Sr.
No |
Key Audit Matters |
Our Response |
1 |
Accuracy of recognition, measurement, presentation and
disclosures of revenues and other related balances in view of adoption of Ind AS 115
"Revenue from Contracts with Customers" (new revenue accounting standard). |
Principal Audit Procedures |
We assessed the Companys process to identify the
impact of adoption of the new revenue accounting standard. Our audit approach consisted
testing of the design and operating effectiveness of the internal controls and substantive
testing as follows: |
|
The application of the new revenue accounting standard
involves certain key judgments relating to identification of distinct performance
obligations, determination of transaction price of the identified performance obligations,
effect of variable considerations and the appropriateness of the basis used to recognise
revenue at a point in time or over a period of time |
i. Evaluated the design of internal controls relating to
implementation of the new revenue accounting standard. |
ii. Selected a sample of continuing and new contracts, and tested
the operating effectiveness of the internal control, relating to identification of the
distinct performance obligations and determination of transaction price. We carried out a
combination of procedures involving enquiry and observation, re-performance and inspection
of evidence in respect of operation of these controls. |
|
|
iii. Tested the relevant information technology systems access and
change management controls relating to contracts and related information used in recording
and disclosing revenue in accordance with the new revenue accounting standard. |
|
|
Our procedures did not identify any material exceptions. |
|
Defined benefit obligation The valuation of the
retirement benefit schemes in the Company is determined with reference to various
actuarial assumptions including discount rate, future salary increases, rate of inflation,
mortality rates and attrition rates. Due to the size of these schemes, small changes in
these assumptions can have a material impact on the estimated defined benefit obligation |
We have examined the key controls over the process involving member
data, formulation of assumptions and the financial reporting process in arriving at the
provision for retirement benefits. We tested the controls for determining the actuarial
assumptions and the approval of those assumptions by senior management. We found these key
controls were designed, implemented and operated effectively, and therefore determined
that we could place reliance on these key controls for the purposes of our audit. |
We tested the employee data used in calculating the obligation and
where material, From the evidence obtained, we found the data and assumptions used by
management in the actuarial valuations for retirement benefit obligations to be
appropriate. |
4. Information Other than the Standalone IND AS 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 Boards
Report including Annexures to Boards Report, Management Discussion and Analysis, Report
on Corporate Governance, but does not include the Standalone IND AS financial statements
and our auditors report thereon.
Our opinion on the Standalone IND AS 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 IND AS 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 IND AS 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.
5. Managements Responsibility 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 IND AS financial
statements that give a true and fair view of the financial position, financial
performance, 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 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 IND AS 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 IND AS 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 responsible for overseeing the Companys financial reporting
process.
6. Auditors Responsibility for the audit of the Standalone financial statements
Our objectives are to obtain reasonable assurance about whether the Standalone IND AS
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 Standalone IND AS financial statements.
A. As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
i) 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.
ii) 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 forexpressing our opinion on whether the
Company has adequate internal financial controls with reference to financial statements in
place and the operating effectiveness of such controls
ii) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management
iv) 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 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.
v) 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
B. 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
C. 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.
D. 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.
E. 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
A further description of our responsibilities for the audit of the financial statements
is included in appendix A of this auditors report
7. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7.1 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.
7.2 As required by Section 143 (3) of the Act, we report that:
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 standalone IND AS financial statements comply with the
Indian Accounting Standards prescribed 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". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls with
reference to financial statements.
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. Remuneration
is not paid by the company to its directors.
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 no pending litigations having impact on its financial position in
its Standalone IND AS financial statements;
li. The Company has no long-term contracts including derivative contracts requiring any
provision for any foreseeable losses;
lii. The company is not required to transfer any amount to Investors Education and
Protection Fund
For RAJANI SHAH & CO
Chartered Accountants (Firm Regn. No. 0121126W)
(CA BRIJESH R. SHAH)
Proprietor Mem. No.: 109264
Anand
Date: 29/04/2023
UDIN: 23109264BGWJUW8955
APPENDIX A-AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
AS PART OF AN AUDIT IN ACCORDANCE WITH SAS, WE EXERCISE PROFESSIONAL JUDGEMENT 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 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 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 Standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained upto 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 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 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 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.
