We have audited the accompanying standalone financial statements of KAIRA CAN COMPANY LIMITED (“the
Company”), which comprise the Balance Sheet as at March 31,2025, 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 on that date, notes to the financial statements and a summary of 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 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 Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind
AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March
31, 2025, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the
Auditor's Responsibilities for the Audit of the Standalone 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 (ICAI) together with the ethical / independence requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the Rules made 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 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 financial statements of the current period. These matters were addressed in the context of our audit of
the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described below to be the key audit matters to
be communicated in our report.
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Sr. No.
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Key Audit Matter
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Auditor’s Response
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1
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Accuracy of recognition, measurement,
presentation and disclosures of revenues and
other related balances in view of Ind AS 115
“Revenue from Contracts with Customers”.
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.
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Our audit approach consisted testing of the design
and operating effectiveness of the internal controls
and substantive testing as follows;
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.
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> compared tnese performance obligations witn
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
verify 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.
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2
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Consumption and Inventory Valuation:
Accuracy of recording of inventory & related
consumption at appropriate values:
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We have performed the following procedures in
relation to the accuracy of consumption booked
and inventory recorded:
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).
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3
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Assessment of contingent liabilities and
provisions related to Taxation, Litigations and
claims:
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.
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Our audit procedures included:
> 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.
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> 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.
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Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company's Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board's Report including Annexures
to Board's Report, Business Responsibility Report, Corporate Governance and Shareholder's Information, but does
not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated.
When we read other information, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and describe actions applicable in the applicable laws
and regulations. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial
Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance
with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
standalone 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 financial statements, management is responsible for assessing the Company's ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone 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 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 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 system 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 made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company's ability to 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 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 financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone 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
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 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
I. 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 Act, we give in the “Annexure A”, a statement on
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 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 have been kept 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 other comprehensive income), the
Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement
with the books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with 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 the directors as on March 31,2025 taken on
record by the Board of Directors, none of the directors is disqualified as on March 31,2025 from being
appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate Report in “Annexure B” to this report.
g) With respect to the other matters to be included in the Auditor's Report under section 197(16) of the Act:
In our opinion and according to the information and 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 limit 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.
h) With respect to the other matters to be included in the Auditor’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 according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its
Standalone Financial Statements - Refer Note No. 35 to the Standalone Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there
are any material foreseeable losses: and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor
Education & Protection Fund by the company.
iv. a) the Management has represented that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) 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 entity
(“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;
b) the Management has represented, that, to the best of its knowledge and belief, no funds
(which are material either individually or in the aggregate) 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
c) Based on audit procedures 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) of Rule 11(e), as provided under (a) and (b)
above, contain any material mis-statement
v. The final dividend proposed in the previous year, declared and paid by the Company during the
year is in accordance with Section 123 of the Act, as applicable.
The interim dividend has not been declared and paid by the Company during the year.
As stated in note 16.2 to the financial statements, The Board of Directors of the Company have
proposed final dividend for the year which is subject to the approval of the members at the
ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section
123 of the Act, as applicable.
vi. Based on our examination, which included test checks, the Company has used accounting softwares
for maintaining its books of account for the financial year ended March 31, 2025 which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the softwares. Further, during the course of our audit we did
not come across any instance of the audit trail feature being tampered with and the audit trail has
been preserved by the Company as per the statutory requirements for record retention.
For G D Apte & Co
Chartered Accountants
Firm registration number: 100515W
Mayuresh V. Zele
Partner
Membership No: 150027
UDIN : 25150027BMOMSL8445
Place : Mumbai
Date : May 22, 2025
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