To the Members of lykot Hitech Toolroom Limited
Report on the Audit of Standalone Financial Statements
We have audited the standalone financial statements of M/s. Iykot Hitech ToolroomLimited ("the Company") which comprise the Balance Sheet as at March 312022the Statement of Profit and Loss (including other comprehensive income) statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that dateincluding a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as the "Financial Statements").
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 andfair view in conformity in conformity with Indian Accounting Standards prescribed underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2022 and its Profit andOther total Comprehensive Income Changes in Equity and Cash Flows for the year ended onthat date.
Basis of Opinion
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with the requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Board's report including Annexure to Board Report andShareholders Information but does not include the financial statements and our auditor'sreport thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed on the other information obtained prior to thedate of this auditor's report we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.
Responsibility of Management for the Financial Statements
The Company's 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 financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards (Ind AS) specified under Section 133 of the Act readwith relevant rules made thereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the financial statements the management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless themanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
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 scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal controls 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.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting 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.
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 2020 ("the Order")issued by the Central Government of India in terms of sub- section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 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 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 Standalone Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) 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.
(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the company and other operating effectiveness of such controls refer to ourseparate report in "Annexure B".
With respect to the other matters to be included in the Auditors Report in accordancewith the requirements of section 197(16) of the Act as amended:
(g) In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
(h) 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 which would impact its financialposition.
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.
iv. Management has represented that to the best of its knowledge and belief otherthan as disclosed in the notes to the accounts no funds have been advanced or loaned orinvested (either from borrowed funds or any other sources or kind of funds) by the companyto or in any other person(s) or entity(is) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries.
v. Management has represented that to the best of its knowledge and belief other thanas disclosed in the notes to the accounts no funds have been received by the Company fromany person(s) or entity(ies) including foreign entities ("Funding Parties")with the understanding whether recorded in writing or otherwise that the Company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries and Based on the audit procedures adopted by us nothing has cometo our notice that has caused us to believe that the representations made by themanagement under sub clause (i) and (ii) above contain any material Misstatement.
vi. In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.
ANNEXURE - A
Re: IYKOT HITECH TOOLROOM LIMITED
Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirement' of our report of even date to the financial statements of Iykot HitechToolroom Limited for the year ended March 312022:
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipments. There are nointangible assets held by the Company.
(b) These Property Plant and Equipments have been physically verified by themanagement in a phased manner at regular intervals which in our opinion is reasonablehaving regard to the size of the company and nature of its business and no materialdiscrepancies between the books records and the physical fixed assets have been noticed.
(c) The company does not hold any immovable properties and hence clause (c) is notapplicable.
(d) The Company have not revalued its Property Plant and Equipments or intangibleassets during the year under review.
(e) The Company is not holding any Property Plant and Equipments under benami namesand no proceedings have been initiated during the year or are pending against the Companyfor holding any benami property under the Benami Transactions (Prohibition) Act 1988 (45of 1988) and rules made thereunder.
2) (a) As informed to us the management has conducted physical verification ofinventory (including inventory lying with third parties) at reasonable intervals duringthe year. In our opinion the coverage and the procedure of such verification by themanagement is appropriate. Discrepancies noticed on such physical verification is lessthan 10% in aggregate for each class of inventory and have been properly dealt with in thebooks of account.
(b) The Company had not availed any working capital loans from banks during the yearagainst the security of the stock of inventories.
3) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (f) of theOrder are not applicable to the Company and hence not commented upon.
4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013in respect of loans investments guarantees and security.
5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 312022 for a period of more than six months fromthe date on when they become payable. According to the information and explanation givento us there are no dues of income tax sales tax service tax duty of customs duty ofexcise value added tax outstanding on account of any dispute.
(b) According to the information and explanations given to us and based on the recordsof the Company examined by us there are no dues of Income-Tax Customs Duty Sales TaxService Tax Goods and Services Tax Value Added Tax Excise Duty and Cess which have notbeen deposited on account of any dispute
8) In our opinion and according to the information and explanations given to us thereare no transactions unrecorded previously in the books of account that have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961). Accordingly the requirement to report on Clause 3(viii) ofthe Order is not applicable to the Company.
9) The Company has not defaulted in the repayment of dues to banks as it has not takenany loan either from financial institutions or from the government and it has not issuedany debentures.
10) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans during the year.
The company has not made any preferential allotment or private placement of shares orfully or partially or optionally convertible debentures during the year under audit.
Accordingly the provisions of clause 3 (x) (a) and 3(x) (b) of the Order are notapplicable to the Company and hence not commented upon.
11) (a) During the course of our examination of books and records of the companycarried out in accordance with the generally accepted audit procedures performed for thepurpose of reporting true and fair view of the standalone financial statements to thebest of our knowledge and belief and as per the information and explanations given by theManagement and the representations obtained from the Management no material fraud on thecompany by its officers or employees has been noticed or reported during the year.
(b) There is no report under sub-section (12) of section 143 of the Companies Act filedby us in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules2014 with the Central Government during the year. According to the information andexplanations given to us and records verified by us the Secretarial Auditors have notfiled report in Form ADT-4 prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.
(c) According to the information and explanations given to us and records verified byus there are no whistle blower complaints received by the Company during the year.
12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause (xii) of the Order are not applicable to the Company.
13) In our opinion and according to the information and explanations given to us basedon verification of the records and approvals of the Audit Committee the Company is incompliance with Section 177 and Section 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the Standalone financial statements as required by the applicableaccounting standards
14) a) In our opinion and based on our examination the Company has an internal auditsystem commensurate with the size and nature of its business.
b) The internal audit reports of the Company issued till the date of this audit reportfor the period under audit have been considered by us.
15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
16) (a) In our opinion and according to the information and explanations given by themanagement and verified by us the company is not required to be registered under section45 IA of the Reserve Bank of India Act 1934. Accordingly the requirement to report underclause (xvi) of the Order does not arise.
(b) The Company has not conducted any Non-Banking Financial or House Financingactivities.
(c) The Company is not a core investment company as defined in the regulations made bythe Reserve Bank of India. Accordingly the requirement to report under clause (xvi) ofthe Order does not arise.
17) The Company had not incurred any cash loss in the current year as well as in theimmediately preceding financial year.
18) There is no resignation of the statutory auditor during the year under review.Accordingly the requirement to report under clause 3 (xviii) of the Order does not arise.
19) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities and other information accompanying the financial statementstogether with our knowledge of the Board of Directors and management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report that Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.
20) According to the information and explanations given to us the provisions ofSection 135 of the Companies Act 2013 relating Corporate Social Responsibility are notapplicable to this Company and hence not commented upon.
TO THE INDEPENDENT AUDITOR'S REPORT
"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of M/s. Iykot Hitech Toolroom Limited for the year ended March312022
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013
We have audited the internal financial controls over financial reporting of M/s. IykotHitech Toolroom Limited ("the Company") as of March 312022 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.
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 issued by ICAI and deemedto 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 judgement 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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 my 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 March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control as stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
|For VIVEKANANDAN ASSOCIATES ||Chartered Accountants |
| ||(ICAI Regn. No.: 05268 S) |
| ||(Sd/-) |
| ||N. SUBRAMANIAN |
| ||Partner |
|Place : Chennai ||Membership No. 21628 |
|Date : 26/05/2022 ||UDIN: 2221628AKJCMT5972 |