TO THE MEMBERS OF:
SUVIDHA INFRAESTATE CORPORATION LIMITED
Report on the audit of the financial statements
We have audited the accompanying financial statements of SUVIDHAINFRAESTATE CORPORATION LIMITED ("the company") which comprise the BalanceSheet as at 31st March 2021 the Statement of Profit and Loss (including otherComprehensive Income) the Cash Flow Statement and the statement of changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "financial statement").
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 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 and its loss(including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Emphasis of Matter
We draw attention to Note no. 35 to the Financial Statement whichdescribe the uncertainties and the management's assessment of the financial impactdue to lock-down and other restrictions and conditions related to COVID-19 pandemicsituation for which a definitive assessment of the impact in subsequent period is highlydependent on future economic development and circumstances as they evolve.
Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters (KAM') are those matters that in ourprofessional judgment were of most significance in our audit of the financial statementsof the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.
|The key audit matters ||How our audit addressed the key audit matter |
|Evaluation of uncertain tax positions || |
|The Company is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. These involve significant management judgment to determine the possible outcome of the uncertain tax positions consequently having an impact on related accounting and disclosures in the financial statements. ||Our audit procedures include the following substantive procedures: |
|Refer Note 32 to the financial statements. ||Obtained understanding of key uncertain tax positions; and |
| ||We along with our internal tax experts Read and analysed select key correspondences external legal opinions / consultations by management for key uncertain tax positions; |
| ||Discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions; and |
| ||Assessed management's estimate of the possible outcome of the disputed cases. |
|Advance booking received in to sales || |
|The company has received Rs. 96.56 lakh from nine customers as booking advance for sale of land since last several years. ||Our audit procedures include the following substantive procedures: |
| ||The management has confirmed that these are genuine transaction and shall be converted in to sales within short period. |
| ||We have sent balance confirmation letters to all the parties however till the time of audit completion neither positive nor negative reply have been received from any of the party. |
|Inventory || |
|The company is trying to sale plotted lands since last several years. However since last three years no sale has taken place. ||Our audit procedures include the following substantive procedures: |
| ||The auditors have visited the place were company is trying to sale its plotted lands. On visit it is found that the said lands are still available without any encroachment. |
| ||The management has agreed to sale the land in near future if needed at reduce prices to generate clear the inventory. |
|Unpaid calls || |
|There are unpaid calls of Rs. 50.19 lakh in the Share capital for more than 10 years. ||Our audit procedures include the following substantive procedures: |
| ||The management has agreed to make extra efforts either to obtain the money or start the procedure for forfeiture of shares. |
The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the financial statements and ourauditors' 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 in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.
Management's responsibility for the financial statements
The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with relevant rules issued there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's responsibilities for the audit of the financialstatements
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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. 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 Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. However future events or conditionsmay cause the Company to 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.
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 matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor's Report) Order 2016("the order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act We give in the Annexure A a statement on thematters specified in paragraphs 3 and 4 of the Order.
2. 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 beliefs were necessary for the purposes of ouraudit;
b. In our opinion proper books of accounts as required by Law have beenkept by the Company so far as it appears from our examinations of those books;
c. The Balance Sheet Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this report are in agreement with the relevant books of account;
d. In our opinion the aforesaid financial statements comply with theIndian Accounting Standards specified under section 133 of the Act read with relevantrules issued there under;
e. On the basis of written representations received from the directorsand taken on record by the Board of Directors none of the directors is disqualified as on31st March 2021 from being appointed as a director in terms of 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.
g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended the clause is not applicable as the no remuneration paid by the Company toits directors during the year.
h. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i. The company has disclosed the impact of pending litigations as at31st March 2021 on its financial position in its financial statements as referred to inNote No. 32 to the financial statements.
ii. The company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF:
SUVIDHA INFRAESTATE CORPORATION LIMITED
Referred to in paragraph (1) under the heading of "Report on OtherLegal and Regulatory requirements" of our Report of even date to the financialstatements of the company for the year ended 31st March 2021:
1) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets;
(b) All the assets have been physically verified by the managementduring the year. The frequency of verification is reasonable having regard to the size ofthe company and the nature of its assets. No material discrepancies were noticed on suchverification.
