ankit metal & power ltd share price Auditors report


TO

THE MEMBERS OF

ANKIT METAL & POWER LIMITED

Report on the Audit of Financial Statements

Qualified Opinion

We have audited the accompanying Financial Statements of ANKIT METAL & POWER 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 Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of significant accounting 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, except for the possible effect of matter described in the basis for qualified opinion section of our report, the aforesaid 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 accepted in India, of the state of affairs of the Company as at 31st March, 2023 and the Losses including Other Comprehensive Income, Changes in Equity and its Cash Flows Statement for the year ended on that date.

Basis for Qualified Opinion

We draw your attention to Note No.28 of the accompanying Financial Statements regarding non provision of interest expense on the borrowings of the Company amounting to Rs. 15,563.02 Lacs for the year ended 31st March, 2023 (cumulative non provision of Rs. 95,913.89 Lacs till 31st March, 2023) and penal interest and charges thereof (amount remaining unascertained) which is not in accordance with the requirements of Ind AS 23: Borrowing Costs read with Ind AS 109: Financial Instruments.

Had the aforesaid interest expense been recognized, the finance cost for the year ended 31st March, 2023 would have been Rs.15,570.57 Lacs instead of reported amount of Rs.7.55 Lacs. The total expenses for the year ended 31st March, 2023 would have been Rs.1,11,837.45Lacs instead of Rs. 95,282.58 Lacs. The Net Loss after tax for the year ended 31st March, 2023 would have been Rs.26,429.60Lacs instead of reported amount of Rs. 9,874.73 Lacs. Total Comprehensive Loss for the year ended 31st March, 2023 would have been Rs.26,301.12 Lacs instead of reported amount of Rs.9746.24 Lacs. Other equity as on 31st March, 2023 would have been Rs. (1,99,281.11) Lacs instead of reported amount of Rs.(1,02,375.36) Lacs and Other Current Financial Liability as on 31st March, 2023 would have been Rs.1,17,125.00 Lacs instead of reported amount of Rs. 20,219.26 Lacs.

(The above reported interest has been calculated by using Simple Interest Rate).

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the financial statements.

Material uncertainty relating to Going Concern

We draw your attention to Note No. 29 of the Financial Statements regarding preparation of the Financial Statements on going concern basis, for the reason mentioned therein. The Company has incurred losses during year ended 31st March, 2023. As on date the Companys current liabilities are substantially higher than its current assets and net worth has also been fully eroded. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Companys ability to continue as going concern. The appropriateness of assumption of going concern is critically dependent upon the debt resolution of the Company which is under process, the Companys ability to raise requisite finance, generation of cash flows in future to meet its obligation and to earn profit in future.

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 of the current period. 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 the matters described below to be the key audit matters to be communicated in our report.

Sl. No. Key Audit Matter How our audit addressed the Key Audit Matter
1 Claim and exposure relating to taxation and litigation Our audit procedures included the following:
The Company has material uncertain tax positions including matters in respect of disputed claims/levies under various taxes and legal matters. Our audit procedures include the following substantive procedures:
• Obtained understanding of key uncertain tax positions;
The taxes and litigation exposures have been identified as key audit matter due to: • We have reviewed and analysed key correspondences relating to dispute;
i. Litigation cases require significant judgement due to complexity of the case and involvement of various authorities. • We have discussed the matter for key uncertain tax positions with appropriate senior management;
ii. These involve significant management judgment to determine the possible outcome of the uncertain tax positions. • We have evaluated managements underlying key assumptions in estimating the tax provisions; and assessed managements estimate of the possible outcome of the disputed cases

Emphasis of Matter

i. As referred in Note No. 32 of the Financial Statements, certain balances of "Borrowings", "Trade Receivables", "Trade payables", "Advances from Customer", "Advances Recoverable in Cash or Kind" and "Advance to Suppliers and Other Parties" etc. includes balances remaining outstanding for a substantial period. The balances are subject to confirmations and reconciliation. The reported Financials might have consequential impact which remains unascertained

ii. As referred in Note No. 28 of the Financials, various credit facilities availed from UBI, IOB, SBI, IDBI and Allahabad Bank have been assigned by the respective banks in favor of Asset Reconstruction Companies under various assignment agreements between the respective Banks and Asset Reconstruction Companies. In absence of information about the terms of assignments, the company is carrying the various credit facilities as appearing in the books and as per the previous terms with the respective banks. This may have consequential impact on the reported financials.

iii. With reference to Note 28 to the financial statement, UCO Bank and Rare Asset Care & Reconstruction Enterprise Limited, financial creditors have filed an application under section 7 of the Insolvency & Bankruptcy Code (IBC) before National Company Law Tribunal (NCLT) Kolkata Bench for initiating Corporate Insolvency Resolution Process (CIRP) against the company (Ankit Metal & Power Limited) and the matter is sub-judice and not yet admitted.

