To the members of
M/s CUBEX TUBINGS LIMITED
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS Financial Statements of M/s. Cubex Tubings
Limited ("the company"), which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes inEquity and the Statement of Cash Flows for the year ended on that
date and notes to the Ind AS financial statements, including 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 Ind AS Financial Statements give the information required by
the Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under Section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023 and its profit, total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the Ind AS Financial Statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Ind AS Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (ICAI) together with the independence
requirements that are relevant to our audit of the Ind AS Financial Statements under the
provisions of the Act and the Rules made there under, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Ind AS 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 Ind AS Financial Statements of the current period. These
matters were addressed in the context of our audit of the Ind AS Financial Statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
We have determined that there are no key audit matters to communicate in our report.
Information Other than the Ind AS Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexure to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the Ind AS Financial Statements and our auditors report thereon.
Our opinion on the Ind AS 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 Ind AS Financial Statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is
materially inconsistent with the Ind AS 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.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect tothe preparation of these Ind AS Financial Statements that
give a true and Fairview of the financial position, financial performance, including other
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding 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 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 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 doso.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS Financial
Statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of therein AS 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 Ind AS 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 controls relevant to the audit in
order to design audit procedures that is 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 management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists;
we are required to draw attention in our auditors report to the related disclosures in
the Ind AS Financial Statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors report. However, future events or conditions may cause the Company to cease to
continueas a going concern.
• Evaluate the overall presentation, structure and content of the Ind AS Financial
Statements, including the disclosures, and whether the Ind AS Financial Statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
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 Ind AS Financial Statements for
the financial year ended 31st March, 2023 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.
Other Matters
The comparative financial information of the Company as at and for the year ended 31st
March, 2022 prepared in accordance with Ind AS included in the Ind AS financial statements
has been audited by the predecessor auditor. The report of the predecessor auditor on such
comparative financial information dated 16Th May 2022 expressed an unmodified
opinion.
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 sub-section (11) of section 143 of
the Act, we give in the 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, based on our audit 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 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 including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Financial Statements comply with the Ind AS specified
under Section 133 of the Act, read with Companies (Ind AS) rules, 2015 as amended.
e) On the basis of the written representations received from the directors as on March
31, 2023taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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". 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 the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h) 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, as amended in
our opinion and to the best of our information and according to the explanations given to
us.
i. The Company does not have pending litigations on its financial position in its Ind
AS Financial Statements.
ii. The Company does not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Company or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented that, to the best of its knowledge and belief, other
than as disclosed in the notes to accounts, no funds have been received by the Company
from any persons or entities, including foreign entities ("Funding Parties"),
with the understanding, whether recorded in writing or otherwise, that the Company shall
directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding
Parties or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations in sub-clause (i) and (ii) of Rule 11(e), as provided
under (iv) and (v) above contain any material misstatement.
v. The company has not declared or paid any dividend during the year.
For P. Murali & Co.
Chartered Accountants
FRN: 007257S
SD/-
M.V Joshi
Partner
M.No. 024784
UDIN: 23024784BGVPLE7028
Place: Hyderabad
Date: 12.05.2023
ANNEXURE"A"TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and
Regulatory Requirements section of our report to the Members of Cubex Tubings
Limited of even date)
i. In respect of the Companys Property, Plant and Equipment and Intangible Assets:
a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property Plant & Equipment.
(B) The company does not have intangible assets.
b) As explained to us, Property Plant and Equipment have been physically verified by
the management at regular intervals; as informed to us no material discrepancies were
noticed on such verification. In our opinion, the frequency of verification is reasonable.
c) According to the information and explanations given to us and on the basis of our
examination of records of the Company, we report that, the title in respect 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 included
under Property, Plant and Equipment are held in the name of the Company as at the balance
sheet date.
d) According to the information and explanations given to us and on the basis of our
examination of records, the company has not revalued its Property, Plant and Equipment.
e) According to the information and explanations given to us and on the basis of our
examination of records of the company, no proceedings have been initiated or are pending
against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988.
ii. a) According to the information and explanations given to us and on the basis of
our examination of the records of the company, inventories have been physically verified
at reasonable intervals of time and no material discrepancies have been found.
b) The company has been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets. The quarterly returns or statements filed by the company with such banks
or financial institutions are in agreement with the books of account of the company.
iii. During the year, the Company has not made investments in, provided any guarantee
or security or granted any loans or advances, secured or unsecured to companies, Firms,
Limited Liability Partnerships or other parties.
iv. As per the information and explanation given to us and in our opinion,the Company
has not granted any loans or made any investments, or provided any guarantee or security
to the parties covered under section 185 and 186 of the Act.
v. The Company has neither accepted any deposit from the public nor accepted any
amounts which were deemed to be deposits during the year from the public within the
meaning of the provisions of section 73 to 76 of "the Act" and hence directives
issued by the reserve bank of India and the provisions of section 73 to 76 or any other
relevant provisions of "the Act" the Rules framed there under are not applicable
to the Company at present.
vi. We have broadly verified the books of accounts and records maintained by the
company relating to the copper and copper alloy products pursuant to the order made by the
Central Government for maintenance of cost records under sub-section (1) of section 148 of
the Act, and are of the opinion that, prima facie, the prescribed accounts and records
have been maintained.
