To,
The Members of
Techindia Nirman Limited
Aurangabad.
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Techindia Nirman
Limited having CIN: L45200MH1980PLC023364 ("the Company"), which comprise the
Standalone Balance Sheet as at 31st March 2023, the Standalone Statement of Profit and
Loss (including other comprehensive income), Standalone Statement of Cash Flows and
Standalone Statement of Changes in Equity for the year then ended, and notes to the
Standalone financial statements, including a summary of significant accounting policies
and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 (‘the Act) in the manner so required and give a true and
fair view in conformity with Indian Accounting Standards prescribed under section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended
("Ind AS") and the other accounting principles generally accepted in India, of
the state of affairs of the Company as at 31st March 2023 and its loss (financial
performance including other comprehensive income), the changes in equity and its cash
flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with 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 Standalone 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 (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 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 qualified opinion.
Key Audit Matters
4. 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 standalone financial
statements, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described below to be the key audit
matters to be communicated in our report.
Key Audit Matters |
Audit Procedures |
| The Company has undertaken real estate development projects for which
advances have been granted to contractors. Pending resolution of legal issues regarding
ownership of land, development activities are yet to commence. Further, the company had
partially borrowed funds from the bank for granting such advances for which it has
incurred interest during last 3 years which was shown hitherto under the head capital work
in progress is henceforth converted into inventory (work in process) during the year
considering the decision of the Company to re- sale the project in due course of time.
Considering the present situation of inflation, it is concluded that the real estate price
escalation will take place in the form of increased prices over a period of time
offsetting the cost of interest which are proposed to be capitalized to the projects in
due course of time. |
The audit procedures included but were not limited to: |
|
-Obtaining a detailed understanding of future business climate and demand
potential. |
|
-Minutes of the Audit Committee/ Board and discussions with the
appropriate Management personnel. |
|
-Possible outcomes and the reasonableness of the estimates. |
|
-Evaluating appropriateness of adequate disclosures in accordance with
the applicable accounting standards |
Information other than the Standalone Financial Statements and Auditors Report thereon
5. The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the annual report but does not include
the financial statements and our auditors report thereon.
6. Our opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
7. In connection with our audit of the 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 material misstatement of this other information; we
are required to report that fact. We have nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
8. The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance (including
other comprehensive income), changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including the Ind AS specified
under section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
9. 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. 10. The Board of Directors is also responsible for overseeing
the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
11. 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
Standards on Auditing 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.
12. As part of an audit in accordance with Standard on Auditing, 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 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.
b. 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)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company and its subsidiary companies which are companies incorporated in India, has
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 ability of
the Company 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.
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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone 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 standalone financial statements.
13. 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.
14. 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.
15. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the standalone financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
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
16. As required by the Companies (Auditors Report) Order, 2020 ("the
Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the
Companies Act, 2013, we give in the "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable. 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, the Statement of Profit and Loss, 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 standalone financial statements comply with the Ind
AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 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) 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, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its standalone financial statements - Refer Note 25 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 to the Investor
Education and Protection Fund by the Company.
iv. (a) the Management has represented that, to the best of its knowledge and belief,
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 to or in any other person or entity, including foreign
entity ("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 Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the company from any person or entity, 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 like on
behalf of the Ultimate Beneficiaries; and.
(c) Based on 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 mis-statement.
v. No interim dividend is declared by the Company during the year.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
|
For Gautam N Associates |
|
Chartered Accountants |
|
FRN: 103117W |
|
Gautam Nandawat |
|
Partner |
|
M No: 032742 |
|
UDIN: 23032742BGSSKZ1048 |
| Place: Chhatrapati Sambhajinagar |
|
| Dated: 08th May 2023 |
|
ANNEXURE "A"
TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in Independent Auditors Report to the members of the
Techindia Nirman Limited on the Ind AS standalone financial statements for the year ended
31st March 2023, we report that:
1. (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment. The Company has
maintained proper records showing full particulars of intangible assets.
(b) The company has a regular program of physical verification of its Property, Plant
and Equipment by which Property, Plant and Equipment are verified in a phased manner over
a period of three years. In accordance with this program, certain Property, Plant and
Equipment were verified during the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification is reasonable
having regard to the size of the company and nature of its business.
(c) According to the information and explanations given to us, and on the basis of our
examination of the record of the company, the title deeds of the immovable properties are
held in the name of the company
(d) According to the information and explanations given to us, and on the basis of our
examination of the record of the company, the company has not revalued any Property, Plant
& Equipment (including Right of Use assets) or intangible assets during the year.
(e) According to the information and explanations given to us, and on the basis of our
examination of the record of the company, no proceedings have been initiated or are
pending against the company for holding any Benami property under the "Benami
Transactions (Prohibition) Act, 1988 and Rules made thereunder.
2. (a) The inventory consists of various expenses incurred on account of development
activities undertaken by the Company, thus, there is no physical inventory existing as on
the date of balance sheet.
(b) The company has not availed any working capital limit on the basis of security of
current assets, hence, clause (ii) (b) of order is not applicable to Company.
3. (a) As per the information and explanations given to us, the Company has granted
loans including advances in the nature of loan to four companies/ entity. The aggregate
amount of loan granted during the year was Rs.410 Lakhs and the balance outstanding at the
year-end is Rs. 604.37 Lakhs. The company has provided securities by mortgage of land to
secure the borrowings of a related company to the tune of Rs. 5720 Lakhs in favor of a
bank. Further, the company has not made any investments or provided guarantee during the
year.
(b)The terms and conditions for such above mentioned loan and corporate guarantee are
not prejudicial to the interest of the Company except non-levy of interest on loans &
non charging of commission on corporate guarantee.
