To
The Members of
M/s. Aishwarya Technologies and Telecom Limited
Report on the Audit of IND AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of M/s. Aishwarya
Technologies and Telecom Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity
for the year then ended, and a summary of the 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 Ind AS financial statements give the information required by
the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31,2023, and its loss and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Ind AS 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 Independence
requirements that are relevant to our audit of the Ind AS financial statements under the
provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ICAIs Code
of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate
to provide a basis for our audit opinion on the Ind AS financial statements.
Emphasis of Matter:
1. The Company has been incurring losses continuously which has resulted in complete
erosion of Net Worth. However, the management still believes that Going Concern of the
company is not affected for the reasons detailed in note no.27 of annual Financial
Statements and accordingly prepared financials as at 31st March 2023 on a going concern
basis.
2. The company is irregular in payment of statutory dues like PF, ESI, TDS, GST and PT
etc., The Outstanding Statutory dues up to the Year ended 31-03-2023 is Rs.2.09 Crores.
Our Opinion is not modified in respect of the above Emphasis of Matter.
Information other than the Financial Statements and the 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 Management
Discussion and Analysis, Boards Report including Annexures to Boards Report but does not
include the Standalone financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained during the course of our audit or otherwise appears
to be materially misstated. If we conclude that there is a material misstatement therein,
we are required to communicate the fact. We have nothing to report in this regard.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Ind AS financial statements that give a true and fair view of the state of affairs
(financial position), profit or loss (financial performance including other comprehensive
income), cash flows and changes in equity of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the 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 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 also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 Ind AS 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 Ind AS financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Companies Act, 2013, 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 Ind AS financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
• Materiality is the magnitude of misstatements in the financial statements that
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Ind AS financial statements of
the current period and are therefore the key audit matters. We describe these matters in
our auditors report if any 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 in terms of sub-section (11) of Section 143of the Act, we
give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4
of the Order.
2. As required by Section 143(3) of the Act, we report that:
I. 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.
II. 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.
III. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
IV. In our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards prescribed under section 133 of the Act.
V. 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.
VI. 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
Report in "Annexure B". Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Companys Internal Financial Controls Over
Financial Reporting.
VII. With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act, as amended:
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of Section 197 of the Act.
VIII. 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 hasdisclosed the pending litigations in its notes to accounts in the
financial statements of the company.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts required to be transferred, to the Investor Education and
Protection Fund by the Company.
iv. a. The management has represented that, to the best of its knowledge and belief, no
funds 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
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
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 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 or provide any guarantee,
security or the like from or on behalf of the Ultimate Beneficiaries;
c. Based on such audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under (a) and (b) above contain any material
mis-statement.
v. The Company has not declared any dividend during the year.
ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT
(Referred to "Report on Other Legal and Regulatory Requirements" section of
our report to the Members of Aishwarya Technologies and Telecom Limited of even date)
Based on the audit procedure performed for the purpose of reporting a true and fair
view on the financial statements of Aishwarya Technologies and Telecom Limited and taking
into consideration the information and explanations given to us and the books of account
and other records examined by us in a normal course of audit, and to the best of our
knowledge and belief, we report that:
I. a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(B) The company has maintained proper records showing full particulars of intangible
assets.
b) According to the information and explanations given to us and on the basis of our
examination of records ofthe Company, PPE have been physically verified by the management
at reasonable intervals and nomaterial discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of
examination of records, there are no immovable properties held by the Company.
d) According to the information and explanations given to us and on the basis of our
examination of records,the company has not revalued the Property Plant and Equipment or
intangible assets during the period underreview.
e) According to 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 there under.
II. 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 the management were appropriate.
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 any working
capital limits in excess of five crore rupees in aggregate from banks and financial
institutions on the basis of security of current assets at any point of time of the year.
III. The Company has made investments in, providedguarantee or security and granted
loans or advancesin the nature of loans, secured or unsecured, tocompanies, firms, Limited
Liability Partnerships or anyother parties during the year, in respect of which:
a) The Company has not provided Loans or provided advances but given performance
guarantees during the year and details of which are given below:
A. The Company does not have any subsidiaries, joint ventures and associates.
B. The Company has provided guaranteeto others during the year of Rs. 8,14,402/-, and
balance outstanding as at the balance sheet of Rs. 43,92,242/.
b) The guarantee provided andthe terms and conditions of the grant of the
above-mentioned guarantee provided during the year are, in our opinion, prima facie, not
prejudicial to the Companys interest.
c) According to information and explanationsgiven to us and based on the audit
procedures performed, the Company has not granted any loans and advances in the nature of
loans.
IV. As per the information and explanation given to us and in our opinion the Company
has not granted any loans or made any Investments, or provided any guarantee or security
to the parties covered under section 185 and 186 of the Act.
V. The Company has not accepted any deposits during the year from the public within the
meaning of the provisions of section 73 of "the Act" and hence directives issued
by the reserve bank of India and the provisions of section73 to 76 or any other relevant
provisions of "the Act" the Rules framed there under are not applicable.
