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Haldyn Glass Ltd Auditor Reports

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Haldyn Glass Ltd Share Price Auditors Report

To the Members of Haldyn Glass Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Haldyn Glass Limited [“the Company”], which comprise the Standalone Balance Sheet as at March 31, 2024, the Standalone Statement of Profit and Loss including the Other Comprehensive Income,

Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to standalone financial statements, including a summary of material accounting policies and other explanatory information [hereinafter referred to as “standalone financial statements”].

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 Companies Act, 2013, as amended [“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, 2024, its profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our auditofthestandalonefinancialstatements in accordance with the Standards on Auditing [SAs], as specified under section 143[10] of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone 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 standalone financial statements under the provisionsoftheActandtheRulesthereunder,andwehavefulfilledour 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 on the standalone financial statements.

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 for the financial year ended March 31, 2024. 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.

Key audit matter How our audit addressed the key audit matter
Revenue recognition
Refer Note 2 of accounting policy and Note 26 of the standalone financial statements. Our audit procedures included the following:
The Company recognises revenues when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The terms of arrangements in case of domestic and exports sales, including the timing of transfer of control and delivery specifications including inco-terms involves judgment in determining revenue from the sale of goods. – Assessing the Companys accounting policy in respect of revenue recognition by comparing with applicable accounting standards.
Therefore, the risk, is that revenue may not be recognised in accordance with the terms of Ind AS 115 ‘Revenue from contracts with customers, and accordingly, it is determined to be a key audit matter in our audit of the standalone financial statements. – Evaluating the design, testing the implementation, and operating effectiveness of the Companys internal controls over recognition of revenue.
– Performing substantive testing throughout the year, by selecting samples of revenue transactions recorded during the year and verifying the underlying documents, which included sales invoices and other related documents, depending on the terms of contracts with customers.
– Performing cut off testing by selecting samples of sales transactions pre- and post- year end and testing the period of revenue recognition based on the underlying documents.
– Evaluating the adequacy of disclosures given in Note 2 and 26 of the standalone financial statements.

 

Key audit matter How our audit addressed the key audit matter
Capitalization of property, plant and equipment
Refer Note 2 of accounting policy and Note 3 of the standalone financial statements. Our audit procedures included the following:
During the year ended March 31, 2024, there is an addition of Rs. 19,198.32 lakhs under the head Plant & Machinery. – We obtained an understanding and evaluated the system of internal control process over the capital projects including capital work in progress [CWIP], with reference to identification and testing of key controls.
It constitutes the significant portion of the total value of property, plant and equipment and total assets as per the balance sheet as on March 31, 2024. Significant level of judgement is involved to ensure that the aforesaid capital expenditure/additions meet the recognition criteria of Ind AS 16 - Property, Plant and Equipment. Considering above, the aforesaid matter was determined to be a key audit matter. – For plant & machineries capitalized during the year and CWIP, we obtained managements assessment in respect of meeting the recognition and measurement criteria as prescribed in Indian Accounting Standard [Ind AS] 16, Property, Plant and Equipment.
– Reviewed the Board minutes relating to approvals of the capital projects and changes in estimates thereof, if any.
– Tested the direct and indirect costs capitalised, on a sample basis, with the underlying supporting documents to ascertain nature of costs and basis for allocation and evaluated managements assessment for capitalisation.
– Obtained the documentation for the project completion to determine whether the asset is in the location and condition necessary for it to be capable of operating in the manner intended by the management and assessed the managements estimate for useful lives of the assets.
– Ensured adequacy of disclosures in the standalone financial statements.

Other Information

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Companys Annual Report which consist of the Board of Directors Report [including Management Discussion and Analysis and annexures thereto], the Corporate Governance Report [collectively referred to as “other information”] but does not include the standalone financial statements and our auditors report thereon. These reports are expected to be made available to us after the date of our auditors report.

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 in the audit or otherwise appears to be materially misstated. When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and make other appropriate reporting as prescribed.

Managements Responsibilities for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134[5] of the Act with respect to the preparation of these standalone financialstatementsthatgive financialposition, financial trueandfairviewofthe other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards [Ind AS] specified under Section the Companies [Indian Accounting Standard] Rules, 2015, as amended. 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 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 standalone financialstatements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone 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.

