captain pipes ltd Auditors report

TO THE MEMBERS OF ‘CAPTAIN PIPES LIMITED Report On The Audit Of The Financial Statements Opinion

We have audited the financial statements of M/s. Captain Pipes Limited (hereinaer referred to as the “Company”), which comprise the balance sheet as at 31 March 2023, and the statement of profit and loss, statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accoun ng policies and other explanatory informa on.

In our opinion and to the best of our informa on and according to the explana ons given to us, the aforesaid financial statements give the informa on required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accoun ng principles generally accepted in India, of the state of a airs of the Company as at 31 March, 2023, and its profit, and its cash flows for the year ended on that date.

Basic For Opinion

We conducted our audit in accordance with the Standards on Audi7ng (SAs) specified under sec;on 143(10) of the Companies Act, 2013 (hereinaer referred to as the “Act”). Our responsibilives under those Standards are further described in the Auditors Responsibilives for the Audit of the Financial Statements sec;on of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Ins tute 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 Act, and the Rules there under, and we have fulfilled our other ethical responsibilives in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Maers

Key audit maers ar e those maers tha t, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These maers were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon.

Based on our audit of Financial Statements of the company for the period under review, we did not come across any material Key Audit Maers to be c ommunicated in our report.

Emphasis Of Maer

We draw aen on to Note 29(vii)(b) of the Financial Statements on material differences in amounts reported in quarterly statements led by the company as compared to books of accounts. In the opinion of the management of the company, the said quarterly statements need to be submied on respecrve due dates, pending the naliza on of books of accounts. However, the books of accounts are to be considered as nal, hence our opinion is not modified in this regard.

We also draw aen on on Note 20.1 forming part of the audited financial statements on consistent long outstanding trade receivables for a period exceeding 3 Years. Trade receivables comprises one of the most significant poroon of the liquid assets of the company. In the opinion of the management of the company, they do not expect any credit loss on the en re trade receivables, hence our opinion is not modified in this regard.

Informa on Other Than The Financial Statements And Auditors Report Thereon.

The Companys board of directors is responsible for the prepara on of the other informa on. The other informa on comprises the Boards Report including Annexure to Boards Report, Corporate Governance and Shareholders Informa on, but does not include the financial statements and auditors report thereon.

Our opinion on the financial statements does not cover the other informa on and we do not express any form of assurance conclusion thereon.

In connecmon with our audit of the financial statements, our responsibility is to read the other informa on and, in doing so, consider whether the other informa on 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 informa on; we are required to report that fact. We have nothing to report in this regard.

Responsibility Of Management And Those Charged With Governance For The Financial Statements

The Companys Board of Directors is responsible for the maers stated in sec;on 134(5) of the Act with respect to the prepara on of these financial statements that give a true and fair view of the financial posi on, financial performance, and cash flows of the Company in accordance with the accoun ng principles generally accepted in India, including the accoun ng Standards specified under sec;on 133 of the Act, read with the Rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accoun ng records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preven ng and detec:ng frauds and other irregularites; selecton and applica on of appropriate accoun ng policies; making judgments and es mates that are reasonable and prudent; and design, implementa on and maintenance of adequate internal financial controls, that were opera ng e ec vely for ensuring the accuracy and completeness of the accoun ng records, relevant to the prepara on and presenta on of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Companys ability to con nue as a going concern, disclosing, as applicable, maers related to going concern and using the going concern basis of accoun ng unless management either intends to liquidate the Company or to cease opera ons, or has no realistc alterna ve but to do so.

The Board of Directors are also responsible for overseeing the companys financial repor ng process.

Auditors Responsibilives For The Audit Of The Financial Statements

Our objecfves 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 a part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skep cism throughout the audit. We also:

Iden fy 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 detec:ng a material misstatement resul ng from fraud is higher than for one resul ng from error, as fraud may involve collusion, forgery, inten onal omissions, misrepresenta ons, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under sec;on 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 opera ng e ec veness of such controls.

