Advance Metering Technology Ltd Auditor Reports

<dhhead>INDEPENDENT AUDITOR’S REPORT</dhhead>

TO

THE MEMBERS OF ADVANCE METERING TECHNOLOGY LIMITED REPORT ON THE AUDIT OF STANDALONE FINANCIAL STATEMENTS Opinion

We have audited the accompanying standalone financial statements of Advance Metering Technology Limited ("the Company"), which comprise the standalone balance sheet as at 31^st March, 2024, the standalone statement of profit loss, including the standalone statement of other comprehensive income,flowand the standalonestatementofcash standalone statement of changes in equity for the year then ended, and notes to the standalone financial statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

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, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2024, and its loss including other comprehensive loss, its cash flows and the changes in equity for the year ended on that date.

 

Basis for Opinion

We conducted our audit of the Standalone financial statements in accordance with the Standards on Auditing (SAs), as of the Act. Our responsibilities under those SAs are further described in the ‘Auditor’s specified

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 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 (‘KAM’) are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended 31st March, 2024. These matters were addressed in the context of our audit of the standalonefinancialstatements 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.

Key Audit Matters	How our audit addressed the key audit matter
1. Revenue Recognition Revenue from Sale of Goods	Our audit procedures included the following;
Revenue is recognized when the controls of the goods have been transferred to the customer and the performance obligation of the sale of product is satisfied at point in time	Assessed the Company’s revenue recognition policies in line with Ind AS 115 (‘’Revenue from Contracts with Customers’’) and tested thereof.
Revenue from Windmills Power generations	Evaluated the integrity of the general information and technology control environment and tested the operating effectiveness of key IT application control over recognition of revenue.
Revenue is recognized on the basis of actual power sold as per terms of Power Purchase Agreement entered into with respective purchasers.
Interest Income	Tested the effectiveness of such controls over revenue cut off at year end. On the sample basis, tested supporting documentation for sales transaction recorded during the year which included sales invoices, customer agreements.
Interest income is recognized using effective interest rate (EIR) Method.
	Tested the supporting documentation for sales transaction recorded during the period closer to the year end and subsequent to the year end.
	Compared revenue with the historical trends and where appropriate, conducted further enquiries and testing.

 

 

 

2. Valuation of Investments and Impairment thereof	Our audit procedures included the following;
The Company’s investments represents	Assessed the appropriateness of relevant accounting policies of the Company, including those relating to recognition and measurement of financial instruments with the accounting standard.
- Investments carried at Cost
o Investments in Subsidiary Companies
o Investment in Joint Ventures
o Investment in Government Securities	For Instruments measured at Fair Value through Profit & Loss.
- Investment measured at Fair Value Through Profit & Loss
	- Assessed the availability of quoted price in liquid markets or Mutual funds statements.
	- Assessed whether the valuation process is appropriately designed and capture relevant valuation inputs.
	For instruments carried at Cost
	- Assessed the standalone financial statements of subsidiaries and joint venture of the Company.
	- Whether Annual performance report (APR) as per RBI Regulation have been properly submitted
	Assessed the appropriateness of the Company’s description of the accounting policy and disclosure related to investments and whether there are adequately presented in the standalone financial statements.

 

 

3. Physical Verification of Inventories	Our audit procedures included the following;
Inventory includes;	We evaluated the design, implementation and tested the operating effectiveness of key controls that the Company has in relation to physical verification of inventories including the appropriateness of the Company’s standard operating procedures for conducting, recording and reconciling physical verification of inventories and tested the implementation thereof;
- Raw Material;
- Work In Progress &
- Finished Good
Inventories are valued at lower of cost or estimated net realizable value.

