To,
The Members of,
YUG DECOR LIMITED
Ahmedabad
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the accompanying Standalone financial statements of M/s. YUG DECOR
LIMITED, ("the Company") which comprise the Balance Sheet as at March 31,
2023, the Statement of Profit and Loss and the Cash Flow Statement for the year then
ended, and Notes to the financial statement including summary of significant accounting
policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the 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 Companies (Indian Accounting Standards) Rules,2015 and other accounting
principles generally accepted in India, of the state of affairs of the Company as at 31st
March 2023, its profit and its cash flows for the year ended on that date.
Basis of Opinion
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 (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 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 we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone 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 standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone 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 matter to be communicated in our Report.
| Key Audit Matter |
How the matter was addressed in our audit |
|
-- NIL -- |
Information Other than the Standalone Financial Statements and Auditors report thereon
The Companys Board of Directors is responsible for the preparation of other
information. The Other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to the Board report, Business
responsibility Report, Corporate Governance report and Shareholders information, but does
not include the standalone financial statement and our auditors report thereon. Our
opinion on the standalone financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone 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 required to report that fact. We have nothing
to report in this regard.
Responsibilities of Management and those charged with Governance for the Standalone
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 standalone financial statements
that give a true and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles generally accepted in
India, including the accounting Standards specified under section 133 of the Act. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for 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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, the 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 Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit.
We also:
• 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.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial control 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 entitys
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 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 entity to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone
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 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.
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 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:
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 said Order.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose 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 Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone financial statements comply with the Indian
Accounting Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Account) Rules, 2014.
e) On the basis of 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" and
g) With respect to the 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:
a) The company does not have any pending litigations which would impact its financial
position.
b) The company does not have any long term contracts including derivative contracts for
which there were any material foreseeable losses;
c) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the company.
d) 1) 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 person/
entity, including foreign entities (‘Intermediaries), with the understanding,
whether recorded in writing or otherwise, that the Intermediary has, 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;
2) The Management has represented that, to the best of its knowledge and belief, no
funds have been received by the Company from any person/ entity, including foreign
entities, that the company has 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;
3) Based on our audit procedures which we have considered reasonable and appropriate in
the circumstances and according to the information and explanations provided to us by the
Management in this regard, nothing has come to our notice that has caused us to believe
that the representations made by the Management under sub-clause (i) and (ii) contain any
material misstatement.
e) The Company has not declared and paid dividend during the year and therefore
compliance with section 123 of the Act is not applicable.
3. As required by The Companies (Amendment) Act, 2017, in our opinion, according to
information, explanations given to us, the remuneration paid by the Company to its
directors is within the limits prescribed under Section 197 of the Act and the rules
thereunder.
"Annexure A" to the Independent Auditors Report"
Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement of our report of even date to the Standalone financial statements
of the Company for the year ended March 31, 2023; we report that
1) (a) The Company has maintained proper records showing full particulars, includingq u
a n t i t a t i v e details and situation of fixed assets;
(b) As explained to us, the Fixed Assets have been physically verified by the
management in a phased manner, designed to cover all the items over a period of three
years, which in our opinion, is reasonable having regard to the size of the company and
nature of its business. Pursuant to the program, a portion of the fixed asset has been
physically verified by the management during the year and no material discrepancies
between the books records and the physical fixed assets have been noticed.
(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 immovable properties are held
in the name of the company.
(d) According to the information and explanations given to us, the Company has not
revalued its property, plant and Equipment (including Right of Use assets) and its
intangible assets. Accordingly, the requirements under paragraph 3(i)(d) of the Order are
not applicable to the Company.
(e) According to the information and explanations given to us, no proceeding has been
initiated or pending against the Company for holding Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder. Accordingly, the
provisions stated in paragraph 3(i)(e) of the Order are not applicable to the Company.
2) (a) The physical verification of inventory has been conducted at reasonable
intervals by the management and no material discrepancies were noticed on such physical
verification.
(b) According to the information and explanations provided to us and based on the
verification, the Company has been sanctioned working capital limits on the entire current
assets of the company which is less than Rs. 5 Crore and therefore, the requirements under
paragraph 3(ii)(b) of the Order is not applicable to the Company.
3) According to the information and explanations given to us, the Company has not made
any investment and the company has not provided any guarantee or security or 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 Act. Accordingly, the
provisions of clause 3 (iii) (a) to (f) of the Order are not applicable to the Company.
4) In our opinion and according to the information and explanations given to us, the
company has complied with the provisions of section 185 and 186 of the Companies Act, 2013
in respect of loans and investments.
5) The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
products manufactured by the company.
