To the Members of
M/S SHALIMAR AGENCIES LIMITED Report on the IND AS Financial Statements Opinion
We have audited the accompanying IND AS Financial Statements of SHALIMAR AGENCIES
LIMITED ("the company"), which comprise the Balance Sheet as at 31st
March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
the Cash Flow Statement and the Statement of changes in equity for the year then ended,
and notes to 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 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, Loss and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements 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 Group in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)
together with the independence requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made there under, and
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the
ICAIs Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion on the financial
statements.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexure to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon. 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 during the course of our audit or otherwise appears to be materially
misstated.
Managements Responsibility for the 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 financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the
Company in accordance with the IND AS and other accounting principles generally accepted
in India. 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, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to 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.
The Board of Directors are also 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 or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As 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
risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not
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 controls relevant to the audit in order
to design audit Procedures that is appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the 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 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 financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that 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 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 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 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.
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 Act, we give in the Annexure A, a statement on the matters
Specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit 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, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the IND AS specified
under Section 133 of the Act, read with relevant rules issued there under.
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". 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 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. 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 to the Investor
Education and Protection Fund by the Company.
iv.The Management has represented that, to the best of its knowledge and belief, 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 Company or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
v. The Management has represented that, to the best of its knowledge and belief, 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 or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries. vi. Based on the audit
procedures performed 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 as above in (iv) and (v) under subclause (i) and (ii) of Rule 11(e)
contain any material misstatement.
vii. The company has not declared or paid any dividend during the year.
For P C N &ASSOCIATES |
Chartered Accountants |
FRN: 016016S |
K. Gopala Krishna |
Partner |
M.No. 203605 |
UDIN: 23203605BGRTUI4248 |
Place: Hyderabad |
Date: 25-05-2023 |
ANNEXURE "A "TO THE INDEPENDENT AUDITORS REPORT
Annexure referred to in Independent Auditors Report to the Members of M/s. SHALIMAR
AGENCIES LIMITED on the INDAS Financial Statements for the year ended 31st
March 2023, we report that:
i. (a) (A) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Property Plant & Equipment (PPE).
(B) The Company does not have any intangible assets.
(b) As explained to us and in our opinion PPE have been physically verified by the
management at regular intervals; as informed to us no material discrepancies were noticed
on such verification. In our opinion, the frequency of verification is reasonable.
(c) According to the information and explanations given to us and on the basis of our
examination of records of the Company, the company does not hold any immovable properties
as at the Balance sheet date.
(d) According to the information and explanations given to us and on the basis of our
examination of records, the company has not revalued the Property Plant and Equipment or
intangible assets during the period under review.
(e) As per information provided, no proceedings have been initiated or are pending
against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988.
ii. (a) The company does not hold any physical inventories as at the year end.
(b) Company has not been sanctioned any working capital limits from banks or financial
institution on the basis of security of current assets during the financial. iii. The
company has not made investments in, nor provided any guarantee or security or granted any
loans or advances in the nature of loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or any other parties.
iv. The Company has not granted any loans or provided any guarantee or security to the
parties covered under section 185 and 186 of the Act.
v. The Company has not accepted any deposits from the public covered under Section
73 to 76 of the Companies Act, 2013 and rules framed there under to the extent
notified.
vi. According to information and explanations given to us and as per our opinion, the
central government does not prescribe maintenance of cost records under section 148(1) of
the companies Act.
vii. (a) According to the information and explanations given to us and based on the
records of the company examined by us, the company is generally regular in depositing the
undisputed statutory dues, including Provident Fund, Employees State Insurance,
Income-tax, Custom Duty, Goods and Services Tax and other material statutory dues, as
applicable, with the appropriate authorities in India ;
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income-tax, Custom Duty, Goods and Services Tax and other material
statutory dues in arrears as at 31st March 2023 for a period of more than 6
months from the date they became payable.
(c) According to the information and explanations given to us and based on the records
of the company examined by us, there are no dues of Income Tax or any other material
statutory dues, which have not been deposited on account of any disputes.
viii. Based on our audit procedures and according to the information and explanations
given to us, we are of the opinion that the company does not have any transactions which
are not recorded in the books of account have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961.
ix. (a) The Company has not defaulted in repayment of loan or other borrowings or on
the payment of interest thereon to any lender.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has not taken term loans during the year.
(d) On an overall examination of the financial statements of the Company, funds raised
on 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 on the pledge of securities
held in its subsidiaries.
x. (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under
review.
xi. (a) According to the information and explanations given to us, no material fraud by
the company or on the company by its officers or employees has been noticed or reported
during the course of our Audit.
(b) Since there is no fraud by the Company or no material fraud on the Company by any
person has been noticed or reported during the year, paragraph 3 (xi) (b) of the Order is
not applicable.
(c) We have taken into consideration the whistle blower complaints received by the
Company during the year (and up to the date of this report), while determining the nature,
timing and extent of our audit procedures.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable
to it.
xiii. The Company has entered into transactions with related parties in compliance with
the provisions of section 177 and 188 of the Act. The details of such related party
transactions have been disclosed in the financial statements as required under Indian
Accounting standard IND AS 24, related party disclosures specified under section 133 of
the Act, read with relevant rules issued there under.
xiv. In our opinion the company has an adequate internal audit system which
commensurate with the size and nature of its business xv. The Company has not entered into
non-cash transactions with its directors or persons connected with him.
xvi. The Company is not required to be registered under section 45-IA of The Reserve
Bank of India Act 1934.
xvii. The Company has incurred cash losses of Rs. 817.27/- in the current year and of
Rs.
1027.88/- in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year.
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, based on 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 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.
xx. The company is not covered under the provisions of sec 135 of the companies act
2013.
For P C N &ASSOCIATES |
Chartered Accountants |
FRN: 016016S |
K. Gopala krishna |
Partner |
M.No. 203605 |
UDIN: 23203605BGRTUI4248 |
Place: Hyderabad |
Date: 25-05-2023 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls over Financial Reporting 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
SHALIMAR AGENCIES 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 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section143(10) of the
CompaniesAct,2013, to the extent applicable to an audit of internal financial controls.
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 internal financial controls system over
financial reporting of the Company.
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 these policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detailed, 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 principles, and that receipts
and expenditures are being made only in accordance with authorization 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 Ind AS
Financial Statements.
Inherent Limitation of Internal Financial Controls over Financial Reporting
Because of the inherent limitation 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.
Opinion
In our opinion, 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 P C N & ASSOCIATES |
Chartered Accountants |
FRN: 016016S |
K. Gopala Krishna |
Partner |
M.No. 203605 |
UDIN: 23203605BGRTUI4248 |
Place: Hyderabad |
Date: 25-05-2023 |
+91-9892691696
