Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, and to the best of our knowledge and belief,
we report that:
i) In respect of its fixed assets:
a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(B) The Company does not own any intangible asset, hence reporting under clause
3(i)(a)(B) of the Order is not applicable.
b) As explained to us, fixed assets have been physically verified by the management in
a phased periodical manner, which in our opinion is reasonable, having regard to the size
of the Company and nature of its assets. As informed to us no material discrepancies were
noticed on such physical verification.
c) Title deeds In respect of all immovable properties are held in the name of the
company.
d) The Company has not revalued any of its Property, Plant and Equipment (including
right-of-
use assets) and intangible assets during the year.
(e) As per the information and explanations given to us, no proceedings have been
initiated during the year or are pending against the Company as at March 31, 2023 for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.
ii) (a) The physical verification of inventory has been conducted at reasonable
intervals by the management and in our opinion, the coverage and procedure of such
verification by the management is appropriate. As per Information and explanation given to
us by the company, no discrepancy was noticed on such verification.
(b)The Company has not been sanctioned working capital limits in excess of Rs. 5
crore, in aggregate, at any points of time during the year, from banks or financial
institutions on the basis of security of current assets and hence reporting under clause
3(ii)(b) of the Order is not applicable.
iii) The Company has neither made investments in, companies, firms, Limited Liability
Partnerships, nor granted unsecured loans or advances in the nature of loans to other
parties, during the year, hence reporting under clause 3(iii)(a) to 3(iii)(f) of the Order
is not applicable.
iv) According to the information and explanations given to us, the company has complied
with the provisions of Section 185 and 186, wherever applicable, in respect of loans given
and investments made by the company. We are informed that the company has not provided any
guarantee or security during the year.
v) The Company has not accepted any deposit or amounts which are deemed to be deposits.
Hence, reporting under clause 3(v) of the Order is not applicable.
vi) In respect of business activities of the company, maintenance of cost records has
not been specified by the Central Government under sub-section (l) of section 148 read
with rules framed thereunder of the Companies Act 2013. Hence, reporting under clause
3(vi) of the Order is not applicable.
vii) a) As per information and explanations given to us, the company is generally
regular in depositing undisputed statutory dues including provident fund, employees state
insurance, income-tax, service tax, goods and service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues with the appropriate
authorities. As informed to us there are no outstanding statutory dues in arrears as at
the last day of the financial year concerned for a period of more than six months from the
date they became payable.
b) We have been informed that following disputed demands have not been deposited on
account of pending appeals:
| Nature of the dues |
Amount of Demand (Rs.) |
Amount Paid under Protest (Rs.) |
Balance Amount (Rs.) |
Forum where appeal is pending |
| ESI |
7.09 |
|
7.09 |
ESI Court, Puduchery |
viii) There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
ix) (a) As per Information and explanation given to us, the company has not defaulted
in repayment of loans or other borrowings or in the payment of interest thereon to any
lender.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) The loan obtained by the company during the year have been applied for the purpose
for which the loans were obtained.
(d) On an overall examination of the financial statements of the Company, funds raised
on shortterm basis have, prima facie, not been used during the year for long-term purposes
by the Company.
(e) The company does not have Subsidiary or Associates or Joint Venture, hence clause
3(ix)(e) & (f) of the order are not applicable.
x) (a) The Company has not raised moneys by way of initial public offer or further
public offer
(including debt instruments) during the year and hence reporting under clause 3(x)(a)
of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
xi) (a) No fraud by the Company and no fraud on the Company has been noticed or
reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies 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 the date of this report.
(c) According to the information and explanations given to us by the management, no
whistle blower complaints have been received by the Company during the year (and upto the
date of this report).
xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable.
xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013 with respect to applicable transactions with the related parties and
the details of related party transactions have been disclosed in the standalone financial
statements as required by the applicable accounting standards.
xiv) (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
xv) In our opinion during the year the Company has not entered into any non-cash
transactions with its directors or persons connected with its directors. and hence
provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi) (a) In our opinion, the Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b)
and (c) of the Order is not applicable.
(b) As per Information and explanation given to us, the group does not have any core
investment company within the Group (as defined in the Core Investment Companies (Reserve
Bank) Directions, 2016).
xvii) The Company has not incurred any cash losses during the financial year under
audit or during the immediately preceding financial year.
xviii) There has been no resignation of the statutory auditors of the Company during
the year.
xix) On the basis of the financial ratios, ageing and expected dates of realisation of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, nothing has come to
our attention, which causes us to believe that any material uncertainty exists as on the
date of the audit report indicating that Company is not 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. We, however, state that this is not an assurance as to
the future viability of the Company. We further state that our reporting is based on the
facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the Company as and when they fall due.
xx) According to the information and explanations given to us by the management, and in
our opinion, the provisions of Section 135 of the Companies Act 2013 are not applicable to
the company under audit, accordingly, reporting under clause 3(xx)(a) and 3(xx)(b) of the
Order is not applicable for the year.
xxi) No reporting under clause 3(xxi) of the order is done as the clause is applicable
to Consolidated Financial Statements only.
For O P BAGLA & CO LLP CHARTERED ACCOUNTANTS Firm Regn No. 000018N/N500091
| PLACE : NEW DELHI |
(ATUL AGGARWAL) |
| DATED : 29.05.2023 |
PARTNER |
|
M No. 092656 |
|
UDIN: 23092656BGUFMV5491 |
ANNEXURE- II TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory
Requirements section of our report of even date)
We have audited the internal financial controls over financial reporting of CRIMSON
METAL ENGINEERING COMPANY LTD ("the Company") as of 31st March
2023
In conjunction with our audit of the standalone Ind AS 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. 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.
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, both 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. 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 I/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 authorisations 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, 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 31st March 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.
For O P BAGLA & CO LLP CHARTERED ACCOUNTANTS Firm Regn No. 000018N/N500091
| PLACE : NEW DELHI |
(ATUL AGGARWAL) |
| DATED : 29.05.2023 |
PARTNER |
|
M No. 092656 |
|
UDIN: 23092656BGUFMV5491 |
+91-9892691696