VI. As informed to us, the maintenance of Cost Records has been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
activities carried on by the company however, maintenance of cost records is not
applicable because of threshold limit.
VII. a) According to the information and explanations given to us and based on the
records of the company examined by us, the company is not regular in depositing the
undisputed statutory dues namely, Provident Fund, Employees State Insurance, sales tax,
service tax with the appropriate authorities in India. There were undisputed amounts
payable as on March 31,2023 for a period of more than 6 months from the date they became
payable as given below:.
| S. No Particulars |
Amount in Rs. |
| 1 Provident Fund |
6,041.58 |
| 2 Sales tax |
3,710.78 |
| 3 Service tax |
521.77 |
| 4 TDS |
1,966.77 |
| 5 PT |
492.55 |
| 6 TCS |
6.37 |
| 7 ESI |
45.36 |
| 8 Good and Service tax |
777.61 |
| TOTAL |
13,562.79 |
(b) According to the information and explanations given to us and based on the records
of the company examined by us, the following are the dues which have not been deposited on
account of disputes as follows-
Income Tax:-
| Name of the Statue |
Nature of Dues |
Section |
Amount (Rs) |
Period to which it relates |
Case is pending at |
| Income Tax Act, 19 61 |
Income Tax |
144 |
Rs.35,084.75 |
A.Y 2021-22 |
Commissioner of Income Tax (Appeals) |
| Income Tax Act, 19 61 |
Penalty |
272A(1)(d) |
Rs. 30.00 |
A.Y 2021-22 |
Commissioner of Income Tax (Appeals) |
VIII. As per the information and explanation given to us, there are no instances where
the company has surrendered or disclosed such transactions as income during the period
ended 31st March, 2023 in the tax assessments under the Income Tax Act, 1961.
IX. According to information and explanationsgiven to us and based on the audit
procedures performed, the Company has not availed any loans from financial institution or
banks or issued debentures during the year. Hence, reporting under this clause of the
Order is not applicable.
X. a) The Company has not raised any moneys by way of initial public offer, further
public offer (including debt instruments) and term loans during the year.
b) The Company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year.
XI. a) Based on examination of books and records of the Company and according to the
information and explanations given to us, no material fraud by the Company or on the
Company has been noticed or reported during the year.
b) According to the information and explanations given to us, no report under
sub-section (12) of section 143 of the Companies Act has been filed in form ADT- 4 as
prescribed under rule 13 of the companies (Audit and Auditors) Rules, 2014 with the
Central Government, during the year and up to the date of this report.
c) As represented to us by the management, there are no whistle blower complaints
received by the company during the year.
XII. As the Company is not a Nidhi Company and hence the Nidhi Rules, 2014 are not
applicable to it.
XIII. In our opinion and according to the information and explanations given to us, the
Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the standalone financial statements as required by the
applicable accounting standards.
XIV. a) In our opinion and based on our examination, the company has an adequate
internal audit system commensurate with the size and nature of its business.
d) We have considered the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
XV. In our opinion during the year the Company has not entered into any non-cash
transactions with its Directors or persons connected to its directors and hence provisions
of section 192 of the Companies Act 2013 are not applicable to the Company.
XVI. a) In our opinion, the Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934.Hence, reporting under clause 3(xvi)(a), (b)
and (c) of the Order is not applicable.
b) In our opinion, there is no core investment company within the Group (as defined in
the Core Investment Companies (Reserve Bank) Directions, 2016).
c) The Company is not a Core Investment Company (CIC) as defined in the regulation made
by the Reserve bank of India.
XVII. The company has incurred cash losses during the current year and in the
immediately preceding financial year.
| Particulars |
FY 2022-23 |
FY 2021-22 |
| Net Loss during the year |
(11,177.64) |
(33,796.65) |
| Add/(Less): |
- |
- |
| Depreciation |
1,306.55/- |
2,906.57 |
| Total Cash loss |
(9,871.09) |
(30,890.08) |
XVIII. There has been no resignation of the statutory auditors of the Company during
the year.
XIX. 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 and 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 indicating 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.
XX. The company is not covered under the provisions of sec 135of the Companies Act,
2013.
ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory
Requirements section of ourreport to the Members of Aishwarya Technologies and Telecom
Limited of even date
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.
Aishwarya Technologies and Telecom Limited ("the Company") as of 31st March 2023
in conjunction with our audit of the Ind AS financial statements of the Company for the
year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘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, 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 Ind AS 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 Ind AS financial statements for external purposes in accordance with
generally accepted accounting principles. A companys internal financial control over
financial reporting includes those policies and procedures that
1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of Ind AS financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorisation of management and directors of the company; and
3) Provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
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.
For P.Murali& Co,
Chartered Accountants,
Firm Registration No: 007257S.
Sd/-
A. Krishna Rao
Partner
M.No:020085
UDIN:23020085BGQXIJ4847
Place: Hyderabad
Date: 30/05/2023
+91-9892691696
