The Members
EDVENSWA ENTERPRISES LIMITED
(Formerly KLK ELECTRICAL LIMITED)
Chennai.
Report on the Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying Standalone Ind AS Financial Statements of EDVENSWA
ENTERPRISES LIMITED (Formerly KLK ELECTRICAL LIMITED) (the Company), which
comprise the Balance Sheet as at 31st March, 2023, Statement of Profit & Loss
(including other comprehensive income), the statement of cash flows and the statement of
changes in equity for the year then ended and a summary of significant accounting policies
and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Standalone Ind AS Financial Statements give the information
required by the Act in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India including the Ind AS,
a) in the case of Balance Sheet of the State of affairs of the Company as at 31st
March, 2023; and
b) In the case of Statement of Profit & Loss (including other comprehensive
Income), of the Profit for the year ended on that date.
c) In the case of Cash Flow Statement, of the cash flows of the Company for the year
ended on that date.
d) In the case of Statement of Changes in Equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditor s Responsibilities for the Audit of the
Standalone Ind AS 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 Ind AS Financial Statements under the provisions of the Companies Act,
2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the Standalone Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described below to be
the key audit matters to be communicated in our report :
| Sl No Key Audit Matter |
Auditor s Response |
| 1 Intangible Assets Technical Knowhow Fee |
Principal Audit Procedures |
| The Company had paid Technical Knowhow Fee in FY 2001-02 / 2002-03 to M/s. Elin Union,
Austria for manufacture of Isolators and Load Back Switches. Pursuant to a Foreign
Collaboration Agreement. The Agreement has since lapsed. |
We have observed that the original promoters of the company have divested their stake
in favour of current promoters and the company is no longer pursuing the objects relating
to manufacture of Electrical products. Moreover, the said foreign Collaboration agreement
has lapsed. Hence, this Technical Knowhow Fee may not have value in the present
circumstances. |
| 2 Sundry Debtors outstanding for more than 3 years Rs. 67,63,850/- |
We have observed that this amount is being carried from FY 2013-14 onwards. No
confirmation from the Parties could be obtained. The Company has classified as Doubtful in
the Ageing Analysis. |
| The Company has Sundry Debtors outstanding for more than 3 years Rs. 67,63,850/- |
|
Management s Responsibility for the Standalone Ind AS Financial Statements
The Company s Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ( the Act ) with respect to the preparation of these
Standalone Ind AS Financial Statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and
changes in equity 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 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions 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 were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the Standalone Ind
AS Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS Financial Statements, management is responsible for
assessing the Company s 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.
Those Board of Directors are also responsible for overseeing the company s financial
reporting process.
Auditor s Responsibility for the Audit of Standalone Ind AS Financial Statements
Our responsibility is to express an opinion on these Standalone Ind AS Financial
Statements based on our audit.
We have taken into account the provisions of the Act, the Indian 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 thereunder.
We conducted our audit of the Standalone Ind AS Financial Statements 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 Standalone Ind AS Financial Statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the Standalone Ind AS Financial Statements. The procedures selected
depend on the auditor s judgment, including the assessment of the risks of material
misstatement of the Standalone Ind AS Financial Statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal financial control
relevant to the Company s preparation of the Standalone Ind AS Financial Statements that
give a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the Company s
Directors as well as evaluating the overall presentation of the Standalone Ind AS
Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2020 issued by the Government
of India in terms of subsection (11) of section 143 of the Companies Act, 2013, we enclose
in the Annexure A , hereto a statement on the matters specified in paragraphs 3 and 4 of
the said Order.
