Gallantt Ispat Ltd. Auditor Reports

Auditors Report

TO THE MEMBERS OFGALLANTT ISPAT LIMITED Report on the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statement of GALLANTT ISPAT LIMITED (‘The Company) which comprises the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information (thereinafter referred to as "the financial statements"), which we have signed under reference to this report.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 Standard prescribed under section 133 of the Act read with the Companies (Indian Accounting Standard) 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, 2024, the profit and 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 financial statement 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 ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.

Emphasis of Matter

We draw your attention to Note No. 49 of the financial statement, relating to the search carried out by the Income Tax Department in April 2023 concerning the Company. Since the related proceedings are in progress, there is uncertainty as regards impact, if any, of the outcome of the proceedings, which cannot be ascertained at this point of time.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended 31^st March, 2024. These matters were addressed in the context of our audit of the financial statements as a whole, and informing 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 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 Boards Report including Annexures to Boards Report but does not include the financial statements and our Auditors Report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance or conclusion thereon. In connection with our audit of financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. We have nothing to report in this regard.

Responsibility of Management and those charged with governance for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes responsible the maintenance of the 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 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 Group or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities 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.

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 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 are 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 ability of the Companys 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 thefinancial 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 continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 financial statements of the current period 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.

Report on Other Legal and Regulatory Requirements

a) 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), the Statement of Changes in

Equity and the Statement of Cash Flows are 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 specified under Section 133 of the Act, read with

companies (Indian Accounting Standards) Rules, 2015, as amended.

e) On the basis of the written representations received from the directors of the Company as on March 31, 2024 taken on

record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 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 A". 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 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 has disclosed the impact of pending litigations on its financial position of the financial statements.

ii. The Company has made provision, as required under the applicable law or accounting standards, for material

foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and

Protection Fund.

iv. (a) 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;

(b) 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 ("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

Party or provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and

(c) 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 the representations under sub-clause (i)(a) and (i)(b) contain

any material misstatement.

v. The Company has not paid or declared any dividend during the year.

vi. Based on our examination which included test checks, the company has used an accounting software for maintaining

its books of account which has a feature of recording audit trail (edit log) facility and the same has operated

throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit

we did not come across any instance of audit trail feature being tampered with in respect of accounting software.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 01, 2023, reporting under Rule

11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements

for record retention is not applicable for the financial year ended March 31, 2024.

h) With respect to the matter to be included in the Auditors Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company

to its directors during the current year is in accordance with the provisions of Section197 of the Act. The remuneration

paid to any director is not in excess of the limit laid down under Section 197 of the Act.The Ministry of Corporate Affairs

has not prescribed other details under Section197(16) of the Act which are required tobe commented upon by us.

i) As required by the Companies (Auditors Report) Order, 2020 ("the Order") issued by the Central Government of India in

terms of subsection (11) of section 143 of the Act, we give in the Annexure B, a statement on the matters specified in the

paragraph 3 and 4 of the order, to the extent applicable.

 

	For MAROTI & ASSOCIATES
	Chartered Accountants
	Firm Registration No. 322770E
	CA KOMAL JAIN
	Partner
Place: New Delhi	Membership No.: 303583
Date: May 02, 2024	UDIN: 24303583BKFPRK9875

Annexure - A

to the Independent Auditors Report

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 GALLANTT ISPAT LIMITED ("the Company") as of 31^st March, 2024 in conjunction with our audit of the 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 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 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 financial statements, whether due to fraud or error.

We believe that the audit evidences we have obtained are 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 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 31^st March 2024, 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 MAROTI & ASSOCIATES
	Chartered Accountants
	Firm Registration No. 322770E
	CA KOMAL JAIN
	Partner
Place: New Delhi	Membership No.: 303583
Date: May 02, 2024	UDIN: 24303583BKFPRK9875

 

Annexure - B

to the Independent Auditors Report

(Referred to in paragraph 3 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members

of Gallantt Ispat Limited of even date)

To the best of our information and according to the explanations provided to us by the Company and the books of account and

records examined by us in the normal course of audit, we state that:

i. a) In respect of the Companys Property, Plant and Equipment and Intangible Assets:

(A) The Company has maintained proper records showing full particulars, including quantitative details and situation

of Property, Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangible assets.

b) The Company has a regular programme for physical verification in phased periodic manner, which, in our opinion, is

reasonable having regards to the size of the Company and the nature of its assets. According to the information and

explanations given to us, no material discrepancies were noticed on such physical verification.

c) According to the information and explanations given to us and on the basis of our examination of the records of the

Company, we report that title deeds of all other 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

are held in the name of the Company except the following:

 