Our report is not modified in these matters.

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 Companys Annual Return 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 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, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibility of the Management for the 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 the Financial Statements that give a true and fair view of the financial position, financial performance including Other Comprehensive Gain/Loss, the Statement of Changes in Equity and Cash Flow Statement in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 Financial Statements that give a true and fair view and are 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.

The 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 SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of the material misstatement of the Financial Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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 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 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 Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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 the "Annexure A", a statement on the matters specified in the paragraphs 3 and 4 of the order, to the extent applicable.

I. As required by section 143(3) of the Act, we report that:

a. Except for the possible effects of the matters described in the basis of qualified opinion section of our report, we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. Except for the possible effects of the matters described in the basis of qualified opinion section of our report, 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, Statement of Profit and Loss including Other Comprehensive Loss, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.

d. Except for the effects of the matters described in the basis of qualified opinion paragraph above, in our opinion, the aforesaid Financial Statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e. The matter described in the basis for qualified opinion section of our report, may have adverse effect on the functioning of the company.

f. On the basis of written representations received from the directors as on 31st March, 2023, and 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.

g. With respect to the adequacy of the Internal Financial Controls over Financial Reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

h. With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration payable by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.

i. 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, 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 the financial position in the Financial Statements- Refer Note No. 30 to its Financial Statements.

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 which were 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, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

(c) Based on such audit procedures that we 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 (a) and (b) contain any material misstatement.

v) The company has not declared or paid dividend during the year. Hence, compliance of provision of section 123 of the Companies Act 2013 does not arise.

vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(a) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

For J.B.S & Company
Chartered Accountants
FRN: 323734E
C.A. Gouranga Paul
Partner
Membership No. 063711
UDIN: 23063711BGWNMU2744
Place: Kolkata
Date: 30th May, 2023

"ANNEXURE A" TO INDEPENDENT AUDITORS REPORT

The Annexure A referred to in paragraph 1 under the heading Report on Other Legal & Regulatory Requirements of our report of even date to the Financial Statements of the Company for the year ended 31stMarch, 2023, with reference to the matters specified in the paragraph (3) & (4) of Companies (Auditors Report) Order 2020, 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) The property, plant and equipment of the Company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

c) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee), as disclosed in Note 2 on Property, Plant and Equipment to the financial statements, are held in the name of the Company.

d) The Company has not revalued any of its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year. Hence, reporting of other information under clause 3 (i) (d) of the said order is not required.

e) Based on the information and explanations furnished to us, no proceedings have been initiated on or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder. Hence, disclosures of details in this regard under clause 3 (i) (e) of the said Order is not required.

(ii)a) The inventory has been physically verified by the management at reasonable intervals. In our opinion the frequency of such verification is reasonable. No discrepancies of 10% or more in the aggregate for each class of inventories were noticed on such physical verification of inventories.

b) According to the information and explanations given to us, at any point of time of the year, the company had sanctioned working capital limit in excess of Rs.5 crore in aggregate from bank or financial institution on the basis of security of current assets and the company is not submitting periodical return or statement to the respective bank/ financial institution for the reason as disclosed in Note 28 of the financial statement. Hence, we couldnt comment on the discrepancies in this regard.

(iii) In our opinion and according to the information and explanation given to us, the Company during the year has not made investments in, provided any guarantee or security or granted any loans/ advances in nature of loans, secured or unsecured to companies, firms, limited liability partnerships or any other parties. Hence reporting of other information under clause 3 (iii) (a) to (f) of the said Order is not required.

(iv) In our opinion and according to the information and explanation given to us, The Company has not given any loans and guarantees or provided any security in connection with a loan, and make investments within the meaning of Section 185 & 186 of Companies Act, 2013. Hence reporting of other information under clause 3 (iv) of the said Order is not required.