"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
STANDALONE FINANCIAL STATEMENTS ADARSH PLANT PROTECT LIMITED
i) In respect of its Fixed Assets:
The company is in the process of updating records showing full particulars, including
quantitative details and situation of Fixed Assets;
a) As explained to us, the Assets have been physically verified by the management in
accordance with a regular programme of verification, which in our opinion is reasonable,
considering the size and the nature of its business. The frequency of verification is
reasonable and no material discrepancies have been noticed on such physical verification;
b) According to the information and explanations given to us and on the basis of our
examination of the records of the company, the title deeds of immovable properties are
held in the name of the company.
ii) The inventory has been physically verified by the management during the year. In
our opinion, the frequency of
verification is reasonable. No material discrepancies were noticed on such physical
verification.
iii) The company has not granted any loans, secured or unsecured during the year to
companies, firms, limited liability partnerships or other parties covered in the register
maintained under section 189 of the Act. Accordingly, the clauses 3(iii) (a), (b) and (c)
of the Order are not applicable to the Company.
iv) 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 Act, with respect
to loans and investments made during the year.
v) The Company has not accepted any deposits within the meaning of Provisions of
Section 73 to 76 of the Act, and the rules framed thereunder from the public.
vi) According to the information and explanations given to us, Central Government has
not prescribed maintenance of cost records under section 148 (1) of the Act.
vii) a) The company is regular in depositing undisputed statutory dues, including
Provident Fund, Employees State Insurance, Income Tax, Goods & Services Tax, duty of
customs, cess and any other statutory dues with appropriate authorities, where applicable.
According to the information and explanations given to us, there are no undisputed amounts
payable in respect of such statutory dues which have remained outstanding as at 31st
March, 2023 for a period of more than six months from the date they became payable.
b) According to the records of the company, there are no dues outstanding of
income-tax, sales-tax, service tax, duty of customs, duty of excise, goods and services
tax and value added tax on account of any disputes:
viii) The company has not defaulted in repayment of its loans or borrowings to banks.
The Company does not have any borrowings by way of debentures.
ix) The Company has not raised any moneys by way of Initial public offer or further
Public offer (Including debt instruments). Moneys raised byway of Term Loan were applied
for the purpose for which those are raised.
x) On the basis of our examination and according to the information and explanations
given to us, no fraud by the Company or any material fraud on the company by its officers
or employees has been noticed or reported during the year, nor have we been informed of
any such case by the management.
xi) The managerial remuneration has not been paid/provided by the company.
xii) The company is not a nidhi Company and accordingly provisions of clause (xii) of
Para 3 of the order are not applicable to the Company.
xiii) On the basis of our examination and according to the information and explanations
given to us, we report that all the transaction with the related parties are in compliance
with Section 177 and 188 of the Act, and the details have been disclosed in the Financial
statements in Refer Note 24(e) as required by the applicable accounting standards.
xiv) The company has not made any preferential allotment or private placement of share
or fully or partly paid convertible debentures during the year and accordingly provisions
of clause (xiv) of Para 3 of the Order are not applicable to the Company.
xv) According to the information and explanations given to us and based on our
examination of the records of the company, the company has not entered into any non-cash
transactions with directors or persons connected with the directors. Accordingly,
provisions of clause (xv) of Para 3 of the Order are not applicable to the company.
xvi) The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act and accordingly, provisions clause xvi of Para 3 of the Order are not
applicable to the company.
For RAJANI SHAH & CO
Chartered Accountants (Firm Regn. No. 0121126W)
(CA BRIJESH R. SHAH)
Proprietor Mem. No.: 109264
Anand
Date: 29/04/2023
UDIN: 23109264BGWJUW8955
ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE
FINANCIAI STATEMENTS OF ADARSH PLANT PROTECT LIMITED
1. 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 ADARSH
PLANT PROTECT 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.
2. 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 Act.
3. 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") issued by 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 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 Companys internal financial controls system
over financial reporting.
4. 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 unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
5. 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.
6. OPINION
In our opinion, 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 issued by the
Institute of Chartered Accountants of India.
For RAJANI SHAH & CO
Chartered Accountants (Firm Regn. No. 0121126W)
(CA BRIJESH R. SHAH)
Proprietor Mem. No.: 109264
Anand
Date: 29/04/2023
UDIN: 23109264BGWJUW8955
+91-9892691696
