TO,
THE MEMBERS OF EXDONTRADING COMPANY LIMITED
Report on the Audit of the Financial Statements
We have audited the accompanying Financial Statements of EXDON TRADING COMPANY
LIMITED which comprises the Balance Sheetas at March 31, 2023, the Statement of
Profit and Loss and the Statement of changes in Equity for the year ended on that date and
a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matter stated in Sectionl34(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 7of the Companies (Accounts) Rules, 2014.This
responsibility also includes maintenance of adequate accounting records in accordance with
the preparation 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 we
re-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.
Auditors Responsibilities for the Audit of the Standalone Financial Results
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 there under.
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
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 financial control relevant to the Companys 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 control 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 Companys 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 qualified audit opinion on the standalone financial statements.
Basis for Qualified Opinion
1. Company has Paid up capital more than authorized capital as informed by management
that it is due to technical error.
2. Company has not appointed Company Secretory as per Sec 203 of the Companies Act,
2013 & Company has not appointed Internal Auditor.
3. Company has Not Passed Special Resolution & Board Resolution required to comply
with secl88 of the Companies Act, 2013.
4. Company has taken Public Deposit Amount i.e. Other than Inter corporate Loan &
Advances.
5. Company has unable to provide Information regarding Impairment of Value of
Investment to Amardeep Industries limited, Camesx Limited & Lypsa Gems &
Jewellary.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph above, the aforesaid standalone financial statements give the
information required by the Act in the manner so required and give a true and fair view
inconformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2023, and its profit/loss and its cash flows for
the year ended on that date.
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 the
paragraph 3 and 4 of the order.
2. As required by Sectionl43(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) Except for the effects of the matter described in the Basis for Qualified Opinion
paragraph above, 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 dealt with by this Report
are in agreement with the books of account.
(d) Except for the effects of the matter described in the Basis for Qualified Opinion
paragraph above, 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 March2023 from being appointed as a director in terms of
Sectionl64(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".
(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:
a) The Company did not have any long-term contracts including derivative contracts for
which they were any material foreseeable losses under the applicable law or accounting
standards.
b) There has been no delay in transferring amounts if applicable, required to be
transferred, to the Investor Education and Protection Fund by the Company.
c) (i)The management has represented that, to the best of its knowledge and belief, 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 to or on behalf of the Ultimate Beneficiaries
(ii) The management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company from any persons or entities, including foreign
entities ("FundingParties"), 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 Party or provide any guarantee,
security or the like from or on behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that there
presentations under sub-clause (d)(i) and (d)(ii) contain any material misstatement.
d) The dividend has neither declared nor paid during the year by the Company.
3. Following Amount of Deposit i.e. Other than Intercorporate Loan & Advances
are as under:
Sr No. |
Name |
Max Amount Outstanding (Rs.) |
1 |
Chetan D Jain |
1,23,933 |
2 |
Hornbills Indusinfra LLP |
3,07,09,782 |
3 |
Kiran Enterprise |
58,50,000 |
4 |
Pansar Infrastructure |
25,00,000 |
4. There are Some Transaction Entered by the company other than Business Purpose i.e.
Only for Receipt & Payment: Please Refer Notes to Accounts
For,Bhagat&Co.Charter
edAccountants
FirmRegistrationNo.:127250W
SD/-
ShankarBhagat
(partner)
Membership No.:052725
UDIN:23052725BGWWCZ6372
Place:Ahmedabad
Date:30-05-2023
Annexure -A to the Independent Auditors Report
The Annexure referred to in Independent Auditors Report to the members of the Company
on the financial statements of the Company for the year ended March31, 2023, we report
that:
a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment.
b) The property, plant and equipment were physically verified during the year by the
Management in accordance with a regular programme of verification which, in our opinion,
provides for physical verification of all the Property, plant and equipment at reasonable
intervals. According to the information and explanation given to us, no material
discrepancies were noticed on such verification.
c) The Company does not have any immovable properties of freehold or leasehold land and
building, which are reported under Property, Plant and Equipment and hence reporting under
clause(i)(c) of the Order is not applicable.
d) 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 revalued its Property,
plant and equipment (including Right-of-us e assets) or Intangible assets or both during
the year.
e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made there under.
a) The inventory has been physically verified by the management during the year. In our
opinion, the frequency of such verification is reasonable and procedures and coverage as
followed by management were appropriate. No discrepancies were noticed on verification
between the physical stocks and the book records that were 10% or more in the aggregate
for each class of inventory.
b) 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 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.
(iii)
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 made any investments,
provided guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year. The Company has granted loans during the year, details of the loan is stated in
sub- clause(a) below.
a)
A. Based on the audit procedures carried on by us and as per the information and
explanations given to us, the Company has not granted any loans to subsidiaries.
