To the Members of
Advance Metering Technology Limited
Report on the Audit of Standalone Financial Statements
We have audited the accompanying standalone financial AdvanceMetering Technology Limitedstatementsof (the Company') which comprise theStandalone Balance Sheet as at March 31 2021 the standalone Statement of Profit and Loss(including Other Comprehensive Income) the standalone Statement of Changes in Equity andthe standalone Statement of Cash Flows for the year then ended and notes to thestandalone financial statements including a summary policies and other explanatoryinformation (herein after referred to as "standalone financial ofthesignificantstatements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the standalone state of affairsof the company as at March31 2021 the standalone loss and total comprehensive loss standalone changes in equityand its standalone cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditingspecified under section143(10) of the Act (SAs). Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the standalone financial statements under the provisions of thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to the note 38 to the standalone financial statementswhich describes the management's assessment of the impact of uncertainties arisingbecause of COVID-19 Pandemic and its consequential effects on the .
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters (KAM) are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.
We have determined that there are no key audit matters to becommunicated in our report.
Information Other than the Standalone Financial Statements andAuditor's Report thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and analysis Directors Report including annexures to Director's reportReport on Corporate Governance and Shareholders information but does not include thestandalone financial statements and our auditor's report thereon.
The annual Report is expected to be made available to us after the dateof issue of this report.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether such other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
When we read the Annual Report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charge withgovernance.
Management's Responsibility for the Standalone FinancialStatements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Ind AS and accounting principles generally accepted in Indiaincluding the Indian Accounting Standards prescribed under section 133 of the Act readwith the companies (Indian Accounting Standard) Rules 2015 as amended ("IndAS")
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls thatwereoperatingeffectivelyfor ensuring the accuracy and completenessof the accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatements whether fraud or error.
In preparing the standalonefinancial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibility for the Audit of the StandaloneFinancialStatements
Our objectives are to obtain reasonable assurance about whether thestandalonefinancial statements as a whole are free from material misstatement whether dueto 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 auditconducted 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 individuallyor in the aggregate they could reasonably be expected to influence the decisions of userstaken on the basis of these standalonefinancial 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 thestandalonefinancial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast on the Company'sability to continue as a going concern. If we conclude that a material uncertaintysignificant exists we are required to draw attention in our auditor's report to therelated disclosures in the standalonefinancial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and contentofthestandalonefinancial statements including the disclosures and whether thestandalonefinancial statements represent the underlying transactions and events in amanner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonable knowledgeable user of the standalonefinancialstatements We consider quantitative and qualitative factors in
(i) planning the scope of our audit work and in maybeinfluenced.evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in thestatements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing audit findings oftheauditandsignificantincludinganysignificantdeficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016(the Order') issued by the Central Government of India in terms of section143(11) of the Act we give in "Annexure A"astatementonthemattersspecifiedinparagraphs 3 and 4 of the Order.
2. As required by section 143(3)of the Act we report that:
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c. The Standalone Balance Sheet Standalone Statement of Profit andLoss Standalone Statement of Cash Flows and Standalone Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalonefinancial statements complywith the Ind AS specified under Section 133 of the Act read with Companies IND AS rules2015 as amended;
e. On the basis of written representations received from the directorsas on March 31 2021 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2021 from being appointed as a director in terms ofSection 164(2) of the Act;
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B";
g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:
As per the information and explanation given to us and on the basis ofour examination of the records managerial remuneration has been paid or provided asspecified by the provisions of section 197 read with Schedule V to the Act.
h. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amendedin our opinion and to the best of our information and according tothe explanations given to us:
i) As informed the Company does not have any pending litigation whichwould impact its financial position. Refer Note 30 to the standalone financial statements;
ii) The Company did not have long term contracts including derivativecontracts for which there were any material foreseeable losses;
iii) There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company;
"Annexure A" To The Independent Auditor's ReportTo The Members Of Advance Metering Technology Limited
Report on the matters specified in paragraph 3 of the Companies(Auditor's Report) Order 2016 ("the Order") issued by the CentralGovernment of India in terms of section 143(11) of the Companies Act 2013 ("theAct") as referred to in paragraph 1 of "Report on Other Legal and RegulatoryRequirement's " section
(i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment(fixedassets);
(b) The company has physically verified these fixed assets as per itsprogram of physical every item of fixed assets over a period of three years. No materialdiscrepancies were verification;
(c) The Title deeds of immovable property are held in the name of theCompany as verified from the original / photocopies of original title deeds. Some of theoriginal title deeds are pledged with banks as security against term loans which arecertified by the management;
(ii) (a) The physical verification of inventory has been conducted bythe Company at reasonable intervals by the Management. No material discrepancies werenoticed on such physical verification.
