To
The Members of Andhra Pradesh Tanneries Limited Report on the Audit of the Financial
Statements Opinion
We have audited the financial statements of Andhra Pradesh Tanneries Limited ("the
Company"), which comprises the balance sheet as at 31st March 2023, the statement of
profit and loss, statement of changes in equity and statement of cash flows for the year
ended on that date and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India,
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2023;
(b) in the case of the Statement of Profit and Loss (including Other Comprehensive
Income), of the Loss for the year ended on that date;
(c) in the case of the Statement of Changes in Equity, of the changes in equity for the
year ended on that date; and
(d) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013(‘the Act). Our responsibilities
under those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that
are relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAIs Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 3(1)(ii) in the financial statements, which indicates that
the Company incurred a net loss of Rs.21.52 Lacs during the year ended March 31st , 2023
and, as of that date, the Companys net worth is fully eroded and having a negative
networth of Rs.1230.41 Lacs. These events or conditions, along with other matters as set
forth in Note 3(1)(ii), indicate that a material uncertainty exists that may cast
significant doubt on the Companys ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Except for the matter described in the Material Uncertainty Related to Going Concern
section, no other KAM needs to be addressed in our report.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, and
Shareholders Information, but does not include the financial statements and our auditors
report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon. In connection with our audit of the
financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained during the 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 material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 with respect to the preparation of these financial
statements that give a true and fair view of the financial position, financial
performance, changes in equity and cash flows of the Company in accordance with the Ind AS
and other accounting principles generally accepted in India. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error. In preparing the financial statements, the Board of Directors is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so. The Board of Directors are also responsible for
overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements. As part of an audit in accordance with SAs, we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order
to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with
those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the companies Act, 2013, we give in the "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of 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 the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in
Equity and the Cash Flow Statement dealt with by this Report are in agreement with the
relevant books of account.
(d) In our opinion, the aforesaid financial statements comply with the Ind AS 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 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company have a pending I tax demand of Rs. 55.47 lakhs for A.Y. 2006-07, for
which appeal has been filed against the said demand.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no dues which were required to be transferred to Investor Education and
Protection Fund by the company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
other than as disclosed in the note 2.24 to the Standalone Financial Statements, no funds
(which are material either individually or in the aggregate) have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person or entity, including foreign entity
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. The Company has not declared or paid any dividend during the year in contravention
of the provisions of secion 123 of the Companies Act, 2013.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of accounts using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023. vii. As required by the
Companies (Auditors Report) Order, 2020 (the "Order") issued by the Central
Government in terms of Section 143(11) of the Act, we give in "Annexure B" a
statement on the matters specified in paragraphs 3 and 4 of the Order.
|
For Ajay Dhoot & Co. |
|
Chartered Accountants |
|
Firm Reg. No. 100196W |
Place : Mumbai, |
(Ajay Dhoot) |
Date : 25th May 2023, |
Proprietor |
UDIN : 23042772BGZFLL4500 |
Membership No: 42772 |
"ANNEXURE -A" TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in our Report of even date to the members of the Andhra
Pradesh Tanneries Limited on the financial statements for the year ended on 31st March,
2023. We report that:
1. In respect of its Property Plant and Equipment:
a) The Company, on the basis of available information, has maintained proper records
showing full particulars including quantitative details and situations of Property Plant
and Equipment;
b) The Management of the Company has physically verified the Property Plant and
Equipment in accordance with its policy of physical verification at reasonable intervals.
The discrepancies, if any noticed during such verification have been suitably adjusted in
the books of account. In our opinion, this periodicity of physical verification is
reasonable having regard to the size of the Company and the nature of its assets;
c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
d) According to information and explanations given to us and on the basis of
examination of the records of the Company, none of its Property, Plant and Equipment or
intangible assets or both are revalued during the year.
e) On the basis of available information, the Company does not hold any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there
under 2.
a) As the company has no inventory during the year, para 2 of the said order is not
applicable.
b) According to the information and explanations given to us and on the basis of
examination of the records of the Company, the Company has not been sanctioned any working
capital limits in excess of Rupees five crore, in the aggregate, from banks on the basis
of security of current assets and hence this clause is not applicable.
3. a) During the year the company has not granted any loans and advances to subsdiaries
Joint ventures and associates. Accordingly paragraph 3 (iii) (a) (A) of the order is not
applicable.
The company has not given loan and advances to unrelated parties during the year. .
b) Since during the year Company has not made any investments in , provided any
gurantee or security or granted any loans or advances in the nature of loans, secured or
unsecured to companies, firms , LLP or any other parties. Accordingly (d) (e) (f) of the
order is not applicable.
4. The Provisions of Section 185 and 186 are not applicable as company has not given
any loan, guarantees, Investment and security. Accordingly paragraph 3(iv) of the Order is
not applicable.
5. According to the information and explanations given to us, the Company has not
accepted any deposits as per the provisions of Section 73 to 76 or any other relevant
provisions of the Companies Act and the rules framed there under.
