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Kretto Syscon Ltd.

BSE: 531328 Sector: Infrastructure
NSE: N.A. ISIN Code: INE128R01023
BSE 12:01 | 08 Dec 0.67 0.01
(1.52%)
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0.66

HIGH

0.67

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0.65

NSE 05:30 | 01 Jan Kretto Syscon Ltd
OPEN 0.66
PREVIOUS CLOSE 0.66
VOLUME 295492
52-Week high 1.44
52-Week low 0.56
P/E 67.00
Mkt Cap.(Rs cr) 11
Buy Price 0.66
Buy Qty 128120.00
Sell Price 0.67
Sell Qty 336011.00
OPEN 0.66
CLOSE 0.66
VOLUME 295492
52-Week high 1.44
52-Week low 0.56
P/E 67.00
Mkt Cap.(Rs cr) 11
Buy Price 0.66
Buy Qty 128120.00
Sell Price 0.67
Sell Qty 336011.00

Kretto Syscon Ltd. (KRETTOSYSCON) - Auditors Report

Company auditors report

To the Members of

KRETTO SYSCON LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the Financial Statements of KRETTO SYSCON LIMITED ("theCompany") which comprise the balance sheet as at 31st March 2022 andthe statement of profit and loss (statement of changes in equity) and statement ofcash flows for the year then ended and notes to the Financial Statements including asummary of significant accounting policies and other explanatory information [hereinafterreferred to as "the Financial Statements"].

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2022 and its profit/loss (changes in equity) and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Financial

Statements section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the FinancialStatements under the provisions of the Companies Act 2013 and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

"Information Other than the Financial Statements and Auditor’s ReportThereon"

The Company’s Board of Directors is responsible for the other information. Theother information comprises the [information included in the X report but does notinclude the Financial Statements and our auditor’s report thereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Financial Statements that give a true and fair view of the financial positionfinancial performance (changes in equity) and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the accountingStandards specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Financial Statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the Financial Statements the Board of Directors is responsible forassessing the

Company’s ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so. Those Board of Directors are also responsiblefor 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 FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

a. Identify and assess the risks of material misstatement of the Financial Statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls

c. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

d. Conclude on the appropriateness of management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the Financial Statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

e. Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the Financial Statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Financial Statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Financial Statements may be influenced. We considerquantitative 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 theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. The provisions of the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the

Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 is applicable to the Company refer to our separate Report in "AnnexureA".

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 bestof 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 theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (the Statement of Changes inEquity) and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid Financial Statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014

(e) In our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164(2) of the Act.

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company have pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For S.Mandavat & Co.

CHARTED ACCOUNTANTS

FRN: 118330w

Sd/-

CA. Subhashchandra Mandawat

M.No. : 102708

Place: Ahmedabad

Date: 25.05.2022

UDIN: 22102708AJOTFY3114

ANNEXURE TO INDEPENDENT AUDITORS’ REPORT

Annexure ‘A’

Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report of even date

On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we state that: -

i. The Company has fixed assets and company is maintaining proper records showing fullparticulars including quantitative details and situation of property plant and machinery.The physical verification and all the proper records maintained by the management.

ii. There is no Closing stock at the end of the year hence Not Applicable.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013.Consequently theprovisions of clauses iii (a) (b) and (c) of the order are not applicable to the Company.iv. In our opinion and according to the information and explanations given to us companyhas complied with the provision of section 185 and 186 of the Companies Act 2013 Inrespect of loans investment guarantees and security.

v. The company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provision of sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 withregards to the deposits accepted from the public are not applicable.

vi. As per information & explanation given by the management maintenance of costrecords has not been specified by the Central Government under sub-section (1) of section148of the Companies Act 2013.

vii. According to information and explanations given to us and on basis of ourexamination of the books of account and records the company has been generally regularin depositing undisputed statutory dues including Sales-tax Service Tax Custom DutyExcise Duty value added tax cess and any other statutory dues with the appropriateauthorities. The company has demand for the F.Y 2014-15 : 11571910/- F.Y 2012-13 :3217610/- AND F.Y 2015-16 : 14148300/- . against which CIT(A) is pending. viii. Thereis no any such transaction which was not recorded in the books of accounts and disclosedas income during the year in the tax assessments under the Income Tax Act 1961.

ix. In our opinion and according to the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution or bank. The Company has not taken any loan either fromfinancial institutions or from the government and has not issued any debentures.

x. Based on our audit procedures and according to the information given by themanagement the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.

xi. According to the information and explanations given to us we report that no fraudby the company or any fraud on the Company by its officers or employees has been noticedor reported during the year.

xii. The company is not a Nidhi Company. Therefore clause (xii) of the order is notapplicable to the company.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.

xiv. As per company size and nature of its transaction there is no need to applyinternal audit systems hence N.A

xv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or person connected with him. Accordingly the provision of clause 3 (xv) of theOrder are not applicable to the Company and hence not commented upon.

xvi. In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. And accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.

xvii. There is no any cash losses incurred during the year consideration hence N.A.

viii. There is no any resignation of statutory auditors during the year considerationhence N.A

xix. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements the auditor’s knowledge of the Board of Directors andmanagement plans and as per the auditor’s opinion that there is no any materialuncertainty exists as on the date of the audit report. The company is capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. xx. There is no any ongoingprojects the company has transferred unspent amount during the year consideration. xxi.There is no any adverse demand and qualification by the respective auditors hence N.A

For S.Mandavat & Co.

