To the Members of
Financial Statements of Mahashree Trading limited
Report on the Audit of Standalone Financial Statements
Qualified Opinion
We have audited the accompanying Standalone Financial Statements of Mahashree Trading
limited ("the Company") which comprises the Balance Sheet as at March 31, 2022.
the Statement of Profit and Loss (including other comprehensive income). Statement of Cash
Flow and Statement, of Changes in Equity for the year then ended and summary of
significant accounting policies and other explanatory information (herematter referred to
as "the Standalone Financial Statements).
In our opinion and to The best of our information and according to the explanations
given TO ns, except for the effects of the matter described in the Basis of
Qualified Opinion section of our report, the aforesaid Standalone Financial Statements
give The information required by the Companies Act. 201A (the Act) in the manner so
required and give a true and fair view in conformity with the Accounting Standards
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015. as amended. (Ind AS) and other accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31,2022 and its loss
{including other comprehensive income), changes in equity and its cash flow for the year
ended on that date.
Basis for Qualified Opinion
We conducted Our audit of the Standalone financial Statement in accordance with The
Standards oil Auditing (‘SAs) specified under section 143(10) of the Act our
responsibilities under Those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We arc independent of the Company in accordance with the code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) 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 framed thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the
FAFs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate its provide a basis for our audit opinion on the Standalone financial
Statement.
The Investments of the Company includes shares held in closely held private invited
company, which have been designated as Fair Value through Profit and Loss, have not been
fair valued as on the dare of the balance sheet as required by Ind AS 109 on Financial
Instruments Prescribed under section 133 of the Companies Act, 2013. As stated in note no.
4.12 to the financial statement. such investments have been sold subsequent to the dare of
the balance sheet at a value significantly higher than the carrying value of Rs. Nil as at
March 31, 2022. In absence of the fair value determined as on the balance sheet date, we
are unable let ascertain tile extent at which profit for the year and investment have been
understated.
Emphasis of Matter
As described in note no. 4.13 to the financial results, as regards id the managements
evaluation of impact on the operations of the Company and uncertain developments. The
management continue to monitor implication on its operations. According the management
have prepared the financials on a going concern basis.
Our opinion is not modified in respect of this mailer.
Key Audit Matters
Key audit matters are those mailers llial. in our professional judgment, were of most
significance in our audit of the Standalone Financial Statements of the current period.
These matters were addressed in the context of our audit of the Standalone Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined that there are no key audit matters
Lo communicate in our report.
Information Other than the Standalone Financial Statements and Auditors Report
thereon
The Companys management and Board of Directors arc responsible for the preparation of
the other information. The other information comprises the information included in Annual
Report. bur others not include the Standalone Financial Statements and Our auditors
report thereon. The Annual Report is expected to be mode available Lo ns after the date of
this report.
Our opinion on the standalone financial statements docs not cover the other information
and we do not and will not express any form of assurance conclusion
thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility
is Lo read the other information identified above and, in doing so, consider whether the
other information is materially inconsistent with the Standalone Financial Statements or
our knowledge obtained ill the audit, or otherwise appears lo he materially misstated.
When we read the Annual Report, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to Those Charged
with Governance and take appropriate actions in accordance with Standards on Auditing.
Responsibilities or Management for the Standalone Financial Statements
The Companys management and Board of Directors arc responsible for the matters staled
in section 134(5) oldie Act with respect to the preparation of the Standalone Financial
Statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, changes in equity, cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the hid
AS and relevant provisions of the Act. I his responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other
irregularities: selection and application of appropriate accounting policies: making
judgements 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 arid are free from material misstatement, whether due lo fraud or error.
In preparing the Standalone Financial Statements, Management and Board of Directors arc
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 management either intends lo liquidate the Company Of to cease
operations, or has no realistic alternative but to do so.
The Board of Directors arc also responsible for overseeing the Company s financial
reporting process.
Auditors responsibilities for the audit of the Standalone Financial Statements
Our objectives are In obtain reasonable assurance about whether the Standalone financial
statements as a whole are free from material misstatement, whether due lo fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, hut is not a guarantee that an audit conducted in accordance with the
5 As 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 the SAs. we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
a, Identify and assess The risks of material misstatement of the standalone financial
statements, whether due to fraud or error, design and perform audit procedures responsive
lo 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 (had
lor one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
h. Obtain an understanding of internal financial control relevant to the audit in order
to design audii procedures that are appropriate in the circumstances. Under section
143(3X) 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,
C. Evaluate the appropriateness of accounting policies used mid the reasonableness of
accounting estimates and related disclosures made by management.
d. Conclude on the appropriateness of managements USC 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.
c. Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transaction? and events in a manner that achieves fair
presentation.
Vie 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 identity during our audit.
We also provide those charged with governance with the 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 hear on our
independence, and where applicable, related safeguards from the mailers 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 about the matter or when, it extremely rare
circumstances, we determine that a matter should nut 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 term of section 143(11) of the Act. we give
in the Annexure I a statement on the matter specified in paragraph 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143 (3) of the Act, based on our audit of separate financial Statements
we report that:
(a) We have sought and obtained all the information and explanations, which to the best
of our knowledge and belief w ere 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 hooks;
(e) I he Balance Sheet the Statement of Profit and loss (including other comprehensive
income), the Statement of Changes in Equity and the Statement of Cash flow dealt with by
this Report are in agreement with the books of account:
(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with the rules made thereunder and
the relevant provisions of the Act:
(e) On the basis of the written representations received from the directors as on March
31. 2022 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31. 2022 from being appointed as a director in terms of Section 104 (2) of the
Act:
(f) With respect to the adequacy of the Financial Financial Controls with respect to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate report in Annexure II:
(g) With respect to the other mailers to he included in the Auditors Report in
accordance with the requirements of section 197116) of the Act, as amended:
In Our Opinion and to the best of our information and according to the
explanations given to us. during the year die Company has not provided managerial remuneration
Lo directors. Accordingly, the provision of Section 197 has been complied:
and
(h) 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 as amended by
the Companies (Audit and Auditors) Rules. 2017. in our opinion and Lo the best
of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position- Refer Note No 1.04 to the financial statements
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 amounts, which were required to be Transferred lo the 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 no. 4.H 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 lo or in any other person(s) or entity(ies),
including foreign currencies ("Intermediaries"), with the understanding, whether
recorded in writing or Otherwise, that the Intermediary shall, directly or indirectly lend
or invest in Other persons or endues 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 hest of its knowledge and belief other
than as disclosed ill the note no. 4.14 to the Standalone Financial Statements, no funds
(which arc material either individually or in the aggregate) have been received by The
Company from any person(s) or entity(ies). 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 by or on behalf of the funding Party ("Intimate
Beneficiaries) or provide any guarantee, security or the like tin behalf of the Ultimate
Beneficiaries.
(c) Based on The audit procedures That has been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us Lo 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.
|
For G.V. KAFADIA & CO |
|
Chartered Accountants |
|
Firms Registration Number: 104767W |
|
Ashwin Damania |
| Place: Mumbai |
Partner |
| Dated: May 30, 2022 |
Membership No: 13315976 |
|
UDIN No. 22038976AJVSXS8293 |
Annexure I referred to in paragraph I under "Report on Other Legal and Regulatory
Requirements" of our report of even date, to the member of the Company on the
Standalone Financial Statements for the year ended March 31, 2022
(i) The Company docs not have any Property, plant and equipment or any intangible asset
or right-to-use assets and hence reporting under sub-clause (a) to (d) of clause 3(i) of
the Order is not applicable to the Company.
(c) As represented by the management there are no proceedings initiated or are pending
against the company for holding any benami property under the Bonami Transactions
(Prohibition) Act 198S (45 of 1988) and rules made thereunder.
(ii)(a) The Company does not have any inventories and accordingly, tire provision of
The clause 3{ii)(a) of the Order is not applicable to the Company.
(b) The company has not been sanctioned working capital limits in excess of Jive crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets during any point, of time of the year, hence reporting under sub-clause (b)
of clause 3(ii) of the Order is not applicable to the Company.
(iii) The Company has made investments in. companies, firms Limited Liability
Partnerships, and granted unsecured loans to other parties, during the year.
(a) The (Company has not provided any loans or advances in the nature of loans or Stood
guarantee, or provided security in any other entity during the year, and hence reporting
under clause (iii)(a) of the Order is not applicable.
(b) In our opinion, the investments made during the year arc, prima facie, not
prejudicial to the Companys interest.
(c) The Company has not provided any loans or advances in The nature of toans. hence
reporting under clause (iii)(c) to (f) of the Order is not applicable.
(iv) In our opinion and according to the information and explanation given to us. the
Company has complied with die provisions of Section 185 and 186 of the Act ill respect of
investments made and Loans, guarantees and securities granted.
(v) The Company has not accepted any deposits from the public, within the meaning of
sections 73 to 76 of the Act and The rules framed there tinder are not applicable to the
Company. We are informed by the Management that no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any
other Tribunal in this regard.
(vi) The provisions of section 148(1) of the Act, relating to maintenance of cost
records arc not applicable to the Company.
(vii) (a) According to the information arid explanations given to us and according to
the records of the Company examined by us, in our opinion, live Company is
generally regular in depositing with the appropriate authorities undisputed statutory dues
including Provident fund. Income-tax and Goods and Services Tax. According to the
information .and explanations given to us, no undisputed amounts payable in respect of
aforesaid dues were outstanding as at March 31, 2022 for a period of more than 6 months
from the dale They became payable except session Tax of Rs. 53.27 thousand and
Provident fund of Rs. 0.55 thousand.
(b) Based on the records produced before us and books of accounts maintained by the Company,
there arc no disputed dues of income tax, sales Tax, service tax, duty of customs,
duty of excise or value added tax. goods and service lax on account of any dispuLe.
(viii) According to the information and explanations given to us. there arc no
transactions not recorded in the books of account which have been surrendered or disclosed
as income during the year in tile tax assessments under the Income Tax Act, 1961 (43 of
1961).
(ix) The Com pan v has not borrowed any Loans during the year, hence reporting under
clause 3 (ix) (a), (c) and (d) of the Order is not applicable.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company does not have any subsidiaries, joint ventures or associate companies
Accordingly, paragraph 3 (ix)(e) of the order is not applicable to the Company:
(f) The Company docs not have any subsidiaries, joint ventures or associate companies
Accordingly, paragraph 3 (ix)(f) of the order is not applicable to the Company:
(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 (x)(n) 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 partly7 or optionally!
and hence reporting under clause (x)(b) ofthe Order is not applicable to the Company.
(xi) (a) As stated in note no. 4.10 there are no material frauds have been noticed or
repotted during the period by the Company.
(b) No report under section 143(12) of the Companies Act, 2013, has been filed in form
Act as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the
Central Government, during the year and not to the dale of this report.
(c) As stated in note no 4,19 there are no whistle-blower complaints received by The
management during the year.
(xii) The Company is not a chit fund or a nidhi company. Hence, the question of
repotting under clause 3(xii) of the Order does not arise.
(xiii) In our opinion, all transactions with related parties are in compliance with
Section 177 and 188 of the Act. and the details have been disclosed in the financial
statements as required by the applicable accounting standards
(xiv) (a) In our opinion and based on our examination, though the Company is required
to have un internal audit system under Section 13k of the Act, it. does not have the same
established for the year,
(b) The Company did not have au internal audit system for the period under audit.
(xv) the Company has not entered into any non-cash transactions with directors or
persons connected with him covered under the provisions of section 192 of the Act.
Accordingly, para 3(xv) of the under is not applicable to the Company.
(xvi) (a) In our opinion, the Company is not required to he registered under section
45-1A and the Reserve Hank of India Act. 1934. Hence, reporting under clause 3(xvi)(a),
(b)and (c) of the Order is not applicable.
(d) In our opinion, and according to the information arid explanation given to us. in
the group (in accordance with Core Investment Companies (Reserve Bank) Directions. 2016)
tilde arc no companies limning part of the promoter promoter group of the Company which
are CICs.
(xvii) As per the Financial statements of the Company, the Company has incurred cash
losses in the financial year ended March 31, 2022 and in the immediately preceding
financial year ended March 31. 2021 amounting to Rs. 4,105 5ft thousand and Rs. 31,190.76
thousand respectively.
(xviii) There has been no resignation of the statutory auditor 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 attract 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 rite 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 upto 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 dale, will eel discharged by the Company as and when they fall due.
(xx) In our opinion, the provisions of section 135 of the Companies Act, 2013 are not
applicable to the company and hence clause 3 (x) is mil applicable to the Company.
|
For G.V. KAFADIA & CO |
|
Chartered Accountants |
|
Firms Registration Number: 104767W |
|
Ashwin Damania |
| Place: Mumbai |
Partner |
| Dated: May 30, 2022 |
Membership No: 13315976 |
|
UDIN No. 22038976AJVSXS8293 |
Annexure IT - referred to in paragraph 3(g) under "Report on Other Legal and
Regulatory Requirements" of our report of even date
Report on the Internal Financial Controls with respect to financial
statements under clause (i) of sub-section 3 of section 143 of the Companies Act,
2013 (the Act*)
We have audited the internal financial controls with respect to financial statements of
MAI IASI IRfE TRADING LIMITED ("the Company") as of March 31.2022 in conjunction
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 infernal
financial controls based on the internal control with respect 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 (ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls the there 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 tinder the Act.
Auditors Responsibility
Our responsibility is to express an opinion on The Companys internal financial
controls with respect to financial Statements based on our audit. We conducted Our audit
in accordance with tile 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 113(10) of the Act. 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 Mote require that. We comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls with respect to financial Statements 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 intern financial control respective financial statements cuts and their operating
effectiveness,
Our audit of internal financial controls with respect to financial statements included
obtaining ail understanding of internal financial controls system with respect to
financial statements, assessing the risk that a material weakness exists, and testing and
evaluating tile 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 l?a\e obtained is sufficient and appropriate to
provide a basis for our audit Opinion on the Companys internal financial controls system
with respect to financial statements.
Meaning of internal Financial Controls with respect to financial statements
A Companys internal financial control with respect 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
control with respect to financial statements includes those policies and procedures that
to 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 an; 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 authorization s 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 with respect to financial
statements
Because of the inherem limitations of internal financial controls with respect to
financial statement, including the possibility of collusion or improper management
override of controls, material misstatements due lo error or fraud may occur and not be
detected. Also, projections or any evaluation of the internal financial controls with
respect to financial statements to future periods are subject to the risk that the
internal financial control with respect to financial statements 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 not all material respects, an adequate internal
financial controls system with respect to financial statements and such internal financial
controls with respect to financial statements were operating effectively as at March 31,
2022. based on the internal control with respect to financial Statements criteria
established by the Company considering the essential Components of internal control stated
in the Guidance Note (in Audit of Internal Financial Controls Over financial Reporting,
issued by the Institute rtf Chartered Accountants of India (ICAI).
|
For G.V. KAFADIA & CO |
|
Chartered Accountants |
|
Firms Registration Number: 104767W |
|
Ashwin Damania |
| Place: Mumbai |
Partner |
| Dated: May 30, 2022 |
Membership No: 13315976 |
|
UDIN No. 22038976AJVSXS8293 |
+91-9892691696