6. According to information and explanations given to us and on the basis of our
examination of books of accounts, the Company need not require to maintain cost records
pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central
Government under Section 148(1) of the Act.
7. (a) According to the records of the Company, undisputed statutory dues including
Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax,
service tax, duty of customs, duty of excise, value added tax, cess and any other
statutory dues have been regularly deposited with the appropriate authorities. According
to the information and explanations given to us, no undisputed amounts payable in respect
of aforesaid dues were outstanding as at 31st March, 2023 for a period of more than six
months from the date it became payable.
(b) According to the records of the Company and information and explanations given to
us there are no disputed dues in case of sales tax or wealth tax or service tax or duty of
customs or GST except for Income Tax demand of Rs. 55.47 lakhs for A.Y.2006-07 for which
appeal has been filed against the said demand.
8. On the basis of our examination of the books and according to the information and
explanations given to us, there is no transaction which is not recorded in the books of
account and have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (43 of 1961).
9. a) On the basis of our examination of the books and according to the information and
explanations given to us, during the year, there are no defaults in repayment of dues to
financial institutions, banks, Government or debenture holders.
b) During the year the Company is not declared as wilful defaulter by any bank or
financials institution or other lender.
c) On the basis of our examination of the books and according to the information and
explanations given to us, Company has not availed any term loan during the year. d)
Company has not raised any short term loan during the year.
e) The Company does not have any subsidiaries, associates or joint ventures hence
question of raising of any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures does not arise.
f) The Company does not have any subsidiaries, associates or joint ventures hence
question of raising of loans on the pledge of securities held in subsidiaries, joint
ventures or associate companies, does not arise.
10. a) In our opinion and on the basis of information and explanations given to us, the
Company has not raised any money by way of initial public offer or further public offer
(including debt instruments).
b) In our opinion and on the basis of information and explanations given to us, the
Company has not made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year.
11. According to information and explanations given to us and to the best of our
knowledge and belief no fraud on or by the company has been noticed or reported during the
year.
12. In our opinion and according to information and explanations given to us, the
company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is not
applicable.
13. According to information and explanations given to us and based on our examination
of the records of the company, transactions with related parties are in accordance with
section 177 and 188 of the act where applicable and details of such transactions have been
disclosed in Financial Statements as required by applicable Ind AS.
14. Due to no business operations, company has no Internal Audit system during the
year.
15. According to information and explanations given to us and based on our examination
of the records of the company, the company has not entered into non-cash transactions with
directors or persons connected with him. Therefore paragraph 3(xv) of the Order is not
applicable.
16. In our opinion and according to the information and explanations given to us, the
Company is not required to be registered under section 45- IA of Reserve Bank of India
Act, 1934. Therefore paragraph 3(xvi) of the Order is not applicable.
17. The Company has incurred a Cash loss of Rs.21.53 lacs in the financial year ( F.Y
22-23) and Rs. 20.30 lacs in the immediately preceding financial year.( F.Y.21-22).
18. There has been no resignation of the statutory auditors during the year. Therefore
paragraph 3(xviii) of the Order is not applicable.
19. On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment financial liabilities, other information accompanying the
financial statements, we are of the opinion that material uncertainty exists as on the
date of the audit report that the Company is capable of meeting its liabilities existing
at the date of balance sheet, as and when they fall due, within a period of one year from
the balance sheet date.
20. According to the information and explanations given to us and based on our
examination of the records of the
Company, there is no liability to spent any amount in compliance with the provisions of
Sub-section (6) of Section 135 of the Companies Act, 2013, accordingly payageaph 3(xx) of
the order is not applicable.
21. The Company does not have any subsidiaries, associates or joint ventures. Therefore
paragraph 3(xxi) of the Order is not applicable to the Company.
|
For Ajay Dhoot & Co. |
|
Chartered Accountants |
|
Firm Reg. No. 100196W |
Place : Mumbai, |
(Ajay Dhoot) |
Date : 25th May 2023, |
Proprietor |
UDIN : 23042772BGZFLL4500 |
Membership No: 42772 |
"ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Andhra
Pradesh Tanneries Limited ("the Company") as of 31st March, 2023 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the company considering the essential components of
Internal Control stated in the Guidance note on Audit of Internal Financial Controls
over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Due to no operations, Company has yet to adopt a policy for Internal Finance control.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the "Guidance Note") and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal financial controls, both applicable
to an audit of Internal Financial Controls and issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
As mentioned above, due to no operations, Company has not adopted a policy for Internal
Finance control. Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the Assessed risk. The
procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance 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 permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, although the company has not adopted a policy for internal finance
control, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at March 31, 2023, based on the internal
control over financial reporting criteria established by the company considering the
essential components of Internal Control stated in the Guidance note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI).
|
For Ajay Dhoot & Co. |
|
Chartered Accountants |
|
Firm Reg. No. 100196W |
Place : Mumbai, |
(Ajay Dhoot) |
Date : 25th May 2023, |
Proprietor |
UDIN : 23042772BGZFLL4500 |
Membership No: 42772 |
+91-9892691696
