To the Members of Shreeji Translogistics Limited
Report on the Audit of the Standalone Financial Statements
I have audited the accompanying Standalone Financial Statements of ShreejiTranslogistics Limited ("the Company") which comprise the Balance sheet as at31st March 2021 the Statement of Profit and Loss the Cash Flow Statement andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.
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 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India:
i. in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2021;
ii. in the case of the Statement of Profit and Loss of the profit for the year endedon that date;
iii. in the case of Cash Flow Statement of the cash flows of the Company for the yearended on that date.
Basis for Opinion
I conducted my audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) as specified under Section 143(10) of the Act. Myresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of myreport.
I am independent of the Company in accordance with the Code of Ethics' issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to my audit of the financial statements under the provisions of the Actand the Rules thereunder and I have fulfilled my other ethical responsibilities inaccordance with these requirements and the Code of Ethics. I believe that the auditevidence I have obtained is sufficient and appropriate to provide a basis for my auditopinion 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 for the financial yearended 31st March 2021.
I have determined that there are no key audit matters to communicate in our report.
Information Other than the Standalone Financial Statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and my audit's report thereon.
My opinion on the financial statements does not cover the other information and I donot express any form of assurance conclusion thereon.
In connection with my audit of the standalone financial statements my responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or my knowledgeobtained during the course of my audit or otherwise appears to be materially misstated.If based on the work I have performed I conclude that there is a material misstatementof this other information I am required to report that fact. We have nothing to report inthis regard
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters in Section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements 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 managementeither intends to liquidate the Company or to cease operations or has no realisticalternative 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 Standalone Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
My responsibility is to express an opinion on these Standalone Financial Statementsbased on my audit.
As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. I 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 my 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 controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act I am also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls;
> Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by 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 significant doubt on the Company'sability to continue as a going concern. If I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. My conclusions are based on the audit evidence obtained up to the date of myauditor'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 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 financial statements may be influenced. I considerquantitative materiality and qualitative factors in (i) planning the scope of my auditwork and in evaluating the results of my work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
I 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.
I 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 myindependence and where applicable related safeguards
From the matters communicated with those charged with governance I determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period. I describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances I determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Standalone Financial Statement.
Report on Other Legal and Regulatory Requirements
1. 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 ofthe Act I give in Annexure "A" a statement on the matters specified in theparagraph 3 and 4 of the Order to the extent applicable.
2. As required by Section 143 (3) of the Act I report that:
a. I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purpose my audit;
b. In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books;
c. The Standalone Balance Sheet the Standalone Statement of Profit and the Standalonestatement of Cash Flows dealt with by this Report are in agreement with the books ofaccount;
d. In my opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Companies Act 2013 read withRule 7 of the Companies (Accounts) Rules 2014
e. On the basis of written representations received from the Directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the Directors aredisqualified as on 31st March 2021 from being appointed as a Director interms Section 164 (2) Companies 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 B";
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 ouropinion the managerial remuneration for the year ended 31st March 2021 hasbeen paid/provided by the Company to their directors in accordance with the provisions ofSection 197 read with Schedule V to 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 my opinionand to the best of my information and according to the explanations given to me:-
i. The Company has disclosed the impact of pending litigation on its financial positionin its Standalone Financial Statement- Refer Note No: - 25;
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any materials foreseeable losses;
iii. There were no amounts which was required to be transferred to the InvestorEducation and Protection Fund;
iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these standalone financial statements since they do not pertainto the financial year ended 31 March 2021.
FOR DHIRAJ H MEHTA & CO.
CHARTERED ACCOUNTANTS FIRM S
REGISTRATION NO. 145318W
PROPRIETOR MEMBERSHIP NUMBER: 129288
DATED:- 28th June 2021
ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT
Referred to Paragraph 1 under the heading of "Report on Other Legal and RegulatoryRequirements" of my report of even date I report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) A substantial portion of the fixed assets has been physically verified by theManagement at regular intervals and in my opinion the frequency of verification isreasonable having regard to the size of the Company and the nature of its assets.According to information and explanation given to me no material discrepancies werenoticed on such physical verification as compared to available records.
(c) According to the information and explanations given to me and on the basis of myexamination of the records of the Company the title deeds of immovable property plantand equipment are held in the name of the Company.
In respect of immovable properties taken on lease and disclosed as right of-use-assetsin the standalone financial statements the lease agreements are in the name of theCompany.
(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable. The Company has maintainedproper records of inventory. The discrepancies noticed on verification between thephysical stock and the book records were not material.
