TO THE MEMBERS OF IPRINGS LIMITED
Report on the audit of the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of IP RINGS LIMITED("the Company") which comprise the Standalone Balance Sheet as at March 312022 the Standalone Statement of Profit and Loss(including Other Comprehensive Income)Standalone Statement of Changes in Equity and Standalone Statement of Cash flows for theyear then ended and a summary of the significant accounting policies and otherexplanatory information. In our opinion and to the best of our information and accordingto the explanations 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 state of affairs of the Company as at March 31 2022the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the AuditorsResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAIs Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matter Description ||Response to Key Audit Matter |
|Revenue Recognition ||Principal Audit Procedures |
|Reference may be made to Note 58(10) of significant accounting policies and Note 22 and 29 to the standalone financial statements of the Company. ||Our audit procedures relating to revenue comprised of test of controls and substantive procedures including the following: |
|Revenue recognition is inherently an area of audit risk which we have focused on mainly covering the aspects of cut off. ||i. We performed procedures to assess the design and internal controls established by the management and tested the operating effectiveness of relevant controls related to the recognition of revenue. |
|Considering the above impact of Ind AS 115 and cut-off are considered by us as key audit matters. ||ii. Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls. |
| ||iii. We have tested on a sample basis whether specific revenue transactions around the reporting date has been recognised in the appropriate period by comparing the transactions selected with relevant underlying documentation including goods delivery notes customer acknowledgement/proof of acceptance and the terms of sales. |
| ||iv. We have also validated subsequent credit notes and sales returns up to the date of this Report to ensure the appropriateness and accuracy of the revenue recognition. |
| ||v. We tested journal entries on a sample basis to identify any unusual or irregular items. |
| ||vi. We also considered the adequacy of the disclosures in Companys financial statements in relation to Ind AS 115 and were satisfied they meet the disclosure requirements. |
| ||Conclusion |
| ||Based on the procedures performed above we did not find any material exceptions with regards to timing of revenue recognition and disclosure requirement of Ind AS 115 in the financial statements. |
|Impairment in Trade Receivables ||Principal Audit Procedures |
|Reference may be made to Note 5 to the standalone financial statements of the Company. ||We have performed the following procedures in relation to the recoverability of trade receivables and computing allowance for credit losses: |
|The Company is exposed to potential risk of financial loss when there is the risk of default on receivables from the customers for which the Management would make specific provision against individual balances with reference to the recoverable amount. Such provision/allowance for credit losses is based on historical experience adjusted to reflect current and estimated future economic conditions. || Tested the effectiveness of the control over the methodology for computing the allowance for credit losses including consideration of the economic conditions and completeness and accuracy of information used in the estimation of probability of default. |
|For the purpose of impairment assessment significant judgements and assumptions including the credit risks of customers the timing and amount of realization of these receivables are required for the identification of impairment events and the determination of the impairment charge. ||Tested the accuracy of aging of trade receivables at year end on a sample basis. |
|In view of the above we identified allowance for credit losses as a key audit matter since significant judgement is exercised in calculating the expected credit losses/impairment charge. || Obtained a list of outstanding receivables and identified any debtors with financial difficulty through discussion with management. |
| || Assessed the recoverability of the unsettled receivables on a sample basis through our evaluation of managements assessment with reference to the credit profile of the customers historical payment pattern of customers publicly available information and latest correspondence with customers and to consider if any additional provision should be made; |
| || Tested subsequent settlement of trade receivables after the balance sheet date on a sample basis. |
| ||Conclusion |
| ||Based on the above procedures we found the key judgements and assumptions used by management in the recoverability assessment of trade receivables to be supportable based on the available evidence and consequently are satisfied on the sufficiency of provisions/allowance for credit losses. |
|Allowance for inventory obsolescence ||Our audit procedures in respect of this matter included: |
|Refer to note 58(8)(b) of the standalone financial statements. ||Understood management policy and process for identification of providing of obsolete inventory including performing testing of controls to assess the effectiveness of the same. Reviewed the managements judgement applied in calculating the value of inventory obsolescence taking into consideration the expected changes in auto industry and management assessment of the present and future condition of the inventory. Assessed the adequacy of the relevant disclosure in the notes to the financial statements. |
|The Company holds significant inventories and records allowance for identified and estimated inventory obsolescence. ||Conclusion |
|As at 31st March 2022 the Company had inventories of Rs.5285.29 lakhs. ||Based on the above procedures performed we consider the provision for inventory obsolescence to be reasonable. |
|The Company provides for obsolescence of Inventory considering the inventory on hand existing/probable customer orders the production plan expected utilisation in production and expected sales. Further the estimates are validated by technological changes/legislative changes in the auto business and trends of the obsolescence in the past. The obsolescence covers inventory under Raw material work-in-progress and finished goods. Given the significant judgment involved in managements assessment the allowance for inventory obsolescence is identified as a key audit matter || |
Information Other than the Financial Statements and Auditor's Report Thereon
The Companys Board of Directors is responsible for the preparation of otherinformation in their Report to members etc. The other information comprises theinformation included in the Annual report but does not include the consolidated financialstatements standalone financial statements and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.
