To the members of CYBELE INDUSTRIES LTD
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Cybele Industries
Limited(the Company’), which comprise the balance sheet as at 31 March 2023, the
statement of profit and loss and the cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Standalone Financial Statements
The Company’s 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 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 Rule 7 of the Companies (Accounts)
Rules, 2014. 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on these standalone financial statements
based on our audit.
We 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.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal financial control relevant to the Company’s
preparation of the financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made by the Company’s Directors, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us,the aforesaid standalone 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 31 March 2023 and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 ("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 statement on the matters specified in
the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of 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 specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 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 the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
Annexure A to the Independent Auditors’ Report
The Annexure referred to in our Independent Auditors’ Report to the members of the
Company on the standalone financial statements for the year ended 31 March 2023, we report
that:
1. a) The company has maintained proper records showing full particulars, including
quantitative details and situation of its fixed assets.
b) As explained to us, fixed assets have been physically verified by the management at
reasonable intervals; no discrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the company.
d) The company has not revalued any of its asset.
e) No proceedings have been initiated or are pending against the company for holding
(g) With respect the other matters to be included in the Auditor’s 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 pending litigations on its financial position in its
financial statements.
ii. The company did not have any longterm contracts including derivative contracts for
which there were any material foreseeable losses; and
iii. There are no amounts, required to be transferred, to the investor Education and
Protection Fund by the Company. any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
2. a) As explained to us, inventories have been physically verified during the year by
the management at reasonable intervals. No discrepancy was noticed on physical
verification of stocks by the management as compared to book records.
b) The quarterly returns or statements filed by the company with such banks or
financial institutions are reconciled with the books of account of the Company. No
discrepancies were noticed on such reconciliation.
3. The company has not made investments in, provided any guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured, to companies,
firms, Limited Liability Partnerships or any other parties during the year.
4. According to the information and explanations given to us and the records of the
company examined by us, the company has complied with the provisions of section 185 and
186 of Act in respect of investments and guarantees in respect of transactions entered
during the year.
5. The company has not accepted any deposits from
the public during the year and hence, the directives issued by the Reserve Bank of
India and the provisions of the Section 73 to 76 or any other relevant provisions of the
Act and rules framed thereunder are not applicable.
6. We have broadly reviewed the cost records maintained by the Company specified by the
Central Government under sub Section (1) of Section 148 of the Companies Act, 2013 and are
of the opinion that prima facie the prescribed accounts and records have been made and
maintained. We have however not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
7. a) As per the information and explanations given to us and according to our
examination of the records of the company, the company has generally been regular in
depositing undisputed statutory dues including Provident fund, Employees’ state
insurance, Income tax, Sales tax, Duty of excise, Duty of customs, Service tax, Value
added tax, Goods and Services tax, cess and other statutory dues, as applicable to the
company to the appropriate authorities during the year and no disputed amounts in respect
of material statutory dues were in arrears as at 31 March 2023 for a period of more than
six months from the date they became payable.
b) According to the information and explanations given to us and the records of the
company examined by us, there were no dues of income tax, sales tax, service tax, duty of
customs, duty of excise and goods and services tax which have not been deposited on
account of any dispute as at 31 March 2023.
8. The company has no such income that was previously unrecorded in books and now
recorded.
9. a) In our opinion and according to the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to a financial institution, bank, Government or debenture holders, as applicable to the
company.
b) The company is not a declared willful defaulter by any bank or financial institution
or other lender.
c) Term loans were applied for the purpose for which the loans were obtained.
d) Funds raised on short term basis have not been utilized for long term purposes.
e) 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.
f) The company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies.
10. a) Based on our audit procedures and according to the information given by the
management, the company has not raised any money by way of initial public offer or further
public offer (including debt instruments) or taken any term loan during the year.
b) The company has not made any preferential allotment or private placement of shares
or convertible debentures (fully, partially or optionally convertible) during the year.
11. According to the information and explanations given to us, we report that no fraud
by the company or any fraud on the Company by its officers or employees has been noticed
or reported during the year.
12. The Company is not a Nidhi company. Accordingly, the reporting requirements under
clause (xii) of paragraph 3 of the Order are not applicable.
13. According to the information and explanations given to us and records of the
company examined by us, all the transactions with related parties are in compliance with
section 188 of the Act wherever applicable. Section 177 is not applicable to the company,
and hence, the relative reporting requirement under the Order is not commented upon.
14. The company has no internal audit system commensurate with the size and nature of
its business.
15. The company has not entered into non-cash transactions with directors or persons
connected with him.
16. The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
17. The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
18. There has been no instance of any resignation of the statutory auditors occurred
during the year.
19. 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 1 year from the balance sheet date.
20. The company has no unspent amount for the financial year in compliance with
sub-section (5) of section 135 of the said Act.
ANNEXUREB
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 Cybele
Industries Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the standalone financial statements of the company for the year ended on that
date.
Management’s Responsibility for Internal Financial controls
The company’s 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 the orderly and efficient conduct of its business,
including adherence to company’s 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on the company’s internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal financial controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by the Institute of
Chartered Accountants of India and deemed to be prescribed under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls,
both applicable to an audit Internal financial controls and, both issued by the Institute
of Chartered Accountants of India. Those Standards and the Guidance Note required 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
respect.
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 auditor’s 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 Company’s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company’s 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 purpose in accordance with
generally accepted accounting principles. A Company’s 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
company’s 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 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, 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 Guidance Note on Audit of Internal
financial controls over Financial Reporting issued by the Institute of Chartered
Accountants of India.
+91-9892691696
