The Members of
Techindia Nirman Limited
Report on the Audit of the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of TechindiaNirman Limited having CIN: L45200MH1980PLC023364 ("the Company") whichcomprise the Balance Sheet as at 31st March 2022 the Statement of Profit andLoss (including other comprehensive income) Statement of Cash Flows and Statement ofChanges in Equity for the year then ended and notes to financial statements including asummary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act') in the manner so required and give a true andfair view in conformity with Indian Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and the other accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2022 its loss (financial performanceincluding other comprehensive income) the changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with 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 ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit Matters ||Audit Procedures |
|The Company has undertaken real estate development projects for which advances have been granted to contractors. Pending resolution of legal issues regarding ownership of land the development activities are yet to commenced. Further the company had partially borrowed funds from bank for granting of such advances for which it has incurred interest during last 3 years which is shown under the head capital work in progress. Considering the present situation of inflation it is concluded that the real estate price escalation will take place in the form of increased prices over a period of time offsetting the cost of interest which are proposed to be capitalized to the projects in due course of time. ||The audit procedures included but were not limited to: |
|- Obtaining a detailed understanding of future business climate and demand potential. |
|- Minutes of the Audit Committee/ Board and discussions with the appropriate Management personnel. |
|- Possible outcomes and the reasonableness of the estimates. |
|- Evaluating appropriateness of adequate disclosures in accordance with the applicable accounting standards. |
Information other than the Standalone Financial Statements and Auditor's Report thereon
5. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and our auditor's report thereon.
6. Our opinion on the financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.
7. In connection with our audit of the financial statements our responsibility is toread the 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 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 Financial Statements
8. 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 standalone financial statementsthat give a true and fair view of the financial position financial performance (includingother comprehensive income) changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the Ind AS specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the
preparation and presentation of the financial statement that give a true and fair viewand are free from material misstatement whether due to fraud or error.
9. 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.
10. The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
11. 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 withStandards on Auditing 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.
12. As part of an audit in accordance with Standard on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of the standalone 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.
b. 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 and its subsidiary companies which are companies incorporated in India hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify 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.
e. Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
13. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
14. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
15. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication
Report on Other Legal and Regulatory Requirements
16. 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 Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable. Asrequired by Section 143(3) of the Act 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended :
In our opinion and to the best of our information and according to the explanationsgiven to us no remuneration has been paid by the Company to its directors during theyear.
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition
in its standalone financial statements - Refer Note 24 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For Ashok R Majethia & Co Chartered Accountants FRN: 127769W
Ashok Majethia Proprietor M No:124781 UDIN: 22124781AJTZBT4502
Place: Aurangabad Dated: 28/05/2022
ANNEXURE "A" TO THE AUDITORS' REPORT
The Annexure referred to in Independent Auditors' Report to the Members of theTechIndia Nirman
Limited on the Ind AS standalone financial statements for the year ended 31st March2022 we report
1. (a) The Company has maintained proper records showing full particulars includingquantitative
details and situation of Property Plant and Equipment.
(b) The company has regular program of physical verification of its Property Plant andEquipment by which Property Plant and Equipment are verified in a phased manner over aperiod of three years. In accordance with this program certain Property Plant andEquipment were verified during the year and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the company and nature of its business.
(c) According to the information and explanations given to us and on the basis of ourexamination of the record of the company the title deeds of the immovable properties areheld in the name of the company;
(d) According to the information and explanations given to us and on the basis of ourexamination of the record of the company the company has not revalued any Property Plant& Equipment (including Right of Use assets) or intangible assets during the year.
(e) According to the information and explanations given to us and on the basis of ourexamination of the record of the company no proceedings have been initiated or arepending against the company for holding any Benami property under the "BenamiTransactions (Prohibition) Act 1988 and Rules made thereunder.
2. (a) As the company does not carry any inventory the para (ii) (a) of the Order isnot applicable to
(b) The company has not availed any working capital limit on the basis of security ofcurrent assets hence clause (ii) (b) of order is not applicable to Company.
3. (a) As per the information and explanations given to us the Company has grantedloans including
advances in the nature of loan to one company. The aggregate amount of loan granted ofRs. 0.41 Lakhs and the balance outstanding at the year-end Rs. 78.41 Lakhs. Further thecompany has not made any investments or provided security during the year.
(b) The terms and conditions for such above loan are not prejudicial to the interest ofthe Company except non-levied of interest on loans & non - charging of commission oncorporate guarantee.