Managements Responsibility for the Standalone Financial Statements.
The Companys Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the IND AS and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Companys ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financialreporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance 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 economic decisionsof users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors report. However future events or conditionsmay cause the Company to cease to continue as a going concern..
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.
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.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section143 (3) of the Companies Act 2013 based on our audit wereport that:
a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes 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. The Balance Sheet the Statement of Profit and Loss including other Comprehensiveincome the Statement of
Cash Flows and the Statement of Changes in Equity dealt with by this report are inagreement with the books of account.
d. In our opinion the aforesaid Financial Statements comply with the Indian AccountingStandards prescribed under
Section 133 of the Act read with the relevant rules issued thereunder.
e. On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312022 from being appointed as a director in terms of Section164(2) of theCompanies Act 2013.
f. With respect to the adequacy of the Internal Financial Controls Over FinancialReporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure "A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the companys internal financial controlsover financial reporting.
g. With respect to the other matters to be included in the Auditors Report inaccordance with the requirements of
Section 197(16) of the Act as amended in our opinion and to the best of ourinformation and according to the explanations given to us remuneration paid by thecompany to its directors during the year is in compliance with the provisions ofSection 197 read with Schedule V of the Act.
h. With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the
Companies (Audit and Auditors) Rules 2014 as amended in our opinion and to thebest of our information and according to the explanation given to us:
(i.) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements. (Refer Note 30)
(ii.) The company has long-term contracts including derivative contracts for whichthere were no material foreseeable losses as at March 312022.
(iii.) There were no amount which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
(iv.) (a) The Management has represented that to the best of its knowledge andbelief as disclosed in the note 50 to the accounts no funds have been advanced or loanedor invested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.
(b) The Management has represented that to the best of its knowledge andbelief as disclosed in the note 50 to the accounts no funds have been received by theCompany from any persons or entities including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material mis-statement.
(v.) The final dividend declared for the previous year and paid by the Company duringthe year is in accordance with section 123 of the Companies Act 2013 to the extent itapplies to payment of dividend.
As stated in note 10.7 to the standalone financial statements the Board of Directorsof the Company have proposed final dividend for the year which is subject to the approvalof the members at the ensuing Annual General Meeting. The dividend so proposed is inaccordance with section 123 of the Act to the extent it applies to declaration ofdividend.
2.As required by the Companies (Auditors Report) Order2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the matters specified in paragraphs 3 and 4of the Order.
|For M.S. Krishnaswami & Rajan |
|Chartered Accountants- |
|Registration No. 01554S |
|M.S. Murali Partner |
|Membership No. 26453 |
|UDIN: 22026453AKUFZO8548 |
|May 27 2022 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and RegulatoryRequirements section of our report of even date to the members of IP RINGS LIMITED)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the Internal Financial Controls Over Financial Reporting of IP RINGSLIMITED ("the Company") as of March 31 2022 in conjunction with our auditof the Standalone Financial Statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated 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 companys 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 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditorsjudgement including the assessment of the risks of material misstatement of the FinancialStatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompanys internal financial controls system over 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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddisposition of the assets of the company; (ii) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Financial Statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material 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 considering the remediation measures taken by the Company to the bestof our information and according to the explanations given to us the Company hasmaintained in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as of March 31 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
|For M.S. Krishnaswami & Rajan |
|Chartered Accountants- |
|Registration No. 01554S |
|M.S. Murali Partner |
|Membership No. 26453 |
|UDIN: 22026453AKUFZO8548 |
|May 27 2022 |
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements section of our report of even date to the members of IP RINGS LIMITED("the Company") for the year ended March 31 2022).
