We have audited the accompanying Standalone Ind AS Financial
Statements of KP GREEN ENGINEERING LIMITED (formerly
known as K P BUILDCON PRIVATE LIMITED) ("the company"),
which comprise the Standalone Balance Sheet as at March 31, 2025,
the standalone statement of profit and loss (including statement of
other comprehensive income), the standalone statement of changes
in equity and the standalone statement of cash flows for the year then
ended, and the notes to the standalone Ind AS financial statements,
including a summary of the significant accounting policies and other
explanatory information. (Hereinafter referred to as "the standalone
financial statements").
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone Ind AS financial
statements give the information required by the Companies Act, 2013
("the Act") in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2025 and its
profit including other comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone Ind AS financial statements
in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the companies Act, 2013. Our responsibilities under
those standards are further described in the Auditor's Responsibilities
for the Audit of the standalone Ind AS Financial Statements section of
our report. We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered Accountants
of India together with the ethical requirements that are relevant to
our audit of the standalone Ind AS financial statements under the
provisions of the Companies Act, 2013 and the Rules thereunder, and
we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI's Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone Ind AS
financial statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial
statements of the current period. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description
of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the
responsibilities described in the 'Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements' section of our report,
including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment
of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.
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Sr. No. Key Audit Matter
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How the matter was addressed in our audit
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1. Accuracy of recognition, measurement, presentation and
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Our audit approach consisted testing of the design and operating
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disclosures of revenues and other related balances in
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effectiveness of internal controls and procedures as follows:
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respect of "Revenue from contracts with Customers" under
Ind AS 115.
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• Evaluated the effectiveness of controls over the preparation
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of information that are designed to ensure the completeness
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The application of this revenue accounting standard involves
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and accuracy.
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certain key judgments relating to identification of distinct
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• Selected a sample of existing continuing contracts and
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performance obligations, determination of transaction price of
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new contracts, and tested the operating effectiveness of
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identified performance obligations, the appropriateness of the
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the internal control, relating to identification of the distinct
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basis used to measure revenue recognized over a period, and
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performance obligations and determination of transaction
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disclosures including presentations of balances in the financial
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price.
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statements. Estimated efforts is a critical estimate to determine
revenue, as it requires consideration of progress of the contract,
efforts incurred till date, efforts required to complete the remaining
performance obligation.
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• Tested the relevant information, accounting systems and
change relating to contracts and related information used
in recording and disclosing revenue in accordance with Ind
AS 115.
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• Reviewed a sample of contracts to identify possible delays
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in achieving milestones, which require change in estimated
efforts to complete the remaining performance obligations.
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Sr. No. Key Audit Matter
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How the matter was addressed in our audit
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• Performed analytical procedures and test of details for
reasonableness and other related material items.
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2. Evaluation of Property Plant & Equipment:
The Company has adopted the procedure to recognise the item
under PPE by identifying the particular item to be capitalized
and accordingly to cover the same under Property, plant and
Equipment. The company has adopted the procedure to identify
all related costs incurred in respect of the said item to be covered
under Property, Plant and Equipment along with the recording of
the same in the fixed asset register maintained by the company.
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Our audit approach consisted testing of the design and operating
effectiveness of internal controls and procedures as follows:
• We have obtained and verified the relevant evidences for
acquiring the goods to be classified under Property, Plant
and Equipment along with the related purchase orders issued
and contracts entered into by the company with respective
vendors for acquiring or constructing the Property, Plant
and Equipment with its actual date of use for its intended
purpose.
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• We have obtained the records in respect of the recording
and classifying the said item under respective block (group)
of the Property, Plant and Equipment.
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• We have obtained the information and relevant documents
from the management regarding the determination and
estimation of useful life of the said asset.
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INFORMATIONOTHERTHANTHE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR'S
REPORT THEREON (OTHER INFORMATION)
The company's management and Board of Directors are responsible
for the preparation of the other information. The other information
comprises the information included in the company's annual report,
management discussion and analysis, Board's report including
Annexures to Board's report but does not include the accompanying
standalone Ind AS Financial Statements and our auditor's report
thereon.
Our opinion on the accompanying Standalone Ind AS Financial
Statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the accompanying standalone Ind AS
financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially
inconsistent with the Standalone Ind AS Financial Statements or our
knowledge obtained during the course of our audit or otherwise
appears to be materially misstated/inconsistent.
If, based on the work we have performed, we conclude that there
is material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT, BOARD
OF DIRECTOR AND THOSE CHARGED WITH
GOVERNANCE FOR THE STANDALONE IND AS
FINANCIAL STATEMENTS
The Company's management and Board of Directors are responsible
for the matters stated in section 134(5) of the Companies Act, 2013
("the Act”) with respect to the preparation of these standalone Ind
AS financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive
income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted in
India, including The Indian Accounting Standards specified under
Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended. This responsibility also includes
the maintenance of adequate accounting records in accordance with
the provision of the Act for safeguarding of the assets of the Company
and for preventing and detecting the frauds and other irregularities;
selection and application of appropriate implementation and
maintenance of accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation
of the standalone Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud
or error.
In preparing the standalone Ind AS financial statements, Management
and Board of Directors are responsible for assessing the Company's
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but
to do so.
The Board of Directors and those charged with Governance are also
responsible for overseeing the company's financial reporting process.
