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Krypton Industries Ltd.

BSE: 523550 Sector: Auto
NSE: N.A. ISIN Code: INE951B01014
BSE 00:00 | 28 Sep 25.20 0.90
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NSE 05:30 | 01 Jan Krypton Industries Ltd
OPEN 24.30
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VOLUME 10244
52-Week high 30.40
52-Week low 12.55
P/E 8.16
Mkt Cap.(Rs cr) 37
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.30
CLOSE 24.30
VOLUME 10244
52-Week high 30.40
52-Week low 12.55
P/E 8.16
Mkt Cap.(Rs cr) 37
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Krypton Industries Ltd. (KRYPTONINDUSTRI) - Auditors Report

Company auditors report

TO THE MEMBERS OF KRYPTON INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofKrypton Industries Limited ("the Company") which comprises the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Cash Flow Statement for the yearended and notes to the standalone financial statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalonefinancial 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 accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and its profit and other comprehensive incomethe changes in equityand its cash flows forthe year 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 theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor'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 together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto 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 judgmentwere of most significance in our audit of thestandalone financial statements of thecurrent period. These matters were addressed in the context of our audit of thestandalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Description of Key Audit Matter

The Key Audit Matter How the matter was addressed in our audit
Revenue Recognition
Refer Note 32 to the Financial Statements. Our audit procedures included the following:-
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. During the year ended March 31 2021 the company has recognised revenue amounting to Rs. 2415.67Lakhs &Rs. 571.54Lakhs from domestic and export sales respectively. Terms of sales arrangements including the timing of transfer of control delivery specifications including terms in case of exports timing of recognition of sales require significant judgment in determining revenues. • Considering Company's revenue recognition policy and its compliance in terms of Ind AS 115 'Revenue from contracts with customers'.
The risk is therefore that revenue may not get recognised in the correct period or that revenue and associated profit may be misstated. • Assessing the design and tested the operating effectiveness of internal controls related to revenue recognition.
Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 'Revenue from contracts with customers' it has been determined to be a key audit matter in our audit of the standalone Ind AS financial statements. • Testing samples of individual sales transaction and tracing to sales invoices sales orders (received from customers) and other related documents including terms and conditions if any.
• Selecting sample of sales transactions made pre- and post-year end agreeing the period of revenue recognition to underlying documents.
• Performing analytical review of revenue to identify any unusual trends.
• Assessing the relevant disclosures made within the standalone Ind AS financial statements.
Inventories
Refer Note 10 to the Financial Statements. Total Inventory as at 31.03.2021 was Rs. 1781.68 Lakhs and Finished goods of Rs. 809.06 Lakhs comprise 45.41 per cent of such inventory holdings. Total Inventories are 59.64 per cent of the total turnover of the company for FY 2020- 2021. Our audit procedures included the following:-
The inventories are counted by the company on a cyclical basis and accordingly provisions for obsolescence including revision in valuation to Net Realizable Value if any of inventories are assessed and recognized by the management in the financial statements based on management estimation as at the end of the reporting period. Significant degree of judgment is thereby required to assess the net realizable value of the inventories and appropriate level of provisioning for items which may be ultimately sold below cost. Such judgment includes management's expectations forfuture sale volumes inventory liquidation plans and future selling prices less cost to sell. • Obtaining an understanding of and assessing the design implementation and operating effectiveness of management's key internal controls relating to physical verification of inventories by the management of the Company.
Such high holdings existence and valuation of inventories make it a key audit matter. • Assessing whether items in the inventory ageing report prepared by the management were classified within the appropriate ageing bracket;
• Performing a review of the provisions for inventories by examining movements in the balance during the current year;
• Assessing on a sample basis the net realizable value of inventories as calculated by management with reference to prices achieved and costs to sell after the financial year end.
Deferred Tax Asset
Refer Note 23 to the Financial Statements. Our audit procedures included the following:-
Deferred Tax Asset ('DTA') is recognized by the company on the Unused Tax Credits and Unused Tax Losses. Total Deferred Tax Asset on such matters stand at Rs. 82.91 Lakhs as at 31.03.2021. • Updating our understanding of the identifiable causes behind occurrence of tax losses and assessing whether such causes are likely to recur.
DTA is recognized on such unused tax losses and unused tax credits to the extent that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised. The risk is therefore that sufficient profits may not be available in the future to utilise such Deferred Tax Asset. • Obtaining an understanding from the management and assessing the accounting and financial estimates on the basis of which the company shall have sufficient taxable profits before expiry of unused tax losses and unused tax credits.
Such existence and recognition of Deferred Tax Asset make it a Key Audit Matter.

Information Other than the Standalone Financial Statements andAuditor's Report thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theCompany's Annual Report but does not include the standalone financial statements and ourauditor'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 and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements to give a true and fair view of thestate of affairs profit/loss and other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards(IndAS) specified under Section 133 of theAct.This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement 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 is also responsible for overseeing the company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

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 the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause theCompany 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.

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 auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on other Legal and Regulatory Requirement

1. As required by the Companies (Auditor's Report) Order 2016 issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2. 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 havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Standalone Balance Sheet the Standalone Statement of Profitand Loss (including other comprehensive income) the standalone statement of changes inequity and the Standalone Cash Flow Statement dealt with by this Report are in agreementwith the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

(g) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014asamendedin our opinion and to the best of our knowledge and belief and according to theinformation and explanations given to us:

(i) The Company as detailed in Note 43 to the standalone financialstatements has disclosed the impact of pending litigations as on March 31 2021 on itsfinancial position in its standalone financial statements.

