(As required by Section 26 of the Companies Act, 2013 read with Rule 4 of the Companies (Prospectus
and Allotment of Securities) Rules, 2014
To,
The Board of Directors,
Envirotech Systems Limited,
A-29, Block-A, Shyam Vihar Phase-I,
New Delhi 110043 India
Dear Sir,
Report on Restated Financial Statement
1. We have examined the attached Restated Statement of Assets and Liabilities of Envirotech Systems Limited as at 31st March 2024, 31st March 2023 and 31st March 2022, the related Restated Statement of Profit & Loss and Restated Statement of Cash Flow for the period ended on 31st March 2024, 31st March 2023 and 31st March 2022 (collectively the Restated Summary Statements or Restated Financial Statements).These Restated summary Statements have been prepared by the company and as approved by the Board of Directors of the company in connection with the Initial Public Offering (IPO) on the SME Platform of NSE Limited (NSE Emerge).
2. These Restated Summary Statements has been prepared in accordance with the requirements of:
i. Section 26 read with applicable provisions within Rule 4 to 6 of Companies (Prospectus and Allotment of Securities) Rules, 2014of companies Act, 2013, as amended (hereinafter referred to as the Act) and
ii. Part-I of Chapter-IX of the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulation, 2018, as amended (The SEBI Regulation) issued by the SEBI.
iii. The terms of reference to our engagements with the company requesting us to carry out the assignment,
in connection with the Prospectus/Prospectus being issued by the Company for its proposed Initial Public Offering of equity shares in SME Platform of NSE Limited (IPO of SME IPO): and
iv. The Guidance Note on Reports in Company Prospectus (Revised) issued by the Institute of Chartered
Accountants of India (Guidance Note).
v. In terms of Schedule-VI of the SEBI (ICDR) Regulations, 2018 and other provisions relating to
accounts, We, HCO & Co., Chartered Accountants, have been subjected to the peer review process of the Institute of Chartered Accountants of India (ICAI) and hold valid Certificate No. 013413 dated 13.08.2021 issued by the Peer Review Board of the ICAI.
3. The Restated Summary Statements and Financial information of the Company have been extracted by the management from the Audited Financial Statements of the Company for the period ended on 31st March 2024, 31st March 2023 and 31st March 2022 which has been approved by the Board of Directors.
4. Audit of Financial Statements for the period ended 31st March 2024, 31st March 2023 and 31st March 2022 by M/s Vishal Kaushal & Co., Chartered Accountants. and accordingly reliance has been placed on the financial information examined by them for the said years. The Financial Report included for these years is based solely on the report submitted by them. We have carried out the restatement of the financial statements for the period ended 31st March 2024, 31st March 2023 and 31st March 2022 as required by SEBI regulations.
5. Financial Information as per Audited Financial Statements:
1. We have examined:
a) The attached Restated Statements of Assets and Liabilities of the company, as at 31 st March 2024, 31st March 2023 and 31st March 2022 (Annexure I);
b) The attached Restated Statement of Profits and Losses of the company for the period ended on 31st March 2024, 31st March 2023 and 31st March 2022 (Annexure II);
c) The attached Restated Statement of Cash Flows of the company for period ended on 31st March 2024, 31st March 2023 and 31st March 2022 (Annexure III);
d) The Significant Accounting Policies adopted by the company and notes to Restated Financial Statements along with adjustments on account of audit qualifications/ adjustments /regroupings. (Annexure IV);
2. In accordance with the requirements of Act, ICDR Regulations, Guidance Note on the reports in
Company Prospectus (Revised)issued by ICAI and the terms of our Engagement Letter, we further report that:
a) The Restated Statement of Assets and Liabilities as set out in Annexure I to this report, of the company as at 31st March 2024, 31st March 2023 and 31st March 2022 are prepared by the company and approved by the Board of Directors. This Statement of Assets and Liabilities, as restated have been arrived at after making such adjustments and regroupings to the individual Financial Statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to the Restated Summary Statements as set out in Annexure IV to this report.
b) The Restated Statement of Profit and Loss as set out in Annexure II to this report, of the company for the period ended on 31st March 2024, 31st March 2023 and 31st March 2022 are prepared by the company and approved by the Board of Directors. This Statement of Profit and Loss, as restated have been arrived at after making such adjustments and regroupings to the individual financial statements of the company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to the Restated Summary Statements as set out in Annexure IV to this Report.
c) The Restated Statement of Cash Flow as set out in Annexure III to this report, of the company for the period ended on 31st March 2024, 31st March 2023 and 31st March 2022 are prepared by the company and approved by the Board of Directors. This Statement of Cash flow, as restated have been arrived at after making such adjustments and regroupings to the individual financial statements of the company, as in our opinion were appropriate and more fully described in
Significant Accounting Policies and Notes to the Restated Summary Statements as set out in Annexure IV to this Report.