1. In respect of the Companys Property Plant and Equipment: a) (i) The companyhas maintained proper records showing full particulars including quantitative details andsituation of Property Plant and Equipment and relevant details of right-of-use assets butthe situation of the assets needs to be updated in certain cases.
(ii) The company has maintained proper records showing full particulars of intangibleassets.
b) The Company has a programme of verification to cover all the items of PropertyPlant and Equipment and right of use assets in a phased manner covering all assets onceevery 3 years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme certain Property Plantand Equipment were physically verified by the management during the year. According to theinformation and explanation given to us no material discrepancies were noticed during theyear on such verification.
c) According to the information and explanations given to us and the records examinedby us we report that title deeds of all freehold immovable property belonging to theCompany are held in the name of the Company as at the end of the year. In respect ofproperties where the company is the lessee including building constructed on leaseholdland the lease agreement is in the name of the Company.
d) The Company has not revalued its Property Plant and Equipment (including right- of-use assets) or intangible assets during the year.
e) No proceedings have been initiated during the year or are pending against thecompany as at March 312022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made thereunder.
2. (a) As explained to us inventories other than the Goods in transit have beenphysically verified at periodic intervals by the management. The coverage and procedure ofsuch verification by the management were in our opinion appropriate. Discrepancies (of10% or more in value in the aggregate for each class of inventory) were noticed on suchphysical verification and the said discrepancies has been properly accounted in the booksof accounts.
(b) The company has been sanctioned working capital limits in excess of five crorerupees in aggregate during the year by banks or financial institutions on the basis ofsecurity of current assets during the year and the quarterly returns or statements asrevised filed by the company with such banks or financial institutions are materially inagreement with the books of account of the Company.
3. The Company has not made investment in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties during the year and hence theprovisions of clause 3(iii)(a) (c) (d) (e) and (f) are not applicable to the Company.
4. According to information and explanation given to us the Company has not grantedany loans secured or unsecured furnished guarantees or provided security to any partycovered by provisions of sections 185 and 186 of the Companies Act 2013.Hence reportingon whether there is a compliance with the said provisions does not arise. In respect ofInvestments made the provisions of Section 186 of the Companies Act 2013 has beencomplied with.
5. According to information and explanations given to us the Company has not acceptedany deposits or amounts which are deemed to be deposits during the year and there are nounclaimed deposits as at March 312022 to which the provisions of section 73 to 76 or anyother relevant provisions of the Companies Act are applicable. Accordingly the provisionsof clause (v) of paragraph 3 of the Order is not applicable to the Company.
6. As per the information and explanation given to us the maintenance of the costrecords has been specified by the Central Government under Section 148(1) of the Act. Wehave broadly reviewed the cost records maintained by the company pursuant to the Companies(Cost Records and Audit) Rules 2014 as amended and prescribed by the Central Governmentunder Section 148(1) of the Act and we are of opinion that prima facie the prescribedaccounts
7. According to the information and explanations given to us and the books of accountexamined by us in respect of statutory dues:
(i.) the company is generally regular in depositing material amounts of undisputedstatutory dues including Goods and Services Tax Provident Fund Employees' StateInsurance Income-tax Sales-tax Service tax Goods and Service tax duty of customsduty of excise value added tax Cess and other material statutory dues as applicable tothe appropriate authorities during the year. There were no material undisputed amountspayable in respect of the aforesaid statutory dues outstanding as at March 31 2022 for aperiod of more than six months from the date they became payable. (ii.) there are nostatutory dues referred to in above sub-clause which have not been deposited on accountof any dispute with the relevant authorities except dues of Income tax Provident funddues and Value added tax that have not been deposited on account of disputes as detailedhereunder:
|Name of the Statute ||Nature of Dues ||Amount (In Rs. Lakhs) of Disputed dues ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Interest on Income tax ||21.10 ||AY 2018-19 ||CIT (Appeals) |
|Employees` Provident || || || ||Employees` |
|Funds and Miscellaneous Provisions Act1952 ||Interest/ Damages ||22.44 ||FY 2014-15 ||Provident Fund Tribunal Tamil Nadu. |
|The Tamil Nadu Value Added Tax Act 2006 ||Value Added Tax ||1.30 ||FY 2007-08 ||Appellate Deputy Commissioner |
For the above purposes demand for income tax dues has been arrived based on ordersreceived even though not given effect to by the Income Tax Department.
