TO THE MEMBERS OF VISHAL BEARINGS LIMITED
Report on the Audited Financial Statements Opinion
We have audited the accompanying financial statements of VISHAL BEARINGS LIMITED(the Company") which comprises the Balance Sheet as at 31st March 2022;the Statement of Profit and Loss (including Other Comprehensive Income) Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tofinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "Financial Statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements read together with the notes thereon givethe information required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standards(Ind AS) specified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 and other accounting principles generally accepted in India to theextent applicable; of the state of affairs of the Company as at 31st March 2022; itsProfit (including Other Comprehensive Income) its Cash Flows and the Statement Changes inEquity for the year ended on that date.
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 Companies Act 2013. Ourresponsibilities under those Standards are further described in the AuditorsResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the independence requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAIs Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on these financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment are 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.
Based on our audit of Financial Statements of the Company for the period under reviewwe did not come across any material Key Audit Matters to be communicated in our report.
Emphasis of Matter
We draw attention to Clause ii(b) of Annexure B to this report on material differencesin amounts reported in quarterly statements filed by the company as compared to books ofaccounts. In the opinion of the management of the company the said quarterly statementsneeds to be submitted on respective due dates pending the finalization of books ofaccounts. However the books of accounts are to be considered as final hence our opinionis not modified in this regard.
Information Other than the Financial Statements and Auditor's Report Thereon
The Companys Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Boards Report including annexures to Boards ReportCorporate Governance and Shareholders Information but does not include thefinancial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Financial Statements
The Companys Management and Board of Directors are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changesin equity and cash flows of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. The Management and Board of Directors of the company are responsible for themaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error which have beenused for the purpose of preparation of the financial statements by the Management andDirectors of the Company as aforesaid.
In preparing the financial statements management is responsible for assessing theCompanys 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.
The Board of Directors are also responsible for overseeing the companys financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
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 auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud
or error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese Ind AS financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. we are also:
Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that insufficient 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 controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements 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 theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the Ind AS 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 the Ind ASfinancial statements including the disclosures and whether the Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters if any identified. We describethese matters if any in our auditors report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act 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 of aforesaidfinancial statements;
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 Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and the statement of changes in Equity dealt with by thisReport are in agreement with the relevant books of account as submitted to us;
d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandard) Rules 2015 as amended;
e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Companys internal financial controlsover financial reporting.
g) With respect to the other matters to be included in the Auditors 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 the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors 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. There were no pending litigations which would impact the financial position of theCompany;
II. The Company has made all material provisions except as mentioned in the notes toaccounts if any as required under the applicable law or accounting standards formaterial foreseeable losses if any and as required on long-term contracts includingderivative contracts.
III. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
a. The Management has represented that to the best of its knowledge and belief otherthan as disclosed in the notes to the accounts no funds have been advanced or loaned orinvested funds to any other person(s) or entity(is) including foreign entities(intermediaries) with the understanding that the intermediary shall; directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company (Ultimate Beneficiaries) or provide any guaranteesecurity or the like to or on behalf of the Ultimate Beneficiaries;
b. The Management has represented that to the best of its knowledge and belief otherthan as disclosed in the notes to the accounts no funds have been received any funds fromany person(s) or entity(ies) including foreign entities (Funding Party) with theunderstanding (whether recorded in writing or otherwise) that the Company shall; directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Funding Party (Ultimate beneficiaries) or provide anyguarantee security or the like to or on behalf of the Ultimate Beneficiaries;
c. Based on the audit procedures that has been considered reasonable and appropriate inthe circumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (i) and (ii) of rule 11(e) as provided under (a) and (b)above contain any material misstatement; and
d. Since the Company has not declared or paid any dividend during the year therequirement of commenting on whether dividend declared or paid is in accordance withSection 123 of the Companies Act 2013 is not applicable.
2. As required by the Companies (Auditors Report) Order 2020("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the matters specified in paragraphs 3 and 4of the Order.
ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 (f) under Report on Other Legal and RegulatoryRequirements section of our report to the Members of VISHAL BEARINGS LIMITED ofeven date)
Report on the Internal Financial Controls Over Financial Reporting under Clause(i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of VISHALBEARINGS LIMITED ("the Company") as of March 31 2022 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 respective companys policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section143(10) of the CompaniesAct2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our 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 auditors judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained insufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys internal financial control overfinancial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly 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 companys assets that could havea 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements section of our Report to the Members of VISHAL BEARINGS LIMITED of evendate)
i. FIXED ASSETS
a) (A) In our opinion the company has generally maintained proper records showing fullparticulars including quantitative details and situation of fixed assets on the basis ofavailable information.
