To the Members of T T Limited
Report on the Audit of the Financial Statements
We have audited the accompanying Ind AS financial statements of T T Limited ("theCompany") which comprise the Balance Sheet as at March 31 2022 and the Statementof Profit and Loss (including Statement of Other Comprehensive Loss) the Statement ofCash Flows and the Statement of Changes in Equity for the year then ended and notes to theInd AS financial statements including a summary of significant accounting policies andother explanatory information.
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 Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2022 its Profit including Othercomprehensive Loss its cash flows and the changes in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthese Standards are further described in the Auditor's Responsibility for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
Key Audit Matter
Key audit matter are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period for thefinancial year ended March 312022. These matters were addressed in the context of ouraudit of the Ind AS financial statements as a whole and in forming our opinion thereonand we do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context
|The key audit matter ||How the matter was addressed in our audit |
|1. During the year the Company has recognised Interest subsidy claims amounting to Rs.135.66 Lacs In terms of Scheme notified by the U P State Government. ||Our audit procedures included the following We understood and tested the design and operating effectiveness of control as established by management in recognition and assessment of the recoverability of the claims. |
|We considered this as a Key audit matter since recognition of Interest subsidy claim is subject to satisfaction of certain conditions mentioned in the related notification/policies. Assessment of recoverability of claims is subject to significant judgement of the management including certainty with respect to the satisfaction of conditions specified in the notification / policies collections thereof. ||We evaluated the managements's assessment regarding reasonable certainty for complying with the relevant conditions as specified in the notifications/policies and collections. We considered the relevant notifications/ policies issued by respective authorities to ascertain the appropriateness of the recognition of accruals/claims and basis for determination of claims. |
| ||Based on the above procedures performed the management's estimates related to recognition of subsidy accruals/claim and their recoverability are considered to be reasonable. |
|These estimates could change subject to final adjustments that may arise on settlement/ confirmation. || |
We have determined that there are no other key audit matters to communicate in ourreport.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation included in the Company's annual report but does not include the financialstatements and our auditors' report thereon.
Our opinion on the Ind AS financial statements does not cover the other information andwe do not 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 in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Management's responsibility for the standalone Ind AS 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 Ind AS financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive Loss cash flows and changes in equity of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the Ind AS financial statements management is responsible for assessingthe Company'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
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial control 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 in the financial statements made by theManagement and Board of Directors.
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 statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' 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
11. As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act 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.
The Balance Sheet the Statement of Profit and Loss including Statement of OtherComprehensive Loss the Statement of Cash Flows and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.
c. In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act. read with Companies (Indian Accounting Standards) Rules2015 as amended;
d. On the basis of the written representations received from the directors as on April1 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.
e. With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure B".
f. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 Ind AS financial statements; (Ref. Note No.31)
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any 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
ANNEXURE "A" to the Independent Auditors' Report to the members of T TLimited dated May 11 2022
Report on the matters specified in paragraph 3and 4 of the Companies (Auditor's Report)Order 2020 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of 'Report on Other Legal and Regulatory Requirements' section.
(i) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative
details and situation of fixed assets.
(B) The Company during the year under consideration did not own any intangibleAssets.
(b) Physical verification of fixed assets is being conducted by the management based ona program designed to cover all assets over a period of three years which in our opinionis reasonable having regard to the size of the company and nature of its business.Discrepancies noticed on such verification as compared to book records were not materialand have been properly adjusted in the books of account.
(c ) Based on our examination of the property tax receipts and lease agreement for landon which building is constructed registered sale deed / transfer deed / conveyance deedprovided to us we report that the title in respect of self constructed buildings andtitle deeds of all other immovable properties (other than properties where the company isthe lessee and the lease agreements are duly executed in favour of the lessee) disclosedin the financial statements included under Property Plant and Equipment are held in thename of the Company as at the balance sheet date.
(d) The Company has not revalued any of its Property Plant and Equipment during theyear.
(e) No Proceedings have been initiated or are pending against the company for holdingany benami property under the Benami Transactions( Prohibition) Act 1988 (45 of 1988) andrules made thereunder.
(ii) (a) The inventories have been physically verified by the management during theyear at all its locations except stocks located outside India lying with third partiesand in transit which have been verified with reference to correspondence of third partiesor subsequent receipt of goods. In our opinion the frequency of verification isreasonable. No material discrepancies were noticed on such physical verification.Inventories lying with third parties have been confirmed by them as at year end and nomaterial discrepancies were noticed in respect of such confirmations.
