To the Members of ATLANTA DEVCON LIMITED
Report on Audit of the Standalone Ind AS Financial Statements
I have audited the accompanying Ind AS financial statements of ATLANTA DEVCON LIMITED (the Company), which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein referred to as Standalone Ind AS Financial Statements).
Basis of Qualification:
1. The confirmation statements of balances outstanding in the financial statements relating to the advances given for Land Development, Purchase of Land, Purchase of Property as well as loans given to other parties have not been made available.
As a result of this matter, I was unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded transactions and loans & advances accounts in the Balance Sheet and the corresponding elements making up the Statement of Profit and Loss and Cash Flow Statement.
In my opinion and to the best of my information and according to the explanation given to me, except as specified in the basis of qualification, the aforesaid standalone Ind AS Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March, 2023,its loss including other comprehensive income, changes in equity and its cash flow for the year ended on that date.
Basis of Opinion:
I have conducted Audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. My responsibility under those Standards is further described in Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements. I am independent of the Company in accordance to the Code of Ethics issued by Institute of Chartered Accountants of India together with the ethical requirements that are relevant to my audit of the accompanying financial statements under the Act and the Rules, thereunder, and I have fulfilled other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. I believe that audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion on the standalone Ind AS financial statements.
Key Audit Matters:
Key Audit matters are those matters that in my professional judgement were of most significant in my audit of the standalone Ind AS financial statements of the current period. These matters were addressed in the context of audit of standalone Ind AS financial statements as a whole and in forming my opinion thereon and I do not provide a separate opinion on these matters. I have determined the matters described below to be the key audit matters to be communicated in my report.
Other Information:
The Companys board of the director is responsible for the preparation of the other information. The other information comprises the information included in the management discussion and analysis, boards report including annexures to boards reports, business responsibility report, corporate governance and shareholders information but doesnt include the standalone Ind AS financial statements and my auditors report thereon. My opinion on standalone Ind AS Financial statements does not cover the other information and I do not express any form of assurance conclusion thereon. In connection with my audit of the standalone Ind AS financial statements my responsibility is to read the other information and in doing so, consider whether such other information is materially inconsistent with the standalone Ind AS financial statements or my knowledge obtained during the course of my audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact, I have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the standalone Ind AS Financial Statements:
The Companys Board of Directors is responsible for the matters stated in section 134
(5) of the Companies Act,2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the standalone Ind AS financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Ind AS Financial Statements:
My responsibility is to express an opinion on these standalone Ind AS financial statements based on my audit. I have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. I have conducted the audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that I comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement, An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors judgement, including the assessment of risks of material misstatement of the standalone
Ind AS financial statements whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control over relevant to the Companys preparation of the standalone Ind AS financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances, An audit also includes evaluating appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companys Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. I am also responsible to 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 a significant doubt on the entitys ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in the auditors report to the related disclosures in the standalone Ind AS or, if such disclosures are inadequate, to modify the opinion. My conclusions are based on the audit evidence obtained upto the date of auditors report. However future events or conditions may cause an entity to cease to continue as a going concern. I believe that the audit evidence I have obtained, is sufficient and appropriate to provide a basis for my audit opinion on the standalone Ind AS financial statements. Materiality is the magnitude of misstatements, that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. I consider quantitative materiality and qualitative factors in
(1) planning the scope of my audit work and in evaluating the results of my work and
(2) to evaluate the effect of any identified misstatements in the financial statements. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant deficiencies in internal control that I identify during my audit. I also provide those charged with governance with a statement that I 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 my independence, and where applicable, related safeguards. From the matters communicated to those charged with governance, I determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended on March 31st, 2023 and therefore the key audit matters. I describe these matters in my auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so I would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditors Report) Order, 2016 (the Order) issued by the Central Government in terms of Section 143(11) of the Act, I give in Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, I report that:
(a) I have sought and obtained all the information and explanations which to the best of my knowledge and belief are necessary for the purposes of my audit; (b) In my opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from my examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, Statement of Changes in Equity and the Cash Flow Statement dealt with by this report are in agreement with the books of account;
(d) In my opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act, Except the matters specified in Basis of Qualification paragraph;
(e) On the basis of the written representation received from the directors as on 31st March,2023 taken on record by the Board of Directors, none of its director is disqualified as on 31stMarch, 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to my separate Report in "Annexure B".