8. As per the information and explanation given to us there were no transactionspreviously not recorded in the books of account that have been surrendered or disclosed asincome during the year in the tax assessments under the Income Tax Act 1961.
9. (a) In our opinion and according to information and explanation given to us theCompany has not defaulted in repayment of dues to any financial Institution or bank. TheCompany does not have any borrowings from Government or by way of Debentures.
(b) As per the information and explanation given to us the company has not beendeclared wilful defaulter by any bank or financial institution or other lender.
(c) As per the information and explanation given to us the monies raised by way ofterm loans have been applied for the purposes for which they were obtained.
(d) On an overall examination of the financial statements of the Company funds raisedon short- term basis have prima facie not been used during the year for long-termpurposes by the Company.
(e) On an overall examination of the financial statements of the Company the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its joint venture. The Company does not have subsidiaries or associates.
(f) The company has not raised any loans during the year on the pledge of securitiesheld in its joint venture company.
10. (a) As per the information and explanation given to us the Company has not raisedany monies by way of initial public offer or further public offer (including debtinstruments) during the year and hence reporting under the provisions of Clause 3(x)(a) ofthe Order does not arise.
(b) During the year the Company has not made any preferential allotment or privateplacement of shares (covered by section 42 and section 62 (1)c of the Companies Act 2013)or fully or partly convertible debentures and hence reporting under clause 3(x)(b) of theOrder is not applicable.
11. (a) No fraud by the company and no material fraud on the company has been noticedor reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and up to the date of this report.
(c) As per the information and explanation given to us there are no whistle-blowercomplaints received during the year by the company up to the date of this report.
12. The Company is not a Nidhi Company and accordingly the provisions of Clause 3(xii)of the Order is not applicable to the Company.
13. In our opinion and according to the information and explanations given to us alltransactions with the related parties are in compliance with sections 177 and 188 of theCompanies Act 2013 where applicable. The details of the transactions during the yearhave been disclosed in the Financial Statements as required by the applicable AccountingStandards. (Refer Note 48 to Financial Statements).
14. (a) In our opinion the Company has an internal audit system commensurate with thesize and nature of its business. (b) We have considered the internal audit reports for theyear under audit issued to the Company during the year in determining the nature timingand extent of our audit procedures.
15. In our opinion the Company has not entered into any non-cash transactions duringthe year with its Directors or persons connected with its directors. and hence provisionsof section 192 of the Companies Act 2013 are not applicable to the Company.
16. The Company is not required to be registered under section 45 - IA of the ReserveBank of India Act 1934 and it is not a Core Investment Company. Accordingly theprovisions of Clause 3(xvi) (a)(b)(c) and (d) of the Order is not applicable to theCompany.
17. The company has not incurred cash losses during the financial year covered by ouraudit and in the immediately preceding financial year.
18. There has been no resignation of the statutory auditors of the Company during theyear. Accordingly the provisions of Clause 3(xviii) of the Order are not applicable tothe Company.
19. According to the information and explanations given to us and on the basis of
(i) the financial ratios
(ii) ageing and expected dates of realization of financial assets and payment offinancial liabilities
(iii) other information accompanying the financial statements
(iv) our knowledge of the Board of Directors and management plans and (v) based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report indicating that the company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the company as and when they fall due.
20. There are no unspent amounts towards Corporate Social Responsibility (CSR).Accordingly reporting under clause
3(xx)(a) and (b) of the Order is not applicable for the year.
|For M.S. Krishnaswami & Rajan |
|Chartered Accountants- |
|Registration No. 01554S |
|M.S. Murali Partner |
|Membership No. 26453 |
|UDIN: 22026453AKUFZO8548 |
|May 27 2022 |