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

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone 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 standalone financial statements, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand 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 control 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 financialcontrols with reference tothestandalonefinancialstatements 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 relatedtoeventsorconditionsthatmaycastsignificantdoubt on the

Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors reporttotherelateddisclosures financialstatements or, if such disclosures are thestandalone 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 standalone financialstatements, including the disclosures, and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalonefinancialstatements may be influenced.

We consider quantitative materiality and qualitative factors in

[i] planning the scope of our audit work and in evaluating the results of our work; and

[ii] to evaluate the effect of any identified misstatements in the standalone financial statements

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 ol 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 standalone financial statements for the financial year ended March 31, 2024 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

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 1” a statement on the matters specified in paragraphs 3 and

4 of the Order, to the extent applicable.

2. As required by Section 143[3] of the Act, we report that:

[a] We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

[b] In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books except for the matters stated in the paragraph 2[i][vi] below on reporting under Rule 11[g] of the Companies [Audit and Auditors] Rules, 2014.

[c] The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including the Other Comprehensive Income, the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

[d] In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards 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 as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31, 2024 from being appointed as a director in terms of

Section 164 [2] of the Act.

[f] The modificationsrelating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2[b] above on reporting under Section 143[3][b] of the Act paragraph 2[i][vi] below on reporting under Rule 11[g] of the Companies [Audit and Auditors] Rules, 2014.

[g] With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the

Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2”.

With respect to the matters to be included in the Auditors Report in accordance with the requirements of section 197[16] of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act read with Schedule V to the Act.

[h] 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 knowledge and as per information and explanations given to us:

i. The Company has disclosed the impact of pending litigations as at March 31, 2024 on its financial position in its standalone financial statements Refer Note 35 [A] and 41 of the standalone financial statements; 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 delays in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

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 kinds of funds] by the Company to or in any other person[s] or entity[ies], including foreign entities [“Intermediaries”], with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company [“Ultimate Beneficiaries”] or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b. The The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person[s] or entity[ies], including foreign entities [“Funding Parties”], with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party [“Ultimate Beneficiaries”] or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

c. Based on such audit procedures performed that we consider reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause [iv] [a] and [iv] [b] contain any material misstatement. v. The The final dividend proposed with respect to the previous year, declared and paid by the Company during the year is in compliance with section 123 of the Act, as applicable.

As stated in Note 14.1 [e] of the standalone financialstatements, the Board of Directors of the Company has proposed a final dividend for the year ended March 31, 2024, which is subject to the approval of the members in the ensuing

Annual General Meeting. The amount of the dividend proposed is in accordance with the section 123 of the Act to the extent it applies to declaration of dividend. vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2024 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 except that audit trail feature was not enabled at the database level for accounting software to log any direct data changes.

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 for the period for which the audit trail feature was enabled and operating.

As proviso to Rule 3[1] of the Companies [Accounts] Rules, 2014 is applicable from April 1, 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 year ended March 31, 2024.

Annexure 1 to the Independent Auditors Report of even date on the Standalone Financial Statements of Haldyn Glass Limited

Referred to in paragraph 1 under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date

In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit, we state that: [i] [a] [A] The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment including Right of Use assets. [B] The Company has maintained proper records showing full particulars of intangible assets.

[b] The Company has designed the phased programme for physical verification of Property, Plant and Equipment and Right of Use assets over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, during the year, the management has physicallyverifiedthe items which were due for verification . No material discrepancieswerenoticedonsuchverification

[c] The title deeds of freehold land and building included under the immovable properties [other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee] are held in the name of the Company, except for the cases mentioned below. In respect of title deeds which are deposited with lenders, we have verified the title from the photocopies of those agreements and we have relied on the certificate provided by the bank.

Description of property Gross carrying value Held in name of Whether promoter, director or their relative or employee Period held Reason for not being held in name of Company
Land Rs 15.19 lakhs 1. Ravjibhai Patel No 17/08/95 till date As informed to us, conveyance can be done in name of the Company only after owners [sellers] get it converted into a non- agriculture land
2. Ghyanshyam- bhai Patel
3. Dahiben Patel

[d] The Company has not revalued its Property, Plant and Equipment [including Right of Use assets] or Intangible Assets during the year ended March 31, 2024. Accordingly, paragraph 3 [i] [d], of the Order is not applicable to the Company. [e] There are no proceedings initiated or are pending against the Company for holding any benami property under the Benami Transactions [Prohibition] Act, 1988 [45 of 1988] [as amended] and rules made thereunder.