(B) Since the company does not have any intangible assets during or as at end of theyear the provisions of this sub-clause are not applicable to the company.
b) As explained to us the Company has a program of verification to cover all the itemsof fixed assets in a phased manner which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. As further explained to us pursuantto the said program certain fixed assets were physically verified by the managementduring the year. According to the said information and explanations given to us nomaterial discrepancies were noticed on such verification.
c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds / registered sale deed provided tous we report that the title deeds of all the immovable properties (other than propertieswhere the company is the lessee and the lease agreements are duly executed in favour ofthe lessee) disclosed in the financial statements are held in the name of the company.
d) According to the information and explanations given to us the records examined byus and also based on the examination of the books of accounts of the company we reportthat during the year ended 31stMarch 2022 the company has not revalued its PropertyPlant & Equipment (Incl. Right of Use Assets) or Intangible Assets or both during theyear ended.
e) According to the information and explanations given to us by the management of thecompany there are not any proceedings have been initiated or are pending against thecompany for holding any benami property under the Benami Transactions (Prohibition) Act1988 (45 of 1988) and rules made thereunder. Accordingly reporting under clause (i)(e) ofthe Order is not applicable.
a) According to the information and explanation given to us the inventories have beenphysically verified during the year by the management. In our opinion the coverage andprocedure of such verification by the management is appropriate. Further according to theinformation and explanation given to us as explained to us no material discrepancies werenoticed on physical verification of inventories as compared to the book records.
b) The Company has been sanctioned working capital limits in excess of Rs. 5 crore inaggregate from banks on the basis of security of current assets; according to theinformation and explanations given to us and on the basis of records examined by us thevariations in quarterly returns and statements comprising stock and creditors statementsbook debt statements and other stipulated financial information filed by the Company withsuch bank as compared to books of account of the Company of the respective quarters areas mentioned below:
|Quarter ||Particulars ||Amount as per books of Accounts ||Amount as per Stock Statement ||Differences |
| || ||(a) in lacs ||(b) in lacs ||(c) in lacs |
| ||Inventory ||2491.89 ||2464.61 ||27.28 |
|I ||Book Debts ||1512.15 ||1416.37 ||95.78 |
| ||Trade Payable ||1055.83 ||633.85 ||421.99 |
| ||Inventory ||2408.47 ||2408.47 || |
|II ||Book Debts ||1914.06 ||1780.28 ||133.78 |
| ||Trade Payable ||813.51 ||534.07 ||279.44 |
| ||Inventory ||2849.81 ||2849.81 || |
|III ||Book Debts ||1940.36 ||1793.11 ||147.24 |
| ||Trade Payable ||1209.34 ||899.99 ||309.34 |
| ||Inventory ||3811.03 ||3811.03 || |
|IV ||Book Debts ||2104.94 ||2105.75 ||-0.81 |
| ||Trade Payable ||1935.80 ||1436.51 ||499.29 |
iii. INVESTMENTS LOANS ADVANCES IN THE NATURE OF LOAN GUARANTEE OR SECURITY
According to the information and explanations given to us and on the basis of ourexamination of the books of account during the year under review the company has notmade any investments in or provided any guarantee or security or granted any loans oradvances in the nature of loans secured or unsecured to any companies firms LimitedLiability Partnerships or other parties. Consequently the provisions of clause (iii) ofthe order are not applicable to the company.
iv. LOANS INVESTMENTS & GUARANTEES
According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has not granted any loans directly orindirectly to any directors or person or entities in which directors are interested and/orhas not given any guarantee or provided any security in connection with loans taken bythem.
Further according to the information and explanations given to us and on the basis ofour examination of the books of accounts the company has complied with the provisions ofsection 186 in respect of investments made.
As explained to us the company has not accepted any loans or deposits within meaningof Section 73 to 76 of the Companies Act 2013 read with Rule 2(b) of the Companies(Acceptance of Deposits) Rules 2014 during the year under review. Consequently theprovisions of clause (v) of the order are not applicable to the company.
vi. COST RECORDS
We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government underSection 148(1)(d) of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and cost records have been maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete
vii. STATUTORY DUES
a. As per information and explanation available to us undisputed statutory duesincluding provident fund income-tax goods and service tax custom duty cess and othermaterial statutory dues have been generally regularly deposited with the appropriateauthorities applicable to it though there had been some delays in certain cases. Furtheraccording to information explanation given to us No undisputed statutory dues applicableto the company were outstanding as at 31st March 2022 for a period of more than 6 monthsfrom the date they become payable.
b. According to the information and explanation available to us there are no duesoutstanding on account provident fund income-tax goods and service tax custom dutycess and other material statutory dues on account of dispute except as mentioned below:
|Sr. Name of the No. statue ||Nature of dues ||Amount under dispute ||Period to which amount relates ||Forum was dispute is pending ||Amount Paid under Protest |
|Government of 1 Gujarat State tax Department ||Tax + Penalty ||6.82 Lacs ||FY 2021 22 ||GST Appellate Authority ||6.82 Lacs |
viii. UNRECORDED INCOME
According to the information and explanations given to us the Company did not have anytransactions relating to previously unrecorded income that have been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act 1961.
