Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of Yantra Natural Resources
Limited ("the Company"), which comprise the Balance Sheet as at 31st March
2021, and the Statement of Profit and Loss (including Other Comprehensive loss), the
Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and 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
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 31st March, 2021, and its loss, total comprehensive
income, the changes in equity 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 specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibility 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 (ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made 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 obtained by us is sufficient
and appropriate to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit 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 the matters described below to be the key audit matters to be communicated
in our report.
| Sr. No. Key Audit Matter |
Auditors Response |
| 1 Assessment of provisions for taxation, litigation and claims - As at 31st March
2021, Company had provisions in respect of possible or actual taxation disputes,
litigation and claims |
Our audit procedures included and were not limited to the following: |
|
- Assessing the adequacy Companys tax provisions by reviewing correspondence with tax
authorities; |
| These provisions are estimated using a significant degree of management judgment in
interpreting the various relevant rules, regulations and practices and in considering
precedents in the various jurisdictions. |
- Discussing significant litigation and claims with Companys management; |
|
- Reviewing previous judgments made by the relevant taxation authorities; and opinions
given by company and |
|
- Assessing the reliability of Companys managements past estimates. |
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 information included in the Report on Corporate
Governance, Shareholder information and Report of the Board of Directors & Management
Discussion and Analysis, but does not include the consolidated financial statements,
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.
• 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 during the
course of our 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.
Managements Responsibility for the Financial Statements
• 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 financial statements
that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity 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.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility 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 control 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 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 the 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, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in "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 Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
d) in our opinion, the aforesaid financial statements comply with the Ind AS specified
under section 133 of the Act.
e) On the basis of the written representation received from Mr. Dhiresh Uttamchand
Munver, Mr. Harshpal Singh and Mrs. Reshma Rajesh Malagavakar who are directors of
Company, as on 31st March, 2021, and taken on record by the Board of Directors, we report
that he is disqualified from being appointed as a director in terms of sub-section (2) of
section 164 of the Companies Act, 2013.
As far as other directors are concerned, on the basis of the written representations
received from such directors, and taken on record by the Board of Directors, we report
that none of the remaining directors is disqualified as on 31st March, 2021 from being
appointed as a director in terms of sub-section (2) of section 164 of the Companies Act,
2013.
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". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls over financial reporting.
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 has disclosed the impact of pending litigations on its financial
position in its financial statements
ii. The Company has no material foreseeable losses on long-term contracts including
derivative contracts as required under the applicable law or accounting standards
iii. There were no amounts which were required to be transferred, to the Investor
Education and Protection Fund (IEPF) by the Company
|
For Tejas Nadkarni & Associates Chartered Accountants FRN No: 135197W |
|
SD/- |
| Place: Hyderabad |
Tejas H Nadkarni Proprietor |
| Date: 25/06/2021 |
Membership No. 122993 |
|
UDIN: 21122993AAAAER2269 |
Annexure - A to the Independent Auditors Report
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report of even date)
(i) . (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment.
(b) The property, plant and equipment were physically verified during the year by the
Management in accordance with a regular programme of verification which, in our opinion,
provides for physical verification of all the property, plant and equipment at reasonable
intervals. According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) With respect to immovable properties of acquired land and buildings that are
freehold, according to the information and explanations given to us and the records
examined by us and based on the examination of the registered sale deed / transfer deed
/conveyance deed/ court orders approving schemes of arrangements/amalgamations and other
documents provided to us, we report that, the title deeds of such immovable properties are
held in the name of the Company as at the balance sheet date.
(ii) . As explained to us, the inventories other than material lying with third parties
(which have substantially been confirmed) were physically verified during the year by the
Management at reasonable intervals and no material discrepancies were noticed on such
physical verification.
(iii) . The Company has not granted any loans, secured or unsecured, to companies,
firms,
Limited Liability Partnerships or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
(iv) . In our opinion and according to the information and explanations given to us,
the
Company has complied with the provisions of Sections 185 and 186 of the Companies Act,
2013 in respect of grant of loans, making investments and providing guarantees and
securities, as applicable.
(v) . According to the information and explanations given to us, the Company has not
accepted any deposit during the year and accordingly the question of complying with
Sections 73 and 76 of the Companies Act, 2013 does not arise. In respect of unclaimed
deposits, the Company has complied with the provisions of Sections 74 and 75 or any other
relevant provisions of the Companies Act, 2013. According to the information and
explanations given to us, no Order has been passed by the Company Law Board or the
National Company Law Tribunal or the Reserve Bank of India or any Court or any other
Tribunal on the Company.