[ii] [a] The management has conductedphysicalverificationof inventory at reasonable intervals during the year. In our opinion, the frequencyofverificationby the management is reasonable and the coverage and the procedure of such verification by the management is appropriate.Thediscrepanciesnoticed verificationby the management, were less than such

10% in aggregate for each class of inventory and have been appropriately dealt in the books of account.

[b] The Company has been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, from banks during the year on the basis of security of current assets of the Company. We have observed differences / reconciliation items in the quarterly returns or statements to the extent filed by the Company with such banks as compared to the books of account maintained by the Company. However, we have not carried out a specificaudit of such statements. The details of such differences / reconciliation items are per Note 46 [j] of the standalone financial statements of the Company.

[iii] The Company has not made any investments, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or any other parties. Accordingly, the requirement to report on clause 3 [iii] [a], [b], [c], [d], [e] and [f] of the Order is not applicable to the Company. [iv] The Company has complied with the provisions of section 186 of the Act in respect of investments made. There are no loans, guarantees, and securities granted in respect of which provisions of sections 185 and 186 of the Act are applicable and accordingly, the requirement to report on clause 3 [iv] of the Order is not applicable to the Company. [v] The Company has not accepted any deposits or any amounts which are deemed to be deposits within the meaning of sections 73 to 76 of the Act and the rules made thereunder, to the extent applicable. We are informed that no order relating to the Company has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

[vi] The Central Government has not prescribed maintenance of cost records under section 148[1] of the Act for the goods and services rendered by the Company. Accordingly, clause 3 [vi] of the Order is not applicable to the Company.

[vii] [a] Undisputed statutory dues including goods and services tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues, as applicable have been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases with respect to provident fund, employees state insurance, income tax and tax deducted at source [TDS] on vendor payments.

According to the information and explanations given to us and based on audit procedures performed by us, no undisputed amounts payable in respect of these statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable except in the below mentioned case:

Name of the statute Nature of the dues Amount [ Rs in lakhs] Period to which the amount relates
Provident Fund Act, 1952 Provident Fund 1.22 FY 2021-22 to FY 2022-23
Employees State Insurance Act, 1948 Employees State Insurance 0.21 FY 2022-23
Income Tax Act, 1961 Tax deducted at source on vendor payments 13.28 FY 2008-09 to FY 2023-24
Income Tax Act, 1961 Tax deducted at source on vendor payments 0.12 FY 2023-24
Professional Tax Act, 1987 Professional Tax 0.23 FY 2022-23

[b] There are no statutory dues of 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 statutory dues, as applicable, that have not been deposited on account of any dispute, except as mentioned below:

Name of the statue Nature of the dues Amount [ Rs in lakhs]* Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act, 1956 Sales Tax 439.73 FY 1999-2000 to FY 2003-04 and FY 2009-10 to FY 2011-12 Deputy Commissioner of State Tax Appeal-5 Vadodara
Income Tax Act, 1961 Income Tax 3.46 FY 2016-17 Commissioner of Income Tax [Appeals]
CGST Act, 2017 Goods and Service Tax 527.97 July 2017 to March 2020 Deputy Assistant Commissioner

* Net of amounts paid in protest

[viii] 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] The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

[b] The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

[c] The term loans were applied for the purpose for which the loans were obtained.

[d] On an overall examination of the standalone financial statements of the Company, no funds raised on short-term basis have been used for long-term purposes by the Company. Hence, the requirements to report on clause 3[ix][d] of the Order is not applicable to the Company.

[e] On an overall examination of the standalone financial from any entity or person on account of or to meet the obligations of its subsidiary or joint venture. The Company doesnt have any associate. Hence, the requirement to report on clause 3 [ix] [e] of the Order is not applicable to the Company. [f] The Company has not raised loans during the year on the pledge of securities held in its subsidiary or joint venture. The Company does not have any associate company. Hence, the requirement to report on clause 3 [ix] [f] of the Order is not applicable to the Company.

[x] [a] The Company has not raised any money during the year by way of initial public offer / further public offer [including debt instruments]. Hence, the requirement to report on clause 3 [x] [a] of the Order is not applicable to the Company.

