To the Members of Mihika Industries Limited
Report on the Audit of the Ind AS Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of MIHIKA
INDUSTRIES LIMITED ("the Company"), which comprise of the Balance Sheet as
at March 31, 2023, the Statement of Profit and Loss, Statement of changes in equity, and
Statement of Cash Flows for the year then ended, and notes to the Financial Statements,
including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the 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 March 31, 2023, and profit/ loss, 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 Companies Act, 2013. Our responsibilities under those
standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the 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 Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current year.
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. We have determined that the matter described below to be the key audit
matter to be communicated in our report.
| Sr. No. Key Audit Matters |
How the matter was addressed in our audit: |
| 1. The carrying value of deferred tax asset as at March 31, 2023 is Rs. 107.30 lakhs.
Deferred tax assets are recognised to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences and the carryforward
of unused tax credits and unused tax losses can be utilised. |
Our audit procedures included the following: |
| The Companys ability to generate future taxable profit toutilise the deferred tax
balance available is assessed by the management at the end of each reporting period taking
into account forecasts of future taxable profits and the applicable tax laws. In assessing
the future taxable profits, managementh as made estimates based on assumptions in relation
to financial projections and future taxable income of the entity. |
• Assessed the Companys accounting policy with respect to recognition of
deferred taxes in accordance with Ind AS 12"Income Taxes"; |
| The recoverability of deferred tax assets is a key audit matter as its utilisation
within the allowed time frame involves estimate of financial projections and availability
of sufficient taxable income in the future. |
• Assessed the consistency of financial projections used by management in
assessing recoverability of deferred tax assets with the financial budgets approved by
senior |
|
management of the Company and the reliability of the process by which the estimates
were calculated, by assessing the reasons for differences between projected and actual
performances; |
|
• Analysed the performance of the Company and assessed the assumptions used in
forecast of future profits and expected utilisation of the unabsorbed business losses and
unabsorbed depreciation, including understanding of managements estimate of business
impact based on current market and economic conditions; |
|
• Assessed the disclosures in Note 25 of the Standalone Ind AS financial
statements in accordance with the requirements of Ind AS 12 "Income Taxes"; |
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
Indian Accounting Standards 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 the safeguarding of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent and
design, implementation, and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statement that
gives 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 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 to liquidate the Company or to cease operations or has no
realistic alternative but to do so.
Those Board of Directors are 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, individual ly 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:
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
to those risks, and obtain a udit 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.
b) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether the
company has an adequate internal financial controls system in place and the operating
effectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
d) 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 disclosure s 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.
e) 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.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matte rs 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 standa lone financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Information other than the financial statements and Auditors report thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the Boards Report (including annexures thereto), Management
Discussion and Analysis and Report on
Corporate Governance (collectively referred to as other information) but does not
include the standalone financial statements, and our auditors report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the 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 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure
A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
C. The Balance Sheet, Statement of Profit and Loss, Statement of changes in equity, and
the Cash Flow Statement 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 Indian
Accounting Standards specified under Section 133 of the Act.
e. On the basis of written representations received from the Directors as on March 31,
2023, and 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".
g. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
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, in
our opinion and to 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.
(ii) In our opinion and as per the information and explanations provided to us, the
Company has not entered into any long-term contracts including derivative contracts,
requiring provision under applicable laws or accounting standards, for material
foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(iv) a. The company has not advanced any funds 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, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b. The company has not received any funds from any persons or entities, including
foreign entities ("Funding Parties") with the understanding, whether recorded in
writing or otherwise, that the company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the li ke on behalf of the Ultimate Beneficiaries.
c. Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
(v) The company has not declared or paid any dividend during the year.
|
For KhandelwalPrem& Associates |
|
Chartered Accountants |
|
FRN:317092E |
Date: May 26, 2023 |
P.N.Khandelwal |
Place: Kolkata |
Proprietor |
|
M. No.: 053229 |
|
UDIN:23053229BGYWKX7214 |
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL
STATEMENTS OF MIHIKA INDUSTRIES LIMITED
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report to the Members of Mihika Industries Limited of even date)
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that:
i) In respect of the Companys Property, Plant and Equipment and Intangible Assets:
(a) (A)The company is maintaining proper records showing full particulars, including
quantitative deta ils and the situation of Property, Plant & Equipment.
(B) The company does not possess any intangible assets hence clause 1(i)(B) is not
applicable.
