To the Members of NUTECH GLOBAL LIMITED
Bhilwara
Report on the Audit of the Financial Statements Opinion
We have audited the accompanyingfinancial statements of NUTECH GLOBAL LIMITED
("the Company"), which comprise the Balance Sheet as at March 31,2023, the
Statement of Profit and Loss(including othercomprehensive income), Statement of Cash Flow
and theStatement of Changes in Equity for the year then ended and a summary of significant
accounting polidesand other explanatory information, (hereinafter referredto as
"Financial statements").
Inouropinion and to the best of our information and according to the explanations given
to us, the aforesaid financial statements give the information required by the Companies
Act 2013 (‘the Act") in the manner so required and give a true and fair view in
conformity with the Indian 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 31,2023, the profit and total comprehensive income,
changes in equity and its cashflows forthe year ended on that date.
BasisforOpinion
We conducted our audit in accordance with the Standards on 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 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
independence requirements that are relevant to our audit of the financial statements under
the
provisions of the Companies Act, 2013 and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the
ICAIs Code of Ethics. We believe thatthe audit evidence we have obtained issufficientand
appropriateto provide a basis forour opinion on the financial statements.
KeyAuditMatters
Key audit matters are those matters that, in our professional judgment, were of most
significance in ouraudit 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. We
have determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditors Re port Thereon
The Companys management and Board of Directors are responsible for the preparation of
other information The other informationcomprises the information included in the Companys
annual report, but does not include the financialstatements and our auditors report
thereon.
Our opinion on the financial statements does not cover the other information and we do
not express anyform of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other informationand, in doing so, consider whether the other information is
materially inconsistent with the financialstatements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based onthe work we have
performed, we conclude that there is a material misstatement of this other information, we
arerequired to report that fact to those charged with governance. Wehave nothing to
reportin this regard.
Responsibility of Management and Those charged with governance for the Financial
Statements
The Companys management and Board of directors are responsible for the matters in
section 134(5) of the CompaniesAct, 2013 ("the Act") with respect to the
preparation of these financial statements that give a true and fair view of the financial
positbn, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with accounting principles generally
accepted in India including the Indian Accounting Sta nda rds (Ind AS) referred to in
section 133 of the Act.
This 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 judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial
controls, tha: were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the Ind AS
financial statements that give a true and fair view and are free from material
misstatement, whether dueto fraud orerror.
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 butto do so.
The Companys Management and Board of Directors is a so responsible for overseeing the
Companys financial reporting process.
Auditors Responsibilities for the Audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud orerror,
and to issue an auditors report that includes our op in ion. 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 eiror 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 part of an audit in accordance with SAS, we exercise professionaljudgmentand
maintain professional skepticismthroughout the audit We also:
?Identify and assess the risks of material misstatement ofthe financial statements,
whether due to fraud orerror, 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, ortheoverride of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(l) 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.
• 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 matenal 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 financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the da teof our auditors
report. However, futu reevents orconditions may cause the Company to cease to continue as
a going concern.
•Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whetherthe financial statements represent the
underlying transactions and events in a mannerthat achieves fair presentation.
Materiality is the magnitude of misstatements in the 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 misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing ofthe 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 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 thefinancial statements ofthe
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 communicaton.
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 subsection (11) of section 143 of
the Act, we give in the AnnexureA, a statement on the matters specified in the paragraph 3
and 4 of the Order, to the extent applicable.
(2) As required by section 143(3) oftheAct, 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 ouraudit.
(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 the statement of profit and loss (including other comprehensive
income), the cash flow statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the books of account
(d) in our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Actexcept in lndAS-19
"Employee Benefits" where in the Company has not provided liability for Gratuity
on actuarial valuation basis;
(e) on the basis of the written representations received from the directors as on 31
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2023 from being appointed as a director in terms of Section
164 (2) of the Act; and
(f) with respect to the adequacy of the internal financial controls overfinancial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in "Amexure B.Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Companys internal financial controls
overfinancial reporting.
(g) 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 ouropinion
and to the best of ourinformation and according to the explanations given to us:
(i) the company has disclosed the impact, if any, of pending litigations on its INDAS
financial position in its Ind AS financial statements
(ii) as per the information provided to us by the management, the company has not
entered in to long term contract including derivative contracts for which provisioning is
required;
(iii) (a) The management has represented that to the best of its knowledge and belief,
other than those disclosed in the notes to the .... accounts, no funds have been advanced
or loaned or invested (Either from borrowed funds, share capital or any other source or
kind of funds) by the company to or in any other person(s) or ertity(s), including foreign
entities (‘‘Intermediaries"), with the understanding that the intermediary
shall whether directly or indirectly lend o invest in other persons or entities
identified in any manner by or on behalf of the company (Ultimate Beneficiaries) or
provide any guarantee, security or the like on behalf of ultimate beneficiaries.
