To the Members of AVSL INDUSTRIES LIMITED
Report on the Standalone Financial Statements
OPINION
We have audited the accompanying financial statements of AVSL INDUSTRIES LIMITED
(‘the Company), which comprise the balance sheet as at 31st March 2023,
the statement of profit and loss and the Statement of Cash Flows for the year ended on 31st
March, 2023 and a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in the conformity with the accounting principles generally accepted in India, of
the State of Affairs of the Company as at 31st March, 2023 and its profit and
total comprehensive income and its Cash flows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section
143(10) of the Act (SAs). Our responsibilities under those SAs are further described in
the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (ICAI) together with the ethical requirements
that are relevant to our audit of the financial statements under the provisions of the Act
and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
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
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Companys Board of Directors are responsible for the preparation of others
information. The other information comprises the information included in the Boards
report but does not include the financial statements and our Auditors 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 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
in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE 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 financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with the Companies (Accounts) Rules, 2014 as amended.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies, making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
AUDITORS RESPONSIBILITY
Our objective are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error and to issue
an auditors report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee than the audit conducted in accordance with the SAs will
always detect a material misstatement when it exists. Misstatement can arise from fraud or
error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks and obtain audit evidence that is 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 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 with reference to financial statements in place and
the operating effectiveness of such controls.
Evaluate the appropriateness of the accounting policies used and the reasonableness of
the accounting estimates and related disclosures made by management.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the 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 auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central
Government of India in terms of Section 143 (11) of the Companies Act, 2013, we enclose
in the "Annexure A" hereto a statement on the matters specified in the paragraph
3 and 4 of the Order, to the extent applicable to the Company.
2. As required by Section 143 (3) of the Act, based on our audit we report to the
extent applicable that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards prescribed under Section 133 of the Act read with Rule 7 of the
Companies (Accounts) Rules, 2014 except non provision of retiring benefits of employees
required as per accounting standard 15;
(e) on the basis of the written representations received from the directors as on 31st
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March 2023 from being appointed as a director in terms
of Section 164 (2) of the Act;
(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
B" to this report; Our report expresses an unmodified opinion on the adequacy and
operating effectiveness of the Companys internal financial controls over financial
reporting.
(g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
(i) The Company does not have any pending litigations as at 31st March 2023
which would materially impact its financial position.
(ii) The Company did not have any long-term contracts including derivative contracts as
at 31st March 2023.
(iii) As at 31st March 2023, there were no amounts which were required to be
transferred to the Investor Education and Protection Fund by the Company.
(h) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act:
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 of the Act read with schedule V in terms of requisite
approvals obtained as mandate therein and is not in excess of the limit.
FOR & ON BEHALF OF
MAMRAJ & CO.
CHARTERED ACCOUNTANTS
FRN NO. 006396N
Sd/-
CA PRAVEEN GUPTA
PARTNER
M.No:093403
Place: Delhi
Date: 30th May, 2023
UDIN: 23093403BGXRSS1056
ANNEXURE ATO THE INDEPENDENT AUDITORS REPORT
In terms of the information and explanations sought by us and given to us by the
management of the company and on the basis of such checks of the books and records of the
company during the course of audit and to the best of our knowledge and belief, we further
report that:
1. In respect of the fixed assets:
a) According to the information and explanations given to us, the company has
maintained proper records of property, plant & equipment and Capital Work-in-Progress
showing full particulars including quantitative details and situation of property, plant
& equipment and Capital Work-in-Progress.
According to the information and explanations given to us, the company has maintained
proper records showing full particulars of intangible assets.
b) As explained to us, the property, plant & equipment and Capital work-in-progress
have been physically verified by the management at reasonable intervals during the year.
To the best of our knowledge, no material discrepancies have been noticed on such
verification or have been reported to us.
c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties (other
than properties where the company is the lessee and the lease agreements are duly executed
in favour of the lessee) disclosed in the financial statements.
d) The Company has not revalued any of its property, plant and equipment and intangible
assets during the year.
e) According to the information and explanations given to us no proceedings have been
initiated during the year or are pending against the Company as at March 31, 2022 for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.
