The Board of Directors of Atal Realtech Limited
Report on the Audit of Financial Statements
We have audited the accompanying financial statements of Atal Realtech Limited ('theCompany') (CIN - U45400MH2012PLC234941) which comprise the balance sheet as at 31 March2022 and the statement of profit and loss and statement of cash flows for the year endedon that date and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ('the Act') in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2022 and its financial performance and its cashflows for the year ended on that date.
Basis for Opinion
We have conducted our audit in accordance with the Standards on Auditing (SAs)specified under Section 143(10) of the Act. Our responsibilities under those standards arefurther described in the "Auditor's Responsibilities for the Audit of the FinancialStatements" section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from materials misstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the company's financialreporting process.
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
ii) Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
iii) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
iv) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
v) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government in terms of Section 143(11) of the Act we give in the"Annexure A" a statement on matters specified in paragraphs 3 and 4 of theOrder.
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 bestof 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 been kept by theCompany so far as it appears from our examination of those books;
c) Company does not have any branch office. Thus reporting on the accounts of anybranch office of the company is not required.
d) the balance sheet the statement of profit and loss and the cash flows dealt with bythis report are in agreement with the books of account;
e) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
f) in our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company;
g) on the basis of the written representations received from the directors as on 31March 2022 and taken on record by the Board of Directors none of the directors aredisqualified as on 31 March 2022 from being appointed as a director in terms of section164(2) of the Act;
h) in our opinion there are no qualification reservation or adverse remark relating tothe maintenance of accounts and other matters connected therewith;
i) with respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these financial statements and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B" tothis report; and
j) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. the company does not have any pending litigations that will have an impact on itsfinancial position;
ii. the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For A.S. Bedmutha & Co.
Smruti R. Dungarwal
Membership No.: 144801
Annexure A referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date.
Re: Atal Realtech Limited ('the Company')
i. (a) In our opinion the company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment
(b) The company is maintaining proper records showing full particulars of intangibleassets;
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has a regular programme of physicalverification of its property plant and equipment by which all Property plant andequipment are verified in a phased manner over a period of three years. In accordance withthis programme certain Property plant and equipment were verified during the year. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.
(d) The title deeds of all the immovable properties (other than properties where thecompany is the lessee and the lease agreements are duly executed in favor of the lessee)disclosed in the financial statements are held in the name of the company.
(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its propertyplant and equipment (including Right-of-use assets) or Intangible assets or both duringthe year.
(f) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any Benami Property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.
ii. (a) The Inventory has been physically verified by the management during the year.In our opinion the frequency of such verification is reasonable and procedures andcoverage as followed by management were appropriate. No discrepancies were noticed onverification between the physical stocks and the book records that were 10% or more in theaggregate for each class of inventory.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks.
iii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any investmentsprovided guarantee or security or granted any advances in the nature of loans secured orunsecured to companies firms limited liability partnerships or any other parties duringthe year.
Based on the audit procedures carried on by us and as per the information andexplanations given to us the Company has not provided any loans/advances in the nature ofloans or stood guarantee or provided security to any other entity. Further the companyhas not made any investments or provided guarantees or securities during the yearaccordingly sub-clause (a) (b) (c) (d) (e) and (f) of this clause of the order isnot applicable.
iv. According to the information and explanation given to us the Company has compliedwith the provisions of Section 185 and 186 of the Act with respect to the loans andinvestments made during the period. The Company has not given any guarantee or providedany securities during the period;
v. According to the information and explanation given to us the Company has notaccepted any deposits from the public and accordingly clause 3(v) of the Order is notapplicable
vi. As informed to us the Central Government has not prescribed maintenance of thecost records under section 148(1) of the Companies Act 2013 accordingly clause 3 (vi) ofthe order is not applicable.
vii. a) The Company does not have liability in respect of Sales Tax Service Tax Dutyof Excise and Value Added Tax during the year since effective 1st July 2017 thesestatutory dues has been subsumed into GST.
According to the information and explanation given to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Goods and Services Tax ('GST')Provident fund Employees State Insurance Income Tax Duty of Customs cess or othermaterial statutory dues have generally been regularly deposited (except as describedbelow) with the appropriate authorities.
(b) According to the information and explanations given to us and the record of thecompany examined by us there were no statutory dues that have not been deposited onaccount of any dispute pending;
viii. According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the Company has not surrendered or disclosedany transactions previously unrecorded as income in the books of account in theassessments under the Income Tax Act 1961 as income during the year;
ix. According to the information and explanation given to us and on the basis of ourexamination of the records of the Company-
(a) The company has not defaulted in repayment of loans or other borrowings or thepayment of interest thereon to any lender;
(b) The company is not a declared willful defaulter by any bank or financialinstitution or another lender;
(c) As per information and explanations given to us and on the basis of recordsexamined by us term loans were applied for the purpose for which the loans were obtained;
(d) Funds raised on a short-term basis have not been utilized for long term purposes;
(e) The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures;
(f) The company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate companies;
x. (a) The Company has not raised any money by way of initial public offer or thefurther public offer (including debt instruments) during the year. Accordingly reportingrequirements of this clause is not applicable;
(b) As per explanations given to us; the company has not made any preferentialallotment or private placement of shares or convertible debentures (fully partially oroptionally convertible) during the year. Accordingly reporting requirement of this clauseis not applicable;
xi. (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit;
(b) According to the information and explanations given to us no report under sub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditors inForm ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 withthe Central Government;
(c) No whistle-blower complaints during were received during the year by the company;
xii. In our Opinion and according to the information and explanations given to us thecompany is not a Nidhi Company and hence no such compliances are required under thisclause;
xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards;
xiv. (a) Based on information and explanations provided to us and our audit proceduresin our opinion the company has an internal audit system commensurate with the size andnature of its business.
(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.
xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause 3(xv) ofthe Order is not applicable;
xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clause 3(xvi)(a) of the Order is notapplicable.
(b) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clause 3(xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.
(d) According to the information and explanations provided to us during the course ofaudit the Group does not have any CIC. Accordingly the requirements of clause 3(xvi)(d)are not applicable.
xvii. The company has not incurred cash losses in the current financial year and theimmediately preceding financial year;
xviii. There has been no resignation of the statutory auditors during the year.Accordingly reporting requirements of this clause are not applicable;
xix. In our opinion and according to information and explanations given to us based onthe financial ratios aging and expected dates of realization of financial assets andpayment of financial liabilities other information accompanying the financial statementsknowledge of the Board of Directors and management plans there is no materialuncertainty that exists as on the date of the audit report that company is capable ofmeeting its liabilities existing at the date of the balance sheet as and when they falldue within one year from the balance sheet date;
xx. As per the provisions of section 135(5) the company is not mandatorily required toconstitute a Corporate Social Responsibility Committee and spend funds for the CorporateSocial Responsibility (CSR) activities. Accordingly reporting requirements of this clauseis not applicable.
xxi. According to information and explanations given to us the company is not requiredto prepare the consolidated financial statements. Accordingly reporting requirements ofthis clause is not applicable.
For A. S. Bedmutha & Co.
Smruti R. Dungarwal
Membership No.: 144801
Annexure B referred to in paragraph 2(i) under the heading "Report on Other Legaland Regulatory Requirements" of our report of even date.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AtalRealtech Limited ('the Company') as of March 31 2022 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting('the Guidance Note') and the Standards on Auditing ('the Standards') issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:
a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India..
For A. S. Bedmutha & Co.
Ch artered A ccoun tan ts
Smruti R. Dungarwal
Membership No.: 144801