To,
S.R.Dinodia & Co. LLP,
Chartered Accountants,
K-39, Connaught Circus,
New Delhi - 110001.
Dear Sirs,
Ref: Consolidation of Financials Statement of Kadimi International Private Limited for the
year ended March 31, 2024
Sub: Management Representation Letter
This representation letter is provided in connection with consolidation of the financial
statements for the year ended March 31, 2024 of Kadimi International Private Limited
(the Company or the Holding Company) with its subsidiary company which was incorporated
in India and Holding company holds its 100% shares and voting power. Reporting date of
subsidiary company is same as that of Holding company, i.e. 31 March every year end. We
acknowledge our responsibility for preparation of the consolidated financial statements in
accordance with the requirements of the Companies Act, 2013 and recognised accounting
policies and practices, including the Accounting Standards notified under Section 133 of
Companies Act, 2013.
This responsibility also includes the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the group and for
preventing and detecting the frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error. In preparing
the financial statements, we are responsible for assessing the group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting. We are also responsible for overseeing the group’s
financial reporting process.
We hereby, confirm to the best of our knowledge and belief, the following representations:
Accounting Policies and Basis for Preparation of Financial Statements
1. The consolidated financial statements have been prepared in accordance with generally
accepted accounting principles in India (Indian GAAP), and mandatory Accounting
Standards notified under the Companies (Accounting Standards) Rules, 2006 (as
amended), specified under section 133 and other relevant provisions of the Companies
Act, 2013.The consolidated financial statements have been prepared on an accrual &
going concern basis and under the historical cost convention.
2. We confirm that accounting policies as disclosed in the Note No. 2.1 are true and correct
and being consistently followed by the Group. There is no deviation in the accounting
policies from the accounting policies disclosed in the consolidated financial statements.
Also, we confirm the basis of Consolidated is as follows:
Basis of Consolidation
i) The financial statements of the company and its share in the subsidiary have
been combined on a line-by-line basis by adding together the book values of
like items of assets, liabilities, income, and expenses, after eliminating intra-
group balances and intra-group transactions resulting in unrealized profits or
losses in accordance with AS-21: Consolidated Financial Statements.
ii) To the extent possible, the consolidated financial statements have been
prepared using uniform accounting policies for like transactions and other
events in similar circumstances and are presented to the extent possible, in
the same manner as the company’s individual financial statements.
Inconsistency, if any, between the accounting policies of the subsidiary have
been disclosed in the notes to accounts.
iii) The difference, if any of the cost to the company of its investment in
subsidiary over its share in the equity of the subsidiary company as at the
date of acquisition of stake is recognized in financial statements as Goodwill
or Capital Reserve, as the case may be.
iv) The Consolidated Financial Statements are presented, to the extent possible,
in the same format as adopted by the parent company for its Standalone
financial statements.
v) Detail of entity considered in consolidated financial statements
Name of the Country of % of voting power held
Enterprise Incorporation
Hatari (HK) Limited Hong Kong 100%
Hatari Europe GmbH Germany 100%
Reserves & Surplus
3. We confirm that the group has complied with all the statutory requirements of various
statutes which govern the group, relating to the transfer to various reserves and their
utilisation in the manner specified in the relevant statute.
Liabilities
4. We confirm that all the liabilities of the group are correctly classified into Current and
Non-Current based upon the criteria as set out in Schedule III to the Companies Act,
2013. Also, the requirements of the Accounting Standards notified under Section 133 of
the Companies Act, 2013 have been considered while making such classification.
Other Liabilities & Provisions
5. In our opinion, the provision for all the known liabilities including all losses expected to
arise from events which had occurred by 31st March 2024 are adequate and are not in
excess of the amount reasonably necessary.
6. Balance of Sundry creditors and other liabilities are subject to confirmation and
reconciliation. Consequential adjustment thereof, if any will be given effect into the books
of account in the year of such adjustment. However, in view of the management, it will
not have any material impact on the consolidated financial statements.
7. Advances received from customers represent sums received in the normal course of
business either for supply of goods or for the services to be rendered and are not in the
nature of loans.
8. There is no major change in / deviation from any accounting estimate applied by the
group as compared to the previous year.
Assets
9. We confirm that all the assets of the group are correctly classified into Current and Non-
Current based upon the criteria as set out in Schedule III to the Companies Act, 2013.
Also, the requirements of the Accounting Standards notified under Section 133 of the
Companies Act, 2013 have been considered while making such classification.
10. The group has a satisfactory title to all the assets stated in the consolidated financial
statements and there are no liens, mortgages, or other encumbrances on the assets of
the group, except those that are disclosed in the consolidated financial statements.
11. In the opinion of the Board, current assets including loans and advances have a value on
realisation in the ordinary course of the business at least equal to the amount at which
they are stated.
Property, Plant and Equipment (PPE)
12. All the PPE are in usable conditions and are classified correctly. None of the PPEs are
revalued during the year.
13. The Company has a satisfactory title to all the assets stated in the financial statements
and there are no liens, mortgages, or other encumbrances on the assets of the
Company, except those that are disclosed in Notes to the consolidated financial
statements.
14. The net book values at which PPEs are stated in the balance sheet are arrived at:
a) After taking into account all capital expenditure on additions thereto, but no
expenditure properly chargeable to revenue.
b) After providing adequate depreciation on PPEs during the period as required by
the law.
c) After eliminating the cost and accumulated depreciation relating to items sold,
discarded, demolished, or destroyed.