We have not, however, made a detailed examination of records with a view to determine,
whether they are accurate and complete.
vii. In respect of statutory dues:
(a) According to the information and explanations given to us and based on the records
of the company examined by us, the company is regular in depositing the undisputed
statutory dues, including Provident Fund, Employees State Insurance, Income-tax, Goods
and Services Tax and other material statutory dues, as applicable, with the appropriate
authorities in India.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income-tax, Goods and Services Tax and other material statutory dues in
arrears as at 31st March 2023 for a period of more than 6 months from the date
they became payable.
(c) According to the information and explanations given to us and based on the records
of the company examined by us, there are no dues of Income tax, Goods and Service Tax and
customs duty which have not been deposited with appropriate authorities on account any
dispute.
viii. 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.
ix. (a) Based on our audit procedures and according to the information and explanations
given to us, the company has not defaulted in repayment of loans or other borrowings or in
the payment of interest thereon to any lender.
(b) According to the information and explanations given to us and on the basis of our
examination of records, the company has not been declared willful defaulter by any bank or
financial institution or other lender.
(c) In our opinion and according to the information and explanations given to us, the
company has utilized the money obtained by way of term loans during the year for the
purposes for which they were obtained.
(d) According to the information and explanations given to us and 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) The Company does not have any subsidiaries, associates or joint ventures.
x. (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally).
xi. (a) Based on examination of books and records of the Company and according to the
information and explanations given to us, no material fraud by the Company or on the
Company has been noticed or reported during the year.
(b) According to the information and explanations given to us, no report under
subsection (12) of section 143 of the Companies Act has been filed in form ADT- 4 as
prescribed under rule 13 of the companies (Audit and Auditors) Rules, 2014 with the
Central Government, during the year and upto the date of this report.
(c) As represented to us by the management, there are no whistle blower complaints
received by the company during the year.
xii. The Company is not a Nidhi Company.
xiii. 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 Financial Statements
as required by the applicable accounting standards.
xiv. (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.
xv. According to the information and explanations given to us, in our opinion, during
the year the Company has not entered into any non-cash transactions with its directors or
persons connected to its directors and hence provisions of section 192 of the Companies
Act 2013 are not applicable to the Company.
xvi. (a) The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance
activities as per the Reserve Bank of India Act, 1934.
(c) The Company is not a Core Investment Company as defined in the regulations made by
the Reserve Bank of India.
(d) The Company is not part of any group (as per the provisions of the Core Investment
Companies (Reserve Bank) Directions, 2016 as amended).
xvii. The company has not incurred cash losses during the current year and in the
immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the company during
the year.
xix. 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, based on our knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report and 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.
xx. The Company is not covered under the provisions of Section 135 of the Companies
Act, 2013.
For P. Murali & Co.
Chartered Accountants
FRN: 007257S
SD/-
M.V. Joshi
Partner
M.No. 024784
UDIN: 23024784BGVPLE7028
Place: Hyderabad
Date: 12.05.2023
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory
Requirements section of our report to the Members ofCubexTubings Limited of even
date)
Report on the Internal Financial Controls Over Financial Reporting under Clause(i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/s. Cubex
Tubings Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the 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 (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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the
CompaniesAct,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 judgment, including the assessment of the risks of
material misstatement of the Ind AS 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 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 Ind AS Financial Statements for external purposes in accordance with
generally accepted accounting principles. A Companys internal financial control over
financial reporting includes these policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detailed, 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 Ind AS Ind AS Financial Statements in accordance with generally accepted
principles, and that receipts and expenditures are being made only in accordance with
authorization 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 Ind AS Financial Statements.
Inherent Limitation of Internal Financial Controls over Financial Reporting
Because of the inherent limitation 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, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 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 the Institute of Chartered Accountants of
India.
For P. Murali & Co.
Chartered Accountants
ICAI Firm Registration Number: 007257S
SD/-
M.V Joshi
Partner
M.No. 024784
UDIN: 23024784BGVPLE7028
Place: Hyderabad
Date: 12.05.2023 .
+91-9892691696
