To
The Members of M/s ALCHEMIST CORPORATION LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of M/s ALCHEMIST
CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss for the year ended on that date, and
notes to the financial statements, including a summaryofsignificantaccounting policies and
other explanatory information (hereinafter referred to as "the Financial
Statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("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 on 31st March, 2023, its profit/loss
(including statement of other comprehensive income), for the year ended on that date.
Basis for opinion
We conducted our audit 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 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 together with the ethical requirements
that are relevant to our audit of the 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 Code of Ethics.
We believe that the audit evidence we have obtained are sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Financial Statements for the financial year ended March
31, 2023. These matters were addressed in the context of our audit of the
Financial Statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
Information other than the 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 the Boards Report but does not include the Financial
Statements and our auditors report thereon. Our opinion on the Financial Statements does
not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the Financial Statements, our responsibility is to read
the other information and, in doing so, consider whether such other information is
materially inconsistent with the financial statements, or our knowledge obtained in the
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
have required to report that fact. we have nothing to report in this regard.
Managements responsibility for the financial statements
The Companys Board of Directors are responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation
and presentation of these financial statements that give a true and fair view of the
financialposition, financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
This responsibility also includes the maintenance of adequate accounting records in
accordance with the provision 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
control, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these Financial Statements.
As part of an audit in accordance with Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit. we also:
Identify and assess the risks of material misstatement of the Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficientand 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.
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 thatmaycastsignificantdoubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we have required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure, and content of the Financial Statements,
including the disclosures, and whether the Financial Statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal controlthatwe . identifyduringouraudit
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with
those charged with governance, we determine those matters that were of most significance
in the audit of the Financial Statements for the financial year ended March
2023 and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirement
As required by the Companies (Auditors report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of subsection (11) of section 143 of
the Act, we give in "Annexure -A" a statement on the matters specified in
paragraph 3 and 4 of the order, to the extent applicable.
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 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 & Loss dealt with by this Report are
in agreement with the books of
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014, as amended from time to time;
e) On the basis of written representations received from the directors as on 31stMarch,
2023, taken on record by the Board of Directors, none of the directors is disqualified as
on 31 st 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 operating effectiveness of such controls. Refer to our
separate report in "Annexure -B" to this report.
g) The Company being a private limited company, the other matters to be included in the
Auditors Report in accordance with the requirements of Section 197 (16) of the Act, as
amended, in respect of whether the remuneration paid by the Company to its directors
during the year is in accordance with the provisions of Section 197 of the Act is not
applicable; and
h) In our opinion and to the best of our information and according to the explanations
given to us, we report as under with respect to other matters to be included in the
Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014:
a) The Company did not have pending litigations which would impact its financial
position.
b) The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
c) There were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund.
d) (i) 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 identifiedin 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
(ii) 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 identifiedin any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
(iii) Based on the audit procedures we have 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 (i) and (ii) contain any material mis-statement.
e) The company has not declared or paid any dividend during the year.
| For S. KUMAR GOEL & CO |
| CHARTERED ACCOUNTANTS |
| FRN: 05275C |
| Sd/- |
| (SUNIL KUMAR GOEL) |
| PARTNER |
| M. No. 087320 |
| UDIN: 23087320BGRRYT9180 |
| PLACE: GHAZIABAD |
| DATE: 27.05.2023 |
Annexure "A" to the Auditors Report
The Annexure referred to in our report of even date to the members of the Company for
the year ended on 31st March, 2023, we report that: (i) (a) In respect of Companys
Property, Plant and Equipment: (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) The company has a regular program for physical verification in a phased manner,
which, in our opinion is reasonable having regards to the size of the company and nature
of assets. No material discrepancies were noticed on such verification.
(c) Since the company does not own any immovable properties, hence this clause is not
applicable.
(d) The Company has not revalued its Property, Plant and Equipment (including right of
use assets) or intangible assets or both during the year end, hence the said clause is not
applicable. (e) No proceedings have been initiated or are pending against the Company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and rules made thereunder. Accordingly, reporting under clause 3(i)(e) of the Order
is not applicable to the Company.
(ii) (a) The Company is in the business of providing consultancy and contract related
services, hence, it does not hold any inventory. Hence this clause is not applicable to
the company.
(b) The Company has no working capital limit., sanctioned by banks and/or financial
institutions.
(iii) The Company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act, 2013. Accordingly, the provisions of the Order are not
applicable to the company and hence not commentedupon.
(iv) In our opinion and according to the information and explanation given to us, the
Company has complied with provisions of section 185 and 186 of the Companies Act, 2013 in
respect of loans, investments, guarantees, and security.
(v) The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other
relevant provisions of the Companies Act, 2013 and the rules framed thereunder with regard
to deposits accepted from public are not applicable.
(vi) As informed to us, maintenance of the cost records has not been specified by the
Central Government under sub-section (1) of section 148 of the Act, for the activities
carried out by the company.
(vii) (a) In our opinion, and according to the information and explanations given to
us, undisputed statutory dues including goods and services tax, provident fund, employees
state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise,
value added tax, cess and other material statutory dues, as applicable, have generally
been regularly deposited with the appropriate authorities by the Company, though there
have been slight delays in a few cases. Further, no undisputed amounts payable in respect
thereof were outstanding at the year-end for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us, there are no statutory
dues referred in sub-clause (a) which have not been deposited with the appropriate
authorities on account of any dispute.
