To,
Board of Directors of
Atcom Technologies Limited
Report on the audit of the Standalone Financial Results Disclaimer of Opinion
We were engaged to audit the accompanying statement of standalone financial results of
Atcom Technologies
Limited (8the Company9) for the quarter and year ended March 31, 2023
(8the statement9) attached herewith, being submitted by the Company pursuant to the
requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended.
In absence of any sufficient appropriate audit evidences regarding certainty, quantum
and time frame for recovery from Trade receivable, Loan to subsidiary (including
interest), outcome of pending legal action initiated against debtors and legal cases/ /
insolvency proceedings initiated by banks against company for recovery of loans and
possession of Companys properties, transfer of banks dues in favor of ARC, other factors
such as non-availability of confirmations of Trade Receivables, Trade payables, Borrowings
and bank accounts, non-payment of Trade payables and other liabilities including statutory
dues, non-availability of finance due to
recalling of the bank finance and attachment of bank accounts by Income tax department
against its dues, impact of actions and forthcoming actions that may be taken by various
legal and statutory authorities due to various factors mentioned herein etc and in view of
multiple uncertainties as stated above we are unable to determine the possible effect on
the financial result and ability of the company to continue as a going concern.
Because of the significance of the matters described in the Basis of Disclaimer of
Opinion section of our report, absence of sufficient appropriate audit evidences and
Material uncertainty related to Going Concern paragraph below, it is not possible to form
an opinion on the financial results due to the potential interaction of the uncertainties
and their possible cumulative effect on the standalone financial results. Accordingly, we
do not express an opinion on the standalone financial results.
Basis of Disclaimer of Opinion
(a) The company has not translated following monetary items denominated in foreign
currency as at year ended closing rate and has been carried forward at the rate as at 31st
March 2015, 31st March 2016, and / or 31st March 2017, which is not in accordance with
Ind-AS -21 "The Effect of changes in Foreign Exchange Rates" and accounting
policy followed by the Company.
Basis for Qualified Opinion
1. the company has accumulated losses and its net-worth has been substantially eroded.
The Company is currently under liquidation in the High Court. Further the Company has also
filed a scheme of rearrangement & compromise with the NCLT. These conditions state
that a material uncertainty exists that may cast significant doubt57 on theentity9s
ability to continue as a going concern.
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 Auditor9s
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
believethat the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified 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 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.
The matters described under the Basis for Qualified Opinion section were determined to
be key audit matters to be communicated in our audit report.
Information Other than the Financial Statements and Auditor9s Report Thereon
The Company9s Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Board9s Report including Annexures to Board9s Report, Business Responsibility Report,
Corporate Governance and Shareholder9s Information, but does not include the standalone
financial statements and our auditor9s report thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone 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.
Management9s Responsibility for the Standalone Financial Statements.
The Company9s Board of Directors is responsible for the matters stated in section134(5)
of the Companies Act, 2013 (<the Act=) with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position,
financial performance, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent;
anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereopera
ting 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
58 or error.
In preparing the financial statements, management is responsible for assessing the
Company9s 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 Company9s financial
reporting process.
Auditor9s 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 auditor9s 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 andare 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 material misstatement of the standalone
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
" Obtain an understanding of internal financial 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 the management.
" Conclude on the appropriateness of management9s 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 Company9s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor9s report to the related disclosures in
the standalone financial statements or, if such disclosures are inadequate, to modify our
opinion.
Our conclusions are based on the audit evidence obtained up to the date of our
auditor9s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
" Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditor9s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by 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 ouraudit;
b. Inouropinion, properbooksofaccountasrequiredbylawhave beenkeptbytheCompanyinso far
as it appears from our examination of thosebooks;
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this
Report are in agreement with the relevant books ofaccount.
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the
Indian Accounting Standards prescribed under section 133 of the Act read with relevant
rules issued thereunder.
e. On the basis of the written representations received from the directors as on 31st
March, 2023and 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 theAct; f. With respect to the adequacy of the internal financial
controls over financial reporting of the Company and the operating effectiveness of such
controls, refer to our separate Report in <Annexure A=
g. With respect to the other matters to be included in the Auditor9s 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 Tous:
(i) the company has disclosed the impact of pending litigations on its financial
position in its standalone Ind AS financial statements. Refer Notes to the standalone Ind
AS 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 has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company during the year ended 31st
March, 2023.
2. With respect to the matter to be included in the Auditor9s Report under section
197(16) of the Act: In our opinion and according to the information and explanations given
to us, the Company has not paid any remuneration to its directors during the current year.
Therefore, comment on whether the remuneration paid to any director is in excess of the
limit laid down under said section of the Act has not been given.
3. As required by the Companies (Auditor9s Report) Order, 2020 (<the Order=) issued
by the Central Government in terms of Section 143(11) of the Act, we give in <Annexure
B= a statement on the matters specified in paragraphs 3 and 4 of the Order.