(c) In respect of loans and advances in the nature of loans the schedule of repayment
of principal and payment of interest has not been stipulated; hence we are unable to
comment whether the repayments or receipts are regular, overdue, renewed or extended or
fresh loan granted to settle the overdue of existing loans given to the same parties;
(d) The company has granted following loans & advances in the nature of loans
repayable on demand without any written agreement and without specifying any other terms.
Type of Borrower |
Amount of loan given (Rs. In Lakhs) |
Percentage to the total loans and Advances in the nature of loans |
| Related Parties |
|
|
| 1. Nath Biotechnologies Ltd. |
193.16 |
31.96 |
| 2. Ferry Fax Farms Pvt Ltd |
1.21 |
0.20 |
4. The company has not provided any security to any party covered under section 185 and
186 of the Act, except that of loan, corporate guarantee and investment as mentioned in
para 3 above after complying the provisions of section 186 except non-levy of interest and
non-charging of commission on corporate guarantee.
5. The Company has not accepted deposits within the meaning of sections 73 to 76, or
any other relevant provisions of the Act and the rules framed there under.
6. No maintenance cost records have been specified by the Central Government under
section 148(1) of the Act for the products of the company.
7. (a) The company is regular in depositing undisputed statutory dues including
provident fund, employees state insurance, income-tax, sales-tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues
with the appropriate authorities.
b) There are no dues of Income tax, Sales tax, Service tax, Customs Duty, Excise Duty
and Value Added Tax which have not been deposited as on 31st March 2023 on account of
disputes.
8. According to the information and explanations given to us, there are no transactions
recorded in the books of account as have been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act, 1961, hence, clause (viii) of
the order is not applicable.
9. In our opinion and according to the information and explanations given to us: -
(a) the Company has not defaulted in payment of dues to financial institution or bank
or debenture holders. (b) The company is not declared willful defaulter by any bank or
financial institution or other lender. (c) term loans were applied for the purpose for
which the loans were obtained. (d) No funds raised on short term basis have been utilised
for long-term purposes. (e) The Company has not taken any funds from any entity or person
on account of or to meet the obligations of its subsidiaries, associates or joint
ventures; hence clause (ix) (e) of the Order is not applicable. (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 clause (ix) (f) of the Order is not applicable.
10. The company has not raised any money by way of initial public offer, further public
offer (including debt instruments), preferential allotment or private placement of shares
during the year.
11. (a) According to the information and explanations given to us, no fraud by the
company or any fraud on the Company has been noticed or reported during the year.
(b)No report under sub-Section (12) of Section 143 of the Act has been filed by the
auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules
2014 with the Central Government. (c) We have not considered whistle-blower complaints,
since there is no compliant received during the year by the Company.
12. The company is not a Nidhi Company as such provisions of the clause (xii) of the
Order are not applicable to the company.
13. All transactions with the related parties are in compliance with section 177 and
188 of the Act, where applicable, and the details have been disclosed in the Ind AS
standalone financial statements etc., as required by the applicable accounting standards.
14. (a) In our opinion, the internal audit system is commensurate with the size of the
company and nature of its business.
(b) In framing our Independent Audit Reports, we have considered Internal Auditors
Report for the period under audit.
15. The company has not entered into any non-cash transactions with directors or
persons connected with him.
16. (a) Accordingly to information and explanation given to us, and in our opinion, the
company is not required to be registered under section 45-IA of the Reserve Bank of India
Act, 1934. Accordingly Para 3(xvi)(a),(b),(c) of the Order is not applicable. (b) The
Company is not a Core Investment Company (CIC) as defined under the Regulations by the
Reserve Bank of India, hence para 3(xvi) (d) of the Order is not applicable.
17. The Company has incurred cash losses in the Financial Year to the tune of Rs. 32.47
lackhs (before other Comprehensive Income) and in the immediately preceding financial year
Rs. 49.95 Lakhs (before other Comprehensive Income).
18. There has been no resignation of the statutory auditors during the year.
19. 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, we are of the opinion that no material uncertainty exists as on the
date of the audit report which infers that the 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.
20. The provisions related to Corporate Social Responsibility is not applicable in the
preceding financial year, hence clause (xx) of the Order is not applicable.
21. The company does not have any subsidiary, associate, Joint venture hence, the
consolidation of financial statement is not applicable.
|
For Gautam N Associates |
|
Chartered Accountants |
|
FRN: 103117W |
|
Gautam Nandawat |
|
Partner |
|
M No: 032742 |
| Place: Chhatrapati Sambhajinagar |
|
|
UDIN: 23032742BGSSKZ1048 |
| Dated: 08th May 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")
1. We have audited the internal financial controls over financial reporting of
Techindia Nirman Limited ("the Company") as of 31st March 2023 in conjunction
with our audit of the Ind AS standalone financial statements of the Company for the year
ended on that date.
Managements Responsibility for Internal Financial Controls
2. 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 the 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
3. 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") issued by the ICAI and the Standards on Auditing
prescribed under Section 143(10) of the Act, 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.
4. 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 judgement, including the assessment of the risks of
material misstatement of the Ind AS financial statements, whether due to fraud or error.
5. 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 of the company.
Meaning of Internal Financial Controls Over Financial Reporting
6. 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 standalone 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
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 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 Ind
AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. 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 31st March, 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 ICAI.
|
For Gautam N Associates |
|
Chartered Accountants |
|
FRN: 103117W |
|
Gautam Nandawat |
|
Partner |
|
M No: 032742 |
|
UDIN: 23032742BGSSKZ1048 |
| Place: Chhatrapati Sambhajinagar |
|
| Dated: 08th May 2023 |
|
+91-9892691696
