We have audited the accompanying Ind AS financial statements of CREATIVE NEWTECH LIMITED ("the
Company"), which comprise the Balance Sheet as at 31st March 2026, 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 31st March, 2026, 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. Key Audit matters Auditor's Response
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1.
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Revenue Recognition
The Company recognizes revenues when
the control of goods are transferred
to the customer at an amount that
reflects the net consideration, which the
Company expects to receive for those
goods and/or services from customers
in accordance with the terms of the
contracts. In determining the sales price,
the Company considers the effects
of applicable rebates, and discounts
(variable consideration).
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Our audit procedures included the following:
• We read and evaluated the Company's revenue
recognition policy and assessed its compliance in
terms of Ind AS 115 'Revenue from contracts with
customers'.
• We assessed the design and tested the operating
effectiveness of internal controls related to sales
and applicable rebates/discounts.
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The terms of sales arrangements,
including the timing of transfer of control,
based on the terms of relevant document
and nature of discount and rebates
arrangements, create complexities that
require judgment in determining sales
revenues.
Considering the above factors and the
risk associatedwith revenue recognition,
we have determined the same to be a key
audit matter.
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• We performed test for a sample of sales
transactions by comparing the underlying sales
invoices, sales orders and other related documents
to assess that revenue is recognized on transfer
of control to the customer in accordance with the
terms of the contract.
• We tested on a sample basis rebates and discount
schemes as approved by the management to assess
its accounting. For the samples selected, we also
compared that the actual rebates and discounts
recognized in respect of particular schemes do not
exceed their approved 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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Inventory
The Company is primarily engaged in
the distribution business of consumer
electronic products and accessories.
Due to rapid technological changes,
short product life cycles and significant
market price fluctuations, there is a
risk of inventory valuation losses. The
determination of the net realisable
value of inventory involves significant
management judgement, and
considering the materiality of inventory
to the financial statements, we have
considered inventory provisioning as
one of the key audit matters.
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Our audit procedures included the following:
• We obtained an understanding of the Company's
inventory procurement, storage, distribution and
return arrangements with the respective brand
owners and evaluated the relevant internal controls
over inventory.
• Weobtainedandreviewedsignificantagreements/
arrangements with the respective brand owners to
understand the terms relating to ownership, risk
of loss, damage, returns, obsolescence and unsold
inventory.
• We reviewed the report of physical inventory
counts conducted by the independent person at
selected locations and performed test counts on a
sample basis and reconciled the physical quantities
with the inventory records.
• We performed substantive procedures over
inventory balances, including verification of
inventory records with supporting purchase
invoices and other relevant documentation, on a
sample basis.
• We reviewed ageing and movement reports to
identify slow-moving and non-moving inventory and
evaluated management's assessment of inventory
valuation, including consideration of damaged or
obsolete items.
• We evaluated the appropriateness of the related
disclosures in the financial statements with
reference to the applicable Ind AS requirements.
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3.
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Contingent liabilities relating to
taxation, litigations and claims
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Our audit procedures included the following:
• Understanding the process followed by the
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The provisions and contingent liabilities
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company for assessment and determination of the
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relate to ongoing litigations and claims
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amount for provisions and contingent liabilities
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with various authorities. These relate
to direct tax, various indirect taxes, etc.
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relating to taxation, litigations.
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arising in the regular course of business.
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• Involving subject matter experts with specialized
skills and knowledge to assist in the assessment of
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The assessment of a provision or
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the value of significant provisions and contingent
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contingent liability requires significant
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liabilities relating to pending litigations, on sample
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judgement by the company because of
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basis, in light of the nature of the exposures,
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the inherent complexity in estimating
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applicable regulations and related correspondence
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future costs.
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with the authorities.
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The amount recognized as a provision
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• We assessed management's conclusions through
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is the best estimate made by the
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discussions held with their in-house legal counsel
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management. The provisions and
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and understanding precedents in similar cases
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contingent liabilities are subject to
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to establish the likelihood of outflow of economic
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changes in the outcomes of litigations
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resources being probable, possible or remote in
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and claims and the positions taken by
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respect of the litigations.
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the company. It involves significant
judgement and estimation to determine
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• Assessing the adequacy and appropriateness of the
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the likelihood and timing of the cash
outflows and interpretations of the legal
aspects, tax legislations and judgments
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.
Inconnectionwithourauditof thefinancialstatements,ourresponsibilityis toread theotherinformation
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 professionaljudgment 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, 2026,
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March,
2026, 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. Further, as stated in note 38 to the standalone financial statements, the Board
of Directors of the Company has proposed final dividend for the year which is subject to the
approval of the members at the ensuing Annual General Meeting. Such dividend proposed is
in accordance with section 123 of the Act, as applicable.
FOR GUPTA RAJ & CO.
CHARTERED ACCOUNTANTS
FIRM NO. 001687N
CA NIKUL JALAN
PLACE: MUMBAI PARTNER
DATED: 14th May, 2026 MEMBERSHIP NO. 112353
UDIN: 26112353CYGDEF4629
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