 

 

4. Evaluation of the appropriateness of going concern assumption Company has made assessment considering internal and external sources of information of its liquidity position and carrying value of its assets & liabilities as at 31st March 2024.	Our audit procedures included the following; We evaluated the design and implementation of controls over evaluation of the appropriateness of going concern assumptions and tested the operating effectiveness of these controls We ascertained the net current liability position of the Company as at 31st March 2024.
	We discussed with the management and understood that
	-No third party has invoked force majeure;
	-There is no material dependency on any vendor or customer;
	-No modification to contracts with customers have been made
	We evaluated events subsequent to the balance sheet date up to the date of our audit report to determine if there is any impact on the going concern assessment
	We evaluated adequacy of disclosures made in standalone financial statements for going concern assumptions.
	We also evaluated the application of Standard of Auditing (SA) 570, Going Concern

 

Other Information

The Company’s Management and Board of Directors are responsible for the other information as per SA 720 "The Auditor’s Responsibilities Relating to Other Information". The other information comprises the information included in the

Company’s annual report, but does not include the standalone financial statements and our auditor’s report thereon. The

Company’s annual report is expected to made available to us after the date of this auditor’s report.

Our opinion on the standalone financial statements does not cover the other information and we will 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, when it becomes available and, in doing so, consider whether such other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Director’s Report, Management Discussion and Analysis and Corporate Governance Report, if we conclude, that there is a material misstatement of this other information, we are required to communicate the matter to those charged with governance and taka necessary actions as required under SA 720, ‘The Auditor’s Responsibilities

Relating to Other Information’.

 

Responsibilities of Management and Board of Directors for the Standalone Financial Statements

The Company’s Management and Board of Directors are 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 position,financial other comprehensive income, cash flowsand changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind

AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the 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 and Board of Directors are responsible for assessing the Company’s 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 and Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financial reporting process.

 

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements.

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 of auditing (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 skepticism 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 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 and Board of Directors.

- Conclude on the appropriateness of Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions thatmaycastsignificantdoubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financialstatements 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 auditor’s 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.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing audit findings, includingany oftheauditand significantdeficiencies 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 for the financial year ended 31 significanceintheaudit ofthe standalone financial ^st March 2024 and are therefore the key audit matters. We describe these matters in our auditor’s 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 (Auditor’s 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 1" a statement on the matters specified in paragraphs 3 and 4 of the 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 purposes of our audit; b. In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books; c. The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Standalone Statement of Cash Flow and Standalone Statement of Changes in Equity 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 Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended; e. On the basis of the written representations received from the directors as on 31st March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2024 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 with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report; g. With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act: In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any of the director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us. h. With respect to the other matters to be included in the Auditor’s 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 Standalone

Financial Statements – Refer Note 32 to the Standalone Financial Statements; ii. The Company did not have any material foreseeable losses on long term contracts during the year ended 31^st March 2024. The Company has not entered into any derivative contracts during the year ended 31^st March 2024; iii. There were no amounts which were required to be transferred during the year ended 31^st March 2024 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 have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

1. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (‘Ultimate Beneficiaries’) by or on behalf of the Company or 2. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries. b) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

1. directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party 2. provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and c) Based on such audit procedures as 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 (iv) (a) and (iv) (b) contain any material mis-statement.

The Company has neither declared nor paid any dividend during the year. Hence, no reporting is required under rule 11(f) of Companies (Audit and Auditors) Rules 2014 read with section 143(3)(j) of the Companies Act, 2013.

Based on our examination, which included test checks, the Company has used accounting softwares for maintaining its books of account for the financial year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

Place: Noida

Date: 24-05-2024

 

Annexure "1" to the Independent Auditor’s Report of even date on standalone financial statements as at and year ended 31st March 2024 of Advance Metering Technology Limited

We report that;

I. With respect of Company’s Fixed Assets a. The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant & equipment. b. The Company has maintained proper records showing full particulars, including quantitative details and situation of Intangible Assets. c. 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 a regular programme of physical verification of its property, plant and equipment by which all Property, plant and equipment areverifiedin a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. d. The title deeds of immovable property are held in the name of Company, as verified from the original/ photocopies of original title deeds. Some of the original title deeds are pledged with banks as security against term loan and working capital facility which are certified by the management. e. 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 revalued its property, plant and equipment (including Right-of-use assets) or Intangible assets or both during the year. Accordingly, Paragraph 3(i)(d) of the Order is not applicable to the Company. f. According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or pending against the Company for holding any Benami Property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder. Accordingly, paragraph 3(i)(e) of the Order is not applicable to the Company.