2. In respect of the inventories:
a) The inventories have been physical verified by the management of the Company during
the year at a reasonable interval. In our opinion, the frequency of variation, coverage
and procedure of such verification is reasonable and appropriate. No material
discrepancies were noticed on such verification.
b) According to the information and explanations given to us, the Company has been
sanctioned working capital limits in excess of Rs 5 crores, in aggregate, from banks or
financial institutions on the basis of security of current assets. The variation in
quarterly statements filed with such banks and financial institution with books of
accounts has been suitably explained in note no. 11 of financial statements annexed with
this report
3. Investments/Guarantee/Security/Loans/Advances Granted:
According to information and explanations given to us, during the year the company has
not made any investments in, provided any guarantee or security or granted or provided any
loans or advances in the nature of loans to any Company, Firms, Limited Liability
Partnerships or Other Parties hence other matters related thereto referred to in clause
iii of The Companies (Auditors Report) Order, 2020 are not applicable.
4. In our opinion and according to the information and explanations given to us, the
Company has not either directly or indirectly, granted any loan to any of its directors or
to any other person in whom the director is interested, in accordance with the provisions
of section 185 of the Act and the Company has not made investments through more than two
layers of investment companies in accordance with the provisions of section 186 of the
Act. Accordingly, provisions stated in paragraph 3(iv) of the Order are not applicable to
the Company.
5. According to the information and explanations given to us, the Company has not
accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of
the Act and the rules framed there under.
6. As per information and explanations given to us, the company is not required to make
and maintain the cost records and accounts as prescribed by The Central Government under
Section 148(1) of the Companies Act, 2013.
7. In respect of Statutory dues:-
a) According to the information and explanations furnished to us, in our opinion the
company is generally regular in depositing with appropriate authorities undisputed
statutory dues T.D.S., GST, Employee Provident Fund, ESIC and other material statutory
dues applicable to it. There has been no outstanding as at 31st March 2023 of
undisputed liabilities outstanding for more than six months.
b) According to the information and explanations furnished to us and so far as appears
from our examination of books of account, there were no statutory dues outstanding as at
31st March 2023 which have not been deposited on account of any dispute.
8. According to the information and explanations given to us and so far as appears from
our examination of books of account and other records as applicable, there were no
transactions relating to previously unrecorded income that were surrendered or disclosed
as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the
year.
9. In respect of Loans & Other Borrowings:
a) According to the information and explanations given to us, the company has repaid
the principal amount and made payment of interest on loans or borrowings taken by it from
banks.
b) According to the information and explanations given to us so far as appears from our
examination of relevant records, we are of the opinion that the company has not been
declared willful defaulter by any bank or financial institution or any other lender.
c) In our opinion and according to the information and explanations given to us, the
company has applied the term loans during the year have been applied for the purpose for
which they were raised.
d) According to the information and explanations given to us, and the audit procedures
performed by us, and on an overall examination of the financial statements of the company
for the year, we are of the opinion that 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 financial statements of the company, we report that the company has not
taken any funds during the year from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures, if any and hence reporting
under clause 3(ix)(e) of the Order is not applicable.
f) According to the information and explanations given to us and audit procedures
performed by us, we report that the company has not raised any loan during the year on the
pledge of securities held in its subsidiaries, joint ventures or associate companies, if
any and hence reporting under clause 3(ix)(f) of the Order is not applicable.
10. In respect of moneys raised by issue of securities:
a) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not raised any 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.
b) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or convertible debentures (fully, partially or
optionally convertible) during the year and hence reporting under clause 3(x)(b) of the
Order is not applicable.