Relevant line item in the Balance sheet	Description of item of property	Gross carrying value(in Lacs)	Immovable Properties Title deeds held in the name of	Whether title deed holder is a promoter, director or relative# of promoter/director or employee of promoter/director	Property held since which date	Reason for not being held in the name of the company
Freehold Land	at Japtiya Village 2.07 Acre	12.94	Govind Mills Limited	No	22.10.2001	Got the
						ownership by way
Freehold Land	at Bargadwa 0.30 Acre	3.00	Govind Mills Limited	No	20.07.2000
						of amalgamation
Freehold Land	at Bargadwa 0.86 Acre	7.18	Govind Mills Limited	No	13.07.2000	and the property
Freehold Land	at Bargadwa 0.31Acre	1.78	Govind Mills Limited	No	21.07.2000	in the name
						of Transferor
Freehold Land	at Bargadwa 0.15Acre	0.94	Govind Mills Limited	No	16.02.2001
						Company
Freehold Land	at Bargadwa 0.15Acre	0.94	Govind Mills Limited	No	05.10.2001
Freehold Land	at Bargadwa 0.66 Acre	3.80	Govind Mills Limited	No	30.03.2002
Freehold Land	at Avadhpur 2.775Acre	2.70	Govind Steel & Power Ltd	No	17.08.2004
Freehold Land	at Avadhpur 5.332Acre	5.50	Govind Steel & Power Ltd	No	17.08.2004
Freehold Land	at Sabdaian Kalan 1.16 Acre	3.57	Govind Mills Limited	No	23.07.2001
Freehold Land	at Sabdaian Kalan 0.37 Acre	0.88	Govind Mills Limited	No	19.09.2001
Freehold Land	at Sabdaian Kalan 0.27 Acre	0.47	Govind Mills Limited	No	24.09.2001
Freehold Land	at Sabdaian Kalan 0.61 Acre	0.74	Govind Mills Limited	No	16.10.2001
Freehold Land	at Sabdaian Kalan 0.08 Acre	0.12	Govind Mills Limited	No	27.10.2001
Freehold Land	at Sabdaian Kalan 0.32 Acre	0.66	Govind Mills Limited	No	19.11.2001
Freehold	Office space at Kolkata	11.27	Hipoline Commerce	No	01.04.2019	Got the
Building			Private Limited			ownership by way
						of amalgamation
						of Hipoline
						Commerce Private
						Limited.

d) According to the information and explanation given to us, the Company has not revalued any of its Property, Plant and Equipment and intangible assets during the year. Accordingly, the requirements under paragraph 3(i)(d) of the Order are not applicable to the Company. e) According to the information and explanation given to us, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder. ii. (a) The physical verification of inventory has been conducted at reasonable intervals by the Management during the year and, in our opinion, the coverage and procedures of such verification by Management is reasonably appropriate and no material discrepancies were noticed on such physical verification. (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, working capital limits above 5 Crores has been sanctioned to the Company by the State Bank of India (SBI) and by HDFC Bank on the basis of security of current assets (inventories and receivables). The differences in the quarterly returns or statements filed by the company with SBI and HDFC bank and the books of accounts of the Company are detailed below: ( in lakhs)

Quarter	Name of the Bank	Particulars of the security provided	Amount as per book of account	Amount as reported in the quarterly return / statement	Amount of di fierence
Q-1 June, 2022	State Bank of India / HDFC Bank	State Bank of	53,770.98	57,932.22	(4,161.24)
		India
Q-2 September, 2022	State Bank of India / HDFC Bank	State Bank of	63,608.85	62,844.60	764.25
		India
Q-3 December, 2022	State Bank of India	Inventory and	59,276.28	59,376.28	-
		Receivables
Q-4 March, 2023	State Bank of India	Inventory and	54,035.61	59,480.64	(5,445.03)
		Receivables

The reason for difference is that the Statement of inventory submitted to the bank is valued on estimation basis and includes advance to supplier as stock in transit whereas afterwards actual valuation of the same is done at the time of quarterly result and advance to supplier is taken under the head "Advance". iii. The Company has made investments in, provided guarantee or security and granted loans or advances in nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties during the year, in respect of which: a) The Company has provided loans and guarantee (in respect of loans) during the year to parties other than subsidiaries, joint venture and associate and details of which are given below: ( in lakhs)

Particulars	Loans	Guarantees
Aggregate amount granted/provided during the year:
- To Others	-	-
Balance Outstanding as at Balance sheet date		-
- To Related Party	424.34	-

b) The investments made, guarantees provided and terms and conditions of the grant of all the above-mentioned loans and guarantees provided during the year are, in our opinion, prima facie, not prejudicial to the Companys interest. c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and the repayments or receipts are regular.