Evaluate the appropriateness of accoun ng policies used and the reasonableness of accoun ng es mates and related disclosures made by management.

Conclude on the appropriateness of managements use of the going concern basis of accoun ng and, based on the audit evidence obtained, whether a material uncertainty exists related to events or condi ons that may cast significant doubt on the Companys ability to con nue as a going concern. If we conclude that a material uncertainty exists, we are required to draw aen on 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 condi ons may cause the Company to cease to con nue as a going concern.

Evaluate the overall presenta on, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transacvons and events in a manner that achieves fair presenta on.

We communicate with those charged with governance regarding, among other maers, the planned scope and ming of the audit and significant audit ndings, including any significant deficiencies in internal control that we iden fy 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 the rela onships and other maers that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it possible that the economic decisions of a reasonably knowledgeable user of the financial statements may be in uenced. We consider quan ta ve materiality and qualita ve factors in (i) planning the scope of our audit work and in evalua ng the results of our work; and (ii) to evaluate the effect of any iden ed misstatements in the financial statements.

From the maers communicated with those charged with governance, we determine those maers that were of most significance in the audit of the financial statements of the current period and are therefore the key audit maers, If any iden ed. We describe these maers, if any in our auditors report unless law or regula on precludes public disclosure about the maer or when, in extremely rare circumstances, we determine that a maer 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 communica on.

Report On Other Legal And Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 (the “Order”), issued by the Central Government of India in terms of sub-secJon (11) of sec;on 143 of the Companies Act, 2013, we give in the Annexure -A statement on the maers specified in par agraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Sec on 143(3) of the Act, further to our comments in the Annexure, we report that:

(a) We have sought and obtained all the informa on, and explana ons 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 examina on of those books.

(c) The Balance Sheet, Statement of Pro t and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account, as submied to us r elated to branches;

(d) The financial statements dealt with by this Report are in agreement with the books of account.

(e) In our opinion, the aforesaid financial statements comply with the Accoun ng Standards specified under Sec;on 133 of the Act, read with Rule 7of the Companies (Accounts) Rules, 2014.

(f) In our opinion, there are no observa ons or comments on financial transacvons or maers which have any adverse effect on the func:oning of the Company.

(g) On the basis of the wrien representa ons received from the directors as on 31 March, 2023 taken on record by the Board of Directors, none of the directors are disqualified as on 31 March, 2023 from being appointed as a director in terms of Sec on 164(2) of the Act.

(h) There are no quali ca ons, reserva ons or adverse remarks rela ng to the maintenance of accounts and other maers.

(i) With respect to the adequacy of the internal financial controls over financial repor ng of the Company and the opera ng e ec veness of such controls, refer to our separate Report in “Annexure B.”

(j) With respect to the other maers to be included in the Auditors Report in accordance with the requirements of sec;on 197(16) of the Act, as amended: in our opinion and to the best of our informa on and according to the explana ons given to us, the remunera on paid by the Company to its directors during the year is in accordance with the provisions of sec on 197 of the Act

(k) With respect to the other maers 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 informa on and according to the explana ons given to us:

(i) The Company does not have any pending li ga ons which would impact its financial posi on in its financial statements;

(ii) The Company has made provision, as required under the applicable law or accoun ng standards, for material foreseeable losses, if any, on long-term contracts including deriva ve contracts, and

(iii) There were no amounts which were required to be transferred to the Investor Educa on and Protec;on Fund by the Company.

(iv) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note No. 29(xiv) of the financial statements aached herewith, no funds 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/s or en ty/ies including foreign en ty/ies (“Intermediaries”), with the understanding, whether recorded in wriung or otherwise, that the Intermediaries shall, directly or indirectly lend or invest in other persons or en es iden ed in any manner whatsoever by or on behalf of the Company (“Ultmate Bene ciaries”) or provide any guarantee, security or the like on the behalf of the Ultmate Bene ciaries.