 

II. With respect of Company’s Inventory a. The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were 10% or more in the aggregate for each class of inventory. 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 sanctioned working capital limits in excess of fivecrore rupees, in aggregate, from banks on the basis of security of current assets. Hence, paragraph 3(ii)(b) of the Order is not applicable to the Company.

 

III. According to the information and explanation given to us and on the basis of our examination of the records of the

Company;

The Company has not made any investments in any Companies, firms, limited liability partnership or any other parties except in mutual funds during the year;

The Company has not provided guarantee to any Companies, firms, limited liability partnership or any other parties during the year;

• The Company has during the year provided security deposits to the property owner from whom premises has been taken on lease.

• The Company has not granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties during the year.

The details of movements of various items during the year are as under:

				Security
Particulars	Investments	Loans	Advances		Guarantees
				deposit
Opening Balances as at 01st April
2023 (A)
- Subsidiaries	950.86	120.83	-	-	-
- Joint Venture	-	-	-	-	-
- Associates	-	-	-	-	-
- Others	407.55	2.49	-	46.11	333.43
Total (A)	1358.41	123.32	-	46.11	333.43
Amount Provided / Given /
Invested during the year (B)
- Subsidiaries	-	-	-	-	-
- Joint Venture	-	-	-	-	-
- Associates	-	-	-	-	-
- Others	2255.67	-	-	4.38	71.82
Total (B)	2255.67	-	-	4.38	71.82
Amount Received during the year
(C)
- Subsidiaries	450.38	-	-	-	-
- Joint Venture	-	-	-	-	-
- Associates	-	-	-	-	-
- Others	-	-	-	3.38	134.64
Total (C)	450.38	-	-	3.38	134.64
Amount written off during the year
(D)
- Subsidiaries	-	-	-	-	-
- Joint Venture	-	-	-	-	-
- Associates	-	-	-	-	-
- Others	-	-	-	-	-
Total (D)	-	-	-	-	-
Closing Balance as at 31st March
2024
- Subsidiaries	500.48	120.83	-	-	-
- Joint Venture	-	-	-	-	-
- Associates	-	-	-	-	-
- Others	2663.22	2.49	-	47.11	270.61
Total (A+B-C)	3163.70	123.32	-	47.11	270.61

 

b. In our opinion the terms and conditions of the grant of such Investments, loans and security deposit given are not prejudicial to the Company’s interest; and c. In respect of Loans, the schedule of repayments of principal and payment of interest had been stipulated, however the loan of Rs. 120.83 lakhs are presently credit impaired. The entire amount is overdue; and d. According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given except as mentioned in (c) above; and e. According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan which was due during the year and which has been renewed or extended or fresh loans given to settle the overdue of existing loans given to the same party except as mentioned in (c) above; and f. 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 given any loans either repayable on demand or without specifying any terms or period of repayment.

 

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 Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable. However Company has not given any loan to directors and in the entities in which they are interested during the year under section 185 of Companies Act, 2013.

 

V. According to the information and explanation given to us, the Company has not accepted any deposits from the public to which directives issued by Reserve Bank of India and the provisions of Section 73 to Section 76 or any other relevant provisions of the Act and the rules framed thereunder apply. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.

 

VI. According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any services rendered by the Company. Accordingly, paragraph 3(vi) of the Order is not applicable to the Company.

 

VII. According to the information and explanations given to us and on the basis of our examination of the records of the

Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including, income tax, goods and service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income tax, goods and service tax, cess and other material statutory dues were in arrears as at 31st March 2024 for a period of more than six months from the date they became payable. VIII. 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 surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income-tax Act, 1961 as income during the year. Accordingly, paragraph 3(viii) of the order is not applicable to the Company.

 

IX. With respect to Borrowings from Banks or Financial Institution 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 repayment of loans or interest thereon to any bank or financial institution. 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 willful defaulter by any bank or financial institution or government or government authority. c. 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 utilized the money obtained by way of term loan during the year for the purpose for which they are 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 have been raised on short-term basis by the Company. Accordingly, clause 3(ix)(d) of the Order is not applicable.

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, joint ventures and associates as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the Order is not applicable. 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, joint ventures and associates as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(f) of the Order is not applicable.

