TO THE MEMBERS OF SILVER OAK (INDIA) LTD
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying Standalone Financial Statements of SILVER OAK(INDIA) LTD ("the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then ended andnotes to the Financial Statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "Standalone FinancialStatements").
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 with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards ("Ind AS") of the state of affairs ofthe Company as at March 31 2021 its total comprehensive income changes in equity andits cash flows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit in accordance with Standards on Auditing (SAs) 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 the ethical requirements that are relevant to our audit of the FinancialStatements under the provisions of the Act and 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.
EMPHASIS OF MATTERS
The Operations of the Company during the year ended 31st March 2021 were marginallyaffected due to Lockdown announced by the Central / State Governments during the year inphased manner due to the outbreak of Novel Corona virus COVID19.
Considering the restrictions in physical movement and visits to the company officesthe Company has given us access to their computer/ ERP System. We were able to access therelevant data & records for our Audit purpose. Further the company has provided allother data / information / records as required by us using e-data/ e-mail sharing modes.We also had continuous communication with the Audit Team & Management of the Companyusing various modes such as Audio/ Video Conferencing etc.
Due to the phase wise Lockdown imposed by Central / State Governments and the resultingtravel restrictions it was not possible for us to physically visit the Company on aregular basis and carry out the audit function. We have carried out the Audit Processusing various techniques of Online Auditing. We have verified the records / documents /statements received by us through electronic media. We have also received ManagementRepresentation Letters wherever necessary. Using such techniques and relying on the inputsprovided by the management we have ensured reasonable assurance that the information /record / statements provided to us are free from material misstatement and adhere to therelevant standards.
We have carried out the Audit Process subject to our disclosures as mentioned above.The audit evidence obtained by us is adequate to express our audit opinion. Whileexpressing our audit opinion we have also relied upon certifications by the management orcertifications by other independent auditors wherever required.
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 of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matter ||Procedures Performed / Auditor's Response: |
|1. Appropriateness of Current / Non-current classification ||For the purpose of current/non-current classification of assets and liabilities the Company has ascertained its normal operating cycle as twelve months. This is based on the nature of business and the time between the acquisition of assets or inventories for Sales processing and their realisation in cash and cash equivalents. |
| ||The classification of assets and liabilities has been done based on documentary evidence. Where conclusive evidence is not available the classification has been done based on management's best estimate of the period in which the assets would be realised or the liabilities would be settled. We have evaluated the reasonability of the management's estimates. |
|2. Non-responses of external confirmations request perpetrated pursuant to SA 505. || |
|COVID-19 has impacted the procedure of external confirmation request by management to vendors and customers. Postal facilities were not available in the near end of the financial year. To combat this the management had sent positive external confirmation requests through electronic modes. However due to suspension of business activities of many confirming parties there are fewer confirmations received than anticipated. ||In the absence of related confirmations we performed alternative audit procedures like follow-up confirmation requests verification of subsequent payments and receipts to verify part of the balances appearing in the books of accounts. |
|In such events SA also directs the auditors to perform alternative audit procedures. || |
|3. Provisions and contingent liabilities relating to taxation litigations and arbitrations. ||Our audit procedures included: |
|The provisions and contingent liabilities relate to ongoing litigations and claims with various authorities and third parties. These relate to direct tax indirect tax claims and general legal proceedings arising in the regular course of business. || Understanding the process followed by the Company for assessment and determination of the amount of provisions and contingent liabilities relating to taxation litigations and claims. |
|As at the year ended 31st March 2021 the amounts involved are significant. The computation of a provision or contingent liability requires significant judgement by the Company because of the inherent complexity in estimating future costs. The amount recognised as a provision is the best estimate of the expenditure. The provisions and contingent liabilities are subject to changes in the outcomes of litigations and claims and the positions taken by the Company. It involves significant judgement and estimation to determine the likelihood and timing of the cash outflows and interpretations of the legal aspects tax legislations and judgements previously made by authorities. || Evaluating the design and implementation and testing operating effectiveness of key internal controls around the recognition and measurement of provisions and reassessment of contingent liabilities. |
| || Involving tax professionals with specialised skills and knowledge to assist in the assessment of the value of significant provisions and contingent liabilities relating to taxation matter on sample basis in light of the nature of the exposures applicable regulations and related correspondence with the authorities. |
| || Inquiring the status in respect of significant provisions and contingent liabilities with the Company's internal tax and legal team including challenging the assumptions and critical judgements made by the Company which impacted the computation of the provisions and inspecting the computation. |
|4. Measurement of inventory quantities ||Our audit procedures relating to the measurement of inventory includes the following: |