(g) With respect to the other matters to be include in the Auditors Report in accordance with the Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion and to the best of my information and according to the explanations given to me:
(i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements;
(ii) The Company did not receive any longterm contracts including derivative contracts for which there were any material foreseeable losses;
(iii) there were no amounts which were transferred to the Investor Education and Protection Fund by the Company.
FOR V B L& ASSOCIATES |
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Chartered Accountants |
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ICAI Firm Registration No. 148158W |
|
Sd/ |
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(VARUN B. LOTIA) |
Place: Rajkot |
Proprietor |
Date: 27/05/2023 |
Membership No. 181289 |
|
UDIN: 23181289BGWYEW3225 |
Annexure A to the Independent Auditors Report
(Referred to in my report of even date)
With reference to the Annexure A referred to in the Independent Auditors Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31st March, 2023, I report the following:
1. In respect of Property, Plant and Equipment :
(a) The Company has no fixed assets during the year.
(b) The Company does not hold the immovable property. Therefore the provisions of Clause 3(i)(c) of the said Order are not applicable to the Company.
2. In respect of Inventories:
The Company has no Inventories during the year.
3. In respect of Loans and Advances granted during the year :
According to the information and explanations given to me, the Company has granted loans to 7 parties and amount involved is Rs.18.80 Crores to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (the Act). This is only based on management representations as I do not possess any other information on the same.
(a) The loans are interest free and the company claims that terms and conditions are not prejudicial to the companys interest as no interest bearing fund has been deployed to grant such loans.
(b) The terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the companys interest;
(c) No schedule of repayment has been stipulated and accordingly, paragraph 3
(iii)
(c) of the Order are not applicable to the Company.
(d) As per the information and explanations given to me by management of the company, the amount is overdue, amounting to Rs. 18.80 Crore for more than ninety days, and reasonable steps have been taken by the company for recovery of the principal and interest;
(e) As per the information and explanations given to me by management of the company, no loan or advance in the nature of loan granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties;
(f) As per the information and explanations given to me by management of the company, the company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.
4. Loans, Investments and Guarantees :
In my opinion and according to information and explanation given to me, the Company has complied with provisions of Section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
However confirmation of accounts for balances outstanding against loans and advances given have not been provided.
5. Deposits: As per management representation the Company has not accepted any deposits within the meaning of Section 73 to 76 or any other provisions of the Companies Act and the rules made there under, where applicable. Accordingly, the provisions of clause 3(v) of the order are not applicable. No order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal.
6. According to the information and explanation given to me, the maintenance of cost records has not been prescribed for the Company under section (1) of Section 148 of the Companies Act, 2013.
7. In respect of Statutory Dues :
(a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance. Income tax, duty of custom, goods and service tax, cess and other statutory dues applicable to it. In case of the advances received for sale of project land the Company has not provided for GST based on the professional advice for the same.
(b) According to the information and explanations given to me, no undisputed amounts payable in respect of provident fund, employees state insurance. Income tax, duty of custom, goods and service tax, cess and other material statutory dues were outstanding at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of provident fund, employees state insurance. Income tax, duty of custom, goods and service tax, cess and other statutory dues, on account of any dispute are as follows:
Name of the Statue |
Nature of Dues | Demand Raised (Amount in Rs.) | Deposit under protest (Amount in Rs.) | Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Scrutiny Assessment Demand | Rs. 7770/ | Nil/ | F.Y. 2008 09 |
CIT (Appeal) Ahmedabad) |
Income Tax Act, 1961 |
Scrutiny Assessment Demand | Rs. 5110/ | Nil/ | F.Y. 2008 09 |
As per IncomeTax Portal |
Income Tax Act, 1961 |
Rectification | Rs. 11178240/ | Nil/ | F.Y. 2011 12 |
As per IncomeTax Portal |
Income Tax Act, 1961 |
Penalty | Rs. 5,000/ | Nil/ | F.Y. 2011 12 |
As per IncomeTax Portal |
Income Tax Act, 1961 |
Penalty | Rs. 37884519/ | Nil/ | F.Y. 2011 12 |
As per IncomeTax Portal |
8. According to the information and explanations given to me, there are no transactions which are surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. Accordingly, the provisions of clause 3(viii) of the Order are not applicable.
9. Loans:
(a) In my opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowings to a financial institution, bank or government. The Company did not have any outstanding debentures during the year.