(v) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note No. 29(xiv) of the financial statements aached herewith, no funds have been received by the Company from any person/s or en ty/ies including foreign en ty/ies (“Funding Party/ies”), with the understanding, whether recorded in wriung or otherwise, that the Company shall, directly or indirectly lend or invest in other persons or en es iden ed in any manner whatsoever by or on behalf of the Funding Party/ies (“Ultmate Bene ciaries”) or provide any guarantee, security or the like on the behalf of the Ultmate Bene ciaries.

(vi) Based on the audits procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our no ce that has caused us to believe that representa ons under subclauses (i) and (ii) of clause (e) of Rule 11 contain any material mis-statement.

(vii) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the company only w.e.f. April 1, 2023, repor ng under this clause is not applicable.

(viii) During the financial year under audit, no dividend has been declared, or paid by the Company.

For J C RANPURA & Co.
Chartered Accountants
Firm Reg. No. - 108647W
SD/-
Mehul J. Ranpura
	Place : Rajkot
Partner
	Date : 9th May, 2023
M. No. -128453
UDIN : 23128453BGRRGV5593

ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT

In terms of the informa on and explana ons sought by us and given by the Company and the books of account made available to us in the normal course of audit and to the best of our knowledge and belief, we report that:

(i) (a) (A) The Company has maintained proper records showing full par-culars, including quan ta ve details and situa on of property, plant, and equipment.

(B) Since the company does not have any intangible assets during or as at the end of the year, the provisions of this sub-clause are not applicable to the company.

(b) As explained to us, the Company has a program of veri ca on to cover all the items of xed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As further explained to us, pursuant to the said program, certain xed assets were physically veri ed by the management during the year. According to the said informa on and explana ons given to us, no material discrepancies were no ced on such veri ca on.

(c) According to the informa on and explana ons given to us, the records examined by us and based on the examina on of the conveyance deeds / registered sale deed provided to us, we report that, the tle deeds of all the immovable proper es (other than proper es where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the company.

(d) According to the informa on and explana ons given to us, the records examined by us and also based on the examina on of the books of accounts of the company, we report that, during the year ended 31st March, 2023, the company has not revalued its Property, Plant & Equipment (Incl. Right of Use Assets) or Intangible Assets or both during the year ended;

(e) No proceedings have been inimated or pending against the Company for holding any benami property under the Benami Transacvons (Prohibibon) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) (a) The inventory has been physically veri ed during the year by the management. We were not physically present at the me such veri ca on and therefore, we are unable to comment as to whether the coverage and procedure of such veri ca on by the management of the company are appropriate or not. As reported to us, discrepancies of 10% or more in the aggregate for each class of inventories were not no ced except of the varia on no ced in inventories recorded in books of accounts and inventory men oned in Quarterly statements led with Bank.

(b) During the financial year 2022-23, the Company has been sanc oned working capital limits in excess of ve crore rupees, in aggregate, from a bank on the basis of security of current assets, and quarterly returns or statements led by the Company with such bank are in agreement with the books of account of the Company

Months	Returns or Statements led with Banks or Financial Ins tu ons	Amt. as per Books of Accounts	Di erence	Reasons For Discrepancies
Inventory				The difference is there because the
Apr - Jun	852.97	881.79	28.82	stock statements led with Bank only
Jul - Sep	1055.97	1114.15	58.18	consist of Stock maintained at Head
Oct - Dec	1036.90	1019.41	-17.49	O ce of the company and not the
Jan - Mar	970.62	977.64	7.02	Branches.
Trade Receivables				The difference is there because the
Apr - Jun	962.44	961.35	-1.09	stock statements led with Bank only
Jul - Sep	1332.55	1333.45	0.90	consist of Trade receivables at Head
Oct - Dec	1661.35	1614.16	-47.19	O ce of the company and not the
Jan - Mar	958.54	951.42	-7.13	Branches.