|As of 31st March 2021 the Company has inventory of Rs. 6932196. This was determined a key audit matter as the measurement of these inventory quantities lying at the warehouse involves significant judgement and estimate resulting from measuring the area. The Company uses internal and external experts to perform assessments basis which the quantity for these inventories is estimated. || Understanding and evaluating the design and operating effectiveness of controls over physical count and measurement of such inventory. |
| || Evaluation of competency and capabilities of management's experts. |
| || Involving external expert for quantification of the inventories on sample basis. |
| || Physically observing inventory measurement and count procedures carried out by management using experts to ensure its appropriateness and completeness; and |
| || Obtaining and inspecting inventory measurement and physical count results for such inventories including assessing and evaluating the results of analysis performed by management in respect of differences between book and physical quantities. |
INFORMATION OTHER THAN THE 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 Board's Reportincluding Annexure to Board's Report and management compliance certificate but does notinclude the Financial Statements and our auditor's report 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 duringthe course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is no materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIALSTATEMENTS
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 Financial Statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including Ind AS specified undersection 133 of the Act read with relevant rules issued there under. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating 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 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 misstatements 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 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 companyhas adequate internal financial controls with reference to financial Statements in placeand the operating effectiveness 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.
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 Statements 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 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 mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.
2. 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 Statements of Profit and Loss including Other ComprehensiveIncome Statements of Changes in Equity and the Cash Flow Statements dealt with by thisreport 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;
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". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial 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 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 has disclosed the impact of pending litigations as of 31stMarch 2021 on its financial position in its financial statements - Refer Note 25(2a) tothe financial Statements.
ii. We draw attention to the Note 25(19) to the financial statements as regards to themanagement evaluation of COVID-19 impact on the future performance of the Company.
iii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
iv. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March 2021.
v. (i) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the company to or in any other person(s) or entity(ies) includingforeign entities ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries (if any);
(ii) The management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by thecompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries (if any); and
(iii) Based on such audit procedures that we (the auditors of the company) haveconsidered reasonable and appropriate in the circumstances; nothing has come to our noticethat has caused us to believe that the representations under sub-clause (i) and (ii)contain any material misstatements.
vi. The company has not declared or paid any dividend during the year in compliancewith section 123 of the Companies Act 2013.
vii. As per the Notification dated 24/03/2021 regarding the use of accounting softwarefor maintaining the books of account which has a feature of recording audit trail (editlog) facility and whether the same has been operated throughout the year for alltransactions recorded in the software and the audit trail feature has not been tamperedwith and the audit trail has been preserved by the company as per the statutoryrequirements for record retention has been deferred till 01/04/2022 vide notificationdated 01/04/2021.
Annexure - "A" to the Independent Auditor's Report
[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of SILVER OAK (INDIA)LIMITED on the Financial Statements for the year ended 31st March 2021]
The Annexure required under CARO 2020 referred to in our Report to the members of SILVEROAK (INDIA) LIMITED ("the Company") for the year ended 31st March2021 and according to information and explanations given to us we report as under:
i. a) (A) The company is maintaining proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.
(B) The company does not have any intangible assets; therefore the requirement of thisclause is not applicable to the company.
b) These Property Plant and Equipment's have been physically verified by themanagement at reasonable intervals and as informed no material discrepancies were noticedon such verification. In our opinion the frequency of verification is reasonable havingregard to the size of the Company and the nature of its assets.
c) The title deeds of all the immovable properties (other than properties where thecompany is the lessee and the lease agreements are duly executed in favour of the lessee)disclosed in the financial statements are held in the name of the company.
d) The company has not revalued its Property Plant and Equipment (including Right ofUse assets) or intangible assets or both during the year.
e) The company does not have any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made there under Accordingly theprovisions of clause 3(i)(e) of the Order is not applicable.
ii. (a) The physical verification of inventory has been conducted at reasonableintervals by the management and in our opinion the coverage and procedure of suchverification by the management is appropriate; No discrepancies of 10% or more in theaggregate for each class of inventory were noticed and they have been properly dealt within the books of account.