B. Based on the audit procedures carried on by us and as per the information and
explanations given to us, the Company has granted loans to a party other than subsidiaries
as below:-
| Particulars |
Amount (Rs. In lacs) |
| Aggregate amount during the year - Others |
Rs.4002.92 |
| Balance outstanding as at balance sheet date - Others |
Rs.8083.20 |
b) According to the information and explanations given to us and based on the audit
procedures conducted by us, we are of the opinion that the terms and conditions of the
loans are not Provided.
c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, in the case of loans given, the repayment of
principal and payment of interest has not been stipulated and the repayments or receipts
have not been regular and any type of Agreement is not been provided to us.
d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there is overdue amount for more than ninety
days in respect of loans given.
e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there is no loan given falling due during the
year, which has been renewed or extended or fresh loans given to settle the over dues of
existing loans given to the same party.
f) 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 given loans either repayable on
demand or without specifying any terms or period of repayment:-
| Particulars |
Amount (Rs. In lacs) |
| Aggregate amount during the year |
Rs.4002.92 |
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and 186 of the Act, with respect
to the loans and investments made.The loans and investments under sectionl86 is within the
limits passed in the General Meeting.
(v) The Company has accepted any deposit or amounts which are deemed to be deposits.
Hence, reporting under clause 3(v) of the Order is not applicable.
(vi) To the best of our knowledge and explanation given to us, the provisions of
maintenance of cost records under sub section (1) of Sectionl48 of the Act are not
applicable to Company for the financial year 2022-23. Accordingly, Clause (vi) of Order is
not applicable.
(vii) According to the information and explanations given to us, there is no undisputed
amounts payable for a period of more than six months from the date they became payable.
(viii) The Company has not any transactions not recorded in the books of account have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961.
(ix)
a) The company has not defaulted in repayment of loans or other borrowings or in the
payment of interest there on to any lender.
b) The company is not a declared willful defaulter by any bank or financial institution
or other lender.
c) According to the information and explanations given to us, Term loans has applied
for the purpose for which the loans were obtained.
d) According to the information and explanations given to us, Funds raised on short
term basis have not been utilised for longterm purposes.
e) The company has not taken any funds from any entity or personon 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, associates or joint ventures.
(x)
a) The company did not raise any money by way of initial public offer or further public
offer (including debt instruments).
b) According to the information and explanations give 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 fully or partly convertible debentures during
the year.
(xi)
a) 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 course of our audit.
b) According to the information and explanations given to us, no report under
subsection (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors
in Form ADT-4 as prescribed under Rulel3 of Companies (Auditand Auditors) Rules, 2014 with
the Central Government.
c) The company has not been received whistle-blower complaints during the year.
Hence this sub clause is not applicable.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are Not
incompliance with sections 177 and 188 of the Companies Act, 2013 where applicable and
details of such transactions have been disclosed in the financial statements as required
by the applicable Accounting Standards.
(xiv)
a) The company has required of internal audit system according to size and nature of
Its business.
b) Reports of the Internal Auditors for the period under audit not available due to
Company has not appointed Internal Auditor.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Accordingly, Clause (xv) of the
Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934. Accordingly, all sub clauses of paragraph 3(xvi) of the Order is
not applicable.
(xvii) The Company has not incurred cash losses in the financial year and the
immediately preceding financial year.
(xviii) There has not been resignation of the statutory auditors during the year and
the auditor has taken into consideration the issues, objections or concerns raised by the
outgoing auditors.
(xix) x) The Company is in position to meet all liabilities at the balance sheet date.
(xx) This clause is not applicable.
(xxi) This clause is not applicable.
For,Bhagat & Co.
Chartered Accountants
Firm Registration No.:127250W
SD/-
Shankar Bhagat
(partner)
Membership No.:052725
UDIN:23052725BGWWCZ6372
Place:Ahmedabad
Date:30-05-2023
"AnnexureB" to the Independent Auditors Report of even date on the
Standalone Financial Statements of EXDONTRADINGCOMPANYLIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013.
We have audited the internal financial controls over financial reporting of EXDON
TRADING COMPANY LIMITED as of March 31, 2023 in conjunction with ouraudit 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 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 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"GuidanceNote") 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 was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence amout the adequacy of
the internal financial control system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and operating effectiveness of
internal control based on the assessed risk. The procedures selected depend upon on the
auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud orerror.
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 un authorized 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 be come in adequate 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 the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issues by the Institute of Chartered
Accountants of India.
For, Bhagat & Co.
CharteredAccountants
Firm RegistrationNo.:127250W
SD/-
Shankar Bhagat
(partner)
Membership No.:052725
UDIN:23052725BGWWCZ6372
Place:Ahmedabad
Date:30-05-2023
+91-9892691696