Nature of the Statute	Nature of Dues	Amount ( in lakhs)	Period to which the Amount Relates	Forum whereDispute is Pending
Income Tax Act	Income Tax	3,014.49**	2008-09 to 2018-19	Various Appellate Forums
Value Added Tax	VAT	38.04*	2007-08	Jt. Commissioner of Appeal
Central GST	GST	603.35	2014-15, 2015-16	Commission Appeal GST Central
			2016-17, 2017-18
Central Excise Act	Excise Duty	170.12	2010-11	CESTAT, Ahmedabad
UP VAT ACT 2008	VAT	9255.64	August 2011 to June 2017	Government of Uttar Pradesh
Custom Act	Custom Duty	264.94	2011-12, 2012-13	CESTAT, Ahmedabad

d) There are no amounts overdue for more than ninety days in respect of the loan granted to Company/ Firm/ LLP/ Other Parties. e) According to the information and explanation provided to us, the company has not renewed or extended or granted fresh loan or advance in the nature of loan which has fallen due during the year. Hence, the requirements under paragraph 3(iii) (e) of the Order are not applicable to the Company. f ) According to the information explanation provided to us, the Company has granted loans/advances in the nature of loans repayable on demand or without specifying any terms or period of repayment. The details of the same are as follows: ( in lakhs)

	All Parties	Promoters	Related Parties
Aggregate amount of loans/ advances in nature of loans
- Repayable on demand (A)	424.32		424.32
- Agreement does not specify any terms or period of repayment (B)	-	-	-
Total (A+B)	424.32	-	424.32
Percentage of loans/advances in nature of loans to the total loans	100%	-	100%

iv. According to the information and explanations given to us and on the basis of our examination of the records, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans granted, investments made, guarantees and securities provided, where ever applicable. v. According to the information and explanations given to us and on the basis of our examination of the records, the Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause 3(v) of the Order is not applicable. vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete. vii. In respect of statutory dues: (a) In our opinion, the Company has generally 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 Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2024 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 on the basis of our examination of the records, the following dues have not been deposited as on March 31, 2024 on account of disputes are given below:

** Gross demand was raised against AAR Commercial Company Limited (i.e. Transferor Company).

viii. According to the information and explanations given to us, there were no transactions relating to previously unrecorded

income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax

Act, 1961 (43 of 1961).

ix. (a) According to the information and explanations given to us and on the basis of our examination of the records, the

Company has not defaulted in repayment of any loans or other borrowings or in payment of interest thereon to any

lender.

(b) According to the information and explanations given to us, the Company has not been declared willful defaulter by

any bank or financial institution or government or any government authority.

(c) According to the information and explanations given to us and on the basis of our examination of the records, the

Company has not taken any term loan during the year and there are no outstanding term loans at the beginning of

the year and hence, reporting under clause 3(ix)(c) of the Order is not applicable.

(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) According to the information and explanations given to us and on an overall examination of the financial statements

of the Company, the Company has not taken any funds from any entity or person on account of or to meet the

obligations of its subsidiaries or associate companies.

(f ) According to the information and explanations given to us and on the basis of our examination of the records, the

Company has not raised any loans on pledge of securities held in its subsidiaries or associate companies during the

year and hence reporting on clause 3(ix)(f ) of the Order is not applicable.

x. (a) According to the information and explanations given to us and on the basis of our examination of the records, the

Company has not raised moneys by way of initial public offer or further public offer (including debt instruments)

during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and on the basis of our examination of the records,

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) According to the information and explanations given to us and on the basis of our examination, no fraud by the

Company and no material fraud on the Company has been noticed or reported during the year.

(b) According to the information and explanations given to us, no report under sub-section (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 up to the date of this report.

(c) According to the information and explanation given to us, there are no instances of whistle blower complaints

received during the year by the Company.

xii. The Company is not a Nidhi Company and hence reporting under clause (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,

it 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 standalone 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 and based on our examination of the records of the Company,

the Company has not entered into any non-cash transactions with its Directors or persons connected with its directors.

And hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

xvi. According to the information and explanations given to us:

(a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly,

the reporting under Clause 3(xvi)(a) of the Order is not applicable to the Company.

(b) The Company has not conducted non-banking financial / housing finance activities during the year. Accordingly, the

reporting under Clause 3(xvi)(b) of the Order is not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of

India. Accordingly, the reporting under Clause 3(xvi)(c) of the Order is not applicable to the Company.

(d) Based on the information and explanations provided by the management of the Company, the Group has no CIC as

part of the Group.

xvii. The Company has not incurred cash losses during the financial year covered by our audit and 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 realisation of financial assets and payment of financial

liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and

Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to

our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating

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. We, however, state that this is not an assurance as to the future

viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and

we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance

sheet date, will get discharged by the Company as and when they fall due.

xx. (a) There are no unspent amounts towards Corporate Social Responsibility (CSR) on other than ongoing projects

requiring a transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso

to sub-section (5) of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not

applicable for the year.

(b) There are no unspent amounts under sub-section (5) of section 135 of Companies Act, pursuant to any ongoing

projects requiring a transfer to Special Account in compliance with the provisions of sub-section (6) of Section 135 of

the said Act. Accordingly, reporting under clause 3(xx)(b) of the Order is not applicable for the year.

xxi. The reporting under Clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements.

Accordingly, no comment in respect of the said clause has been included in this report.

 

	For MAROTI & ASSOCIATES
	Chartered Accountants
	Firm Registration No. 322770E
	CA KOMAL JAIN
	Partner
Place: New Delhi	Membership No.: 303583
Date: May 02, 2024	UDIN: 24303583BKFPRK9875