(b) The Property, Plant & Equipment have been physically verified by the management
at reasonable intervals.
(c) The company does not possess any immovable property and hence clause 1(c) is not
applicable.
(d) The company has not revalued its Property, Plant & Equipment during the year.
(e) No proceedings have been initiated against the company for holding Benam i property
under The Benami Transactions (Prohibition) Act, 1988, and rules made thereunder. Hence,
clause 1(e) is not applicable.
ii) (a) Physical verification of inventory has been conducted at reasonable intervals
by management.In our opinion, the coverage and procedure by the management are appropriate
and no discrepancies of 10% or more in the aggregate for each class of inventory were
noticed.
(b) The Company has not been sanctioned working capital limits above Rs 5 crores, 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.
(i) The company has made investments in and granted loans or advances in the nature of
loans, unsecured to companies, firms, LLPs, or any other parties.
a. In our opinion and according to the information and explanations given to us, the
company has no subsidiaries or joint ventures or associates. Hence, this sub clause is not
applicable to the company.
b. In our opinion and according to the information and explanations given to us, the
terms and conditions of grant of loans are, prima facie, not prejudicial to the interests
of the company.
c. In respect of loans granted by the Company, the schedule of repayment of principal
and the payment of the interest has been stipulated and the repayment/receipt of principal
and interest are regular.
d. There is no overdue amount in respect of loan granted to compa nies.
e. In our opinion and according to the information and explanations given to us, no
loan or advance in the nature of loan granted has fallen due during the year as all the
loans are repayable on demand.
(a) The Company has granted all the loans or advances in the nature of loans repayable
on demand. No loan has been granted to the promoters, related parties as defined in clause
(76) of section 2 of The Companies Act, 2013.
(ii) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Section 185 and 186 of the Act, with respect
to the loans and investments made.
(iii) The company has not accepted any deposits from the public in terms of Section 73
to 76 or any other relevant provisions of the Companies Act, 2013. Accordingly, paragraph
3(v) of the Order does not apply to the Company.
(iv) The Central Government has not prescribed the maintenance of cost records under
Section 148(1) of the Act, for any of the products manufactured by the company. Hence,
this clause is not applicable to the company.
(v) (a) The Companyhas generally been regular in depositing undisputed statutory dues,
including goods and services tax, provident fund, employees state insurance, income tax,
cess and other material statutory dues applicable to it, to the appropriate authorities.
As explained to us, the Company does not have any dues on account of goods and services
tax, provident fund, employees state insurance, sales tax, service tax, duty of customs,
duty of excise and value added tax.
There were no undisputed amounts payable in respect of goods and services tax,
provident fund, employees state insurance, income tax, sales tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other material statutory dues in
arrears as of 31 March 2023, for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there are no statutory
dues thathave not been deposited on account of any dispute.
(vi) According to the information and explanations given to us, there are no
transactions that are not recorded in the books of account to be surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961.
(vii) (a) The Company has not taken any loans or other borrowings from any lender.
Hence reporting under clause 3(ix)(a) of the Order is not applicable.
(b) The Company has not been declared a wilful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has not taken any term loan during the year and there are no
outstanding term loans at the beginning of the year hence, reporting under clause 3(ix)(c)
of the Order is not applicable.
(d) On an overall examination of the financial statements of the Company, funds raised
on a short-term basis have, prima facie, not been used during the year for long-term
purposes by the Company.
(e) On an overall examination of the financial statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries.
(f) The Company has not raised any loans during the year in terms of clause 3(ix)(f) of
the Order.
|
Chartered Accountants |
|
FRN:317092E |
Date: May 26, 2023 |
P.N.Khandelwal |
Place : Kolkata |
Proprietor |
|
M. No.: 053229 |
|
UDIN:23053229BGYWKX7214 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL
STATEMENTS OF MIHIKA INDUSTRIES LIMITED
Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Mihika
Industries Limited ("the Company") as of 31st March, 2023 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
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 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 evaluatio n 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 and to the best of our information and according to the explanations
given to us, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at March 31, 2023, based on the internal
control over financial reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For KhandelwalPrem& Associates |
|
Chartered Accountants |
|
FRN:317092E |
| Date: May 26, 2023 |
P.N.Khandelwal |
| Place:Kolkata |
Proprietor |
|
M. No.: 053229 |
|
UDIN:23053229BGYWKX7214 |
+91-9892691696