CHARTED ACCOUNTANTS

FRN: 118330w

Sd/-

CA. Subhashchandra Mandawat

M.No. : 102708

Place: Ahmedabad

Date: 25.05.2022

UDIN: 22102708AJOTFY3114

ANNEXURE - B TO THE AUDITORS’ REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the

Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of KRETTOSYSCON LIMITED("The Company") as of 31st March 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’).

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on

Auditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion 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 at 31st March 2022based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For S.Mandavat & Co.

CHARTED ACCOUNTANTS

FRN: 118330w

Sd/-

CA. Subhashchandra Mandawat

M.No. : 102708

Place: Ahmedabad

Date: 25.05.2022

UDIN: 22102708AJOTFY3114

Annexure C to the Independent Auditors’ Report

Additional Reporting as per Revised Schedule-III of the Companies Act -2013 [Amended on24th March 2021]

Additional Regulatory Information

1. Title Deeds of Immovable Property not held in the name of the Company

As per the information and explanation given to me the records examined by me andbased on the examination in company there is no any immovable property hence N.A

2. Revaluation of Property Plant & Equipments

The Company has not revalued its Property Plant and Equipments during the currentfinancial year.

3. Loans & Advances to Directors Promoters KMPs & Related Parties

The Company has not granted any loans or advances in the nature of loan outstanding toany of its Promoters Directors Key Managerial Personals and related parties.

4. Capital Work-in-Progress

The Company does not have any Capital Work in Progress Account as at the Balance SheetDate.

5. Intangible Assets under Development

The Company does not have any Intangible Assets under development as at the BalanceSheet Date.

6. Details of Benami Property held

The Company does not hold any Benami Property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and the rules made thereunder.

7. Wilful Defaulter

As informed by the management the name of the Company and any of its directors doesnot appear under the list of wilful defaulter.

8. Relationship with Struck off Companies

The Company does not have any transactions with the Companies struck off under section248 of the Companies Act 2013 or section 560 of the Companies Act 1956.

9. Registration of charges or satisfaction with Registrar of Companies

The Company does not require to create/modified/satisfied charge on the assets of theCompany during the financial year.

10. Compliance with number of layers of Companies

The Company has complied with the number of layers prescribed under clause (87) ofsection 2 of the Act read with Companies (Restriction on Number of Layers) Rules 2017.

11. Financial Ratios FY 2021-22

SR. No Ratio Numerator Denominator Current Period Previous Period % Variance Reason for Variance
1 Current Ratio Current Assets Current Liabilities 10.42 12.52 -
2 Debt-Equity Ratio Loans (Liabilities) Capital Accounts + Net Profit 0.00 0.19 -
3 Debt Service Coverage Ratio Net Operating Income Interest on Loan + Loan Repayment 0.00 0.00 -
4 Return on Equity Ratio Profit Equity+Profit 1.10 0.74
5 Inventory Turnover Ratio Inventory Turnover 0.00 0.00 -
6 Trade Receivable Turnover Ratio Trade Receivable Turnover 0.00 0.00 -

12. Compliance with approved Scheme(s) of Arrangements

There is not any scheme of arrangements has been approved by the competent authority interms of section 230 to 237 of the Companies Act 2013 during the current financial year.

13. Utilization of Borrowed funds and Share Premium

[A] The Company has not advanced or loaned or invested funds (either borrowed fundsor share premium or any other sources or kind of funds) to any other person(s) orentity(ies) including foreign entities (Intermediaries) with the understanding (whetherrecorded in writing or otherwise) that the intermediary shall i. Directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the company (Ultimate Beneficiaries) or ii.Provide any guarantee security orthe like to or on behalf of the Ultimate Beneficiaries [B] The Company has notreceived any funds from any persons(s) or entity(ies) including foreign entities (FundingParty) with the understanding (whether recorded in writing or otherwise) that the companyshall i. Directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) orii.Provide any guarantee security or the like to or on behalf of the UltimateBeneficiaries

14. Undisclosed Income

The Company does not have any transaction which was not recorded in the books ofaccounts in earlier years & that has been surrendered or disclosed as income duringthe year in the tax assessments under the Income Tax Act 1961.

15. Corporate Social Responsibility

The Company is not covered under section 135 of the Companies Act 2013.

16. Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency duringthe current financial year.

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