15. Depreciation on PPEs is provided on the basis of useful life as given in the Schedule II
to the Companies Act, 2013.
16. We confirm that none of the items, which is in nature of revenue expenditure have been
capitalised and none of the items, which is in the nature of capital expenditure have been
charged to consolidated statement of profit and loss for the year.
Trade Receivables
17. All the trade receivables including receivables outstanding for more than six months are
considered good and fully recoverable with the exception of those specifically shown as
doubtful in the Balance Sheet. Adequate provision has been made for bad and doubtful
debts. Proper disclosures have been made in respect of secured and unsecured
receivables.
18. No trade receivables are outstanding for more than six months and other debtors
(Considered good) as on March 31, 2024.
Cash and Cash Equivalents
19. We confirm that wherever there is a restriction from being exchanged or used to settle a
liability for at least twelve months after the reporting, the cash and cash equivalents of
the Company are classified into non-current and all other cash and cash equivalents are
classified as Current based upon the criteria as set out in Schedule III to the Companies
Act, 2013. Also, the requirements of the Accounting Standards notified under Section
133 of the Companies Act, 2013 have been considered while making such classification.
20. The total cash balance in hand of the group as on March 31, 2024 was 59.31
Thousands. We confirm that the cash balance was lying with the authorized person as
on the Balance Sheet date.
21. Bank Balances as per the books of account are matching with the balances as per Bank
and wherever the same are not matching, a reconciliation statement has been prepared.
We confirm that items appearing in the Bank Reconciliation are cleared subsequent to
the Balance Sheet date.
Statement of Profit and Loss
22. We confirm that the consolidated statement of profit and loss have been prepared in
accordance with Schedule III to the Companies Act, 2013. Also, the requirements of the
Accounting Standards notified under Section 133 of the Companies Act, 2013 have been
followed while preparing the consolidated statement of profit and loss.
23. Except as disclosed in the financial statements, the results for the year were not
materially affected by:
a) Transactions of a nature not usually undertaken by the group;
b) Circumstances of an exceptional or non-recurring nature;
c) Charges or credits relating to prior years;
d) Changes in accounting policies.
24. All the expenses and income have been accounted on accrual basis and adequate
provision have been made thereof.
25. Income and expenses which are required to be shown separately as per the requirement
of Schedule III to the Companies Act, 2013 are shown separately in the consolidated
financial statements.
General
26. The Company has maintained all the records, financial and statutory, as required by the
Companies Act, 2013. All the transactions and operations of the group have been fully
recorded in the said records that are used as a basis for the preparation of the
consolidated financial statements.
27. There are no transactions that have not been properly recorded in the said accounting
records that are used as a basis for preparation of the consolidated financial statements.
28. There have been no irregularities involving management or employees who have a
significant role in the system of internal control that could have a material effect on the
consolidated financial statements.
29. The consolidated financial statements are free of material misstatements, error, or
omissions.
30. The group has complied with all aspects of contractual agreements that could have a
material effect on the consolidated financial statements in the event of non-compliance.
There has been no non-compliance with requirements of regulatory nature that could
have a material effect on the consolidated financial statements in the event of non-
compliance.
31. We have no plans or intentions that may materially affect the carrying value or
classification of assets and liabilities reflected in the consolidated financial statements.
32. All possible care has been taken to ensure the compliance of applicable provisions of the
Companies Act, 2013 and other laws governing the enterprise. There have been no
material violations of the applicable laws and regulations the effect of which would result
in an adjustment to the consolidated financial statements or may have to be considered
for disclosure of contingencies. All the disclosures required to be made under the
Companies Act, 2013 or otherwise have been duly made.
33. The disclosures given in notes to consolidated accounts in respect of requirements of
Schedule III to the Companies Act, 2013 are true and correct to the best of our
knowledge and belief and are complete in all respects.
Accounting Standards
34. The accounts of the group have been prepared in compliance with various mandatory
Accounting Standards notified under Section 133 of the Companies Act, 2013.
Related Party Disclosure
35. The transactions with all the related parties have been properly reflected in the
consolidated financial statements in accordance with the Accounting Standard-18 on
“Related Party Transactions”.
36. Name and Designation of the key management personnel are as under:
Sr. No. Name of the Person Designation
1 Mr. Rakesh Gupta Director
2 Mr. Sahil Nath Director
3 Mr. Ishaan Nath Director
37. Name of the related parties and related parties relationship and transactions and
balances as on March 31, 2024 with related parties are as disclosed in Note No.30 of the
consolidated financials statements:
Enterprises over which KMP has significant influence:-
1. Hindustan Portfolio Private Limited
2. Rajat Trading Company
3. Kadimi Tool Manufacturing Company Private Limited
4. Kadimi Organics Limited
Key Managerial Personnel (KMP)
1. Mr. Rakesh Gupta (Director)
2. Mr. Sahil Nath (Director)
3. Mr. Ishaan Nath (Director)
Relatives of Key Managerial Personnel (KMP)
1. Mrs. Vaneeta Gupta (Wife of Mr. Rakesh Gupta)
Yours faithfully,
(Managing Director/ Authorised Signatory)
Date:
Place:
