The Members of SHASHIJIT INFRAPROJECTS LIMITED
1. We have audited the accompanying financial statements of ShashijitInfraprojects Limited which comprises the Balance sheet as at March 31 2018 thestatement of profit & loss and statement of cash flows for the year ended and notesto the financial statements including a summary of significant accounting policies andother explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its profit and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the SAs specified undersection 143(10) of the Companies Act 2013. 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 accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsprescribed under Section 133 of the Act as applicable. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding 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 material misstatement whether due to fraud or error.
Auditor's Responsibilities for the Audit of the Financial Statements
3. Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SA's 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 financial statements.
4. Identify and asses the risk of material misstatement of thefinancial statement whether due to fraud or error design and perform audit procedureresponsive 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 omission misrepresentations or the override of internalcontrol.
5. Obtain an understanding of internal control relevant to theaudit in order to design audit procedure that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.
6. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosure made by management.
7. Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our audit report to the relateddisclosures in the financial statements or if such disclosure are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
8. Evaluate the overall presentation structure and content of thefinancial statement including the disclosure and whether the financial statementsrepresent the underlying transactions and events in the manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters planned scope and timing of the audit and significant audit findings includingany significant deficiency in the internal control that we identify during our audit.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013 we give in the annexure astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
As required by section 143(3) of the Act we report that:
We have sought and obtained all the information and explanations whichto the best of our knowledge and belief were necessary for the purposes of our audit.
a) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
b) The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of account.
c) In our opinion the aforesaid financial statements comply with theAccounting Standards prescribed under Section 133 of the Act as applicable.
d) On the basis of the written representations received from thedirectors as on 31st March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2018 from being appointed as a director interms of Section 164(2) of the Act.
e) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
f) With respect to the other matters to be included in the Auditor'sReport in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigation which would impactits financial position.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to betransferred to the
Investor Education and Protection Fund by the Company.
For NPV & ASSOCIATES
M. NO: 112275
Annexure - A
To the Independent Auditor's Report
(Referred to in paragraph 9 (f) under Report on Other Legal andRegulatory Requirements' of our report of even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of Shashijit Infraprojects Limited ("the Company") as of March31 2018 in conjunction with our audit of the financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls 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. 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 Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained and the auditevidence obtained by the internal auditor in terms of his report is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us 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 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For NPV & ASSOCIATES Chartered Accountants FRN No.129408W
|Milan Chitalia |
|M. NO: 112275 |
|PLACE: VAPI |
|DATE: 29/05/2018 |
Annexure - B
To the Independent Auditor's Report
(Referred to in paragraph 9 under Report on Other Legal andRegulatory Requirements' section of our report of even date)
(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) In our opinion physical verification of all the fixed assets arecarried out at reasonable intervals by management however during the year no fixed assetverification was carried out. According to the information and explanations given to usno material discrepancies were noticed on such verification.
(c) With respect to immovable properties of acquired land and buildingsthat are freehold according to the information and explanations given to us and therecords examined by us and based on the examination of the registered sale deed/transferdeed/conveyance deed/court orders approving schemes of arrangements/amalgamations providedto us we report that the title deeds of such immovable properties are held in the nameof the Company as at the balance sheet date. The company have not taken any land andbuildings on lease.
(ii) (a) Physical verification of inventory has been conducted atreasonable intervals by the management;
(b) In our opinion and according to the information and explanationgiven to us the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the company and thenature of its business.
(c) The company is maintaining proper records of inventory. As perinformation and explanation given to us no material discrepancies were noticed on physicalverification.
(iii) The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the Registermaintained under Section 189 of the Companies Act 2013.
(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable.
(v) According to the information and explanations given to us theCompany has not accepted any deposit during the year and accordingly the question ofcomplying with Sections 73 and 76 of the Companies Act 2013 does not arise. In respect ofunclaimed deposits the Company has complied with the provisions of Sections 74 and 75 orany other relevant provisions of the Companies Act. According to the information andexplanations given to us no Order has been passed by the Company Law Board or theNational Company Law Tribunal or the Reserve Bank of India or any Court or any otherTribunal on the Company.
(vi) The company is not required to maintain cost records as prescribedby the Central Government under Section 148(1) of the Companies Act 2013 in respect ofspecified products of the Company.
(vii) According to the information and explanations given to us inrespect of statutory dues:
(a) On the basis of our examination of the records of the Companyamount deducted/ collected/ accrued in the books of accounts in respect of undisputedstatutory dues including Income Tax Sales Tax Value Added Tax Service Tax etc. areregularly deposited by the company with the appropriate authorities.
(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tofinancial institutions banks and government and dues to debenture holders.
(ix) In our opinion and according to the information and explanationgiven to us the Company has utilised whole of monies raised by way of Initial PublicOffering and the term loans for the purpose for which they were raised. There is nodeviation of funds raised through IPO however there is variation in the utilzation of IPOfund as stated in Note 30 to financial statements within the meaning of variation of fundsstated in Regulation 32(b) of SEBI (Listing Obligation and Disclosure Requirements) Rules2015.
(x) To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no material fraud on the Company byits officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanationsgiven to us the Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act 2013. In respect of three whole-time directors aggregate remuneration ofRs.5280000/- paid/provided during the year.
(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Sections 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.
(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its directors or the person connected with them and hence provisions of Section 192of the Companies Act 2013 are not applicable.
(xvi) The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.
For NPV & ASSOCIATES
M. NO: 112275