Based on the above and also as per the reliance placed by us on the audited financial statements of the company and Auditors Report thereon which have been prepared by the Statutory Auditor of the Company for the period ended 31st March 2024, 31st March 2023 and 31st March 2022, we are of the opinion that Restated Financial
Statements or Restated Summary Statements have been made after incorporating:
a) Adjustments for the changes in accounting policies retrospectively in respective financial years to reflect the same accounting treatment as per changed accounting policy for all reporting periods.
b) Adjustments for any prior period material amounts in the respective financial years have been made to which they relate; and
c) Adjustments on account of the statutory audit qualifications, if any, have been adjusted and regrouped to the individual financial statements of the company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to the Restated Summary Statements as set out in Annexure IV to this Report.
d) Adjustments in Financial Statements have been made in accordance with the correct accounting policies.
e) There is no change in accounting policies, which needs to be adjusted in the Restated Financial Statements. There is no revaluation reserve, which needed to be disclosed separately in the Restated Financial Statement in the respective financial years.
f) The company has not paid any dividend on its equity shares till 31st March 2024.
g) The Company has not made any provisions for Gratuity to be payable to employees.
6. Other Financial Information:
1. We have also examined the following standalone financial information as set out in annexure prepared by the Management and as approved by the Board of directors of the company for period ended 31st March 2024, 31st March 2023 and 31st March 2022
Restated Statement of Share Capital, Reserves and surplus |
Annexure-A |
Restated statement of Long term and Short term Borrowings |
Annexure-B |
Restated statement of Long term and Short term Borrowings |
Annexure -B(A) |
Restated Statement of Deferred Tax (Assets)/Liabilities |
Annexure-C |
Restated Statement of Long Term Provisions |
Annexure-D |
RRestated Statement of Trade Payables |
Annexure-E |
Restated Statement of Other Current Liabilities and Short Term Provisions |
Annexure-F |
Restated Statement of Fixed Assets |
Annexure-G |
Restated Statement of Non- Current Investments |
Annexure-H |
Restated Statement Long term Loans and Advances |
Annexure-I |
Restated Statement of Inventory |
Annexure-J |
Restated Statement of Trade Receivables |
Annexure-K |
Restated Statement of Cash & Cash Equivalents |
Annexure-L |
Restated Statement of Short-Term Loans and Advances |
Annexure-M |
Restated Statement of Other Current Assets |
Annexure-N |
Restated Statement of Other Income |
Annexure-O |
Restated Statement of Turnover |
Annexure-P |
Restated Statement of Mandatory Accounting Ratios |
Annexure-Q |
Restated Statement of Related party transaction |
Annexure-R |
Restated Statement of Capitalization |
Annexure-S |
Restated Statement of Tax shelter |
Annexure-T |
Restated Statement of Contingent liabilities |
Annexure-U |
Restated Statement of Current Investment |
Annexure-V |
Details of Trade Payables as per Schedule III |
Annexure TP |
Details of Trade Receivables as per Schedule III |
Annexure TR |
Restated Statement of Adjustments to Financial Statements |
Annexure-W |
Restated Statement of Employee Benefit Expenses |
Annexure-X |
Restatement Statement of Finance Costs |
Annexure-Y |
Restated Statement of Other Expenses |
Annexure-Z |
Restated Statement of Ratio Analysis |
Annexure-ZA |
2. The Restated Financial Information contains all the disclosures required by the Accounting Standards notified under the Companies Act, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Act.
3. We have carried out restatement of the financial statements for the period ended 31st March 2024, 31st March 2023 and 31st March 2022 as required by SEBI regulations. We have not audited any financial statements of the company as of any date of for any period. Accordingly, we do not express any opinion on the financial position, results or cash flows of the company as of any date or for any period
4. The preparation and presentation of the financial statements referred to above are based on the Audited financial statements of the company in accordance with the provisions of the Act and the Financial Information referred to above is the responsibility of the management of the company.
5. In our opinion, the above financial information contained in Annexure I to III and Annexure A to V of this report read along with the restated statement of Significant Accounting Policies and Notes as set out in Annexure IV are prepared after making adjustments and regrouping as considered appropriate and have been prepared in accordance with paragraph B, Part II of Schedule II of the Act, the SEBI Regulations, The Revised Guidance Note on Reports in Company Prospectus and Guidance Note on Audit Reports/Certificates on Financial Information in Offer Documents issued by the Institute of Chartered Accountants of India (ICAI) to the extent applicable, as amended from time to time, and in terms of our engagement as agree with you.
6. Consequently, the financial information has been prepared after making such regroupings and adjustments as were, in our opinion considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the information may not necessarily be same as those appearing in the respective audited financial statements for the relevant years.
7. The report should not in any way be construed as a re-issuance or re-drafting of any of the previous audit report, nor should this constructed as a new opinion on any of the financial statements referred to herein.
8. We have no responsibility to update our report for events and circumstances occurring after the date of the report.
9. Our report is intended solely for use of the management and for inclusion in the Offer Document in connection with the IPO-SME for proposed Issue of Equity Shares of the company and our report should not be used, referred to or adjusted for any other purpose without our written consent.
Auditors Responsibility
7. Our responsibility is to express an opinion on these restated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 disclosures in the financial statements. 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.
In making those risk assessments, the auditor considers internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, 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.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, there stated financial statements read together with the notes thereon, 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, to the extent applicable;
a) In the case of Restated Statement of Assets and Liabilities of the Company as at 31st March 2024, 31st
March 2023 and 31st March 2022
b) In the case of the Restated Statement of Profit and Loss, of the profit of the Company for the Years ended on that date; and
c) In the case of the Restated Cash Flow Statement, of the cash flows of the Company for the Years ended
on that date.
For, M/s HCO & Co.
Chartered Accountants Firm Registration No.: 001087C
CA Neeraj Bansal Partner
Membership No.: 400248
Date: 16th July 2024
Place: New Delhi
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