For Gada Chheda & Co. LLP Chartered Accountants
Ronak Gada Designated Partner Membership No. 146825
Firm9s Registration No. W100059 Place of Signature: Mumbai
Date:30/05/2023
UDIN:23146825BGWQVV8522
Annexure - A to the Independent Auditor9s Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act,
2013 (<the Act=) referred to in paragraph 2(f) on Report on Other Legal and
Regulatory Requirements of our report.
We have audited the internal financial controls over financial reporting of Atcom
Technologies 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.
Management9s Responsibility for Internal Financial Controls
The Company9s 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 (8ICAI9). 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 company9s 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.
Auditors9 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 auditor9s 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 Company9s 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 procedure sth at
(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 prevent io nor timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have
amaterial 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.
Disclaimer of Opinion
According to the information and explanation given to us, the Company has not
established its internal financial controls over financial reporting on criteria based on
or 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.
Because of this reason, we are unable to obtain sufficient appropriate audit evidence
to provide a basis for my / our opinion whether the Company had adequate internal
financial controls over financial reporting and whether such internal financial controls
were operating effectively as at 31st March, 2023.
Annexure B to the Auditors9 Report
Annexure <B= to the Independent Auditors9 Report of even date to the members of
Atcom Technologies
Limited on the standalone financial statements for the year ended 31st March 2023.
Referred to in paragraph 1 under 8Report on Other Legal and Regulatory Requirements9
section of our report to the
Members Atcom Technologies Limitedof even date.)
1. Details of tangible and intangible assets:
" The Company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipment;
" The Company has a regular programme of physical verification of its fixed assets
by which fixed assets are verified in a phased manner over a period of three years. In
accordance with this programme, certain fixed assets were verified during the year and no
material discrepancies were noticed on such verification. In our opinion, this periodicity
of physical verification is reasonable having regard to the size of the Company and the
nature of its assets.
" Whether the title deeds pertaining to the immovable properties (except
properties which are leased by the company with duly executed lease agreements in the
company9s favour) disclosed in the financial statements are held in the name of the
company.
" According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not revalued its property,
plant and equipment (including right of use assets) or intangible assets or both during
the year.
" According to the information and explanations given to us and on the basis of
our examination of the records of the Company, there are no proceedings initiated or
pending against the Company for holding any benami property under the Prohibition of
Benami Property Transactions Act, 1988 and rules made thereunder.
2. Details of inventory and working capital:
(a) As informed to us, the physical verification of the inventories was done by the
management at reasonable intervals at the end of each month and for year end. We have
received confirmation with respect to inventories lying with third parties. In our
opinion, the frequency of verification is reasonable. Further, on the basis of our
examination of the records, the Company is generally maintaining proper records of its
inventories. No material discrepancy was noticed on physical verification of stocks by the
management as compared to book records.
3. Details of investments, any guarantee or security or advances or loans given
a) The company has not made any investments during the year, neither given any
guarantee or security nor granted any loans or advances which are characterised as loans,
unsecured or secured, to LLPs, firms or companies or any other person.
b) According to information and explanation given to us, the company has not provided
any loans or advances, or given guarantee, or given security to any other entity or any
other person, Accordingly, clause 3 (3) of the Order is not applicable.
4. Compliance in respect of a loan to directors
64
The Company has not granted any loan under section 185 of the Act. The Company has
complied with the provisions of section 186 of the Act, with respect to the investment and
guarantees. The Company has neither given any security nor given any loans during the
year.
5. Compliance in respect of deposits accepted
According to the information and explanations given to us, the Company has not accepted
any deposits from the public as per the provisions of section 73 to 76 of the Act and
rules framed thereunder, and accordingly, the provisions of Clause (v) of Para 3 of the
Order are not applicable to the Company.
6. Maintenance of costing records
We have broadly reviewed accounts and records maintained by the Company pursuant to the
rules made by the Central Government for the maintenance of cost records under section (1)
of Section 148 of the Act, related to manufacture of specialty petroleum products and are
of the opinion that prima facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of records with a view to
determine whether they are accurate.
7. Deposit of statutory liabilities:
a) Undisputed statutory dues, including Goods and Service tax, Provident Fund,
Employees9 State Insurance,
Income-tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax,
cess and other material statutory dues applicable to the Company have been regularly
deposited by it with the appropriate authorities in all cases during the year.
Name of the statute |
Nature of dues |
Amount(in Rs.) |
Period to Which the amount relates |
Forum where dispute is pending |
Customs Act |
Custom Duty |
45,80,710 |
2006- 2007 |
Not paid till date |
b) In Our Opinion there were undisputed amounts payable in respect of Goods and Service
tax, Provident Fund, Employees9 State Insurance, Income-tax, Sales Tax, Service Tax, duty
of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues in
arrears as at 31st March, 2023 for a period of more than six months from the date they
became payable.