7) (a) According to the records of the company and the information and explanations
given to us and on the basis of our examination of the books of account, and records, the
Company has been generally regular in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income-Tax, Custom Duty, Goods and Service Tax
Act, Cess and other statutory dues, as applicable to it to the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable
in respect of the above were in arrears as at March 31, 2023 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us and as per records of the
Company, disputed amount payable in respect of Income tax, VAT & Custom and Excise
Duty that have not been deposited with the appropriate authorities on account of dispute
and the forum where the disputes are pending are given below:
| Name of Statue |
Nature of Dues |
(*) Disputed Amount J |
Period to which the amount Relates |
Forum where dispute is pending |
| Gujarat Value Added Tax, 2006 |
Value Added Tax |
6,25,284/- |
F.Y. 2012-13 |
Gujarat VAT Tribunal, Ahmedabad |
(*) Rs. 6,61,962/- already paid
8) According to the information and explanations given to us, there are no transactions
which are not accounted in the books of account which have been surrendered or disclosed
as income during the year in Tax Assessment of the Company. Also, there are no previously
unrecorded income which has been now recorded in the books of account. Hence, the
provision stated in paragraph 3(viii) of the Order is not applicable to the Company.
9) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not defaulted in the
repayment of loans or borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been declared a wilful
defaulter by any bank or financial institution or government or government authority.
(c) In our opinion and according to the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans were obtained.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds raised on
short-term basis have been used for long-term purposes by the Company.
(e) According to the information and explanations given to us and on an overall
examination of the standalone financial statements of the Company, we report that the
Company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, as defined in the Act. The Company does not hold any
investment in any associate or joint venture (as defined in the Act) during the year ended
31 March 2023.
(f) According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries (as defined under the Act).
10) (a) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) during the year. Accordingly, the provisions
stated in paragraph 3 (x)(a) of the Order are not applicable to the Company.
(b) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully, partly or optionally convertible
debentures during the year. Accordingly, the provisions stated in paragraph 3 (x)(b) of
the Order are not applicable to the Company.
11) (a) During the course of our audit, examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing practices in
India, and according to the information and explanations given to us, we have neither come
across any instance of material fraud by the Company or on the Company.
(b) We have not come across of any instance of material fraud by the Company or on the
Company during the course of audit of the financial statement for the year ended March 31,
2023, accordingly the provisions stated in paragraph (xi)(b) of the Order is not
applicable to the Company.
(c) We have taken into consideration the whistle blower complaints received by the
Company during the year while determining the nature, timing and extent of audit
procedures.
12) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, the provisions stated in paragraph 3(xii) (a)
to (c) of the Order are not applicable to the Company.
13) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act, where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
14) (a) In our opinion and based on our examination, the Company has an internal audit
system commensurate with the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report,
for the period under audit have been considered by us.
15) According to the information and explanations given to us, in our opinion during
the year the Company has not entered into non-cash transactions with directors or persons
connected with its directors and hence, provisions of section 192 of the Act are not
applicable to Company. Accordingly, the provisions stated in paragraph 3(xv) of the Order
are not applicable to the Company.
16) (a) In our opinion, the Company is not required to be registered under section 45
IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions stated in
paragraph clause 3 (xvi)(a) of the Order are not applicable to the Company.
(b) In our opinion, the Company has not conducted any Non-Banking Financial or Housing
Finance activities without any valid Certificate of Registration from Reserve Bank of
India. Hence, the reporting under paragraph clause 3 (xvi)(b) of the Order are not
applicable to the Company (c) The Company is not a Core Investment Company (CIC) as
defined in the regulations made by Reserve Bank of India. Hence, the reporting under
paragraph clause 3 (xvi)(c) of the Order are not applicable to the Company.
(d) The Company does not have any CIC as a part of its group. Hence, the provisions
stated in paragraph clause 3 (xvi)(d) of the Order are not applicable to the Company.
17) Based on the overall review of financial statements, the Company has not incurred
cash losses in the current financial year and in the immediately preceding financial year.
Hence, the provisions stated in paragraph clause 3 (xvii) of the Order are not applicable
to the Company.
18) There has been no resignation of the statutory auditors during the year. Hence, the
provisions stated in paragraph clause 3 (xviii) of the Order are not applicable to the
Company.
19) According to the information and explanations given to us and on the basis of the
financial ratios (Also refer Note - 37 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 of the evidence 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
not an assurance as to the future viability of the Company. We further state that our
reporting is based on the facts up to the date of the audit report and we neither give any
guarantee nor any assurance that all liabilities falling due within a period of one year
from the balance sheet date, will get discharged by the Company as and when they fall due.
20) According to the information and explanations given to us, the provisions of
section 135 of the Act are not applicable to the Company. Accordingly, the provisions of
paragraph (xx)(a) to (b) of the Order are not applicable to the Company.
21) The reporting under clause 3(xxi) of the Order is not applicable in respect of
audit of financial statements.
Accordingly, no comment in respect of the said clause has been included in the report.
"Annexure B" to the Independent Auditors Report
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 M/S. YUG
DECOR LIMITED ("the Company") as of March 31, 2023 in conjunction with our
audit of the Standalone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors 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 authorisations of
management and directors of the company; and(3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any 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 explanation 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, 2022, based on the criteria for
Internal Financial 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 PANKAJ K. SHAH ASSOCIATES |
|
Firm Registration No. 107352W |
|
CHARTERED ACCOUNTANTS |
| Place: Ahmedabad |
(PANKAJ K. SHAH) |
| Date: 27.05.2023 |
PARTNER |
|
M. No.: 34603 |
|
UDIN: 23034603BGVANL3000 |
+91-9892691696