(v) According to the information and explanations given to us and on the basis of our examination of the books of account, the company has not accepted any deposits from the public and there is no amounts which are deemed to be deposits and consequently, the directives issued by the Reserve Bank of India and provisions of Section 73 to 76 or any other relevant provisions of the Companies Act 2013 and rules made thereunder [the Companies (Acceptance of Deposit) Rules, 2015] with regard to the deposits are not applicable to the company.

(vi) Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(vii) a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has generally delayed in depositing undisputed statutory dues including Goods & Service Tax, Provident Fund, Income Tax, Sales Tax, Service Tax, Duty of Customs, Value Added Tax, Cess and other statutory dues during the year with appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at 31st March, 2023 for a period of more than six months from the date on when they become payable except the following:

Statutory Dues as on 31.03.2023
SI No. Nature of Dues Amount involved (In Lakhs)
1 Excise Duty Payable 407.04
2 Income- Tax Deducted At Source 149.70
3 P.F. Payable 26.71
4 Professional Tax On Salary 9.52
5 WitTiTiolding Tax 1.39
6 Liabiilty For Gratuity Payment 0.61
7 Sales Tax Deducted At Source 0.32
3 Tcb Payable - On Outward Supply 24.16
TOTAL 619.52

b) According to the information and explanations given to us, there are no dues of Income Tax, Goods & Services Tax, Sales Tax, Value Added Tax, Service Tax, Customs Duty, Excise Duty and Cess which have not been deposited with the appropriate authorities on account of any dispute except the following cases:

Statement of Disputed Dues
Name of Hie Statute Nature of Dues Amount (Rs. In Lac s ) Period to which the amount relates Forum where the Dispute is pending
354.53 A. Y. 2003-09 Inc erne Tax Appellate Tribunal (ITAT)
41.39 A. Y. 2009-10 Commissioner of Income Tax-Appeal (Kolkata)
9,299.55 A. Y. 2011-12 Inc ome Tax Appellate Tribunal {ITAT)
Inc ome Tax Ac t. 1961 11,300.06 A. Y. 2012-13 Income Tax Appellate Tribunal (ITAT)
Inc cune Tax 5,007.30 A. Y. 2013-14 lire ome Tax Appellate Tribunal (ITAT)
24.50 A Y 2016-17 Commissioner of lire ome Tax-Appeal {Kolkata)
67.12 A.Y. 2017-13 Commissioner of Income Tax-Appeal (Kolkata)
007 A Y. 2018-19 C ommissioner of Income Tax-Appeal (Kolkata)
TOTAL 26,594.57
222.89 J.Y. 2005-06 Sr. Joint Commissioner of Commercial Taxes, Dharmiala Circle.
91791 J.Y. 2006-07 Sr. Joint Commissioner of Commercial Taxes, Dharmiala Circle.
92.94 J.Y. 2006-07 Joint Commissioner of Commercial Taxes, Purulia Ran?e
358.17 J.Y. 2007-08 Sr. Joint Commissioner of Commercial Taxes, Dharmiala Circle.
WJJ. VAT Act Sale Rs. Tax 87.95 J.Y. 2007-08 Joint Commissioner of Commercial Taxes, Dur?apur Ran?e
1,946.52 J.Y. 2008-09 Deputy Commissioner of Commercial Taxes
3,065.52 J.Y. 2015-16 Special Commissioner of Commercial Taxes, Dharamtala Circle
3.57 J.Y. 2016-17 Joint Commissioner of Commercial Taxes
96.06 J.Y. 2017-18 Joint Commissioner of Commercial Taxes
TOTAL 6,795.43
403.00 F.Y. 2012-13 SR.Joint Commissioner of Commercial Tastes^ Oharamtala Circle
335.05 E.Y. 2013-14 SR.Joint Commissioner of Commercial Taxes, L-TU Govt, of India
Entry Tax Entry Tax 353.95 F.Y. 2014-15 SR.Joint Conunissioner of Commercial Taxes, L-TL Govt, of India
21024 F.Y. 2015-16 Joint Commissioner of Commercial Taxes, L-TU Govt, of India
27.67 F.Y. 2016-17 Joint Commissioner of Commercial Taxes
3155 F.Y. 2017-13 Joint Commissioner of Commercial Taxes
TOTAL 1,412.39
36.66 September 200/ and January 2003 CESTAT
30.91 0102 2012 to 2712 2012 Commissioner Appeal, Siliguri
75.74 2003-2009