(viii) According to the information and explanations given to us, no transactions were
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961) which have not been recorded in the books of accounts.
(ix) (a) In our opinion and according to the information and explanation given to us,
the Company has not defaulted in repayment of loans or borrowing to a Financial
Institution, Bank, Government, or dues to debenture holders.
(b) According to the information and explanations given to us including
confirmations received from banks/ financial institution
and/orotherlendersandrepresentationreceivedfromthemanagementoftheCompany,andonthebasisofourauditprocedures,
we report that the Company has not been declared a willful defaulter by any bank or
financial institution or other lender.
(c) In our opinion and according to the information and explanations given to us, money
raised by way of term loans were applied for the purposes for which these were obtained.
(d) In our opinion and according to the information and explanations given to us,
and on an overall examination of the financial statements of the Company, funds raised by
the Company on short term basis have not been utilised for long term purposes.
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, the Company has not taken any
funds from any entity or person on account of or to meet the obligations of its
{subsidiaries, associates or joint ventures).
(f) According to the information and explanations given to us, the Company has not
raised any loans during the year on the pledge of securities held in its {subsidiaries,
joint ventures or associate companies.
(x) (a) The Company did not raise moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly, reporting under clause 3(x)(a) of
the Order is not applicable to the Company.
(b) According to the information and explanations given to us, the Company has not made
any preferential allotment or private placement of shares or (fully, partially or
optionally) convertible debentures during the year. Accordingly, reporting under clause
3(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company or on the Company has been noticed or reported during
the period covered by our audit.
(b) No report under section 143(12) of the Act has been filed with the Central
Government for the period covered by our audit.
(c) According to the information and explanations given to us including the
representation made to us by the management of the Company, there are no
whistle-blower complaints received by the Company during the year.
(xii) The company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of
the Order are not applicable to the company.
(xiii) In our opinion and according to the information and explanation given to us, all
transactions with the related parties are in compliance with sections 177 and 188 of
Companies Act, 2013 and the details have been disclosed in the Financial Statements etc.,
as required by the applicable accounting standards.
(xiv) (a) In our opinion and according to the information and explanations given to us,
the Company has an internal audit system as required under section 138 of the Act which is
commensurate with the size and nature of its business.
(b) We have considered the reports issued by the Internal Auditors of the Company till
date for the period under audit. (xv) According to to the information and explanation
given to us, the Company has not entered into any non-cash transactions with its directors
or persons connected with them and accordingly, provisions of section 192 of the Act 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, 1934. Accordingly, reporting under clause 3(xvi) of the Order is not
applicable to the Company.
(xvii) The Company does not incurred cash losses in the current and immediately
preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
Accordingly, reporting under clause 3(xviii) of the Order is not applicable to the
Company.
(xix) According to the information and explanations given to us and on
thebasisofthefinancialratios, ageing and expected dates of realization of financial assets
and payment of financial liabilities, other information accompanying the standalone
financial statements, our knowledge of the plans of the Board of Directors and management
, we are of the opinion that material uncertainty exists as on the date of the audit
report 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.
However, basis the impact of Tariff Order 2017, ongoing discussion with the lenders of the
Company, and other factors mentioned in aforesaid note to the accompanying standalone
financial statements, the management is of the view that going concern basis of accounting
is appropriate for preparation of these financial statements.
(xx) (a) According to the information and explanations given to us, in respect to other
than outgoing projects, the company has not transferred the unspent amount to a fund
specified in Schedule VII to the Companies Act; however the same shall be transferred
within the specified time of six months from the end of the financial year in compliance
with the second proviso to sub section 5 of Section 135 of the said act. (b) The said
clause is not applicable. (xxi) The reporting under clause (xxi) is not applicable in
respect of audit of standalonefinancialstatements of the Company.
Accordingly, no comment has been included in respect of said clause under this report.
| For S. KUMAR GOEL & CO |
| CHARTERED ACCOUNTANTS |
| FRN: 05275C |
| Sd/- |
| (SUNIL KUMAR GOEL) |
| PARTNER |
| M. No. 087320 |
| PLACE: GHAZIABAD |
| DATE: 27.05.2023 |
ALCHEMIST CORPORATION LIMITED.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Alchemist
CorporationLimited as of March 31, 2023 in conjunction with our audit of the 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 financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls over Financial Reporting issued by the Institute of
Chartered Accountants of India. These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence to
companys policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the "Guidance Note") and the
Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of
the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls, both
applicable to an audit of Internal Financial Controls and, both issued by the Institute of
Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors 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.
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 financialreporting 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 authorization 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.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 on Audit of Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India.
| For S. KUMAR GOEL & CO |
| CHARTERED ACCOUNTANTS |
| FRN: 05275C |
| Sd/- |
| SUNIL KUMAR GOEL |
| PARTNER |
| M. No. 087320 |
| PLACE: Ghaziabad |
| DATE: 27.05.2023 |
+91-9892691696