Name of the Statute |
Nature of Dues |
Amount disputed (In lacs) |
Period to which the amount relates(F.Y.) |
Forum where dispute is pending |
| Maharashra |
Tax & |
.73 |
2011- 2022 |
Sales Tax |
Value added Tax Central Excise Act,1944 |
Interest Tax Interes t & Penalty |
316.98 |
1997-98 To 2002- 03 |
tribunal The Commission of Central Excise - Daman |
c) According to the information and explanation given to us, the records of the company
examined by us, the dues outstanding of Income-tax, VAT, Excise duty, Service tax, Custom
duty, Goods and Service tax, Cess or/and any other material statutory dues wherever
applicable, which have not been deposited on account of any dispute, except the following;
8. Unrecorded income
According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not surrendered or disclosed
any transactions, previously unrecorded as income in the books of account, in the tax
assessments under the Income Tax Act, 1961 as income during the year.
9. Default in repayment of borrowings
a) In our opinion and according to the information and explanations given to us, the
Company has defaulted in the repayment of dues to banks financial institutions, government
or dues to debenture holders. Details are as Follows
| Name of the Lender |
Amount of default as at the Balance sheet date |
Period of default |
Remarks |
| State Bank of Patiala |
974.32 Lacs |
0 to 182 months |
State Bank of Patiala has assigned all its Financial assistance to Invent
Assets Securitization & Reconstruction Private Limited, which has been further
assigned to LKP Finance Ltd |
| SICOM Limited |
464.68 Lacs |
0 to 182 months |
SICOM Ltd has assigned all its financial assistance to to LKP Finance Ltd |
| IFCI Limited |
3,542.95 Lacs |
0 to 182 months |
IFCI Limited has assigned all its financial assistance to CFM Assets
Reconstruction Co. Private Limited, which has been further assigned to LKP Finance Ltd |
| IDBI Limited State Bank of India |
866.63 Lacs 1,086.55 Lacs |
0 to 182 months 0 to 182 months |
The bank has begun the process to assigning its assistance to an Asset
Reconstruction Company. The Company is under the process of settling the dues through an
OTS. |
| Dena Bank |
1,585.13 Lacs |
0 to 182 months |
The Company is under the process of settling the dues through an OTS. |
| UTI Bank |
732.11 Lacs |
0 to 182 months |
The bank has begun the process of assigning its assistance to an Asset
Reconstruction Company |
| Non- Convertible Debentures |
507.13 Lacs |
0 to 182 months |
The Company is under the process of settling the dues through an OTS. |
b) Based on our audit procedures and on the basis of information and explanations given
to us, the Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
c) Based on our audit procedures and on the basis of information and explanations given
to us, the Company has not taken loan form 10 parties and there are no outstanding term
loans at the beginning of the year and hence, reporting under clause 3(ix)(c) of the Order
is not applicable.
d) on an overall examination of the financial statements of the Company, funds raised
on short- term basis have, prima facie, not been used during the year for long-term
purposes by the Company.
e) According to the information and explanations given to us and on an overall
examination of the standalone financial statements of the Company, we report that the
Company has taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, as defined in the Act. The Company does not hold any
investment in any associate or joint venture (as defined in the Act) during the year ended
31 March 2023.
f) based on our audit procedures and on the basis of information and explanations given
to us, the company has not raised loans during the year on the pledge of securities held
in its subsidiary.
10. Funds raised and utilization
The Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
11. Fraud and whistle-blower complaints
(a) Based upon the audit procedures performed and the information and explanations
given by the management, no fraud by the Company and no fraud on the Company by its
officers or employees has been noticed or reported during the year.
(b) 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 up to the date of this report.
(c) According to the information and explanations given to us, the Company not received
any whistle blower complaints during the year (and up to the date of this report), while
determining the nature, timing and extent of our audit procedures.
12. Compliance by a Nidhi
In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Accordingly, the provisions of Clause (xii) of Para 3 of
the Order are not applicable to the Company.
13. Compliance on transactions with related parties
In our opinion, the Company is in compliance with Section 177 and 188 of the Companies
Act, 2013 with respect to applicable 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.
14. Internal audit system
(a) In our opinion the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
b) 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.
15. Non-cash transactions
According to the information and explanations given to us and based on our examination
of the records of the Company, the Company has not entered into non-cash transactions with
directors or persons connected with the directors, requiring compliance with Section 192
of the Companies Act.
16. Registration under Section 45-IA of RBI Act, 1934
(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) and accordingly reporting
under clause 3(xvi)(d) of the Order is not applicable
17. Cash losses
In our opinion and according to the information and explanations given to us, The
Company has not incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
18. Resignation of statutory auditors
There has been no resignation of the statutory auditors of the Company during the year.
19. Material uncertainty
On the basis of the financial ratios, ageing and expected dates of realisation 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.
20. Transfer to fund specified under Schedule VII of Companies Act, 2013
In our opinion and according to the information and explanations given to us, the
company has not fall under the categories to spent amount under sub-section (5) of section
135 of the Act pursuant to any project. Accordingly,68 clauses 3(xx)(a) and 3(xx)(b) of
the Order as it is not applicable.
For Gada Chheda & Co. LLP Chartered Accountants
Ronak Gada Designated Partner
Membership No. 146825
Firm9s Registration No. W100059 Place of Signature: Mumbai
Date:30/05/2023
UDIN: 23146825BGWQVV8522
+91-9892691696