(c) The company has no immovable properties so the question ofverification of title deeds does not arise.
2) The management has conducted the physical verification of inventoryat reasonable intervals. There were no discrepancies noticed on physical verification ofthe inventory as compared to books records. The company is accounting sale of plotted landas its inventory. Hence there is a continuous monitoring of its inventory.
3) The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability partnerships or other parties covered in the Registermaintained under section 189 of the Act. Accordingly the provisions of clause 3 (iii) (a)to 3 (iii) (C) of the Order are not applicable to the Company.
4) In our opinion and according to the information and explanationsgiven to us the company has not made any investments or given any guarantees or providedany security. Hence compliance u/s 185 and 186 of the Companies Act 2013 does not arise.
5) The Company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)Rules 2015 with regard to the deposits accepted from the public are not applicable.
6) As informed to us the maintenance of Cost Records has not beenspecified by the Central Government under sub-section (1) of Section 148 of the Act inrespect of the activities carried on by the company.
7) a) According to information and explanations given to us and on thebasis of our examination of the books of account and records the Company has beengenerally regular in depositing undisputed statutory dues including Income-Tax ServiceTax Value added Tax Cess and any other statutory dues with the appropriate authorities.As explained to us the company did not have any dues on account of Provident FundEmployees State Insurance Sales Tax Duty of Customs and Duty of Excise.
According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as at March 31 2021for a period of more than six months from the date on when they become payable.
b) According to the information and explanation given to us there areno dues of income tax sales tax service tax duty of customs duty of excise valueadded tax outstanding on account of any dispute. [Refer note no. 32 of the financialstatements]
8) In our opinion and according to the information and explanationsgiven to us the Company has not taken any loan from the Banks or financial institutionsand government or has not issued any debentures. Accordingly the provisions of clause 3(viii) of the Order are not applicable to the Company.
9) Based upon the audit procedures performed and the information andexplanations given by the management the company has not raised moneys by way of initialpublic offer or further public offer including debt instruments and term Loans.Accordingly the provisions of clause 3 (ix) of the Order are not applicable to theCompany.
10) Based upon the audit procedures performed and the information andexplanations given by the management we report that no fraud by the Company or on thecompany by its officers or employees has been noticed or reported during the year.
11) Based upon According to the information and explanations given tous The Company has not paid / provided for any managerial remuneration. Accordingly theprovisions of clause 3(xi) of the Order are not applicable to the Company.
12) In our opinion the Company is not a Nidhi Company. Therefore theprovisions of clause 4 (xii) of the Order are not applicable to the Company.
13) According to the information and explanations given to us duringthe year there were transactions with related parties. All transaction with the relatedparties are in compliance with section 177 and 188 of the Companies Act 2013 whereapplicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company.
15) Based upon the audit procedures performed and the information andexplanations given by the management the company has not entered into any non-cashtransactions with directors or persons connected with him. Hence the question of complyingwith provisions of section 192 of Companies Act 2013 does not arise. Accordingly theprovisions of clause 3 (xv) of the Order are not applicable to the Company.
16) In our opinion the company is not required to be registered undersection 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisions ofclause 3 (xvi) of the Order are not applicable to the Company.
ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF:
SUVIDHA INFRAESTATE CORPORATION LIMITED
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 Suvidha Infraestate Corporation Limited ("the Company") as ofMarch 31 2021 in conjunction with our audit of the financial statements of the Companyfor the year ended 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 issued by the Institute of Chartered Accountants of India("ICAI"). 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 tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting 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 authorisations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.
| ||FOR PURNESH R. MEHTA & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||FRN:- 142830W |
| ||PURNESH MEHTA |
| ||PROPRIETOR |
|PLACE:- AHMEDABAD ||MEMBERSHIP NO.:- 032812 |
|DATE :- 30/06/2021 ||UDIN: 21032812AAAABQ4738 |