 

X. With respect to the Company’s Fund Raising a. The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, clause 3(x)(a) of the Order is not applicable. 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 made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable.

 

XI. With respect to Fraud Reporting a. Based on examination of the books and records of the Company and according to the information and explanations given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit. b. Based upon the audit procedures performed for the purpose of reporting on the true and fair view of the standalone financial statements and according to the information and explanations given by the

Management, we report that no offence involving fraud is being or has been committed against the company by the officers or employee of the Company. Hence ADT-4 was not required to be filed by the auditor. c. According to the information and explanations given by the Management, the Company has not received any whistle-blower complaints during the year.

 

XII. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable. XIII. According to the information and explanations given to us and on the basis of our examination of the records of the Company, 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 standalone financialstatements, as required by the applicable Indian Accounting Standards

 

XIV. With respect of Company’s Internal Audit system a. Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business. b. We have considered the internal audit reports of the Company issued till date for the period under audit. XV. According to the information and explanations given to us and based on our examination of the books and records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.

 

XVI. With respect to Company’s Registration a. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi)(a) of the Order is not applicable. b. The Company is not a Non-Banking Financial Company or Housing Finance Company. Accordingly, clause 3(xvi)(b) of the Order is not applicable. c. The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve

Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not applicable. d. According to the information and explanations provided to us during the course of audit, the Company does not have any Core investment company (CIC). Accordingly, the requirements of clause 3(xvi)(d) are not applicable.

 

XVII. According to the information and explanations given by the Management, the Company has not incurred cash losses in the current financial year and in the immediately preceding financial .

 

XVIII. There has not been any resignation of statutory auditor during the year. Accordingly, clause 3(xviii) of the order is not applicable to the Company.

XIX. According to the information and explanations given by the Management and in our opinion 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, our knowledge of the Board of Directors and management plans; that no material uncertainty exists as on the date of the audit report and that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. XX. In our opinion and according to the information and explanations given by the Management, provision of section 135 of the Companies Act, 2013 is not applicable on the company, accordingly, clause 3(xx) of the order is not applicable to the Company.

 

XXI. The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements of the Company. Accordingly, no comment has been included in respect of said clause under this report.

Place: Noida

Date: 24-05-2024

 

Annexure "2" to the Independent Auditor’s Report of even date on standalone financialstatements as at and year ended 31^st March 2024 of Advance Metering Technology Limited

Report on the Internal Financial Controls with reference to Standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to standalone financial statementsof Advance Metering Technology Limited ("the Company") as of 31st March, 2024 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

 

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls with reference to standalone financial statements based on 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 (the ‘Guidance Note’) issued by the Institute of Chartered Accountants of India (the ‘ICAI’).

These responsibilities include the design, implementation and maintenance of adequate internal financial controls that conduct of its business, including adherence to the wereoperatingeffectivelyfor ensuringtheorderly and efficient respective companies’ 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 (the ‘Act’).

 

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financialcontrols with reference to standalone financial statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note issued by the ICAI and the Standards on Auditing (‘the Standards’), issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both issued by the ICAI.

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 financialcontrols with reference to Standalone financial statements 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 with reference to Standalone financial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalonefinancial statements included obtaining an understanding of internal financial controls, 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 auditor’s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company’s internal financial controls with reference to standalone financial statements.

 

Meaning of Internal Financial Controls with reference to standalone financial statements

A company’s internal financial control with reference to standalone financial statements 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 company’s internal financial control with reference to standalone financial statements includes those policies and procedures that:

- Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

- Provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

- Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone financial statements.

 

Inherent Limitations of Internal Financial Controls with reference to standalone financial statements

Because of the inherent limitations of internal financial controls with reference to standalone financial statements, 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 with reference to standalonefinancialstatements to future periods are subject to the risk that the internal financial control with reference to standalone financial statements 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, the Company has, in all material respects, an adequate internal financial controls system with reference to standalone financial statements and such internal financialcontrols were operating effectively as at 31 ^st March 2024, based on the internal controls with reference to standalonefinancialstatements 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 Accountant of India.

Place: Noida

Date: 24-05-2024