(c) In respect of loans and advances in the nature of loans the schedule of repaymentof principal and payment of interest has not been stipulated; hence unable to commentwhether the repayments or receipts are regular overdue renewed or extended or fresh loangranted to settle the overdue of existing loans given to the same parties;
(d) The company has granted following loans or advances in the nature of loansrepayable on demand without any written agreement and without specifying other terms
|Type of Borrower ||Amount of loan or advance in the nature of loan outstanding ||Amount of loan given Rs in Lakhs ||Percentage to the total Loans and Advances in the nature of loans |
|Related Parties || || || |
|1. Nath Biotechnologies Ltd ||Repayable on demand ||78.41 ||78.00 |
4. The company has not provided any security or guarantee made investments to anyparty covered under section 185 and 186 of the Act. Further the loan granted as mentionedin para 3 above after complying the provisions of section 186 except non-levy of interestand non-charging of commission on corporate guarantee.
5. The Company has not accepted deposits within the meaning of sections 73 to 76 or anyother relevant provisions of the Act and the rules framed there under.
6. No maintenance of cost records has been specified by the Central Government undersection 148(1) of the Act for the products of the company.
7. (a) The company is regular in depositing undisputed statutory dues includingprovident fund
employees' state insurance income-tax goods and service tax sales-tax wealth taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues with the appropriate authorities.
(b) There are no dues of income tax or sales tax or wealth tax or service tax or dutyof customs or duty of excise or value added tax or cess which have not been deposited onaccount of any dispute.
8. According to the information and explanations given to us there is no transactionrecorded in the books of account that has been surrendered or disclosed as income duringthe year in the tax assessments under the Income Tax Act 1961 hence clause (viii) ofOrder is not applicable.
9. (a) In our opinion and according to the information and explanations given to usthe Company has
not defaulted in payment of dues to financial institution or bank
(b) According to the information and explanations given to us the company is notdeclared willful defaulter by any bank or financial institution or other lender.
(c) According to the information and explanations given to us there is no term loanstaken from bank or financial institution.
(d) According to the information and explanations given to us no funds raised on shortterm basis have been utilised for long term purposes.
(e) The Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures; hence the clause(ix) (e) of the Order is not applicable.
(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiaries joint ventures or associate companies; hence the clause (ix) (f) ofthe Order is not applicable.
10. The company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) preferential allotment or private placement ofshares during the year.
11. (a) According to the information and explanations given to us no fraud by thecompany or any
fraud on the Company has been noticed or reported during the year.
(b) None of report under sub-Section (12) of Section 143 of the Companies Act has beenfiled by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government.
(c) We have not considered whistle-blower complaints since there is no compliantreceived during the year by the Company.
12. The company is not a Nidhi Company as such provisions of the clause (xii) are notapplicable to the company.
13. All transactions with the related parties are in compliance with section 177 and188 of the Act where applicable and the details have been disclosed in the Ind ASstandalone financial statements etc. as required by the applicable accounting standards.
14. (a) In our opinion the company has an internal audit system commensurate with thesize and nature of its business.
(b) In framing our Independent Audit Reports we have considered Internal AuditorsReport for the period under audit.
15. The company has not entered into any non-cash transactions with directors orpersons connected with him.
16. (a) According to the information and explanations given to us and in our opinionthe company is
not required to be registered under section 45-IA of the Reserve Bank of India Act1934. Accordingly paragraph 3(xvi) (a) (b) and (c) of the Order are not applicable.
(b) According to the information and explanations given to us the Company is not aCore Investment Company (CIC) as defined under the Regulations by the Reserve Bank ofIndia hence paragraph 3(xvi) (d) of the Order are not applicable.
17. The Company has incurred cash losses in the Financial Year to the tune of Rs. 55.25Lakhs and in the immediately preceding financial year Rs. 49.76 Lakhs.
18. There is no resignation of the statutory auditors during the year.
19. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements we are of the opinion opinion that no material uncertainty existsas on the date of the audit report that
company is capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date.
20. The provisions related to Corporate Social Responsibility is not applicable in thepreceding financial year hence clause (xx) of the Order is not applicable.
21. The company does not have any subsidiary associate joint venture hence theconsolidation of financial statement is not applicable.
For Ashok R Majethia & Co Chartered Accountants FRN: 127769W
Ashok Majethia Proprietor M No:124781 UDIN: 22124781AJTZBT4502
Place: Aurangabad Date: 28/05/2022
ANNEXURE "B" TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of TechindiaNirman Limited ("the Company") as of 31st March 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
Management's Responsibility for Internal Financial Controls
2. 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under 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 in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the ICAI and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 judgement including the assessment of the risks 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 appropriateto provide a basis for our audit opinion on the Company's internal financial controlssystem over financial reporting of the company.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of 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 the transactions and dispositions of the assets of the company; (2)provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the Ind AS 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
8. In our opinion to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2022 based onthe 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 ICAI.
For Ashok R Majethia & Co Chartered Accountants FRN: 127769W
Ashok Majethia Proprietor M No:124781 UDIN: 22124781AJTZBT4502