(b) During any point of time of the year the company has not been sanctioned anyworking capital limits from banks or financial institutions on the basis of security ofcurrent assets. Since the company has not been sanctioned any working capital limitstherefore there is no requirement to file the quarterly returns or statements with suchbanks or financial institutions. Accordingly the provisions of clause 3(ii)(b) of theOrder is not applicable.
iii. During the year the company has not made investments in provided any guarantee orsecurity or granted any loans or advances in the nature of loans secured or unsecured tocompanies firms Limited Liability Partnerships or any other parties and
(a) During the year the company has not provided loans or provided advances in thenature of loans or stood guarantee or provided security to any other entity and
(A) The Company has no joint venture & associate but has a subsidiary and has notadvanced loans or advances and guarantees or security given. Accordingly the provisionsof clause 3(iii)(a)(A) of the Order is not applicable.
(B) The aggregate amount during the year and balance outstanding at the balance sheetdate with respect to such loans or advances and guarantees or security to parties otherthan subsidiaries joint ventures and associates are as under: -
(Amount in Rs.)
|Type of Borrower ||2020-2021 ||2019-2020 |
| ||Aggregate amount during the year ||Balance outstanding at the balance sheet date ||Aggregate amount during the year ||Balance outstanding at the balance sheet date |
|PROMOTER ||0 ||0 ||0 ||0 |
|DIRECTORS ||0 ||0 ||0 ||0 |
|KEY MANAGERIAL PERSONNEL ||0 ||0 ||0 ||0 |
|OTHERS ||0 ||0 ||0 ||0 |
(b) There are no investments made guarantees provided security given and no loans andadvances in the nature of loans and guarantees are provided which are prejudicial to thecompany's interest. Accordingly the provisions of clause 3(iii)(b) of the Order is notapplicable.
(c) During the year no loans and advances in the nature of loans have been given theschedule of repayment of the principal and payment of interest has not been stipulatedAccordingly the provisions of clause 3(iii)(c) of the Order is not applicable.
(d) During the year no loans and advances are given. Accordingly the provisions withrespect to stipulation as to repayment of clause 3(iii)(d) of the Order is not applicable.
(e) During the year no loan or advance in the nature of loan granted which has fallendue during the year has been renewed or extended or fresh loans granted to settle theoverdue of existing loans given to the same parties. Accordingly the provisions of clause3(iii)(e) of the Order is not applicable.
(f) The company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment if so specifythe aggregate amount percentage thereof to the total loans granted aggregate amount ofloans granted to Promoters related parties as defined in clause (76) of section 2 of theCompanies Act 2013; Accordingly the provisions of clause 3(iii)(f) of the Order is notapplicable.
|S.N O ||PART Y NAM E ||REL ATI ON WI TH PA RTY ||AGREG ATE AMOU NT ||BAL AN CE OU TST AN DIN G ||IS THERE ANY WRITTEN AGREEME NT ||INTE REST RATE ||TOT AL AM OUN T OVE RDU E FOR MO RE THA N 90 DAY S ||AMOUNT OF FRESH LOANS EXTENDED DURING YEAR TO SETTLE OLD LOANS ||AMOU NT OF LOAN RENEW ED DURIN G YEAR ||% SHARE OF LOAN/ ADVANCES IN TOTAL LOAN/ADVA NCES GRANTED |
| || || || || || ||NIL || || || || |
iv. In respect of investments the provisions of sections 185 and 186 of the CompaniesAct have been complied with. During the year the company has not given any loansguarantees and security accordingly the provisions of clause 3(iv) with respect toloans etc. of the Order is not applicable.
v. In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provision of clause 3(v) of the Order is not applicable.
vi. The maintenance of cost records has not been specified by the Central Governmentunder sub-section (1) of section 148 of the Companies Act. Accordingly the provision ofclause 3(v) of the Order is not applicable.
vii. a. The company is regular in depositing undisputed statutory dues including Goodsand Services Tax provident fund employees' state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.
b. The following dues of Income Tax VAT & Central Sales Tax have not beendeposited by the company on account of disputes: -
|Name of statute ||Nature of Dues ||Demand (In) ||Period to which Amount Relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||TDS ||16307 ||Various Years ||CPC |
| ||Total ||16307 || || |
viii. There were no transactions not recorded in the books of account which have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961) Accordingly the provisions of clause 3(viii) of the Order isnot applicable.
ix. a) The Company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any lender Accordingly the provisions of clause3(ix)(a) of the Order is not applicable.