ix. DUES TO LENDER OF FINANCE
a. Based on our audit procedures and as per information and explanation given to us bythe management of the company we are of the opinion that company has not defaulted inrepayment of dues to financial institutions or banks or any other lenders during the yearunder review. The Company has not taken any loan or borrowing from Government and has notissued any debenture during the year.
b. According to the information and explanations given to us and on the basis of ouraudit procedures the Company is not declared willful defaulter by any bank or financialinstitution or other lender.
c. According to the information and explanations given to us and on the basis of thebooks and records examined by us the term loans taken during the year have been appliedfor the purposes for which those were obtained.
d. According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that funds raised on short-termbasis have not been utilized for long-term purposes
e. According to the information and explanations given to us and on the overallexamination of the balance sheet of the company the company has not been taken fundsborrowed from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures as per sub-clause (e) are not applicable.
f. According to the information and explanations given to us and on the overallexamination of the balance sheet of the company the company has not been raised loansduring the year on the pledge of securities held in its subsidiaries joint ventures orassociate companies as per sub-clause (f) are not applicable.
x. PUBLIC ISSUE PREFERENTIAL ALLOMENT / PRIVATE PLACEMENT
a. In our opinion and according to the information and explanations given to us thecompany has not raised money by way of initial public offer or further public offer duringthe year. Consequently the provisions of sub-clause (a) of clause (x) of the order arenot applicable to the company
b. Based on the audit procedures performed and according to the information andexplanations given to us the company has not made any preferential allotment or privateplacement of shares or fully or partly or optionally convertible debentures during theyear under review. Consequently the provisions of sub-clause (b) of clause (x) of theorder are not applicable to the company.
a. Based upon the audit procedures performed and as per the information and explanationgiven by the management we report that no fraud by the company or any fraud on thecompany by its officers / employees has been noticed or reported during the course of ouraudit.
b. According to the information and explanations given to us no report under section143(12) of the Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government during the year and upto thedate of this report.
c. As represented to us by the management the Company has not received anywhistle-blower complaint during the year and upto the date of this report.
xii. NIDHI COMPANY
In our opinion the company is not a Nidhi Company. Consequently the provisions ofclause (xii) of the order are not applicable to the company.
xiii. RELATED PARTY TRANSACTIONS
Based upon the audit procedures performed and as per the information and explanationgiven by the management all the transactions with the related parties are in compliancewith Section 177 and 188 of the Companies Act 2013 and have been duly disclosed in thefinancial statements as required by the applicable accounting standards.
xiv. INTERNAL AUDIT
a. According to the information and explanations given to us in our opinion theCompany has an adequate internal audit system commensurate with the size and nature of itsbusiness.
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 extentof our audit procedures.
xv. NON-CASH TRANSACTIONS
Based on the audit procedures performed and according to the information andexplanations given to us the company has not entered into any non-cash transactions withdirectors or persons connected to its directors. Consequently the provisions of clause(xv) of the order are not applicable to the company.
xvi. REGISTRATION UNDER SECTION 45-IA OF RBI ACT 1934
a. According to the information and explanations given to us and based on ourexamination of the records of the company the company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.
b. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not conducted any Non-BankingFinancial or Housing Finance activities without a valid Certificate of Registration (CoR)from the Reserve Bank of India as per the Reserve Bank of India Act 1934.
c. According to the information and explanations given to us and based on ourexamination of the records of the company the company is not Core Investment Company(CIC) as defined in the regulations made by the Reserve Bank of India.
d. According to the information and explanations given to us the company does not haveany Core Investment Company (CIC). Consequently the provisions of subclause (d) of clause(xvi) of the order are not applicable to the company.
xvii. CASH LOSSES
Based on the audit procedures performed we report that the company has not incurredany cash losses during the financial year under review and also in the immediatelypreceding financial year.
xviii. RESIGNATION BY STATUTORY AUDITORS
There has been no resignation by the statutory auditors of the Company during the year.Consequently the provisions of clause (xviii) of the order are not applicable to thecompany.
xix. MATERIAL UNCERTAINTY OF MEETING LIABILITIES FALLING DUE IN ONE YEAR
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 the auditors knowledge of the Board of Directors andmanagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.
xx. TRANSFER OF UNSPENT AMOUNT TO SPECIFIED FUND
According to the information and explanations given to us and based on the auditprocedures performed the company is not required to transfer any unspent amount withregards to on-going projects to a Fund specified Schedule VII of the companies act 2013.
xxi. QUALIFICATIONS OR ADVERSE REMARKS IN AUDIT REPORTS OF COMPANIES INCLUDED INCONSOLIDATED FINANCIAL STATEMENTS
Since the consolidated financial statements are not applicable to the companyreporting requirements clause (xxi) are not applicable.
|For SVK & ASSOCIATES |
|Chartered Accountants |
|Firm Reg. No. - 118564W |
|CA. Sameer S. Chandarana |
|M. No. 609340 |
|UDIN: 22609340AJYALV8562 |
|Date: 30th May 2022 |
|Place: Rajkot. |