To the Members of ATLANTA INFRASTRUCTURE AND FINANCE LIMITED Report on Audit of the
Standalone Ind AS Financial Statements
I have audited the accompanying Ind AS financial statements of ATLANTA INFRASTRUCTURE
AND FINANCE 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 are 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 the 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 in order 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 long-term 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
Chartered Accountants
ICAI Firm Registration No. 148158W
Sd/-
(VARUN LOTIA) |
Place: Rajkot |
Proprietor
Membership No. 181289 UDIN: 23181289BGWYEX6726 |
Date: 27/05/2023 |
"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 property, plant and equipment 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:
As explained to me, physical verification of inventories have been conducted at
reasonable intervals by the management, which in my opinion is reasonable, having regard
to the size of the Company and nature of its inventories. As informed to me, no material
discrepancies were noticed on such physical verification.
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 11 parties and amount involved is Rs.11.58 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 is 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. 11.58 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.
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 assessments 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 by the management of 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 by the management of 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 by the management of 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 by the management 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 sub-section (12) of
section 143 of the Companies Act has been filed by the auditors in Form ADT-4 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 whistle-blower 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 to me by the management and
based on my examination of the records of the Company, the company has not entered into
any non-cash transactions with directors or persons connected with him;
17. According to the information and explanations given to me, the provisions of
section 45-IA 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 realisation 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 LOTIA) |
Place: Rajkot |
Proprietor
Membership No. 181289 UDIN: 23181289BGWYEX6726 |
Date:27/05/2023 |
"Annexure B" to the Independent Auditors Report
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section
143 of the Companies Act, 2013 (the Act")
I have audited the internal financial controls over financial reporting of Atlanta
Infrastructure and Finance 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 LOTIA) |
Place: Rajkot |
Proprietor
Membership No. 181289 UDIN: 23181289BGWYEX6726 |
Date:27/05/2023 |
+91-9892691696