b) The company is not declared willful defaulter by any bank or financial institutionor other lender Accordingly the provisions of clause 3(ix)(b) of the Order is notapplicable.
c) The company has not taken any term loans Accordingly the provisions of clause3(ix)(c) of the Order is not applicable.
d) The company has not raised any funds on short term basis which have been utilizedfor long term purposes Accordingly the provisions of clause 3(ix)(d) of the Order is notapplicable.
e) The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures Accordingly theprovisions of clause 3(ix)(e) of the Order is not applicable.
f) The company has not raised loans during the year on the pledge of securities held inits subsidiaries joint ventures or associate companies Accordingly the provisions ofclause 3(ix)(f) of the Order is not applicable.
x. a) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. Accordingly the provisions of clause3(x)(a) of the Order is not applicable.
b) The Company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year.Accordingly the provisions of clause 3(x)(b) of the Order is not applicable.
xi. a) No fraud by the company or any fraud on the company has been noticed or reportedduring the year covered by our audit. Accordingly the provisions of clause 3(xi)(a) ofthe Order is not applicable.
b) No report under sub-section (12) of section 143 of the Companies Act has been filedby the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government. Accordingly the provisions of clause3(xi)(b) of the Order is not applicable.
c) There were no whistle-blower complaints received during the year by the company.Accordingly the provisions of clause 3(xi)(c) of the Order is not applicable.
xii. In our opinion the Company is not a Nidhi Company; accordingly the provision ofclause 3(xii) of the Order is not applicable.
xiii. In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Indianaccounting standard.
xiv. a) The company has an internal audit system commensurate with the size and natureof its business.
b) The reports of the Internal Auditors for the period under audit were considered bythe statutory auditor.
xv. In our opinion the company has not entered into any non-cash transactions with thedirectors or persons connected with them covered under Section 192 of the Act.Accordingly the provision of clause 3(xv) of the Order is not applicable.
xvi. (a) The company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934 (2 of 1934). Accordingly the provisions of clause3(xvi)(a) of the Order is not applicable.
b) The company has not conducted any Non-Banking Financial or Housing Financeactivities without a valid Certificate of Registration (CoR) from the Reserve Bank ofIndia as per the Reserve Bank of India Act 1934. Accordingly the provisions of clause3(xvi)(b) of the Order is not applicable.
c) The company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly the provisions of clause 3(xvi)(c) of theOrder is not applicable.
d) The Group does not have any CIC as part of the Group. Accordingly the provisions ofclause 3(xvi)(d) of the Order is not applicable.
xvii. The company has incurred cash losses in the financial year 2020-2021 amounting to'13452060 and in the immediately preceding financial year amounting to '13148426.
xviii. There has been no resignation of the statutory auditors during the year.Accordingly the provision of clause 3(xviii) of the Order is not applicable.
xix. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements the auditor's knowledge of the Board of Directors and managementplans we (the auditor) are of the opinion that no material uncertainty exists as on thedate of the audit report and that the company is capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date.
xx. The provisions of Section 135 are not applicable to the company. Accordingly theprovision of clause 3(xx) of the Order is not applicable.
xxi. There have been no qualifications or adverse remarks by the respective auditors inthe Companies (Auditor's Report) Order (CARO) reports of the companies included in theconsolidated financial statements of the company.
Annexure - "B" to the Independent Auditor's Report
(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditor's Report of even date to the members of SILVER OAK (INDIA)LIMITED on the Standalone Financial Statements for the year ended 31st March2021)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of SILVEROAK (INDIA) LIMITED ("the Company") as of 31st March 2021 inconjunction with our audit of the Financial Statements of the Company for the year endedon 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 (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls. 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 judgment including the assessment of the risks ofmaterial misstatements 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 WITH REFERENCE TO FINANCIAL STATEMENTS
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 WITH REFERENCE TO FINANCIALSTATEMENTS
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 and to the best of our information and according to the explanationgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2021 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by ICAI.
| ||STATUTORY AUDITORS |
| ||FOR MAHENDRA BADJATYA & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||ICAI FRN 001457C |
| || |
CA NIRDESH BADJATYA
| ||PARTNER |
| ||ICAI MNO 420388 |
| ||ICAI UDIN 21420388AAAAJE4306 |
|PLACE: INDORE || |
|DATE: 30th June 2021 || |