2009-2010

CESTAT
13260 200S-2009

2009-2010

CESTAT
The Central Excise Act, 1944 Excise Duty 73.42 August 2009 to February 2011 CESTAT
1,309.48 2010-2014 DGCE, New Delhi
065 2010-11 Bolpur Commissionerate
59.36 2010-11 CESTAT
3.00 2011-12 Commissioner of Central Excise, Kotkata-IV
934.17 2014-17 CESTAT
156.41 2013-14 Durgapur Commissionerate
310.05 2012-13 CESTAT
TOT AT 3,672.45
Service Tax Rules, 2012 Service Tax 4.33 2007 Durgapur Commissionerate
TOTAL 4.33
GRAND TOTAT 12,128.68

(viii) According to the information and explanation given to us and based on our examination of the books of accounts and other records there were no transactions unrecorded in the books of account and which were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 as income during the year.

(ix) a) Based upon the audit procedures performed and according to the records of the Company examined by us and the information and explanation given to us, the Company has defaulted in payment of interest and repayment of principal on borrowings to banks as follows:

In case of Long Term Borrowings:

Particulars Nature Principal Interest (Net of Reversal) Period of Default
UCO Bank 888. 72 109.60 OctoberlS to 1,1 arch23
Syndicate Bank 208.43 2691 October15 to March23
Corporation Bank 1,418.17 385.16 January16 to March123
Financial Institution-Asset Care & Reconstruction Enterprises Ltd. (ACRE) ITTL 11,875.79 719.65 October15 to March23
Financial Institution-Rare Asset Reconstruction Ltd. (RARE) 705.40 72.32 October15 to March23
TOTAL 15,096.51 1,313.64
UCO Bank 2,018.00 174.48 Februarv16 to March23
Syndicate Bank 500.00 416.25 February16 to March23
Corporation Bank 11.00 7.50 March16 to March23
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) WCTL-i 7,831.00 748.61 December15 to March23
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) 154.00 12.52 November!5 to March23
TOTAL 10,514.00 1,359.36
UCO Bank 820.00 71.42 February16 to March23
Corporation Bank 848.00 574.08 March16 to March23
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) WCTL-2 9,171.99 81.27 January 16 to March 23
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) 744.00 60.47 December!5 to March23
TOTAL 11,583.99 787.24
Corporation Bank 5,500.00 3,057.18 November!5 to March23
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) 33879 00 2,124.01 November15 to March23
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) Term Loan 2,042.00 166.04 E>ecember 15 to March23
Financial Institution - Alchemist Asset Reconstruction Company Ltd. 483.43 - OctoberT4 to March23
TOTAL 41,904.43 5,347.23
GRAND TOTAL 79,098.93 8,807.47

111 case of Short Term Borrowings :

Particulars Nature Principal Interest (Net of Reversals) Period of Default
Corporation Bank 1,290.59 001 December! 5 to March23
Syndicate Bank 2,276.63 002 November15 to March23
UCO Bank 4,129.27 004 5eptemberT5 to March23
Financial Institution - Rare Asset Reconstruction Ltd. (RARE) Cash Credit 1,46180 001 October15 to March23
Financial Institution - Asset Care & Reconstruction Enterprises Ltd. (ACRE) 24,046.11 - September!5 to March23
TOTAL 33,204.40 0.09

In absence of the settlement agreement with ARC (RARE & ACRE) the maturity period is continued to be shown as per earlier terms with respective banks and outstanding amount till March, 2023 is shown as default and the un-provided liability amounting to Rs.95,913.89 Lacs, as referred in Note No. 28 of the Financial Statements, also continued to be a default. The Company does not have any loans and borrowings from Government and has not issued any debentures.

b) According to the information and explanations given to us and based on our examination of the other records, the company has not been declared as a willful defaulter by any bank or financial institutions or other lender. Hence reporting of information under clause 3 (ix) (b) of the said Order is not applicable.

c) According to the information and explanations given to us and based on our examination of the financial statements of the Company, we report that the company has not taken term loan during the year. Hence reporting of information under clause 3(ix) (c) of the said Order is not applicable.

d) As mentioned above, the company not taken any loans or other borrowings from lenders during the year. Hence, reporting of information whether funds raised on short term basis have been utilized for long term purposes under clause 3 (ix) (d) of the said Order is not applicable.

e) According to the information and explanations given to us and based on our examination of the other records, the company does not have any subsidiaries, associates or joint ventures. Hence reporting of information under clause 3 (ix) (e) & (f) of the said Order is not applicable.