(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

3. With respect to the matter to be included in the Auditors' Reportunder Section 197(16):

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.

Annexure "A" to Independent Auditors' Report On theStandalone Financial Statements of Krypton Industries Limited for the year ended 31STMarch 2021

Referred to in Paragraph 9 under "Report on other Legal andRegulatory Requirements" of our report of even date to the Financial Statements ofthe Company for the year ended March 31 2021

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a period of threeyears. In accordance with this program certain fixed assets were verified during the yearand no material discrepancies were noticed on such physical verification. In our opinionthis periodicity of physical verification is reasonable having regard to the size of theCompany and nature of its assets.

(c) According to the information and explanations given to us and therecords examined by us and on the basis of our examination of the records of the companythe title deeds of immovable properties are held in the name of the Company.

(ii) During the year the inventories have been physically verified bythe management. In our opinion the frequency of verification is reasonable. On the basisof our examination of the record of inventories we are of the opinion that the Company ismaintaining proper records of inventories. The discrepancies noticed on physicalverification of inventories as compared to book records were not material and have beenproperly dealt with in the books of account.

(iii) In respect of the loans secured or unsecured granted by theCompany to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Companies Act 2013:

(a) In our opinion the rate of interest and other terms and conditionson which the loans had been granted were not prima facie prejudicial to the interest ofthe company.

(b) The borrowers are regular in repaying the Principal Amounts andinterest as stipulated and are also regular in payment of as applicable.

(c) There is no overdue amount for more than 90 days.

(iv) In our opinion and to the best of information and explanationsgiven to us the Company has complied with the provisions laid down under sections 185 or186 of the Act with respect to loans and investments made in the current year. HoweverOpening balance of such loans granted to "persons in whom the director isinterested" before the commencement of Section 185 still exists on Balance Sheetdate.

(v) According to the information and explanations given to us theCompany has not accepted any deposit from the public. Therefore the provisions of Clause(v) of Paragraph 3 of the Order are not applicable.

(vi) We have broadly reviewed the cost records maintained by thecompany as prescribed by the Central Government under section 148(1) of the Companies Act2013 and are of the opinion that prima facie the prescribed cost records have been madeand maintained. We have however not made a detailed examination of the cost records witha view to determine whether they are accurate or complete.

(vii) In respect of Statutory Dues:

(a) According to the information and explanations given to us and onthe basis of examination of records given to usamounts deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including Provident Fund Employees'State Insurance Income Tax Goods & Service Tax Sales Tax Custom Duty Excise DutyValue Added Tax cess and other statutory dues have been generally regularly depositedduring the year by the company with the appropriate authorities.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome Tax Goods & Service Tax Sales Tax Custom Duty Excise Duty Value Added Taxcess and other statutory dues were in arrears as at 31st March 2021 for a period of morethan six months from the date they become payable.

(b) According to the information and explanations given to us the duesof Goods & Service Tax sales tax income tax duty of customs duty of exciseservice tax and value added tax which have not been deposited on account of disputes as at31.03.2021 are set out below:-

Amount (Rs.)

Name of the Statute Nature of the Dues Amount of Demand / Dispute (Rs.) Period to which the amount relates Forum where the dispute is pending
1. Income Tax Act 1961 Income Tax (For the Company) 1433509/- AY 2012-13 Appeal u/s 246A before CIT (Appeals)
2. Income Tax (For the Company) 602520/- AY 2011-12 Appeal u/s 246A before CIT (Appeals

(viii) Based on our audit procedures and on the information andexplanations given by the management we are of the opinion that the Company has notdefaulted in repayment of loans or borrowings to any financial institution bank orgovernment. Further the Company has not issued any debentures. Hence reporting underClause (viii) of the Order is not applicable to the Company.

(ix) The Company did not raise any money by way of Initial Public Offeror Further Public Offer (including debt instruments). All money raised by Term loans wasapplied for the purposes for which it was raised.

(x) According to the information and explanations given to us nomaterial fraud on or by the Company by its officer or employees has been noticed orreported during the course of our audit.

(xi) According to the information and explanations given to us and onthe basis of examination of records of the Company the Company has paid/provided forManagerial Remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company and hence reporting under Clause (xii) ofCARO 2016 Order is not applicable here.

(xiii) According to the information and explanations given to us and onthe basis of examination of records of the Company the transactions with the relatedparties are in compliance with Section 177 and 188 of the Act where applicable and detailsof such transactions has been disclosed in the

(xiv) According to the information and explanations given to us and onthe basis of examination of records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year and hence reporting under Clause (xiv) of the Order is notapplicable to the Company.

(xv) According to the information and explanations given to us and onthe basis of examination of records of the Company the Company has not entered into anynon-cash transactions with its directors or persons connected with him. Accordinglyparagraph 3(xv) of Order is not applicable.

(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934

Annexure "B" to Independent Auditors' Report On theStandalone Financial Statements of Krypton Industries Limited for the year ended 31stMarch 2021

Referred to in Clause (f) of Paragraph 1 under "Report on otherLegal and Regulatory Requirements" of our report of even date to the financialstatements of the company for the year ended March 31 2021.

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 Krypton Industries Limited ("the Company") as of March 31 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended and as on March 31 2021.

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. 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 to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand 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's internalfinancial controls over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note and theStandards on Auditing prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Control and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

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 at March 31 2021 based on theinternal financial 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 P. K. Luharuka & Co.
Chartered Accountants Firm Registration No.: 322020E
Pradeep Kumar Luharuka
Place: Kolkata Partner
Dated: The 14th Day of August 2021 Membership No. 055782
UDIN : 21055782AAAADG9074

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