[b] The Company has not made any preferential allotment or private placement of shares or fully or partially or optionally convertible debentures during the year. Hence, the requirement to report on clause 3 [x] [b] of the Order is not applicable to the Company.

[xi] [a] Based on examination of the books and records of the Company and considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit.

[b] During the year, no report under sub-section [12] of section 143 of the Companies Act, 2013 has been filed by cost auditor/secretarial auditor or by us in Form ADT – 4 as prescribed under Rule 13 of Companies [Audit and Auditors] Rules, 2014 with the Central Government.

[c] There are no whistle blower complaints received by the Company during the year.

[xii] The Company is not a Nidhi Company. Therefore, the requirement to report on clause 3 [xii] [a], [b] and [c] of the Order is not applicable to the Company.

[xiii] In our opinion, the transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the Note 36 of the standalone financialstatements, as required by the applicable accounting standards.

[xiv] [a] The Company has an internal audit system commensurate with the size and nature of its business.

[b] The internal audit reports of the Company issued till the date of the audit report, for the period under audit, have been considered by us.

[xv] During the year, the Company has not entered into any non-cash transactions with its directors or persons connected with its directors and therefore, the provisions of section 192 of the Act 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. Therefore, clause 3 [xvi] [a] of the Order is not applicable to the Company.

[b] During the year, the Company has not conducted any Non-Banking Financial or Housing Finance activities. Therefore, the requirement to report on clause 3 [xvi] [b] of the Order is not applicable to the Company.

[c] The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank of India. Therefore, the requirement to report on clause 3 [xvi] [c] of the Order is not applicable to the Company.

[d] There is no Core Investment Company as a part of the Group [as defined in the Core Investment Companies [Reserve

Bank] Directions, 2016]. Therefore, the requirement to report on clause 3 [xvi] [d] of the Order is not applicable to the Company.

[xvii] The Company has not incurred cash losses in the current financial year and immediately preceding financial year.

[xviii] There has been no resignation of the statutory auditors during the year and accordingly clause 3 [xviii] is not applicable.

[xix] On the basis of the financial ratios disclosed in Note 44 of the standalone financial of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, 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 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] In respect of other than ongoing projects, there is no unspent amount to be transferred to a Fund specified in Schedule

VII to the Companies Act, 2013. Therefore, question of commenting on compliance with second proviso to sub-section [5] of section 135 of the Act does not arise.

[b] The Company has no amount which has remained unspent under sub-section [5] of section 135 of the Act, pursuant to any ongoing project. Therefore, question of commenting on compliance with sub-section [6] of section 135 of the Act does not arise.

Annexure 2 to the Independent Auditors Report of even date on the Standalone Financial Statements of Haldyn Glass Limited

Referred to in paragraph 2 [f] under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date

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 with reference to standalone financial statements of Haldyn Glass Limited [“the Company”] as of March 31, 2024 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 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 [the “Guidance Note”] 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

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to these standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing 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 ICAI. 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 and if such financial internalfinancial controls operated effectively in all material respects.

Our audit involves performing procedures to obtain auditevidenceabouttheadequacyoftheinternalfinancialcontrols with reference effectiveness. Our audit of internal financialcontrols with reference tothesestandalonefinancial to these standalone financialstatements included obtaining an understanding of internal financial controls with reference to these standalone financialstatements, 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 judgement, including the assessment of the risks of material misstatement of the standalone financial 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 with reference to these standalone financial statements.

Meaning of Internal Financial Controls With Reference to Standalone Financial Statements

A companys internal financial control with reference to standalone financial assurance regarding the reliability offinancialreporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to standalone financial statements 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 standalonefinancialstatements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the Company; and

[3] provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls With Reference to Standalone Financial Statements

Because of the inherent limitations of internal financial controls with reference to standalone financial statements, 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 with reference to standalone financial statements to future periods are subject to the risk that the internal financial control with reference to standalone financial statements 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, adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 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 issued by the ICAI.

For KNAV & CO. LLP
Chartered Accountants
[Registration No: 120458W/W100679]
Samir Parmar
Partner
Date : May 25, 2023 Membership No. 113505
Place : Mumbai UDIN : 23113505BGXESN3033

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