(x) a) Based upon the audit procedures performed and the information and explanations given to us, the company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Hence, reporting of information under clause 3 (x) (a) of the said Order is not applicable.

b) According to the information and explanations given to us and based on our examination of the records, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures (fully, partially or optionally convertible) during the year. Therefore, reporting of information under clause 3 (x) (b) of the said Order is not applicable.

(xi) a) Based upon the audit procedures performed and the information and explanations given by the management, no fraud on the company or by the company has been noticed or reported during the year.

b) According to the information and explanations given by the management, 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 Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.

c) According to provision of section 177(9) of the Companies Act 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 establishment of Vigil Mechanism or Whistle - Blower Policy under SEBI LODR Regulations is applicable to the company. As per information and explanation provided to us by the management, no Whistle - Blower Complaints received by the company during the year.

(xii) As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the reporting under Clause 3(xii)(a) to (c) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us by the management, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.

(xiv) a) In our opinion and according to the information and explanation given to us, the Company has an internal audit system commensurate with the size and nature of its business.

b) The company has furnished us reports of the Internal Auditors for the period under audit which were considered by us in the course of Audit.

(xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the reporting in respect of compliance of provisions of section 192 of the Companies Act 2013 is not required.

(xvi) a) Based upon the audit procedures performed and the information and explanations given by the management, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.

b) Based upon the audit procedures performed and the information and explanations given by the management, the company has not conducted any Non-Banking Financial or Housing Finance Activities without a valid certificate of registration (CoR) from Reserve Bank of India.

c) Based upon the audit procedures performed and the information and explanations given by the management, the company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve bank of India. Therefore, reporting under clause 3 (xvi) (c) of the said Order is not applicable.

d) Based upon the audit procedures performed and the information and explanations given by the management, the Group does not have any Core Investment Company (CIC) as part of Group. Therefore, reporting under clause 3 (xvi) (d) of the said Order is not applicable.

(xvii) In our opinion and according to the information and explanations given to us, the Company has incurred cash losses during the financial year and in the immediately preceding financial year. Except for the possible effect of the matter described in the basis for qualified opinion section of our report, the cash losses incurred by the company are as follows:

Financial Year Cash Losses (Rs. in Lacs)
2022-23 6,272.79
2021-22 901.17

(xviii) According to the information and explanations given to us and based on our examination of the records of the Company, there has not been any resignation of the statutory auditors of the company during the year. Accordingly, reporting under clause 3(xviii) of the Order is not applicable.

(xix) Based upon 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 given 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) Section 135 of the Companies Act 2013 is not applicable to the company. Accordingly, reporting under clause 3 (xx) (a)&(b) of the said Order is not applicable.

(xxi) The Company is not required to prepare Consolidated Financial Statements. Accordingly, clause 3(xxi) of the Order is not applicable.

For J.B.S & Company
Chartered Accountants
FRN: 323734E
C.A. Gouranga Paul
Place: Kolkata Partner
Date: 30th May, 2023 Membership No. 063711
UDIN: 23063711BGWNMU2744

"ANNEXURE B" TO INDEPENDENT AUDITORS REPORT

Report on the Internal Financial Controls over Financial Reporting 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 ANKIT METAL & POWER LIMITED ("the Company") as of 31st March, 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 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") issued by the Institute of Chartered Accountants of India and the Standards on Auditing issued by ICAI and 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 financial reporting and the preparation of Financial Statements for external purposes in accordance with generally accepted accounting principles. A Companys Internal Financial Control over Financial Reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Financial Statements in accordance with Generally Accepted Accounting Principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have a material effect on the Financial Statements.

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 31st March 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 J.B.S & Company
Chartered Accountants
FRN: 323734E
C.A. Gouranga Paul
Partner
Membership No. 063711
UDIN: 23063711BGWNMU2744
Place: Kolkata
Date: 30th May, 2023