(b) According to the information and explanations given by the management, the company is not declared willful defaulter by any bank or financial institution or other lender;
(c) No term loans were applied by the company and hence the provisions of clause
(ix)
(c) are not applicable.
(d) According to the information and explanations given to me the Company and based on my examination of the records of the Company, the Company has not raised funds on short term basis and so the provisions of clause
(ix)
(d) are not applicable.
(e) According to the information and explanations given to me the company and based on my examination of the records 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, and so the provisions of clause
(ix)
(e) are not applicable.
(f) According to the information and explanations given to me the company and based on my examination of the records of the Company, the Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies, and so the provisions of clause
(ix)
(f) are not applicable.
10. a) According to the information and explanations given to me and based on my examination of the records of the Company, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and has not obtained any term loans during the year. Accordingly, paragraph 3(ix) (a) of the Order is not applicable to the Company.
b) According to the information and explanations given to me and based on my examination of the records of the Company, the Company has not done any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, paragraph 3(x) (b) of the Order is not applicable to the Company.
11. Fraud: a) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management, I report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year. b) According to the information and explanations given to me by the management and based on my examination of the records of the Company, no report under subsection
(12) of section 143 of the Companies Act has been filed by the auditors in Form ADT4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government c) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanation given by the management, I report that no whistleblower complaints have been received during the year by the company;
12. According to the information and explanations given by the management, no managerial remuneration has been paid/provided and hence provisions of section 197 read with Schedule V to the Companies Act, 2013 is not applicable to the Company.
13. According to the information and explanations given to me, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon. So clause (xii) (a) (b) (c) of the order are not applicable and hence not commented upon.
14. According to the information and explanations given by the management, transactions with the related parties are not in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable Indian Accounting Standards.
15. (xiv) (a) According to the information and explanations given to me by the management and based on my examination of the records of the Company, the company does not have an internal audit system commensurate with the size and nature of its business;
(b) According to the information and explanations given to me by the management and based on my examination of the records of the Company, no report of Internal Auditors were given to the Statutory Auditor;
16. According to the information and explanations given by the management and based on my examination of the records of the Company, the company has not entered into any noncash transactions with directors or persons connected with him;
17. According to the information and explanations given to me, the provisions of section 45IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
18. On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, the auditors knowledge of the Board of Directors and management plans, whether the auditor is of the opinion that no 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;
19. According to the information and explanations given to me, the company doesnt have any other ongoing projects and so clause (xx) (a) and (b) of the Order are not applicable to the Company;
FOR V B L& ASSOCIATES |
|
Chartered Accountants |
|
ICAI Firm Registration No. 148158W |
|
Sd/ |
|
(VARUN B. LOTIA) |
Place: Rajkot |
Proprietor |
Date:27/05/2023 |
Membership No. 181289 |
|
UDIN: 23181289BGWYEW3225 |
Annexure B to the Independent Auditors Report
Report on the Internal Financial Controls under Clause (i) of subsection 3 of section 143 of the Companies Act, 2013 (the Act)
I have audited the internal financial controls over financial reporting of Atlanta Devcon Limited(the Company) as of March 31st, 2023 in conjunction with my audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring orderly and efficient conduct of its business, including adherence to the 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
My responsibility is to express an opinion to the Companys internal financial controls over financial reporting based on my audit. I conducted my audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and both issued by the Institute of Chartered Accountants of India. Those Standards and Guidance Note require that I comply with the ethical requirements and plan and perform the audit to 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 aspects.
My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My audit of internal financial controls over financial reporting included obtaining and 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 judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis of my audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial controls 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 controls over financial reporting includes those policies and procedures that: (1) Pertain to the maintenance of records that, in reasonable details, 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 the receipts and expenditures of the Company are being made only in accordance with authorizations of the 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 inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to fraud or error may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to the future period are subject to the risk that internal financial controls 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 my opinion, the Company has, in all material respects, an adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31st, 2023, based on the internal financial controls over financial reporting criteria established by the Company considering the essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
FOR V B L& ASSOCIATES |
|
Chartered Accountants |
|
ICAI Firm Registration No. 148158W |
|
Sd/ |
|
(VARUN B. LOTIA) |
Place: Rajkot |
Proprietor |
Date: 27/05/2023 |
Membership No. 181289 |
|
UDIN: 23181289BGWYEW3225 |
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