(b) The management has represented thatto the best of its knowledge and belief, other
than those disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entities including foreign entities ("Funding
Parties") with the understanding that such company shall whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner
whatsoeverbyoron behalf of the funding party (ultimate beneficiaries) or provide
guarantee, security orthe like on behalf ofthe Ultimate beneficiaries.
(c) Based on the audit procedures that we have considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
above representations given by the management under paragraph (2) (g) (iii) (a) and (b)
above contain any material misstatement.
(iv) There isno requirement oftransfer of amount in Investor Education & Protection
fund. (IEPF).
(3) With respect to the matter to be included in the Auditos Report under section
197( 16):
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 oftheAct. The remuneration paid to any director is not
in excess ofthe limit laid down under Section 197 oftheAct.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements of our report of even date)
In terms of the information and explanations sought by us and given by the Company and
the books of account and records examined by us in the normal course of audit and to the
best of our knowledge and belief, we state that:
(i) (a) (A) The Company has maintained proper records showing full particulars
including quantitative details and situation of Property, Plant and Equipment.
(B)The Company has maintained proper records showing full particulars of intangible
assets.
(b) Property, Plant and Equipment have been physically verified by the management in a
phased periodical manner, which in our opinion is reasonable having regard to the size of
the Company and nature of its assets. No material discrepancies were noticed on such
physical verification and appropriately dealt with in the books of accounts
(c) The title deeds of all the immovable properties (Other than properties where the
Company is the lessee and the lease agreements are duly executed in favour of the lessee)
disclosed in the financial statements are hekd in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment (including Right of
Use assets) and intangible assets during the year.
(e) There are no proceedings have been initiated and are pending against the Company
for holding any benami property under the
BenamiTransactions(Prohibition)Act 1988 (45 of 1988] and rules made thereunder.
(ii) (a) Inventories have been physically verified during the year by the Management at
reasonable intervals. In our opinion thecoverage and the procedure of such verification by
the management is appropriate Discrepancies of 10% or more in aggregate for each class of
inventory were not noticed on such physical verification.
(b) During the year, The Company has been sanctioned working capital limits in excess
of five crore rupees, in aggregate, from banks or financial institutions on the basis of
security of current assets. The management has informed that the Quarterly statements
submitted to the bank are provisional in nature. According to the information &
explanations given to us and on the basis of our examination of the books of account, the
Quarterly returns or Statementfurnished to the bank arebroadly in reconciliation with
books of accounts subject to few differences on account of valuation methodology,
Wastages, dead stock, reconciliation differences on account of multiple stages of
production, stock kept at third party premises, as per explanation of management in the
schedule "borrowings" under financial liabilities which is part of current
liabilities inthefinancialstatementhas.
(iii) According to the information & explanations given to us and on the basis of
our examination of the books of account the Company has not made any investment, not
provided any guarantee and has not granted any loans, secured or unsecured, to companies,
firms, LLP or any other parties during the year. Hence, point B,C,D,E and F of this clause
are not applicable.
(iv) According to the information & explanations given to us and on the basis of
ourexamination of the books of account, the Company has not granted any loan todirectors
and complied with the provisions ofsection 185 and 186 of the companies act.
(v) The closing balance of Unsecured deposits accepted oy the company from
Shareholders/relatives is Rs.146.62Lacs and provisionsof section 73 to section 76 have
been complied with respectto such deposits.
(vi) The Central Government has prescribed maintenance of the cost records under 148(1)
of the Companies Act, 2013 in respectto the companys products. However the prescribed
limits for maintenance of records have not been exceeded, accordingly paragraph 3(vi) of
the Order is not applicable.
(vii) A) According to the records of the Company, undisputed statutory dues including
GST, Provident Fund, Employees State Insurance, Income Tax, Sales tax, Service tax, Custom
Duty, Cess and other statutory dues have been regularly deposited with the appropriate
authorities. Accordingly to the information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as on last day ofthe
financial year for a period of more than six months from the date they have become
payable.
(B) According to the information & explanations given tc us and the records
examined by us, there is no amount which have not been deposited on account of any
disputed amount payable in ?espectof income tax, service tax, customs duty, GST and cess.
(viii) According to the information and explanations given to us, the Company has not
surrendered or disclosed any transaction, previously unrecorded in the books of account,
in the tax assessments under the Income Tax Act 1961 as income during the year.
Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to
the Company.
