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 qualification2025-04-012025-06-30UnauditedConsolidated3914000065100039791000123930000148500051510001700028000096870002901300010778000010778000000010778000000010778000010778000343743000100.310.25000.310.25Other expenses9687000UnauditedQualified opinionJ K Chopra & Associatestrue2026-03-313979100002901300001077800000.310000000Material uncertainty related to Going Concern In respect of preparation of unaudited quarterly statements of the group on going concern basis, during the quarter ended, the group has earned a Net profit (after tax) of Rs. 107.78 Lakhs resulting into reduction of accumulated losses to Rs.8,866.31 Lakhs. The group has significant decrease in revenue over the years. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the groups ability to continue as going concern. 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> During the current quarter ended June 30, 2025 the Company has achieved a turnover of INR 391.40 lakhs as compared to INR 61.92 lakhs quarter ended June 30, 2024 and has achieved a net profit of INR 107.78 lakhs during the current quarter June 30, 2025 as compared to INR 2.87 lakhs in the quarter ended on June 30, 2024. <br></br> 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 financial statements, including employee benefit expenses, total liabilities, and the resultant effect on profit or loss for the year. 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, 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 INR 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> NANANAThe balances of Loans, Trade Payables, Loans & Advances, Trade Receivables, and Deposits as at 30th June 2025 are subject to confirmation and reconciliation from the respective parties. We were unable to obtain sufficient appropriate audit evidence regarding these balances. Consequently, we are unable to determine whether any adjustments to these balances and the related impact on the accompanying financial statements, including any consequential effects on the statement of profit and loss and other equity, might be necessary.Qualified opinionWhether appeared first timeThe management acknowledges the auditors' observation regarding the balances of Loans, Trade Payables, Loans & Advances, Trade Receivables, and Deposits as at 30th June 2025 being subject to confirmation and reconciliation. We wish to clarify that while the Company has made efforts to obtain balance confirmations from the respective parties, responses from some counterparties were not received within the audit timeframe. However, the balances have been reviewed internally and are, to the best of our knowledge and belief, fairly stated in the financial statements based on available records and transactions. Management remains committed to strengthening the confirmation and reconciliation process and is taking appropriate steps to improve the documentation and timely follow-up of balance confirmations in future periods. <br></br> NANANAThe consolidated financial statements do not include the financial results of the following subsidiaries: <br></br> Kavveri Telecom Infrastructure Limited Incorporated in India <br></br> EAICOM India Private Limited Incorporated in India <br></br> Kavveri Technologies Americans Inc Incorporated in United States of America <br></br> New England Communications Systems Inc Incorporated in United States of America <br></br> Quality Communications Systems Inc Incorporated in United States of America <br></br> Spotwave Wireless Ltd Incorporated in Canada <br></br> Trackcom Systems International Inc. Incorporated in Canada <br></br> <br></br> The financial information of these subsidiaries has not been consolidated in accordance with the requirements of Indian Accounting Standard (Ind AS) 110, Consolidated Financial Statements, and Rule 6 of the Companies (Indian Accounting Standards) Rules, 2015, as amended. Consequently, we were unable to obtain sufficient appropriate audit evidence regarding the financial information of these subsidiaries and their impact on the consolidated financial statements. The effect of this departure from the requirements of Ind AS on the consolidated financial statements has not been determined. <br></br> Qualified opinionRepetitiveKavveri Telecom Infrastructure Limited is undergoing Insolvency process Under IBC 2016 and Spotwave Wireless Ltd is undergoing bankruptcy proceedings in Canada and other companies are non-operating companies currently, hence the same is not considered for the consolidated financials <br></br> NANANACHENNAREDDY SHIVAKUMARREDDYRAJPETA KASTURI HANUMENTHAREDDYKeerthi NarayanJitendra Kumar ChopraBangalore2025-08-14