To,
The Members of,
ANTARIKSH INDUSTRIES LIMITED
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the standalone financial statements of ANTARIKSH INDUSTRIES LIMITED
(the "Company") which comprise the standalone balance sheet as at 31 March 2023,
and the standalone statement of profit and loss (including other comprehensive income),
standalone statement of changes in equity and standalone statement of cash flows for the
year then ended, and notes to the standalone 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 standalone financial statements give the information required
by the Companies Act, 2013 ("Act") in the manner so required and give a true and
fair view in conformity with the accounting principles generally accepted in India, of the
state of affairs of the Company as at 31 March 2023, and its profit and other
comprehensive income, changes in equity and its 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 Act. Our responsibilities under those SAs are further
described in the Auditors Responsibilities for the Audit of the Standalone Financial
Statements section o f 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 standalone financial
statements under the provisions of the Act and the Rules there under, and we have
fulfilled our other ethical responsibilities 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 on the standalone financial statements.
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.
Our opinion is not modified in respect of these matters. We have determined the matters
described below to be key audit matter to be communicated in our report.
Key Audit Matter |
Auditors Response |
1. Valuation, accuracy, completeness and disclosures pertaining to
Trade Receivables. |
Our audit approach consisted testing of the design and
operating effectiveness of the internal controls and substantive testing as follows: |
Trade receivables constitutes material component of
Financial Statement. Correctness, completeness, and valuation are critical for reflecting
true and fair financial results of operations. |
| We evaluated the companys procedures for recognizing and measuring
trade receivables to ensure that they are accurately stated in the financial statements. |
|
We considered the risk of trade receivables being understated due to
unrecorded or omitted transactions and for that we examined the companys internal
controls and procedures for capturing and recording all trade receivable transactions. |
| We focused on the recoverability of trade receivables, especially in
situations where significant amounts are overdue or there is evidence of potential credit
risks. We also assessed the companys assessment of collectability, reviewed supporting
documentation, and evaluated the adequacy of any impairment provisions. |
| We assessed the adequacy and accuracy of the disclosure related to trade
receivables in the financial statements. |
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained in the 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 and Board of Directors Responsibilities for the Standalone Financial
Statements
The Companys Management and Board of Directors are responsible for the matters stated
in Section 134(5) of the Act with respect to the preparation of these standalone financial
statements that give a true and fair view of the state of affairs, profit/ loss and other
comprehensive income, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under Section 133 of the Act. 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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, the Management and Board of Directors
are 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 is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
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 standalone 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 risk of material misstatement of the Standalone 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 control 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 has adequate
internal financial controls systems 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 Standalone 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 standalone Financial
Statements, including the disclosures, and whether the Standalone Financial Statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatement in the standalone Financial Statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the Financial Statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatement in the Financial Statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including and
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 standalone 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 a bout 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, 2020 ("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 statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2A. 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 standalone balance sheet, the standalone statement of profit and loss
(including other comprehensive income), the standalone statement of changes in equity and
the standalone statement of cash flows dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 4 of the
Companies Indian Accounting Standard Rules, 2015 as amended.
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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", our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the companys internal financial controls over
financial reporting.
B. 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 did not have any pending litigations.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There have been no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv.
1) The management has represented that, to the best of its knowledge and belief, as
disclosed in note no. 35 to the accounts, 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 persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall:directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Holding Company or its subsidiary companies
and joint venture company incorporated in India orprovide any guarantee, security or the
like to or on behalf of the Ultimate Beneficiaries
2) The management has represented, that, to the best of its knowledge and belief, as
disclosed in note no. 36 to the accounts, no funds have been received by the Company from
any persons or entities, including foreign entities ("Funding Parties"), with
the understanding, whether recorded in writing or otherwise, that the Company
shall:directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding
Parties orprovide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries.
3) Based on such audit procedures as 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 clause (a)
and (b) contain any material mis-statement.
v. The company has neither declared nor paid any dividend during the year. Hence,
reporting the compliance with section 123 of the Act is not applicable.
3A. With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act :
In our opinion and according to the information and explanations given to us and
based on the remuneration paid by the company to its director during the current year,
it is in accordance with the provisions of Section 197 of the Act. The remuneration paid
to any director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act which are required to be commented upon by us.
For DMKH & Co.
Chartered Accountants
Firms Registration No. : 116886W
CA Manish Kankani
Partner
Membership No. 158020
UDIN:23158020BGUSCJ5082
Place: Mumbai
Date: May 25, 2023
ANNEXURE A TO INDEPENDENT AUDITORS REPORT
ON THE STANDALONE FINANCIAL STATEMENTS OF ANTARIKSH INDUSTRIES LIMITED
(Referred to in Paragraph 1 under the heading of "Report on other Legal and
Regulatory Requirements" of our report to the members of Antariksh Industries Limited
of even date)
On the basis of such checks as we considered appropriate and in terms of the
information and explanations given to us, we report that: -
i. The Company does not hold any property, plant and equipment and intangible assets as
on 31st March 2023 and so this clause is not applicable.
ii. a) According to the information given to us, the company does not hold any
inventory as on 31st March 2023.
b) According to the information given to us, the company has not availed working
capital limits from bank or financial institutions on the basis of security of current
assets.
iii. According to the information and explanations given to us, the Company has not
granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships
or other parties listed in the register maintained under Section 189 of the Companies Act,
2013. Accordingly, the provisions of clauses 3(iii) (a), (b), (c), (d), (e) and (f) of the
order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, since
the details of granting of loans, investments, guarantees given and securities provided in
view of provisions of section 185 and 186 of the Companies Act, 2013 do not exist for the
company, reporting on the matters specified in paragraph 3(iv) of the companies (Auditors
Report) Order, 2020 is not applicable.
