We have audited the accompanying Ind AS financial statements of CREATIVE NEWTECH LIMITED
(Formerly Known as CREATIVE PERIPHERALS AND DISTRIBUTION LTD.) ("the Company"), which
comprise the Balance Sheet as at 31 March 2025, and the Statement of Profit and Loss (including other
comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year
then ended, and Notes to the Financial Statements, including a Summary of Significant Accounting
Policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Ind AS financial statements give the information required by 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 Profit, Total Comprehensive Income,
Changes in Equity and its Cash Flows for the year ended on that date.
Basis for Opinion
We conducted our audit 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 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 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 Code
of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our unmodified opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context
of our audit of the 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 matters
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Auditor's Response
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1.
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Revenue Recognition
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Our audit procedures included the following:
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The Company recognizes revenues when the con-
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• We read and evaluated the Company's revenue recog-
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trol of goods are transferred to the customer at an
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nition policy and assessed its compliance in terms of Ind
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amount that reflects the net consideration, which
the Company expects to receive for those goods
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AS 115 'Revenue from contracts with customers'.
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and/or services from customers in accordance with
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• We assessed the design and tested the operating effec-
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the terms of the contracts. In determining the sales
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tiveness of internal controls related to sales and applica-
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price, the Company considers the effects of applica-
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ble rebates/discounts.
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ble rebates, and discounts (variable consideration).
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• We performed test for a sample of sales transactions
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The terms of sales arrangements, including the tim-
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by comparing the underlying sales invoices, sales orders
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ing of transfer of control, based on the terms of rel-
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and other related documents to assess that revenue is
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evant document and nature of discount and rebates
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recognized on transfer of control to the customer in ac-
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arrangements, create complexities that require
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cordance with the terms of the contract.
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judgment in determining sales revenues.
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• We tested on a sample basis rebates and discount
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Considering the above factors and the risk associat-
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schemes as approved by the management to assess
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ed with revenue recognition, we have determined the
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its accounting. For the samples selected, we also com-
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same to be a key audit matter.
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pared that the actual rebates and discounts recognized
in respect of particular schemes do not exceed their ap¬
proved amounts.
• We tested on a sample basis, that revenue has been
recognized in the proper period with reference to the
supporting documents including confirmations from
customers.
• We read and assessed the relevant disclosures made in
the standalone Ind AS financial statements.
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2.
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Contingent liabilities relating to taxation, litigations
and claims
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Our audit procedures included:
• Understanding the process followed by the company for
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The provisions and contingent liabilities relate to on-
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assessment and determination of the amount for provi-
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going litigations and claims with various authorities.
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sions and contingent liabilities relating to taxation, liti-
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These relate to direct tax, various indirect taxes, etc.
arising in the regular course of business.
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gations.
• Involving subject matter experts with specialized skills
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The assessment of a provision or contingent liability
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and knowledge to assist in the assessment of the value of
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requires significant judgement by the company be-
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significant provisions and contingent liabilities relating
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cause of the inherent complexity in estimating fu-
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to pending litigations, on sample basis, in light of the na-
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ture costs.
The amount recognized as a provision is the best es-
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ture of the exposures, applicable regulations and related
correspondence with the authorities.
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timate made by the management. The provisions and
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• We assessed management's conclusions through dis-
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contingent liabilities are subject to changes in the
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cussions held with their in-house legal counsel and un-
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outcomes of litigations and claims and the positions
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derstanding precedents in similar cases to establish the
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taken by the company. It involves significant judge-
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likelihood of outflow of economic resources being proba-
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ment and estimation to determine the likelihood
and timing of the cash outflows and interpretations
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ble, possible or remote in respect of the litigations.
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of the legal aspects, tax legislations and judgments
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• Assessing the adequacy and appropriateness of the
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previously made by authorities.
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company's disclosures in the financial statements.
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Other information
The Company's management and Board of Directors is responsible for the other information. The
other information comprises the information included in the Company's annual report but does
not include the financial statements and our auditor's report thereon. Our opinion on the 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 financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of Management and those charged with governance for the standalone Ind AS
financial statements
The Company's Board of Directors is responsible for the matters stated in section 134 (5) of
the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial
statements that give a true and fair view of the financial position, financial performance including
other comprehensive income, changes in equity and cash flows of the Company in accordance with
accounting principles generally accepted in India, including Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of 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 Ind AS financial statement that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS 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.
Those Board of Directors are also responsible for overseeing the Company's financial reporting
process.
Auditors' Responsibility for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 Ind AS financial statements.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the standalone Ind AS financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material misstatement of the standalone
Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Company's preparation of the standalone
Ind AS financial statements that give a true and fair view in order to design audit procedures that
are appropriate in the circumstances. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the accounting estimates made by
the Company's Directors, as well as evaluating the overall presentation of the 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 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 control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3X0 of the
Companies Act, 2013, 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 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 Ind AS financial statements,
including the disclosures, and whether the Ind AS financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
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 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
and on the basis of such checks of the books and records of the Company as we considered
appropriate and according to the information and explanation given to us, we give in "Annexure
1", a statement on the matters specified in paragraphs 3 & 4 of the Order, to the extent applicable.
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 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 the Statement of Changes in Equity dealt with by this Report
are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS Financial Statements comply with the Indian Accounting
Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued
thereunder.
e) On the basis of the written representations received from the directors as on 31st March,
2025, taken on record by the Board of Directors, none of the directors is disqualified as on
31st March, 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, we give our separate Report in
"Annexure 2".
g) 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, in our opinion and to the best of
our information and according to the explanations given to us:
i. The Company has disclosed pending litigations which would impact its financial position
in Note no. 35 of the Standalone Ind AS Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education
and 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 entity ("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;
c. 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 (a) and (b) contain any
material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with
Section 123 of the Act.
FOR GUPTA RAJ & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 001687N
PLACE: MUMBAI CA NIKUL JALAN
DATED: 15th May, 2025 PARTNER
MEMBERSHIP NO. 112353
UDIN: 25112353BMIXYD2028
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