 2014 with the Central Government during the yearand upto the date of this report.

c) According to the information and explanation given to us nowhistle-blower complaints have been received during the year by the company.

xii. According to the information and explanations given to us theCompany is not a Nidhi Company thus reporting requirements under clause (xii) (a) (b)& (c) of the Order are not applicable.

xiii. According to the information and explanations given to us andbased on our examination of records of the Company the transactions entered with relatedparties are in compliance with provisions of section 177 and 188 of the Companies Actwhere applicable and the details of such transactions are disclosed in the StandaloneFinancial Statements as required by the applicable accounting standards.

xiv. a) In our opinion the Company has an adequate internal auditsystem commensurate with the size and the nature of its business.

b) We have considered the internal audit reports issued to the Companyduring the year and covering the period up to 31 March 2022 for the period under audit.

xv. According to the information and explanations given to us and basedon our examination of records of the Company the Company during the year has not enteredinto any non-cash transactions with directors or persons connected with the directorscovered under the provisions of sec 192 of the Act and accordingly the provisions ofclause (xv) of the Order are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clause (xvi)(a) (b) (c)and (d) of the Order is not applicable.

xvii. The Company has not incurred cash losses during the financialyear covered by our audit and the immediately preceding financial year.

xviii. There has been no resignation of the Statutory Auditors duringthe year and hence the provision of clause (xviii) of the Order is not applicable to theCompany.

xix. According to the information and explanation given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements and our knowledge of the BOD and management plans we are of the opinion thatno material uncertainty exists as on the date of the audit report and that company iscapable of meeting its liabilities existing as at the date of balance sheet as and whenthey fall due within a period of 1 year from the balance sheet date.

xx. The Company has fully spent the required amount towards CorporateSocial Responsibility (CSR) and there is no unspent CSR amount for the year requiring atransfer to a Fund specified in Schedule VII to the Companies Act or special account incompliance with the provision of sub-section (6) of section 135 of the said Act.Accordingly reporting under clause (xx) of the Order is not applicable for the year.

xxi. The Company is not required to prepare consolidated financialstatements and hence the provisions of clause (xxi) of the Order is not applicable.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS? REPORT ONSTANDALONE FINANCIAL STATEMENTS OF KAIRA CAN COMPANY LIMITED

(Referred to in paragraph II (f) under ‘Report on Other Legal andRegulatory Requirements? of our report of even date to the members of Kaira CanCompany Limited on the Standalone Financial Statements for the year ended March 312022)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Kaira Can Company Limited ("the Company") as of March 312022 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.

Management?s Responsibility for Internal Financial Controls

The Company?s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting ("the Guidance Note") issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor?s Responsibility

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing issued by theICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s judgment including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls with reference to FinancialStatements

A company?s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company?s internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofStandalone Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company?s assets that could have a material effect on theStandalone Financial Statements.

Inherent Limitations of Internal Financial Controls with reference toFinancial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as of March 312022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For G. D. Apte & Co
Chartered Accountants
Firm registration number: 100515W
Chetan R. Sapre
Partner
Membership No: 116952
UDIN : 22116952AJSCLT1079
Place : Mumbai
Date : May 27 2022

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