The Members of
Manor Estates and Industries Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Manor Estates andIndustries Limited (the"Company") which comprise the Balance Sheet as at March31 2021 the Statement of Prot and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of signicant accounting policies and other explanatory information(hereinafter referred to as the"standalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of a airs of the Company as at March 31 2021 and its Loss totalcomprehensive income changes in equity and its cash o ws for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing ("SA"s) specied under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities 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 theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fullled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence obtained by us is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignicant in our audit of the standalone financial statements of the current period. Thesematters were addressed in the context of our audit of the standalone financial statementsas a whole and in forming our opinion thereon and we do not provide a separate opinionon these matters.
We have to identify the matters depending on the facts and circumstances of the entity.Based on the audit performed there are no key audit matters to communicate as there are nosignicant audit judgements relating to areas in the Standalone Financial Statements thatinvolved signi(cant management judgement including accounting estimates that have beenidentied as having high estimation and uncertainty.
4. 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 information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the standalonefinancial statements and our auditor's 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 k nowledgeobtained 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 materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
5. Management's Responsibilities for the Standalone 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 standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash o ws of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal (nancial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that giv e a true and fair view and are free from material misstatementwhether due to fraud or error.
In preparing the standalone (nancial statements management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are responsible for overseeingthe Company's financial reporting process.
6. Auditor's 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 auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to inuence the economic decisions of userstaken on the basis of these standalone 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 standalone 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 financial 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.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
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 signicant 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone (nancial statementsrepresent 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 inuenced . 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 identied 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 signicant audit findings including anysignicant deciencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships 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 signicance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest bene(ts of such communication.
7. Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit 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 Prot and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flows dealt with by thisReport are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specied under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualied ason March 31 2021 from being appointed as a director in terms of Section 164(2) of the Act
(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 unmodied opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us no remuneration paid by the Company to its directors during the year.
(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 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has no pending litigations which have an impact on its in its standalonefinancial statements.
ii. The Company has no long term contract including derivative contracts requiringdisclosure of material foreseeable losses.
iii. There are no amounts required to be transferred to the Investor Education andProtection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the CentralGovernment in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specied in paragraphs 3 and 4 of theOrder.
| ||For NATARAJA IYER & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||Firm's Registration No. 002413S |
| ||Sd/- |
| ||PARTNER |
|Place: Hyderabad ||Membership No. 013924 |
|Date: 29.06.2021 ||UDIN: 21013924AAAAEJ7367 |
Annexure A to the Independent Auditors' Report of even date to the members of ManorEstates and Industries Limited on the standalone financial statements for the year ended31st March 2021
Independent Auditors' Report on the Internal Financial Controls Under Clause (i) ofSub-Section 3 of Section 143 of the Act:
In conjunction with our audit of the standalone financial statements of Manor Estatesand Industries Limited (the Company) as at and for the year ended 31st March 2021 wehave audited the internal financial controls over financial reporting of the company as ofthat date.
Management's Responsibility For Internal Financial Controls:
The Company's Board of Directors 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 ("ICAl''). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Standards on Auditing issued by ICAI and deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial contr olsand a guidance note issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 purpose in accordance with generallyaccepted accounting principles. A Company's internal financial controls over financialreporting include those policies and procedures that:
(a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reec t the transactions and dispositions of the assets of the company;
(b) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statement in accor dance 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 of 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 31st March 2021 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 NATARAJA IYER & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||Firm's Registration No. 002413S |
| ||Sd/- |
| ||(E.SRI RANGANATH) |
|Place: Hyderabad ||PARTNER |
|Date: 29.06.2021 ||Membership No. 013924 |
| ||UDIN: 21013924AAAAEJ7367 |
Annexure B to the Independent Auditor's Report of even date to the members of ManorEstates and Industries Limited on the standalone financial statements for the year ended31st March 2021
Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the information examined by us in thecourse of audit and to the best of our knowledge and belief we report that:
(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property Plant and Equipment.
b) The Company has a regular program of physical verication of its Property Pland andEquipment under which these assets are veried in a phased manner over a reasonable periodof years which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets.
c) The title deeds of all the immovable properties (which are included under the head'Property plant and equipment') in the standalone financial statements are held in thename of the Company. However as informed during the year no physical verication ofProperty Plant and Equipment was conducted due to closure of operations.
(ii) As informed the management has not conducted physical verication of inventoryduring the year due to closer of operations. . In the absence of physical verication ofinventory no comment on discrepancies. Further as informed the inventory considered as at31.03.2021 is as per stock records maintained by the company.
(iii) According to the information and explanation given to us the company has notgranted any loans whether secured or unsecured to the companies rms or other partiescovered in the Register maintained u/s. Sec. 189 of the Companies Act 2013 during theyear. Hence sub clauses (a) and (b) of clause 3(iii) of the order are not applicable tothe company for the year.
(iv) According to the information and explanation given to us the company has notgiven any loans investments guarantees and securityin terms of provisions of section185 and 186 of the Companies Act 2013 and hence the sub-clause (iv) is not applicable tothe company for the year.
(v) The Company has not accepted any deposits during the year and hence in ouropinion the sub-clause (v) is not applicable to the company for the year.
(vi) As informed the provisions under Section 148 of the Companies Act 2013 are notapplicable to the Company.
(vii) (a) The company is generally regular in depositing the undisputedstatutory dues such as income-tax and goods and services tax with the appropriateauthorities;
According to the information and explanation given to us no undisputed amounts payablein respect of Income-tax and Goods and Service Tax and other material statutory dueswere in arrears as at 31st March 2021 for a period of more than six months from the datethey became payable.
(b) There are no disputed statutory dues remaining unpaid due to pending litigations.
(viii) The Company has no loans or borrowings from banks or financial institutions .The Company has no loans or borrowings payable to government and does not have anyoutstanding debentures.
(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and did not have any term loans outstandingduring the year. Accordingly the provisions of Clause 3(ix) of the Order are notapplicable.
(x) To the best of our knowledge and according to the information and explanation givento us no material fraud by the Company or on the Company by its o cers or employees hasbeen noticed or reported during the period covered by our audit.
(xi) In our opinion and according to the information and explanation given to us nomanagerial remuneration has been paid / provided by the Company.
(xii) The Company is not a Nidhi Company as per section 406 of the Companies Act2013and hence the sub-clause (xii) is not applicable to the company.
(xiii) According to the information and explanation given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013 anddetails have been disclosed in the standalone Financial Statements to the extentapplicable.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and thesub-clause (xiv) is not applicable to the company for the year.
(xv) The company has not entered into any non-cash transactions with directors orpersons connected with them with regard to the provision of section 192.Hence thesub-clause (xv) is not applicable to the company for the year.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and hence this clause is not applicable to this company.
| ||For NATARAJA IYER & CO. |
| ||Chartered Accountants |
| ||ICAI FRN:002413S |
| ||Sd/- |
|Place: Hyderabad ||(E.SRI RANGANATH) |
|Date: 29.06.2021 ||Partner |
| ||ICAI Membership No. 013924 |
| ||UDIN 21013924AAAAEJ7367 |