(iii) The Company has, during the financial year 2022-23, not made investments in or provided any guarantee or security or granted any loans or advances in the nature of loan, secured or unsecured, to companies, rms, limited liability partnerships or any other par-es and therefore items (a) to (f) clause (iii) of paragraph 3 are not applicable for the financial year 2022-23.

(iv) The company has complied with sec;on 185 and 186 of the Companies Act, 2013, wherever applicable.

(v) The Company has complied Sec 73 to 76 of the Companies Act, 2013 for the financial year 2022-23.

(vi) According to the informa on and explana ons provided by the management to us and to the best of our knowledge, the Company is not engaged in produc on of any such goods or provision of any such services for which the Central Government has prescribed par-culars rela ng to u liza on of material or labour or other items of cost. Hence the provisions of sec;on 148(1) of the Act do not apply to the Company.

(a) Undisputed statutory dues including Goods and Services Tax, provident fund, 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 by the Company with appropriate authority except of certain delays though the delays in deposit have not been serious. No undisputed amounts payable in respect of Goods and Services Tax, sales tax, service tax, duty of customs, duty ofexcise, value added tax, cess, and other statutory dues were in arrears as at 31 March,2023 for a period of more than six months from the date they became payable except professional tax payable amoun ng to 8.31 Lakhs.

(b) No statutory dues referred to in sub-clause (a) are outstanding on account of any dispute.

(viii) There were no transacvons which have, during the financial year 2022-23, been surrendered or disclosed as income during the year in the tax assessment under the Income-tax Act, 1961.

(ix) (a) The company is not defaul ng its repayment of loans or borrowing to financial insmtu ons, banks, or Government.

(b) The Company is not a declared willful defaulter by any bank or financial insmtu on or other lender.

(c) The term loans were applied for the purpose for which the loans were obtained.

(d) The Company has not u lized short-term funds for long term purposes.

(e) The Company is neither having any subsidiary nor associates and also is not indulged any joint venture and therefore, in our opinion, this clause is not applicable to the Company.

(f) The Company is neither having any subsidiary not associate companies not join ventures, and therefore in our opinion this clause is not applicable to the Company.

(x) (a) The Company has not raised money by way of inimal public offer or further public offer (including debt instruments) during the year and therefore, this clause is not applicable.

(b) The company has not made any preferen al allotment or private placement of shares or fully or partly conver ble debentures during the year under review and therefore, the requirement of sec;ons 42 and 62 of the Companies Act, 2013 is not required to be complied with. Though company had issued share warrants in previous year F.Y. 2021-22 and the proceeds related to such issue are received during the current year.

(xi) (a) We have not, prima facie, no ced any fraud (i.e. inten onal material misstatements resul ng from fraudulent financial repor ng and misappropria ons of assets) on or by the company, during the year. Further, the management has represented to us that no fraud by the company or any fraud on the company by its o cers or employees has been no ced or reported during the year. However, we are unable to determine/verify as to whether any such repor ng has been made during the year or not.

(b) The auditor of the company has not led any report under sub-secJon (12) of sec;on 143 of the Companies Act, 2013 in Form ADT-4 as prescribed under rule 13 of the Companies (Audit and Auditors) Rules, 2014.

(c) We have not received any whistle-blower complaints during the year under audit. (xii) (a) This clause is not applicable to the Company as the Company is not Nidhi Company. (b) This clause is not applicable to the Company as the Company is not Nidhi Company.

(c) There has not been any default in payment of interest on deposits or repayment of deposits for any period.

(xiii) All transacvons with related par-es are in compliance with sec;on 177 and 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the financial statements etc. as required by the applicable Indian Accoun ng Standards.

(xiv) (a) The Company has an internal audit system commensurate with the size and 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 ll date, in determining the nature, ming and extent of our audit procedures.

