To,
The Members of,
M/s Emkay Taps and Cutting Tools Limited Report on the standalone Financial Statements
Opinion
We have audited the accompanying Standalone financial statements of M/s. Emkay Taps and
Cutting Tools Limited ( the Company ) which comprises the Balance Sheet as at March 31,
2023, the Statement of Profit and Loss, and statement of cash flows for the year then
ended, and notes to the 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 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 March 31, 2023, and profit/loss, 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 Companies Act, 2013. Our responsibilities
under those Standards 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 together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
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 opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone 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 Standalone 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 Annexures to Boards Report, Corporate
Governance and Shareholders Information, but does not include the standalone 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 standalone 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 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.
Responsibility of Management 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
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. 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 implementation and maintenance of 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 statement 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. That Board of Directors is also responsible for overseeing the
companys financial reporting process
Auditors Responsibility for the Audit of the Financial Statements
Our objectives 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 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 these financial statements. Report on Other Legal and Regulatory Requirements 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 Companies
Act, 2013, we give in the Annexure A statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
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. a. 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. b. 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. c. 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. d. On the basis of the written representations
received from the directors as on 31st March, 2023taken 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. e. 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 .
f. 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 which would
impact its financial position. ii. The Company did 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.
|
For and on Behalf of |
|
M/S P.S. THAKARE & CO. |
|
Chartered Accountants |
| Place: Nagpur |
FRN: 128572W |
| Date: 30/05/2023 |
@ Pushkar Thakare |
| UDIN : 22127522AJWIYD5778 |
Partner |
|
Membership No. 162457 |
Annexure A - To The Independent Auditors Report
The annexure referred to in our independent auditors report to the members of Emkay
Taps And Cutting Tools Limited ( the Company ), on the Financial Statements for the period
ended 31stMarch 2023, we report that:
(i) (a) (A) The company has maintained proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment.
(B) The company does not have any intangible assets.
(b) All the Property, Plant and Equipment have been physically verified by the
management at reasonable intervals and no material discrepancies were noticed on such
verification.
(c) According to the information and explanation given to us, the records examined by
us and on examination of registered sale deeds provided to us, we report that the title
deeds of all the immovable properties are held in the name of the company as at the
Balance Sheet date.
(d) The company has not undertaken any revaluation of its Property, Plant and Equipment
(including Right of Use assets) or intangible assets or both during the year.
(e) No proceedings have been initiated or are pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
(ii) (a) The physical verification of inventory has been conducted at reasonable
intervals by the management and in our opinion, the coverage and procedure of such
verification by the management is appropriate and no discrepancies in the verification of
inventory were noticed.
(b) The company has been sanctioned working capital limits in excess of five crore
rupees from ICICI Bank Ltd, in aggregate, from banks or financial institutions on the
basis of security of current assets during the period under reporting and 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) The company during the year has neither provided any guarantee or security nor
granted any loans or advances in the nature of loans, secured or unsecured, to companies,
firms, Limited Liability Partnerships or any other parties. The investment made by the
company during the year has been done in compliance of Section 186 and duly accounted in
the books.
(iv) In our opinion and according to the information and explanation given to us, the
company has complied with the provisions of sections 185 and 186 of the Companies Act in
respect of loans, investments, guarantees, and security. There were no loans granted
during the year under section 185 of the Act.
(v) The company has not accepted deposits during the year and does not have any
unclaimed deposits as at March 31st, 2023 and thus the provisions of clause (v) of the
Order are not applicable to the company.
(vi) The company has maintained cost records as specified by the Central Government
under sub- section (1) of section 148 of the Companies Act and such accounts and records
have been so made and maintained.
(vii) According to the information and explanation given to us, in respect of statutory
dues :
(a) The company has been regular in depositing undisputed statutory dues including
Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax,
service tax, duty of customs, duty of excise, value added tax, cess and any other
statutory dues applicable to it with the appropriate authorities.
(b) The company does not have any disputed statutory dues during the period under
reporting.