11. In respect of Frauds and Whistle Blower Complaints:
a) According to the information and explanations given to us and to the best of our
knowledge, no material fraud by the Company or on the Company has been noticed or reported
to us during the year.
b) No report under sub-section (12) of Section 143 of the Companies Act has been filed
in form AOC-4 as prescribed under rule 13 of the Companies (Audit and Auditors) Rules,
2014 with the Central Government during the year. According to the information and
explanations given to us, the Company during the course of audit of the financial
statement for the year ended 31st March, 2023, the order is not applicable
during the year.
c) As per section 177 of the Act, the Company established vigil mechanism. Hence, there
are no whistle blower complaints were received by the Company during the year.
12. The company is not a Nidhi Company; therefore, the provisions of Nidhi companies
are not applicable on the company.
13. According to the information and explanations given to us the Company is in
compliance with the provisions of section 177 and 188 of the Companies Act 2013 where
applicable for the related party transactions and the details of related party
transactions have been disclosed in the notes of the financial statements in accordance
with the applicable Accounting Standards.
14. In respect of Internal Audit:
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 held discussions with the internal auditor of the Company for the year under
audit and considered their opinion in determining the nature, timing and extent of our
audit procedure.
15. According to the information and explanations given to us, the Company has not
entered into non-cash transactions with directors or persons connected with him.
Accordingly, paragraph 3(xv) of the Order is not applicable.
16. In respect of Registration under Section 45-IA of the Reserve Bank of India Act,
1934/CIC-
a) As the company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934 (2 of 1934), clause (xvi)(a) of paragraph 3 of The Companies
(Auditors Report) Order, 2020 is not applicable to it.
b) According to the information and explanations given to us, the Company has not
conducted any Non-Banking Financial or Housing Finance activities during the year and
clause (xvi)(b) of paragraph 3 of The Companies (Auditors Report) Order, 2020 is not
applicable to it.
c) As the company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India, clause (xvi)(c) of paragraph 3 of The Companies
(Auditors Report) Order, 2020 is not applicable to it.
d) According to the information and explanations given to us, the company has no Core
Investment Company (CIC) as part of its group, clause (xvi)(c) of paragraph 3 of The
Companies (Auditors Report) Order, 2020 is not applicable to it.
17. The Company has not incurred cash losses in the financial year covered by our
audit.
18. There has been no resignation of the statutory auditors of the Company during the
year and hence reporting under clause (xviii) of paragraph 3 of The Companies (Auditors
Report) Order, 2020 is not applicable.
19. According to the information and explanations given to us and 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, 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 that
the 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. According to the information and explanations given to us, the provisions of
section 135 of the Act are applicable to the Company. The Company has made the required
contributions during the year and there are no unspent amounts which are required to be
transferred to the special account as on the date of our audit report. Accordingly, the
provisions of paragraph (xx)(a) to (b) of the Order are not applicable to the Company.
FOR & ON BEHALF OF
MAMRAJ & CO.
CHARTERED ACCOUNTANTS
FRN NO. 006396N
Sd/-
CA PRAVEEN GUPTA
PARTNER
M.No: 093403
Place: Delhi
Date: 30th May, 2023
UDIN: 23093403BGXRSS1056
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AVSL
INDUSTRIES LIMITED (the Company) as on 31st March 2023 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India
(‘ICAI).
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance note on Audit of Internal financial controls over financial reporting
("the Guidance Note") and the standards on Auditing prescribed under section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements. Inherent Limitations of Internal Financial
Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion and the best of our information and according the information and
explanations given to us, the Company has, in all material respects, an adequate financial
controls system over financial reporting and such internal financial controls over
financial reporting were commensurate with the nature of the business of the Company and
operating effectively as at March 31, 2023, based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the guidance note on audit of internal financial controls over
financial reporting issued by ICAI.
FOR & ON BEHALF OF
MAMRAJ & CO.
CHARTERED ACCOUNTANTS
FRN NO. 006396N
Sd/-
CA PRAVEEN GUPTA
PARTNER
M.No: 093403
Place: Delhi
Date: 30th May, 2023
UDIN: 23093403BGXRSS1056
+91-9892691696