(xv) The Company has not entered into non-cash transacvons with directors or persons connected with him.

(xvi) (a) The Company is not required to be registered under sec;on 45-IA of the Reserve Bank of India Act, 1934.

(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities.

(c) This clause is not applicable to the Company.

(d) This clause is not applicable to the Company.

(xvii) The Company has not incurred cash losses in the financial year under audit and in the immediately preceding financial year.

(xviii) There has been resigna on of statutory auditor of the company and there were no issues, objecfons or concerns raised by the outgoing auditors.

(xix) We are of the opinion that no material uncertainty exists as on the date of the audit report that the Company is capable of mee;ng its liabili0es exisbng at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

(xx) (a) This clause is not applicable to the Company for the financial year under audit. (b) This clause is not applicable to the Company for the financial year under audit. (xxi) As this is a standalone financial statement, this clause is not applicable.

For J C RANPURA & Co.
Chartered Accountants
Firm Reg. No. - 108647W
SD/-
Mehul J. Ranpura
	Place : Rajkot
Partner
	Date : 9th May, 2023
M. No. -128453
UDIN : 23128453BGRRGV5593

ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-sec on 3 of Sec;on 143 of the Companies Act, 2013 (the “Act”)

We have audited the internal financial controls over financial repor ng of M/s. Captain Pipes Limited, Rajkot (the “Company”) as of 31 March, 2023 in conjunc on with our audit of the standalone 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 repor ng criteria established by the Company considering the essen al components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Ins tute of Chartered Accountants of India. These responsibilives include the design, implementa on and maintenance of adequate internal financial controls that were opera ng e ec vely for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the preven on and detec:on of frauds and errors, the accuracy and completeness of the accoun ng records, and the mely prepara on of reliable financial informa on, as required under the Companies Act, 2013.

Auditors Responsibility:

Our responsibility is to express an opinion on the Companys internal financial controls over financial repor ng 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 Audi7ng, issued by ICAI and deemed to be prescribed under sec;on 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 Ins tute 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 repor ng were established and maintained and if such controls operated e ec vely in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial repor ng and their opera ng e ec veness. Our audit of internal financial controls over financial repor ng included obtaining an understanding of internal financial controls over financial repor ng, assessing the risk that a material weakness exists, and tes;ng and evalua ng the design and opera ng e ec veness 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 repor ng.

Meaning of Internal Financial Controls Over Financial Reporting:

A companys internal financial control over financial repor ng is a process designed to provide reasonable assurance regarding the reliability of financial repor ng and the prepara on of financial statements for external purposes in accordance with generally accepted accoun ng principles. A companys internal financial control over financial repor ng includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transacvons and disposirons of the assets of the company; (2) provide reasonable assurance that transacvons are recorded as necessary to permit prepara on of financial statements in accordance with generally accepted accoun ng principles, and that receipts and expenditures of the company are being made only in accordance with authoriza ons of management and directors of the company; and (3) provide reasonable assurance regarding preven on or mely detec on of unauthorized acquisibon, use, or disposi on of the companys assets that could have a material effect on the financial statements.

Inherent Limita ons of Internal Financial Controls Over Financial Reporting:

Because of the inherent limita ons of internal financial controls over financial repor ng, 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, projec ons of any evalua on of the internal financial controls over financial repor ng to future periods are subject to the risk that the internal financial control over financial repor ng may become inadequate because of changes in condi ons, 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 repor ng and such internal financial controls over financial repor ng were opera ng e ec vely as at 31st March, 2023 based on the internal control over financial repor ng criteria established by the Company considering the essen al components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Ins tute of Chartered Accountants of India.

For J C RANPURA & Co.
Chartered Accountants
Firm Reg. No. - 108647W
SD/-
Mehul J. Ranpura
	Place : Rajkot
Partner
	Date : 9th May, 2023
M. No. -128453
UDIN : 23128453BGRRGV5593