The Members of SHRENIK LIMITED
Report on the Financial Statements
We have audited the Financial Statements of SHRENIK LIMITED ("the Company")which comprise the Balance Sheet as at 31st March 2021 and the Statement ofProfit and Loss Cash Flow Statement and notes to the financial statements including asummary of significant accounting policies and other explanatory information for the yearended on 31st March 2021.
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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312021 and profit/loss and its cash flow for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Responsibility of Management for 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 (changes in equity) and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the accountingStandards specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of 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 statement that give a true and fair view andare free from material misstatement whether due to fraud or error.
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. The Board of Directors are also responsible for overseeing thecompany's financial reporting 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 skepticism 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are 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 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.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 benefits of such communication. REPORT ONOTHER 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 Companies Act 2013 we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
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 and Statement of Profit & Loss and 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 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164 (2) of the Act. And
f) 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:
g) With respect to the adequacy of the Internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". Our reports express an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
i. The Company does not have any pending litigations which would impact its FinancialPosition.
ii. The Company did not have any material foreseeable losses on long-term contractsincluding derivative contracts.
iii. The Company is not required to transfer any amounts to the Investors Education andProtection Fund.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT
(The Annexure Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' Section of our report of even date)
1. In respects of its Fixed Assets :
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. All the assets have been physically verified by the management during the year andthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such verification and same matched with balance in the books of accounts.
c. Title deeds of all the Immovable properties of the Company are in the name of Mr.Shrenik S Vimawala a proprietor of the erstwhile Proprietorship Firm M/s. Shree ShyamCorporation. Immovable Properties have been transferred to the Company on account ofconversion of the Company from proprietorship to Partnership Firm to Private Company andthen to Limited Company under Companies Act 2013. Details of the Property is attached asAnnexure-I.
Leasehold Land property is in the name of the Company.
2. In respect of its inventories:
a. The inventories have been physically verified during the year by the management.
b. In our opinion the frequency of verification is reasonable and no materialdiscrepancies were noticed on physical verification.
3. In our opinion and according to the information and explanation given to us theCompany has not granted any loans secured or unsecured to Companies Firms LimitedLiability Partnerships or other parties covered in the Register maintained under Section189 of the Act. Accordingly the provisions of Clause 3 (iii) (a) to (c) of the Order arenot applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanation given to us theCompany has complied with the provision of Section 185 & 186 of the Act with respectto the Loans Investment & Guarantees made.
5. In our opinion and according to the information and explanation given to us theCompany did not receive any deposit covered under Sections 73 to 76 of the Companies Actand the rules framed there under with regard to deposits
6. In our opinion and according to the information and explanations given to us theCentral Government has not prescribed for maintenance of cost records under Sub-Section(1) of Section 148 of the Companies Act in respect of the products of the Company.
7. The Company has not deposited with appropriate authorities undisputed statutory duesof Income Tax and TDS.
According to the information and explanations given to us and the records of theCompany examined by us there are no dues of Provident Fund Employees' State InsuranceDuty of Customs and Good & Service Tax as at March 312021 which have not beendeposited on account of dispute.
8. In our opinion and according to the information and explanations provided by theManagement the Company has not defaulted in repayment of loans or borrowings to FinancialInstitutions Banks or Government or dues to Debenture Holders.
9. Based upon the audit procedures performed and the information and explanations givenby the management the Company has not raised monies by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of Clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.
10. According to the information and explanation given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
11. According to the information and explanation given to us and based on ourexamination of the record of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite mandate by the provision of Section 197 readwith Schedule V of the Act.
12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.
13. According to the information and explanation given to us and based on ourexamination of the record of the Company transaction with the related parties are incompliance with Sections 177 & 188 of the Act where applicable and details of suchtransaction have been disclosed in the financial statements as required by the applicableaccounting standards.
14. Based upon the audit procedures performed and the information and explanationsgiven by the management the Company has not made private placement of shares during theyear under review. Accordingly the provisions of Clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
15. According to the information and explanation given to us and based on ourexamination of the record of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.
16. The Company is not required to be registered under Section 45 IA of the ReserveBank of India Act 1934 and accordingly the Provisions of Clause 3 (xvi) of the Order arenot applicable to the Company and hence not commented upon.
ANNEXURE TO CARO
|Property ||Gross block (As at Balance Sheet date) ||Net block (As at Balance Sheet date) ||Address ||Remarks if any |
|Godown D-62 Gomtipur ||770504 ||706854 ||Godown D/62 Ramkrishna Industrial Estate Nr. Kalidas Mill Opp. Shital Cinema Gomtipur Ahmedabad. || |
Property has been transferred to Shrenik Tradelink Pvt. Ltd. (now Shrenik Limited) on account of conversion of Company from Proprietorship to Partnership Firm & then in Private Company under Chapter IX of Companies Act 1956. Documents are in the Name of "Shrenik Sudhirbhai Vimawala" (Proprietor of Shree Shyam Corporation earlier entity).
|Godown D-96 Khokhara ||608121 ||557885 ||Godown D96 Naya Anaj Bazar Opp. Anupam Cinema Khokhra Ahmedabad. |
|Godown D-26 Khokhara ||6142772 ||5635326 ||Godown 26 Anaj Bazar Co-Operative Shops & Warehousing Society Ltd Nr. Gayatri Dairy Khokhra Ahmedabad. |
|Total ||7521397 ||6900064 || |
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph 2(f) under Report on Other Legal and Regulatoryrequirements' of our report of even date) Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financial reporting of SHRENIKLIMITED ("the Company") as of 31st March 2021in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") 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 Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 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 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 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 Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion 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 2021based on the internal control over 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.
| ||For Singhi & Co |
| ||Chartered Accountants |
| ||Firm Registration No: 302049E |
| ||Sunil C. Bohara |
| ||Partner |
|Date :- 13th May 2021 ||Membership No : 103395 |
|Place :- Ahmedabad ||UDIN: 21103395AAAACL3223 |