Square Four Projects India Ltd.
|BSE: 526532||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE716K01012|
|BSE 00:00 | 21 Jan||9.97||
|NSE 05:30 | 01 Jan||Square Four Projects India Ltd|
Square Four Projects India Ltd. (SQUAREFOURPRO) - Auditors Report
Company auditors report
The Members of Square Four Projects India Limited (Formerly Known asEssen Supplements India Ltd)
Report on the audit of the financial statements
We have audited the accompanying financial statements of Square FourProjects India Limited (Formerly KnowAs Essen Supplements India Ltd) ("theCompany") which comprise the balance sheet as at March 31 2021 and the Statementof Profit and Loss and Statement of Cash Flows for the year ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory 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 Companies Act 2013 ('Act') in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021.
Basis for opinion
We conducted our audit in accordance with the standards on auditingspecified under section 143(10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the auditor's responsibilities for the audit ofthe financial 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 Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and thecode of ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the Financial Statements.
Key audit matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to communicate inour report.
Information other than the financial statements and auditors' reportthereon
The Company's board of directors is responsible for the preparation ofthe other information. The other information comprises the information included in theBoard's Report including Annexures to Board's Report Business Responsibility Report butdoes not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's responsibility for the financial statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgements and estimates that are reasonable and prudent; and the 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 theCompany's financial reporting process.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements. As part of an audit in accordance withSAs we exercise professional judgment and maintain professional skepticism throughout theaudit. We also;
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive 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 omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures 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
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
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 auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards. From the matterscommunicated with those charged with governance we determine those matters that were ofmost significance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we 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.
Report on other legal and regulatory requirements
i. 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 "A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
ii. As required by Section 143(3) of the Act we report that:
a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
b. 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;
c. 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;
d. In our opinion the aforesaid financial statements comply with theaccounting standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) Rules 2014;
e. On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the board of directors none of thedirectors is disqualified as on March 31 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in Annexure "B"; and
g. 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 inour opinion and to the best of our information and according to the explanations given tous;
i. the Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
h. With respect to the matter to be included in the Auditors' Reportunder section 197(16) of the Act as amended:
i. In our opinion and according to the information and explanationsgiven to us the remuneration paid by the Company to its managing director during the yearis in accordance with the provisions of section 197 of the Act.
Annexure "A" to the Independent Auditor's Report
(Referred to in paragraph 1 under 'Report on other legal and regulatoryrequirements' section of our report to the members of SQUARE FOUR PROJECTS INDIA LTD ofeven date)
i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets on the basis ofavailable information.
(b) As explained to us all the assets have been physically verified bythe management in a phased periodical manner 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.
(c) According to the information and explanation given to us and on thebasis of our examination of the records of the Company the Company does not have anyimmovable property in its name and therefore the said clause is not applicable;
ii. Since the company did not have any stock of finished goods rawmaterial stores and spares either at the beginning or at the end or during the yearmatter specified clause (ii) of paragraph of the said order are not applicable to thecompany for the relevant year.
iii. According to the information and explanations given to us andbased on the audit procedures performed by us the Company has granted unsecured loans totwo party (Balance as at 31 March 2021 is 2.97 Cr) which is a party covered in theregister maintained under Section 189 of the Act.
(b) The aforesaid loans are repayable on demand. Repaying the principalamounts whenever called and is also regular in payment of interest.
(c) In respect of the aforesaid loans there is no amount which isoverdue for more than ninety days.
iv. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans or provided any guarantees or securityto the parties covered under Section 185.
In our opinion and according to the information and explanations givento us the Company has complied with the provisions of Section 186 of the Act in respectof the loans and investments made.
v. According to information and explanations provided to us thecompany has not accepted any deposit from public as defined according to the provisions ofSection 73 to 76 of the Companies Act 2013 and the Rules framed there under. Hence weoffer no comments in respect of any contraventions thereto. No order has been passed byCompany Law Board or National Company Law Tribunal or the Reserve Bank of India or anyCourt or other tribunal in respect of any deposit as defined according to the provisionsof Section 73 to 76 of the Companies Act 2013 and Rules framed there-under.
vi. The Central Government has not prescribed the maintenance of costrecords under Section 148(1) of the Act for any of the services rendered by the Company;
vii. (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted / accruedin the books of account in respect of undisputed statutory dues including provident fundincome-tax sales tax value added tax duty of customs goods and service tax cess andother material statutory dues have been regularly deposited during the year by the Companywith the appropriate authorities.
(b) According to the records of the company undisputed Statuary duesincluding provident Fund Employee State Insurance Income Tax Sales tax Wealth taxService Tax Custom Duty Excise Duty Value Added tax Goods and service tax cess andother material Statuary dues to the extent applicable having generally been regularlydeposited with the appropriate authority. According to the information and explanationgiven us there no outstanding statutory dues as on 31st March 2021 for theperiod of more than Six month form the date they become payable.
Following Outstanding Dues as on 31st march 2021.
(c) According to information and explanations given to us thefollowing dues of Income Tax have not been deposited by the Company on March 31 2021 onaccount of disputes:
viii. The Company does not have any loans or borrowings from anyfinancial institution banks Government or debenture holders during the year.Accordingly paragraph 3(viii) of the Order is not applicable;
ix. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3(ix) of the Order is not applicable;
x. According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit. We therefore express our inabilityto express any opinion on the nature of fraud or amount involved therein;
xi. According to the information and explanations give to us and basedon our examination of the records of the Company the Company has not paid managerialremuneration. Accordingly paragraph 3(xi) of the Order is not applicable;
xii. In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable;
xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards;
xiv. According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year and hence reporting requirements under clause 3(xiv) of theOrder are not applicable to the Company and not commented upon.;
xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable;
xvi. According to the information and explanations provided to us theprovisions of Section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.
Annexure "B" to the Independent Auditor's Report
(Referred to in paragraph 2 under 'Report on other legal and regulatoryrequirements' section of our report to the members of SQUARE FOUR PROJECTS INDIA LTD ofeven date)
Report on the Internal Financial Controls under Clause (I) ofSub-Section 3 of Section 143 of the Companies Act 2013 ("The Act")
We have audited the internal financial controls over financialreporting of SQUARE FOUR PROJECTS INDIA LTD ("the Company") as of March 31 2021in conjunction with our audit of the Financial Statements of the Company for the yearended 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 (the "Guidance Note") issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany'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 Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these Financial Statementsbased on our audit. We conducted our audit in accordance with the Guidance Note and theStandards on Auditing as specified under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting withreference to these Financial Statements was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlsover financial reporting with reference to these Financial Statements and their operatingeffectiveness.
Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting with reference to these Financial Statements assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditors' judgement including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe internal financial controls over financial reporting with reference to these FinancialStatements.
Meaning Of Internal Financial Controls over Financial Reporting WithReference To These Financial Statements
A company's internal financial control over financial reporting withreference to these Financial Statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these Financial Statements includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting With Reference To These Financial Statements
Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these Financial Statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these Financial Statements to future periods are subject to the risk that the internalfinancial control over financial reporting with reference to these Financial Statementsmay become inadequate because of changes in conditions or that the degree of compliancewith the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these FinancialStatements and such internal financial controls over financial reporting with reference tothese Financial Statements were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.