v. The Company has not accepted any deposits from the public within the meaning of the
directives issued by the Reserve Bank of India, provision of Section 73 to 76 of the Act,
any other relevant provision of the Act and the relevant rules framed there under.
vi. The maintenance of cost records has not been specified by the Central Government
under Section 148(1) of the companies Act, 2013 for the business activities carried out by
the company, thus reporting under clause 3(vi) of the order is not applicable to the
Company.
vii. a) According to information and explanations given to us, the Company has been
generally regular in depositing undisputed statutory dues, including Income Tax, Goods and
Service Tax, Professional Tax and other material statutory dues applicable to it with the
appropriate authorities.
b) According to the information and explanations given to us, no undisputed amounts
payable in respect of Income Tax, Goods and Service Tax, Professional Tax and other
material statutory dues are in arrears as at March 31, 2023 for a period of more than six
months from the date they became payable.
viii. According to information and explanations given to us, there were no transactions
which were recorded in the books of account have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax, 1961.
ix. According to the information and explanations given to us, we are of the opinion
that the company has not taken any loan or borrowings from banks and debenture holders.
The company has not taken any loans from the government or any Financial Institution.
Hence, the said clause is not applicable to the company.
x. a) In our opinion and according to the information and explanation given by the
management, the company has not raised money by way of term loan (including debt
instruments) during the year. The Company did not raise any money by way of Initial Public
offer or further public offer. Hence, paragraph 3(x) of the Companies (Auditors Report)
Order, 2020 is not applicable.
b) In our opinion and according to the information and explanation given by the
management, the company has not made any preferential allotment (Sec. 62) or private
placement (Sec. 42) of shares or convertible debenture (fully, partially or optionally
convertible) during the year. Hence, paragraph 3(x) of the Companies (Auditors Report)
Order, 2020 is not applicable.
xi. a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the company or on the company has been noticed or reported during
the year.
b) There is no reporting u/s 143(12) of the Companies Act 2013 been filed by us (the
auditors) in form ADT-4 as prescribed under Rule 13 of companies (Audit and Auditors)
Rules, 2014 with the central Government.
c) No whistle blowers complain has been received by the company.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Therefore, paragraph 3(xii) of the Order is not
applicable.
xiii. In our opinion and according to the information and explanations given to us, the
Company is in compliance with Sections 177 and 188 of the Companies Act, 2013 where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the Ind AS Financial Statements as required by the
applicable accounting standards.
xiv. a) To the best of our knowledge, the company has internal audit system which is
commensurate with the size and nature of its business.
b) The audit report of internal auditors was considered while conducting statutory
audit.
xv. In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
Directors or persons connected to its directors and hence provisions of Section 192 of
the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
xvii. As per the information and explanation given by the management, company has not
incurred any cash losses in the financial year 2022-23 and the immediately preceding
financial year 2021-22.
xviii. There was no resignation of auditor during the financial year, so the said
clause is not applicable to company.
xix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, our knowledge of the Board of Directors and management plans, we are
of the opinion that no material uncertainty exists as on the date of the audit report and
that 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.
xx. The CSR obligation is not applicable to company.
For DMKH & Co.
Chartered Accountants
Firms Registration No. : 116886W
CA Manish Kankani
Partner
Membership No. 158020
UDIN:23158020BGUSCJ5082
Place: Mumbai
Date: May 25, 2023
ANNEXURE B TO INDEPENDENT AUDITORS REPORT
ON THE STANDALONE FINANCIAL STATEMENTS OF ANTARIKSH INDUSTRIES LIMITED
(Referred to in Paragraph 2(f) under the heading of "Report on other Legal and
Regulatory Requirements" of our report to the members of ANTARIKSH INDUSTRIES LIMITED
of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
Opinion
We have audited the internal financial controls with reference to financial statements
of ANTARIKSH INDUSTRIES LIMITED ("the Company") as of 31 March 2023 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial
controls with reference to financial statements and such internal financial controls were
operating effectively as at 31 March 2023, based on the internal financial controls with
reference to financial statements 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 (the "Guidance Note").
Managements and Board of Directors Responsibilities for Internal Financial Controls
The Companys Management and the Board of Directors are responsible for establishing and
maintaining internal financial controls based on the internal financial controls with
reference to financial statements criteria established by the Company considering the
essential components of internal control stated in the Guidance Note. 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note and the Standards on Auditing, prescribed under
Section 143(10) of the Act, to the extent applicable to an audit of internal financial
controls with reference to financial statements. 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 with reference to
financial statements were 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 with reference to financial statements and their
operating effectiveness. Our audit of internal financial controls with reference to
financial statements included obtaining an understanding of internal financial controls
with reference to financial statements, 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
judgement, including the assessment of the risks of material misstatement of the
standalone 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 with
reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements
A companys internal financial controls with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of standalone financial statements for external purposes in
accordance with generally accepted accounting principles. A companys internal financial
controls with reference to financial statements include 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
standalone 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 unauthorized acquisition,
use, or disposition of the companys assets that could have a material effect on the
standalone 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.
For DMKH & Co.
Chartered Accountants
Firms Registration No. : 116886W
CA Manish Kankani
Partner
Membership No. 158020
UDIN:23158020BGUSCJ5082
Place: Mumbai
Date: May 25, 2023
+91-9892691696