(iii) As per the information and explanations given to me during the year coveredunder audit the Company has not granted any unsecured loans whether secured orunsecured to the parties covered in the register maintained under Section 189 of theCompanies Act 2013. Hence the provisions of Clause (a)(b) and (c ) of the Companies(Auditor's Report) Order 2016 are not applicable to the Company;
(iv) The Company has not granted any loans during the year under Section 185 and in myopinion and according to information and explanation given to me it has complied withprovisions of Section 186 of the Act in respect of grant of any loans making investmentor providing guarantees and securities as applicable.
(v) The Company has not accepted any deposits from the public to which the directivesissued by the Reserve Bank of India and the provisions of Section 73 to 76 of theCompanies Act 2013 and the rules framed thereunder are applicable.
(vi) The Central Government has not prescribed the maintenance of Cost records underSection 148 (1) of the Act for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to me and the records ofthe Company examined by me in my opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund employee's state insuranceincome-tax sale-tax wealth-tax custom duty excise duty GST cess and other materialstatutory dues as applicable with the appropriate authorities .
However according to the information and explanations given to me there are nooutstanding statutory dues which have remained outstanding as to last date of thefinancial period for a period more than six months from the date they became payable.
(b) According to the information and explanation given to me the following amount ofSales Tax Custom Duty Excise Duty Cess Income Tax Wealth Tax GST have been disputedby the Company and hence were not remitted to the concerned authorities at the date ofthe Balance sheet under report.
|Name of the Statute ||Nature of Dues ||Amount ||Year to which Amount Relates ||Cases Pending before |
|Income Tax Act1961 ||Income Tax ||635665 ||A.Y. 2013-14 ||Pending before Hon'ble ITAT (Appeal) |
|Income Tax Act1961 ||Income Tax ||447271 ||A.Y. 2014-15 ||Pending before Hon'ble CIT (Appeal) |
|Income Tax Act1961 ||Income Tax ||325467 ||A.Y. 2017-18 ||Pending before Hon'ble CIT (Appeal) |
|Income Tax Act1961 ||Income Tax ||33594 ||A.Y. 2018-19 ||Pending before Hon'ble CIT (Appeal) |
|Income Tax Act1961 ||Income Tax ||26075 ||A.Y. 2019-20 ||Pending before Hon'ble CIT (Appeal) |
However the company is confident of getting relief in Appellate proceedings.
(viii) In my opinion and according to the record of the Company examined by me and theinformation and explanation given to me the Company has not defaulted in repayment of itsdues to bank. The Company has no loan or borrowing payable to Government and no duespayable to debenture holders during the year.
(ix) According to the information and explanation given to us and on the basis of myexamination of the books of account the company has not raised money by way of initialPublic offer or further public offer (including debt instruments) and utilized the termloan for the purpose for which they were raised. Accordingly paragraph 3(ix) of the Orderis not applicable to the Company.
(x) According to the information and explanation given to me no material frauds by theCompany and no fraud on the Company by its officers or employees has been noticed orreported during the course of my audit;
(xi) According to the information and explanation given to us and on the basis of myexamination of the books of account the managerial remuneration are payable as perprovisions of Section 197 read with Schedule V to the Companies Act 2013.
(xii) The Company is not a chit fund or a nidhi / mutual benefit fund / society.Therefore the paragraph (xii) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company;
(xiii) All Transactions with the related parties are in compliance with the Sections177 and 188 of the companies Act 2013 are applicable and the details have been disclosedin the Financial statements etc. as required by the applicable accounting standards;
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review;
(xv) I n our opinion and according to the information and explanations given to usduring the year the Company has not entered into non - cash transaction with the Directorsor persons connected with them;
(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
FOR DHIRAJ H MEHTA & CO.
CHARTERED ACCOUNTANTS FIRM S
REGISTRATION NO. 145318W
DHIRAJ H.MEHTA PROPRIETOR MEMBERSHIP NUMBER: 129288
DATED:- 28th June 2021
ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT
Annexure B to the Independent Auditors' Report on the standalone financial statementsof Shreeji Translogistics Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
Referred to Paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" of my report of even date I report that:
I have audited the internal financial controls over financial reporting of SHREEJITRANSLOGISTICS LIMITED ("the Company") as of 31st March 2021 inconjunction with my audit of the Standalone Financial Statements of the Company for theyear ended as on 31st March 2021.
In my opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols were operating effectively as at 31 March 2021 based on the internal financialcontrols with reference to standalone financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (the "Guidance Note").
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the "Guidance Note") and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that I comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial controls systemover financial reporting with reference to these Standalone Financial Statements.
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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
FOR DHIRAJ H MEHTA & CO.
CHARTERED ACCOUNTANTS FIRM S
REGISTRATION NO. 145318W DHIRAJ H.MEHTA
PROPRIETOR MEMBERSHIP NUMBER: 129288
DATED:- 28th June 2021