H
a. The Company has not defaulted in repayment of bans and other borrowings and interest
due thereon to any lender.
b. The Company is a notdeclared wilful defaulter by any tank orfinancial institution or
government orany government authority.
c. Term loans raised during the year have been applied fothe purpose for which those
loans were raised.
d. On an overall examinatbn of the financial statements of the Company, no funds raised
on short-term basis have been used for longterm 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 ortomeetthe obligations of
its subsidiaries associates or joint ventures.
f. The Company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies. Hence, the requirement to report
on clause 3(ix)(f) of the Order is not applicable to the Company.
(x) (A) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not raised money by way of
initial public offer or further public offer (including debt instruments) during the year
under reviewand hence, reporting requirements under clause (a) (x) of paragraph 3 ofthe
Order are not applicable to the Company.
(B) The company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year.
(xi) a. Based upon the audit procedures performed for tie purpose of reporting the true
and fair view of the financial statements and according to the informatbn and explanations
given by the management, no fraud by the Company or no material fraud on the Company has
been noticed or reported during the year.
b. During the year, no report under sub-section (12) of sectbn 143of the Companies Act
2013 has been filed by us in Form ADT-4 as prescribed under Rule 13 of Companies (Audit
and Auditors) Rules, 2014 with the Central Government.
c. In our opinion, to the best of our knowledge and according to the information and
explanations given to us, the Company has not received any whistle
blowercomplaintsduringtheyear.
(xii) The Company is not a nidhi Company as per the provisions ofthe Companies Act,
2013. Therefore, the requirement to report on clause 3(xii) (a), (b) and (c) of the Order
is not applicable to the Company.
(xiii) Transactions with the related parties are in compliance with sections 177 and
188 of Companies Act, 2013 where applicable and the details have been disclosed in the
notes to the financial statements, as required by the applicable accounting standards.
(xiv) The company has appropriate Internal Audit system in accordance with its size and
business activities.
(xv) The Company has not entered into any non-cash transactions with its directors or
persons connected with its directors and hence requirement to report on clause 3(xv)of the
Order is not applicable to the Company.
(xvi) a. The provisions of section 45-IAof the Reserve Bank of India Act, 1934 (2 of
1934) are not applicable to the Company. Accordingly, the requirementto report on clause
3(xvi)(a) ofthe Order is notapplicableto the Company.
b. The Company has not conducted any Non-Banking Financial or Housing Finance
activities without obtaining a valid Certificate of Registration (CoR)from the Reserve
Bank of India as per the Reserve Bank of India Act 1934.
c. The Company is not a Core Investment Company as defined in the regulations made by
Reserve Bank of India. Accordingly, the requirementto report on clause 3(xvi) (c)of the
Order is not applicable to the Company.
d. As represented by the management, the Group does not haveany Core Investment Company
(CIC) as part of the Group as per the definition of Group contained in the Core Investment
Companies (Reserve Bank) Directions, 2016.
(xvii) The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There has been no resignation of the statutory aud tors during the year and
accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the
Company.
(xix) On the basis of the financial ratios to the financial statements, 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 and based on our examination oftheevidence supporting the
assumptions, nothing has come to our attention, which causes us to believe that any
material uncertainty exists as on the date of the audit report that Company is not capable
of meeting its liabilities existing at the date of balance sheet as and when they fall due
within a period of one year from the balance sheet date. We, however, state that this is
notan assurance as to the future viability of the Company. We further state that our
reporting is based on the facts up to the dateof the audit report and we neithergive any
guarantee nor any assurance that all liabilities falling due within a period of one
yearfrom the balance sheet date, will get discharged by the Company as and when they fall
due.
(xx) CSRprovisionsas per section 135 are notapplicableto companies, so provisions of
paragraph 3(xx) are not applicable to company.
(xxi) The company is not required to prepare consolidated financial statements. Hence,
clause 3(xxi) is not applicable.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS
OF NUTECH GLOBAL 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 NUTECH
GLOBAL LIMITED ("the Company") as of March 31, 2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibilityforlnternal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
AuditorsResponsibility
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 dueto 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 Ind AS 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 Ind AS
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 havea materialeffectonthe IndASfinancial
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 dueto error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls overfinancial 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
Inouropinion.the Company has, in all material respects,an adequate internal financial
controls system overfinancial 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: RHDA&ASSOCIATES |
| CHARTERED ACCOUNTANTS |
| Sd 1- |
| [ROHITHEDA] |
| PARTNER |
| UDIN 23418485BGTJOT1588 |
| M.NO.: 418485 |
| FRN: -014438C |
| PLACE: BHILWARA |
| DATE: 27.05.2023 |
+91-9892691696
