KAVDEFENCE2025-04-012025-06-30KAVDEFENCE2025-04-012025-06-30in-capmkt:OtherExpenses1MemberKAVDEFENCE2025-04-012025-06-30AuditorDomain1KAVDEFENCE2025-04-012025-06-30in-capmkt:AuditedMemberKAVDEFENCE2025-06-30in-capmkt:AuditedMemberKAVDEFENCE2025-04-012025-06-30in-capmkt:AdjustedMemberKAVDEFENCE2025-06-30in-capmkt:AdjustedMemberKAVDEFENCE2025-04-012025-06-30AuditQualification1KAVDEFENCE2025-04-012025-06-30AuditQualification2KAVDEFENCE2025-04-012025-06-30AuditQualification3KAVDEFENCE2025-04-012025-06-30AuditQualification4iso4217:INRiso4217:INRxbrli:shares590041KAVDEFENCENOTLISTEDINE641C01019Kavveri Defence & Wireless Technologies LimitedMain BoardEquity2025-04-012026-03-312025-08-142025-08-06INRLakhsQuarterlyFirst quarterSingle segmentDefence and wireless technology products2025-08-1412:00:002025-08-1418:45:00Statement on impact of audit qualificationfalsefalseNo default2025-04-012025-06-30UnauditedStandalone286130001500028628000504600001485000350300017000280000897300019304000932400009324000000093240000000932400009324000343743000100.270.22000.270.22Other expenses8973000UnauditedQualified opinionJ K Chopra & Associatestrue2026-03-31286280000193040000932400000.270000000Material uncertainty related to Going Concern During the quarter the company has earned a net profit of Rs. 93.24 lakhs during the year, resulting in a reduction of accumulated losses to Rs. 8470.21 lakhs. While there has been a significant decline in revenue over the past few years, the Company has received and executed a few orders during the previous financial year and current quarter. The Company has recorded some operational activity; however, given the historical trend of declining revenues and accumulated losses, along with uncertainty regarding the future order pipeline and sustained operations, a material uncertainty exists that may cast significant doubt on the Companys ability to continue as a going concern. Accordingly, we are unable to comment on the consequential impact, if any, on the accompanying standalone quarterly unaudited statement. However, the management is of the view that, considering the positive trend in turnover amounting to Rs.14 crores, ongoing recruitment of employees to enhance operational efficiency, infusion of funds through share capital for business development, and future sales orders in the pipeline, there is no material uncertainty or significant doubt regarding the companys ability to continue as a going concern. Qualified opinionRepetitiveIn respect of qualification 1 above, In the opinion of the management, considering the positive trend in turnover amounting to Rs.14 crores, ongoing recruitment of employees to enhance operational efficiency, infusion of funds through share capital for business development, and future sales orders in the pipeline, there is no material uncertainty or significant doubt regarding the companys ability to continue as a going concern. <br></br> <br></br> During the current quarter ended June 30, 2025 the Company has achieved a turnover of INR 286.13 lakhs as compared to INR 34.02 lakhs quarter ended June 30, 2024 and has achieved a net profit of INR 93.24 lakhs during the current quarter June 30, 2025 as compared to INR 0.97 lakhs in the quarter ended on June 30, 2024. <br></br> NANANAIn relation to carrying value of investments held by the company in its subsidiaries, which have been incurring losses and in some of these companies, net worth was fully or substantially eroded. Taking into account the management internal assessment and initiatives to be implemented to improve the profitability in the medium to long term, the management of the company is of the view that carrying value of investments are realizable at the value stated in the books. In the absence of fair valuation of these investments, we are unable to comment upon the carrying value and thus, we are unable to comment whether any provision for impairment in the value of investments is required in accordance with IND AS 36- Impairment of assetsQualified opinionRepetitiveThe management of the Company is in communication with such subsidiaries engaged in the other projects to recover the dues and cost incurred by the Company and taking necessary steps to turnaround the loss-making subsidiary Companies. Considering the long-term nature of investments and in view of ongoing discussion, no provision has been considered necessary by the management in respect of impairment in the value of investment. <br></br> Further, Til-Tek, a step down subsidiary has recently won Major Global Account with revenue opportunity of US $ 2 million (approximately Rs.17.3 crores) and is expected to scale steadily over the coming quarters. <br></br> NANANAThe company has not reinstated the forex balances in respect of few receivables and payables including the related parties balances which is not in conformity with IND AS 21 - The effect of changes in foreign exchange rates, we are unable to comment the possible effects on the financial statements as the company does not have the details of the forex receivables and payables, further there are no balance confirmations available including export receivables, which in our opinion is overdue.Qualified opinionRepetitiveCompany is in the process of arrive at the reinstated forex values. The same shall be taken care in the current financial year. NANANAThe Company has not complied with the requirements of Ind AS 19 Employee Benefits, the Company has not obtained an actuarial valuation of its defined benefit obligations towards gratuity and leave encashment as at the reporting date, nor has it recognized the liability based on such valuation. In the absence of such actuarial valuation and necessary provisioning, we are unable to determine the impact of the non-compliance on the standalone quarterly unaudited statement, including employee benefit expenses, total liabilities, and the resultant effect on profit or loss for the quarter. However, management is of the view that as the companys employees have not yet completed one year of service and the gratuity, if so, provided would not exceed Rs.4 lakhs per annum, the provision for the same has not been made in the books. Further for leave encashment its solely management discretion for leave encashment to be compensated in cash.Qualified opinionRepetitiveWe note the auditor's inability to determine the impact of this non-compliance on the standalone financial statements, including employee benefit expenses, total liabilities, and profit or loss for the quarter.However, management maintains the view that, as of the reporting date, no employee had completed one year of service. Under the current regulations, gratuity becomes payable only after an employee completes five years of continuous service. Therefore, the provision for gratuity was not considered necessary. Even if it were to be provided, the estimated liability would not exceed Rs. 4 lakhs. Regarding leave encashment, it is entirely at the management's discretion whether to compensate employees in cash for accumulated leave. As of the reporting date, management had not exercised this discretion to provide for cash compensation for leave encashment, and thus, no liability has been recognized in the books. We will assess the need for an actuarial valuation for both gratuity and leave encashment in future reporting periods as and when the employee service periods and company policies warrant such recognition in accordance with Ind AS 19. <br></br> NANANACHENNAREDDY SHIVAKUMARREDDYRAJPETA KASTURI HANUMENTHAREDDYKeerthi NarayanJitendra Kumar ChopraBangalore2025-08-14