TO THE MEMBERS OF
SUPREMEX SHINE STEELS LIMITED
(FORMERLY KNOWN AS ICVL STEELS LIMITED)
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of SUPREMEX SHINE STEELSLIMITED ("the Company") which comprise the Balance Sheet as at March 312022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements"). In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid financial statements give the information required by the Companies Act2013 ("the Act") in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Standalone Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence requirements that are relevantto our audit of the standalone financial statements under the provisions of the Act andthe Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.There are no key audit matter to be communicated in our Report.
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 the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate
Governance and Shareholder's Information but does not include the financial statementsand 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 during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Financial Statements
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 total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error. In preparing thefinancial statements management is responsible for assessing the Company's ability tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors are 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 weexercise professional judgment and maintain professional scepticism throughout the audit.
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 from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions 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 maybe 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 withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters.
We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. 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 Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.
d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder 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 March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct.
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 A". 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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe 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 as amended 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 its financialposition in its financial statements.
ii. The Company doesn't have any long term contracts including derivative contractsrequiring provision for material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. i. The Management has represented that to the best of it's knowledge and beliefno funds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person(s)or entity(ies) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;
ii. The Management has represented that to the best of it's knowledge and belief nofunds have been received by the company from any person(s) or entity(ies) includingforeign entities ("Funding Parties") with the understanding whether recordedin writing or otherwise that the Company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and
iii. Based on such audit procedures that we have considered reasonable and appropriatein the circumstances; nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) contain any material mis-statement.
v. The Company has not declared dividend during the year.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3and 4 of theOrder.
| ||For K. J. Shah & Associates |
| ||Chartered Accountants |
| ||FRN : 127308W |
| ||SD/- |
| ||K. J. Shah |
|Date : 14.05.2022 ||Proprietor |
|Place : Mumbai. ||Membership No:. 030784 |
| ||UDIN : 22030784AIZMTG6597 |
(Referred to in Paragraph 1(f) of the Report on Other Legal and RegulatoryRequirements' in our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub Section 3 of Section 143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of SupremexShine Steels Limited ("the Company") as of 31 March 2022 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.
Management's Responsibility for Internal Financial Controls
2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on internal controls over financial reporting criteriaestablished by the company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013 (" the Act").
3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing deemed to be prescribed underSection 143 (10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued byICAI. Those Standards and the Guidance Note require that we comply with the 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.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 risk ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.
5. 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 control systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company's internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability if financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. 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 controlsover 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 31 March 2022 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial reporting issued by ICAI.
| ||For and on behalf of |
| ||K. J. Shah & Associates |
| ||Chartered Accountants. |
| ||FRN :. 127308W. |
| ||SD/- |
| ||K. J. Shah |
|Place :- Mumbai ||Proprietor |
|Date : 14.05.2022 ||Membership No. :- 030784. |
| ||UDIN : 22030784AIZMTG6597 |
(Referred to in Paragraph 2 of the Report on Other Legal and Regulatory Requirements'in our report of even date)
(i) The Company doesn't have any Fixed Assets. Therefore the provision of clause3(i)(a) (i)(b) (i)(c) are not applicable.
According to the information and explanations given to us the Company has not revaluedits Property Plant and Equipment (including Right of Use Asset) and Intangible Assetsduring the year. Accordingly reporting under clause 3(i)(d) is not applicable to theCompany.
According to the information and explanations given to us no proceedings has beeninitiated or pending against the company for holding any Benami property under the BenamiTransactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder;
(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification
(iii) According to the information and explanation given to us the Company has notmade any investments in provided any guarantee or security or granted any loans oradvances in the nature of loans secured or unsecured to companies firms LimitedLiability Partnership or other parties. Accordingly reporting under clause 3 (iii)(a)(b)(c) (d) (e) & (f) are not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or made any investments or provided any guarantees orsecurity to the parties covered under Section 185 and 186. Therefore the provisions ofClause 3(iv) of the said Order are not applicable to the Company.
(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of Sections 7374 75 and 76 of the Companies Act 2013 and the rules framed there under to the extentnotified.
(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act.
(vii) (a) According to the records information and explanation provided to us thecompany is regular in depositing with appropriate authorities undisputed amount ofProvident Fund Employees' State Insurance Income Tax Goods and Service Tax Wealth TaxCustom Duty Excise Duty Service Tax Cess and other statutory dues applicable to it andno undisputed amounts payable were outstanding as at 31st March 2022 for a period of morethan six months from the date they became payable.