The Company has granted unsecure loan to party(s) covered in theregister maintained under section 189 of the Companies Act 2013;
(a) In our opinion the terms and conditions of the grant of such loansare not prejudicial to the company's interest;
(b) & (c) The schedule of repayment of principal and payment ofinterest has been stipulated and the repayments or receipts are regular. There is nooverdue amount in respect of said loans;
(iii) In our opinion and according to the information and explanationgiven to us provisions of sections 185 and 186 of the Act as applicable in respectloans to Directors including entities in which they are interested and in respect ofloans and advances given investments made and guarantees given have been complied withby the company;
(iv) In our opinion and according to the information and explanationgiven to us the Company has not accepted any deposits from the public within the meaningof directives issued by the Reserve Bank of India and provisions of sections 73 to 76 orany other relevant provisions of the Companies Act 2013 and the rules framed thereunder;
(v) The company is not required to maintain books and records asspecified section (I) of section 148 of the act.
(vi) (a) According to the information and explanations given to us andthe records of the Company examined by us undisputed Statutory dues including ProvidentFund Employees State Insurance Fund TDS as applicable have not been regularlydeposited with the appropriate authorities and there have been delays in a large number ofcases
|Name of the Statue ||Nature of Dues ||Amount in Rs ||Period to which Amount Relates |
|1 Employee State Insurance Act ||ESI Contribution ||79105 ||August 2020 and September 2020 |
|2 Income Tax Act 1961 ||Tax Deducted at Source ||1710223 ||May 2020 to September 2020 |
(b) According to the information and explanations given to us and therecords of the Company examined by us there are no dues of income tax custom duty Goodsand Service Tax Cess and other material statutory dues which have not been deposited onaccount of any dispute;
(vii) According to the records of the Company examined by us and theinformation and explanations given to us the Company has not defaulted on repayment ofloans to bank and financialinstitutions. The Company has neither taken loan from theGovernment nor has it issued any debentures;
(viii) As per the information and explanation given to us and on thebasis of our examination of the records the company has not raised any money by way ofinitial public offer further public offer during the financial year. Term loans wereapplied for the purpose for which those are raised;
(ix) According to the information and explanations given to us no offraud by the Company or fraud on the Company by its officers or employees has been noticedor reported during the
(x) In our opinion and according to theinformation and explanationgiven to us managerial remuneration has been paid or provided as specified by theprovisions of Section 197 of theAct read with Schedule V to the Act;
(xi) In our opinion and according to the information and explanationgiven to us the company is not a Nidhi Company therefore clause (xii) of paragraph 3 ofthe order is not applicable to the company;
(xii) As per the information and explanation given to us and on thebasis of our examination of the records the company has transacted with the relatedparties which are in compliance with section 177 and section 188 of Companies Act 2013and the details have been disclosed in the standalone financial statements as required bythe Ind AS 24 Related Party Disclosures - Refer note no. 33to the standalone financialstatements;
(xiii) According to the information and explanations given to us andoverall examination of the books of account the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and hence not commented upon;
(xiv) According to the information and explanations given to us andbasedon examination of the records of the company the company has not entered into anynon-cash transactions with directors or persons connected with him as referred to insection 192 of the Act. Accordingly clause (xv) of paragraph 3 of the order is notapplicable to the company;
(xv) In our opinion and on the basis of information and explanationsgiven to us the company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.
"Annexure B" To The Independent Auditor's ReportTo The Members Of Advance Metering Technology Limited Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act") as referred to in paragraph 2(f) of Report on Other Legal andRegulatory Requirements' section
We have audited the internal financial controls over financialreportingAdvance Metering Technology Limited of ("the Company") as atMarch 31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's Board of Directors is responsible for establishingand maintaining internal financial controls based on established by the Companyconsidering the essential components of theinternal controloverfinancial internal controlstated in the Guidance Note on "Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls overfinancialreporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial controls overfinancialreporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the standalone financialstatements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficientand onthe Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that:
a) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
b) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and
c) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion based on records the Company has in all materialrespects an adequate internal financial controls over financial reporting and theinternal controls over financial reporting were generallyoperatingeffectivelyas at March31 2021based on the "internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India".
| ||For S.S. Kothari Mehta & Co |
| ||Chartered Accountants |
| ||Firm's Registration No. 000756N |
| ||(Neeraj Bansal) |
| ||Partner |
|Place: Delhi ||Membership No. 095960 |
|Date: : 29.06.2021 ||UDIN: 21095960AAAAGI5759 |