TO THE MEMBERS OF
TRISHAKTI ELECTRONICS & INDUSTRIES LIMITED
Report on the Audit of the Financial Statements
We have audited the accompanying financial statements of Trishakti Electronics &Industries Limited ("the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information. In our opinion and to the best ofour information and according to the explanations given to us the aforesaid financialstatements give the information required by the Companies Act 2013 ("the Act")in the manner so required and give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules2015 as amended ("Ind AS") and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31st 2021 its Profit and total comprehensive income the changes in equityand its cash flows for the year ended on that date.
II. Basis for Opinion
We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the "Auditor's Responsibilities for the Audit of the FinancialStatements" section of our report. We are independent of the Company in accordancewith the "Code of Ethics" issued by the Institute of Chartered Accountants ofIndia (the ICAl) together with the ethical requirements that are relevant to our audit ofthe financial statements under the provisions Act and the Rules made there-under and wehave fulfilled our other ethical responsibilities in accordance with these requirement andthe ICAl's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion on the financial statements.
III. 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.
IV. 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 comprises the information included in the Annual report but does not includethe financial statements and our auditor's report thereon. Our opinion on financialstatements does not cover the other information and we do not express any form ofassurance conclusion thereon. In connection with our audit of the financial statementsour responsibility 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.
V. Responsibilities of Management for the Financial Statements
The Company's Board of Directors is responsible for the mutters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Ind AS specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view in accordance "with Ind AS and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements the 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 it eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so
The Board of Directors is also responsible for overseeing the Company's financialreporting process
VI. 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 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 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 thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue us a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of 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 through 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.
VII. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of section 143(11) of theAct and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to usduring the course of audit we furnish in the Annexure "A" a statement on thematters specified in the paragraph 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 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 books of account;
(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts)Rules2014;
(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act;
(f) As required by section 143(3) (i) of the Act we furnish a separate report inAnnexure 'B' with respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls. Ourreport expresses an unmodified opinion on the same.
(g) With respect to the other matters to be included in the Auditors Report inaccordance with section 197(16) of the Act in our opinion the remuneration paid by thecompany to its directors during the year is in accordance with the provisions of section197 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 in our opinionand to the best of our information and according to the explanations given to us:
i) The Company does not have any pending litigation which could impact itsfinancial position
ii) The Company did not have any long term contracts for which there were anymaterial foreseeable losses
iii) There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company
For G.Basu & Co Chartered Accountants FRN No:301174E
Annexure "A" referred to in paragraph VII ( 1 ) under the heading"Report on other legal and regulatory requirements" of our report of even dateon the Ind As financial statements of Trishakti Electronics & Industries Limited forthe year ended 31st March 2021.
i) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(a) During the year the management has physically verified the fixed assets ofthe Company and no material discrepancies were reported.
(b) The company has no immovable property. Accordingly this clause is notapplicable to the company for the year.
ii) The company did not hold any inventory during the year. Hence clause 3(ii)of the Order is not applicable to the company for the year.
iii) According to the information and explanations given to us the Company hasnot granted any secured or unsecured loans to companies firms limited liabilitypartnerships and other parties mentioned in the register maintained under section 189 ofthe Companies Act 2013. Accordingly clause 3(iii) of the Order is not applicable to thecompany for the year.
iv) In our opinion and according to the information and explanations given tous the Company has complied with the provisions of Sections 185 and 186 of the CompaniesAct 2013 in respect of grant of loans and advances making investments and providingguarantees and securities as applicable.
v) The Company has not accepted any deposits during the year and does not haveany unclaimed deposits as at 31" March 2021. No order has been passed by Company lawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or anyTribunal against the company.
vi) The Central Government has not prescribed the maintenance of cost recordsunder subsection (1) of section of 148 of the Companies Act 2013. Hence clause 3(vi) ofthe order is not applicable to the company for the year.
vii) (a) In our opinion and according to the information and explanations givento us and based on the records of company examined by us the Company is generallyregular in depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income Tax Sales Tax Service Tax Goods & Service Tax. Duty of CustomsDuty of Excise Value added Tax Cess and other material statutory dues as applicablewith the appropriate authorities. According to the information and explanations providedto us no undisputed amounts were payable in respect of statutory dues in arrears as at 31stMarch 2021 for a period of more than six months from the date they became payable forassessed Income-Tax liability of Rs 435 Lakhs.
(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no cases of non-deposit with appropriateauthorities of dues of Income Tax Sales Tax Service Tax Goods & Service Tax Dutyof Customs Duty of Excise Value Added Tax and Cess on account of any disputes.
viii) The Company has not defaulted in repayment of loans or borrowings from any bankfinancial institution. There were no dues to any bank or the Government. Further thecompany has no debenture holders. Hence clause 3(viii) of the order is not applicable tothe company for the year.
ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Hence clause3(ix) of the order is not applicable to the company for the year.
x) During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across nor reported any instance of fraud by the company or any fraud on thecompany by its officers or employees.
xi) The managerial remuneration paid or provided for to the directors are in accordancewith the requisite provision of Section 197 read with schedule V to the Companies Act2013.
xii) The company is not a Nidhi Company. Hence clause 3(xii) of the order is notapplicable to the company for the year.
xiii) All transaction with the related parties entered in to by the company were in theordinary course of the business and in compliance with section 177 and 188 of the Act. Thedetails have been disclosed in the Financial Statements as required by the applicableAccounting Standards.
xiv) The Company has not made preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review. Hence clause 3(xiv)of the order is not applicable to the company for the year.
xv) The company has not entered in to any non-cash transaction with directors orpersons connected with them. Hence clause 3(xv) of the order is not applicable to thecompany for the year.
Xvi) As per the Income and Investment pattern for the year the company is required tobe registered under section 45-IA of the Reserve Bank of India Act 1934. However themanagement has stated that this is temporary in nature and will be reversed shortly andhas therefore not obtained the Certificate of Registration. (Refer Note No 39 to thefinancial statements).
Annexure 'B' referred to in paragraph VII (2) f to the Independent Auditor's Report ofeven date on Ind AS financial statements of Trishakti Electronics & IndustriesLimited.
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")
We have audited the Internal Financial Controls over Financial Reporting of TrishaktiElectronics & Industries Limited ("the Company") as of 31st March2021 in conjunction with our audit of Ind AS financial statements of the Company for theyear 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 tile Institute of Chartered Accountants of India ( ICAI '). Theseresponsibilities include the 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.
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 issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both Issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with 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. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor's Judgment including the assessment ofthe risks of material misstatement of Ind AS financial statements whether due to fraud orerror 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 controls systemover financial 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 over financial reporting includes those policiesand procedures that:
(1) Pertain to the maintenance of records that in reasonable detail accuratelyand 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and
(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 31st March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For G.Basu & Co Chartered Accountants FRN No:301174E |
|Place: Kolkata ||Satyapriya Bandyopadhyay |
|Dated: 24th July 2021 ||Partner |
|UDIN: 21058108AAAADD4843 ||M.No:058108 |