(b) There are no instances of disputed dues outstanding in respect of Income Tax Goodsand Service Tax Wealth Tax Custom Duty Excise Duty Service Tax Cess and othermaterial statutory dues in arrears as on 31st March 2022.
(viii) According to the information and explanations given to us Company has notransactions which were not recorded in the books of account and which have beensurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961).
(ix) (a) In our opinion and according to the information and explanation given to uscompany has not defaulted in repayment of loans or other borrowings or in the payment ofinterest thereon to any lender during the year;
(b) According to the information and explanations given to us the company is notdeclared as a wilful defaulter by any bank or financial institutions or other lender.
(c) In our opinion and according to the information and explanation given to us andrecords examined by us company has utilised the fund of term loan for the purpose forwhich the loans were obtained;
(d) According to the information and explanation given to us and the records examinedby us the Company has not raised any fund on short term basis. Accordingly reportingunder clause (ix)(d) is not applicable to the company;
(e) In our opinion and according to the information and explanation given to us theCompany has no subsidiaries associates or joint venture.
(x) (a) In our opinion and according to the information and explanations furnished bythe management the Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments) during the year. Accordingly reportingunder the clause 3 (x)(a) of the order is not applicable to the company
(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or convertible debentures(fully partially or optionally convertible) during the year. Accordingly reporting underthe clause 3 (x)(b) of the order is not applicable to the company.
(xi) (a) During the course of our examination of the books of account carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanation given to us we have neither come across any instance ofmaterial fraud on or by the Company by its officers or employees noticed or reportedduring the year nor have we been informed of such case by the management.
(b) According to the information and explanations provided to us no whistle-blowercomplaints has received during the year by the company;
(xii) In our opinion and according to the information and explanations provided to usthe Company is not a Nidhi company and therefore the provisions of clause 3 (xii) of theOrder are not applicable to the company.
(xiii) According to the records of the Company examined by us and the information andexplanation given to us all transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements Note 20 as required by the applicable accounting standards.
(xiv) (a) In our opinion and according to the information and explanations provided bythe managements the company has an Internal audit system commensurate with the size andnature of the business of the company;
(b) We have considered the report of the Internal Auditors for the year under audit.
(xv) In our opinion and according to information and explanation given to us theCompany has not entered into any Non Cash Transactions with the Directors or personconnected with him as referred to in Section 192 of the Act during the year. Accordinglythe provisions of Clause 3(xv) of the Order are not applicable to the Company.
(xvi) (a) In our opinion and according to the information and explanations given to usthe provision of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company;
(b) According to the information and explanations given by the management the companyhas not conducted any Non - Banking Financial or Housing Finance activities Accordinglyreporting under the clause 3(xvi)(b) is not applicable to the company;
(c) In our opinion and according to the information and explanations provided by themanagements the company is not Core Investment Company as defined in the regulations madeby the Reserve Bank of India. Accordingly reporting under the clause 3(xvi)(c) is notapplicable to the company;
(d) In our opinion and according to the information and explanations provided by themanagements the company has no Core Investment Company (CIC) as part of the group.Accordingly reporting under the clause 3(xvi)(d) is not applicable to the company;
(xvii) In our opinion the company has not incurred cash losses in the financials yearand in the immediately preceding financials year;
(xviii) There has not been any resignation of the statutory auditor during the year;
(xix) In our opinion and on the basis of the financial ratios ageing and expecteddates of realisation of financial assets and payments of financials liabilities otherinformation accompanying the financial statements as per knowledge of the Board ofDirectors and managements plans there is no material uncertainty exists as on the date ofaudit report that the Company is not capable of meeting its liabilities existing at thebalance sheet date as and when they fall due within a period of one year from the balancesheet date;
(xx) In our opinion and according to the information and explanations provided by themanagement the company do not fall under the prescribed classes of the Companiesmentioned under the section 135(1) of the Companies Act 2013;
(xxi) In our opinion and according to the information and explanations provide by themanagement the company do not have any subsidiary associates or joint venture and thecompany is not required to prepare Consolidated Financial Statements as per the section129 of the Companies Act. Accordingly reporting under the clause 3(xxi) is not applicableto the Company.
| ||For and on behalf of |
| ||K. J. Shah & Associates |
| ||Chartered Accountants. |
| ||FRN :. 127308W. |
| ||SD/- |
| ||K.J. Shah |
|Place Mumbai ||Proprietor |
|Date : 14.05.2022 ||Membership No. :- 030784. |
| ||UDIN : 22030784AIZMTG6597 |