(viii)As per the information available from the management and as per the books of
accounts of the Company, we have not come across any instances where unrecorded income of
the preceeding years have been accounted in the Books of Accounts of the Company for the
period under reporting.
(ix) (a) The company has not defaulted in repayment of loans or other borrowings and in
the payment of interest thereto any lender.
(b) The company has not been declared as a wilful defaulter by any bank or financial
institution or other lender.
(c) The term loans which were obtained by the company were applied for the purpose for
which the loans were obtained. (d) The funds raised by the company 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 any loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies.
(x) (a) The company has not raised any money by way of initial public offer or further
public offer during the year and hence reporting under clause (x) of the Order is not
applicable to the company.
(b) The company has not made any preferential allotment or private placement of shares
or convertible debentures during the year. (xi) (a) To the best of our knowledge and
according to the information and explanations given to us, neither fraud by the company
nor any fraud on the company has been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
as prescribed under rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the
Central Government.
(c) We have considered whistle-blower complaints, if any, received during the year by
the company;
(xii) The company is not a Nidhi company and thus reporting under clause 3 (xii) of the
Order is not applicable to the company.
(xiii)In our opinion and according to the information and explanation given to us, the
company is in compliance with provisions of section 177 and 188 of Companies Act where
applicable, for all the transactions with the related parties and the details have been
properly disclosed in the financial statements as required by the applicable accounting
standards.
(xiv)(a) The company has an internal audit system which commensurates with the size and
nature of its business.
(b) The reports of the Internal Auditors for the period under audit were considered by
us.
(xv) In our opinion and according to the information and explanation given to us, the
company has not entered into any non-cash transactions with 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 activity
without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per
the Reserve Bank of India Act, 1934; (c) The company is not a Core Investment Company
(CIC) as defined in the regulations made by the Reserve Bank of India.
(d) We have not come across to instance where the Group has more than one CIC as part
of the Group.
(xvii) The company has not incurred any cash losses in the financial year and in the
immediately preceding financial year.
(xviii) We have not found any instances wherein the Statutory Auditor of the Company
has resigned during the period under reporting.
(xix)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, we are of the opinion that no material uncertainty exists, as on the date of the
audit report, that 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;
(xx) (a) In respect of other than ongoing projects, the company during the period under
reporting does not have any unspent amount required to be transferred to a Fund specified
in Schedule VII to the Companies Act within a period of six months of the expiry of the
financial year in compliance with second proviso to sub-section (5) of section 135 of the
said Act;
(b) The Company does not have any amount remaining unspent under sub-section (5) of
section 135 of the Companies Act, pursuant to any ongoing project, which is required to be
transferred to special account in compliance with the provision of sub-section (6) of
section 135 of the said Act.
(xxi)There have been no qualifications or adverse remarks by the respective auditors in
the Companies (Auditors Report) Order (CARO) reports of the companies included in the
Consolidated Financial Statements.
| For and on Behalf of |
| M/S P.S. THAKARE & CO. |
| Chartered Accountants |
| Place: Nagpur |
| FRN: 128572W |
| Date: 30/05/2023 |
| UDIN : 22127522AJWIYD5778 |
| @ Pushkar Thakare |
| Partner |
| Membership No. 162457 |
Annexure B - To The Independent Auditors Report Of Even Date On The Standalone
Financial Statements
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 Emkay Taps &Cutting Tools Limited
("the Company") as ofMarch 31, 2023 in conjunction with our audit of the
standalone 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 controls 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 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, issued by ICAI 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 of Internal Financial Controls and, both issued by the
Institute of Chartered Accountants of India. 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 were 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 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 n
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, 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
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 and on Behalf of |
| Place: Nagpur |
| M/S P.S. THAKARE & CO. |
| Date: 30/05/2023 |
| Chartered Accountants |
| UDIN : 22127522AJWIYD5778 |
| FRN: 128572W |
| @ Pushkar Thakare |
| Partner |
| Membership No. 162457 |
+91-9892691696