AUDITOR'S RESPONSIBILITY FOR THE AUDIT
OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether
the standalone Ind AS financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an
Auditor's report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the
standalone Ind AS financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal financial controls relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of
the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls
with reference to standalone Ind AS financial statements in
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures in the standalone Ind AS financial statements made
by management and the Board of Directors.
• Conclude on the appropriateness of management and Board
of Directors use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a
going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor's report to the
related disclosures in the standalone Ind AS financial statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up
to the date of our auditor's report. However, future events or
conditions may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of
the standalone Ind AS financial statements, including the
disclosures, and whether the standalone Ind AS financial
statements represent the underlying transactions and events in
a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone Ind
AS financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable
user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our work;
and (ii) to evaluate the effect of any identified misstatements in the
standalone Ind AS financial statements.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the audit
of the standalone Ind AS financial statements of the current period
and are therefore the key audit matters. We describe these matters
in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2020
("the Order”), issued by the Central Government of India in
terms of sub-section (11) of Section 143 of the Companies Act,
2013 we give in the "Annexure-A", a statement on the matters
specified in the paragraph 3 and 4 of the Order, to the extent
applicable.
2. (A) As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information
and explanations which to the best of our knowledge
and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
financial statements have been kept by the
Company so far as appears from our examination
of those books except for the matters stated in
clause 6(l)below on reporting under Rule 11(g) of
the Companies (Audit and Auditors) Rules, 2014;
c. The Balance Sheet, the Statement of Profit and Loss
including the statement of other comprehensive
income, the Cash Flow Statement and the statement
of changes in equity dealt with by this Report are in
agreement with the relevant books of account;
d. In our opinion, the aforesaid Standalone Ind AS
Financial Statements comply with the IND AS
specified under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules,
2015, as amended;
e. On the basis of written representations received
from the directors as on 31st March, 2025, taken
on record by the Board of Directors, none of the
directors are disqualified as on 31st March, 2025,
from being appointed as a director in terms of
Section 164(2) of the Act; and
f. The modification relating to the maintenance of
accounts and other matters connected herewith are
as stated in the paragraph (b) above on reporting
under section 143(3)(b) and in clause 6(I) below on
reporting under Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014
g. With respect to the adequacy of the internal financial
controls over financial reporting of these standalone
Ind AS financial statements of the Company and
the operating effectiveness of such controls, refer to
our separate report in "Annexure B". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's
internal financial controls over financial reporting.
(B) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements of
section 197(16) of the Act:
In our opinion and to the best of our information and
according to the explanations given to us, the remuneration
paid by the Company to its directors during the current
year is in accordance with the provisions of section 197 of
the Act.
The remuneration paid to any director is not in excess
of the limits laid down under section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other
details under section 197(16) which are required to be
commented upon by us.
(C) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditor's) Rules, 2014, as
amended, in our opinion and to the best of our information
and according to the explanations given to us:
1. The Company has disclosed the impact of pending
litigations as at 31st March, 2025 on its financial
position in its standalone Ind AS financial statements
- Refer Note 49 to the financial statements.
2. The Company did not have any long-term contracts
including derivatives contracts for which there were
any material foreseeable losses.
3. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Company.
4. i) The management has represented that, to
the best of its knowledge and belief, other
than as disclosed in the note 9 and 16 to
the standalone Ind AS financial statements,
no funds have been advanced or loaned
or invested (either from borrowed funds or
share premium or any other sources or kind
of funds) by the Company to or in any other
person or entity, including foreign entities
("Intermediaries"), with the understanding,
whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly
or indirectly lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries;
ii) The management has represented that, to the
best of its knowledge and belief, no funds
have been received by the Company from
any person or entity, including foreign entities
("Funding Parties"), with the understanding,
whether recorded in writing or otherwise,
that the Company shall, whether, directly or
indirectly, lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries; and
iii) Based on such audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub clause (i) and (ii) contain any material
misstatement.
5. As stated in Note 20 to the standalone financial
statements
i) The interim dividend declared and paid by the
company during the year and until the date of
this report is in compliance with section 123 of
the Act.
ii) The company has proposed final dividend
of ' 0.20 per share for financial year under
reporting. This proposed dividend is subject
to the approval of shareholders in the ensuing
annual general meeting.
6. Based on our examination which included test
checks, except for the instances mentioned below,
the Company has used accounting software for
maintaining its books of account, which has a
feature of recording audit trail (edit log) facility and
the same has operated throughout the period for
all relevant transactions recorded in the respective
software. Further, for the periods where audit
trail (edit log) facility was enabled and operated
throughout the year for the respective accounting
software, we did not come across any instance of
the audit trail feature being tampered with.
I. The feature of recording audit trail (edit log)
facility was not enabled at the database
level to log any direct data changes and at
application layer for the accounting software
used for maintaining the books of account
relating to Fixed Assets Register throughout the
year. The integration of Fixed Assets Register
with the company's accounting software is
under development and hence the audit trail
(edit log) is not enabled to that extent.
II. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2024, and the company has the
system of preservation of audit trail as per the statutory requirements for record retention for the prior period. The audit
trail of relevant prior years has been preserved for record retention to the extent it was enabled and recorded in those
respective years by the Company as per the statutory requirements for record retention, as described in note 51 to the
standalone financial statements ended March, 31sl 2025.
For K A Sanghavi and Co. LLP
Chartered Accountants
FRN: 0120846W/W100289
Keyur Ashvinbhai Sanghavi
Partner
Place: Surat M. No. 109227
Date: May 14, 2025 ICAI UDIN: 25109227BMIPPV6434
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