(b) During the Year the company has been sanctioned working Capital Limit in excess offive Crore Rupee in aggregate from Bank or Financial Institutions on the basis ofsecurity of current Assets. The Quarterly returns or statements filed by the Company withsuch Bank or Financial Institutions are in agreement with the books of account of theCompany the differences if any are either not material or minor in nature.
(iii) During the Year the company has not made any investments in or provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms Limited Liability Partnerships or any other parties.Accordingly the provisions of clause (iii)(a) to (f) of the Order are not applicable tothe company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us thecompany has not given a guarantee jointly with another company to a financial institutionfor loan taken by others from the financial institution which are covered under theprovisions of section 185 and 186 of the Act the terms and conditions of which are notprima facie prejudicial to the interest of the company.
(v) The Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of sections 73 to 76 or anyother relevant provisions of the Act and hence the rules framed thereunder are notapplicable
(vi) We have broadly reviewed the books of account relating to materials labour andother items of cost records maintained by the Company as specified by the CentralGovernment of India under section 148(1) of the Act and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete.
(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund employees' state insurance incometax GST customs duty cess and other material statutory dues as applicable with theappropriate authorities. Further there were no undisputed amounts outstanding at theyear-end for a period of more than six months from the date they became payable.
(b) Details of statutory dues referred to in sub-clause (a) above which have not beendeposited as on March 31 2022 on account of disputes are given below::-
|Name of the Statute ||Nature of Dues ||Amount (Rs. In Lacs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Value Added Tax (Tamilnadu) ||CST ||6.27 ||AY 2007-08 ||High Court |
|Value Added Tax (Tamilnadu) ||CST ||5.96 ||AY 2008-09 ||High Court |
|Value Added Tax (Tamilnadu) ||CST ||2.20 ||AY 2009-10 ||High Court |
|Value Added Tax (Tamilnadu) ||CST ||13.23 ||AY 2010-11 ||High Court |
|Value Added Tax (Tamilnadu) ||CST ||13.63 ||AY 2011-12 ||High Court |
|Value Added Tax (Tamilnadu) ||CST ||12.96 ||AY 2012-13 ||High Court |
|Value Added Tax (Tamilnadu) ||CST ||5.40 ||AY 2013-14 ||High Court |
|Value Added Tax (U.P) ||VAT ||2.15 ||AY 2014-15 ||1st Appeal |
|Value Added Tax (U.P) ||VAT ||1.24 ||AY 2016-17 ||1st Appeal |
(viii) There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or inthe payment of interest thereon to any Lender.
(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.
(c) On an overall examination of the financial statements of the Company The termloans raised during the year prima facie were applied for the purpose for which the loanswere obtained.
(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.
(e) The Company does not have any subsidiaries associates or joint ventures.
(f) The Company does not have any subsidiaries associates or joint ventures.
(X) (a) The Company has not raised moneys by way of initial public offer or furtherpublic offer(including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable.
(xi) (a) No fraud by the Company and no material fraud on the Company has been noticedor reported during the year
(b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report.
(c) There is no instance of whistle-blower complaints received during the year by thecompany.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.
(xiii) In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.
(xiv) (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.
(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.
(xv) In our opinion during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected with its directors. and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.
(xvi) (a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b)and (c) of the Order is not applicable.
(b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.
(xvii) The company has not incurred cash losses in the financial year and in theimmediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
(xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not 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. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.
(xx) (a) There are no unspent amounts towards Corporate Social Responsibility (CSR) asthe company has Nil CSR liability during the year thus transfer of unspent amount to aFund specified in Schedule VII to the Companies Act within a period of six months of theexpiry of the financial year in compliance with second proviso to sub-section (5) ofsection 135 of the said Act is not applicable
(b) There are no Ongoing Projects of CSR as on March 31 2021 and March 31 2022. TheProvision of the CSR applicable from the Year 2022-23.
(xxi) The company does not have any subsidiaries or Associates or Joint Ventures theaccount of which are to be consolidated and as such there are no consolidated FinancialStatements.
Annexure 'B' to the Independent Auditors' Report of even date on the standalonefinancial statements of T T Limited dated May 11 2022.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of'Report on Other Legal and Regulatory Requirements' section.
We have audited the internal financial controls over financial reporting of T T Limited(the Company") as of March 312022 in conjunction with our audit of the standaloneInd AS financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.
An audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial control systems overfinancial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control system 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 unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022based 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.
| ||For R.S.MODI & Co |
| ||Chartered Accountants |
| ||Firm's Registration No. 007921N |
| ||RAVINDRA NATH MODI |
| ||Partner |
| ||Membership No.084428 |
|Place : Delhi Date: 11th May 2022 ||UDIN:22084428AIUIRY6870 |