(vi) . The maintenance of cost records has been prescribed by the Central Government
under
Section 148(1) of the Companies Act, 2013 in respect of specified products of the
Company. For such products, we have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, and
are of the opinion that, prima facie, the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
(vii) . According to the information and explanations given to us, in respect of
statutory dues:
a. The Company has been regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income-tax, Goods and Services Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities.
b. There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material
statutory dues in arrears as at March 31, 2021 for a period of more than six months from
the date they became payable.
c. Details of 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, 2021 on account of
disputes are given below:
| Name of the Statute |
Nature of the dues |
Unpaid (Amount in Rs.) |
Period to which the amount relates |
Forum where pending |
| Income Tax Act, 1961 |
Income Tax |
Rs. 138590 |
A.Y. 2010-11 |
Assessing Officer |
| Income Tax Act, 1961 |
Income Tax |
Rs. 12373 |
A.Y. 2006-07 |
CPC |
| Income Tax Act, 1961 |
Income Tax |
Rs. 219 |
A.Y. 2009-10 |
Assessing Officer |
| Income Tax Act, 1961 |
Income Tax |
Rs. 2820 |
A.Y. 2010-11 |
Assessing Officer |
| Income Tax Act, 1961 |
Income Tax |
Rs. 2820 |
A.Y. 2010-11 |
Assessing Officer |
| Income Tax Act, 1961 |
Income Tax |
Rs. 138590 |
A.Y. 2010-11 |
Assessing Officer |
| Income Tax Act, 1961 |
Income Tax |
Rs. 10 |
A.Y. 2014-15 |
Assessing Officer |
| Income Tax Act, 1961 |
Income Tax |
Rs. 1150670 |
A.Y. 2017-18 |
Assessing Officer |
(viii) . In our opinion and according to the information and explanations given to us,
the
Company has not defaulted in the repayment of loans or borrowings to financial
institutions, banks and government and dues to debenture holders.
(ix) . The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) or term loans and hence reporting under clause
(ix) of the Order is not applicable.
(x) . To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the Company by its officers
or employees has been noticed or reported during the year.
(xi) . In our opinion and according to the information and explanations given to us,
the Company has paid / provided managerial remuneration in accordance with the requisite
approvals mandated by the provisions of Section 197 read with Schedule V to the Companies
Act, 2013.
(xii) . The Company is not a Nidhi Company and hence reporting under clause (xii) of
the Order is not applicable.
(xiii) . In our opinion and according to the information and explanations given to us
the Company is in compliance with Sections 177 and 188 of the Companies Act, 2013, where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the
applicable Indian accounting standards.
(xiv) . During the year the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures and hence reporting under
clause (xiv) of the Order is not applicable to the Company.
(xv) . In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
directors or directors of its holding, subsidiary or associate company or persons
connected with them and hence provisions of Section 192 of the Companies Act, 2013 are not
applicable.
(xvi). The Company is not required to be registered under Section 45-IA of the Reserve
Bank of India Act, 1934.
|
For Tejas Nadkarni & Associates Chartered Accountants FRN No: 135197W |
|
SD/- |
| Place: Hyderabad |
Tejas H Nadkarni Proprietor |
| Date: 25/06/2021 |
Membership No. 122993 |
|
UDIN: 21122993AAAAER2269 |
Annexure - B to the Independent Auditors Report
(Referred to in paragraph 1 (f) under Report on Other Legal and Regulatory
Requirements section of our report to the Members of Yantra Natural Resources Limited of
even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Yantra
Natural Resources Limited ("the Company") as of 31st March, 2021 in
conjunction with our audit of the Ind AS 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. 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 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 Section 143(10) of the Companies
Act, 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 judgement, 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 authorizations 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.
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 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 31st March, 2021, based on the criteria for
internal control over financial reporting 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 Tejas Nadkarni & Associates Chartered Accountants FRN No: 135197W |
|
SD/- |
| Place: Hyderabad |
Tejas H Nadkarni Proprietor |
| Date: 25/06/2021 |
Membership No. 122993 |
|
UDIN: 21122993AAAAER2269 |
+91-9892691696