2. As required by Section 143 (3) of the Act, we further report that :
i) 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.
ii) 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.
iii) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by
this Report are in agreement with the books of account.
iv) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with
the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
v) On the basis of the written representations received from the Directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 2023 from being appointed as a Director in terms of Section
164 (2) of the Act.
vi) 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 .
vii) With respect to the other matters to be included in the Auditor s 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) Provision relating to Impact of pending litigations on its financial position in its
Financial Statements NIL ; b) Provision relating to Material Foreseeable Losses on
Long-Term Contracts Not Applicable. The company neither entered into any derivative
contract during the year nor have any outstanding derivative contract at the year end.
c) The provision relating to transferring any amounts to the Investor Education and
Protection Fund is not applicable to the company during the year.
d) Based on our audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
various matters mentioned in Disclosures of other Statutory Information annexed to the
Notes to accounts, contain any material mis-statement.
e) The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
For ANANT RAO & MALLIK
Chartered Accountants
Firm Regn. No. 006266S
V. ANANT RAO
Partner
M. No.: 022644
Date : 30-05-2023
UDIN : 23022644BGUPGZ8769
ANNEXURE - A to the Auditor s Report
Statement referred to in our report of even date to the members of EDVENSWA
ENTERPRISES LIMITED (Formerly KLK ELECTRICAL LIMITED) on the Standalone Ind AS
Financial Statements for the year ended 31st March, 2023 :
(i) With respect to its Property, Plant and Equipment :
a) The Company has Intangible Assets comprising of Technical Know How Fees paid during
FY 2001-02 / 2002-03 to M/s. Elin Union, Austria for manufacture of Isolators and Loan
Back Switches, pursuant to a Foreign Collaboration Agreement. We are informed that this
Agreement has since lapsed.
b) The company does not have any Tangible Fixed Assets.
c) The Company has not revalued its Intangible Assets during the year.
d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, no proceedings have been initiated or are
pending against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder.
(ii) The company does not have any inventories. Hence, the clause 3(ii) of the said
Order is not applicable to the company.
(iii) The company has not granted any loans / provided any Guarantees, secured or
unsecured to companies, firms, LLP s or other parties. The company has made an Investment
of Rs. 1500.00 Lacs in FY 2021-22 in Edvenswa Tech Inc., USA (a 100 % subsidiary).
(iv) In our opinion and according to the information and explanations given to us,
company has complied with the provisions of section 185 and Section 186 of Companies Act,
2013, wherever applicable.
(v) The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
(vi) The Central Government has not prescribed maintenance of Cost Records under sub
section (1) of section 148 of the Companies Act, 2013.
(vii) With respect to Statutory Dues :
a) According to the information and explanations given to us, and the records of the
company examined by us, the company is generally regular in depositing the undisputed
Statutory Dues including the Income Tax, GST, Duty of Customs, Cess or other material
statutory dues as applicable to it, with the appropriate authorities and there were no
undisputed statutory dues outstanding as at 31-03-2023 for a period exceeding six months
from the date they became payable. We are informed that the provisions of Employees
Provident Fund and Employees State Insurance Acts are not yet applicable to the Company.
b) According to the information and explanations given to us, and the records examined
by us, the company is not having any disputed liabilities relating to statutory dues as
mentioned in clause (a) above as at the year end.
(viii) On the basis of our examination of records and according to the information and
explanations given to us, the Company does not have any transactions which are referred to
in clause 3(viii) of the said Order.
(ix) According to the information and explanations given to us and the records examined
by us, the company has not availed any loans or other borrowings from banks / financial
institutions. Hence, the provisions of clause 3(ix) of the said Order are not applicable.
(x) (a) On the basis of our examination of records and according to the information and
explanations given to us, the Company has not raised any money by way of initial public
offer / further public offer (including debt instruments) during the year. However, the
company has raised monies by way of rights issue of 90,80,000 Equity Shares (Total amount
Rs. 2270.00 Lacs including Premium) which were allotted on 23-03-2023.
The amount so raised was kept in Bank Fixed Deposits as on 31-03-2023.
(b) Further, the company has allotted 4,30,000 Equity Shares on a Preferential basis
(on conversion of Share Warrants) during the year (Total amount Rs. 107.50 Lacs including
Premium). The company is in the process of deploying these funds.
(xi) In our opinion and according to the information and explanations given to us, no
fraud by the Company or on the Company by its officers / employees has been noticed or
reported during the year that causes the Standalone Ind AS Financial Statements to be
materially misstated.
(xii) The Company is not a Nidhi Company. Therefore, clause 3(xii) of the said order is
not applicable to the Company.
(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 in
compliance with sections 177 and 188 of the Act, where applicable and details of such
transactions have been disclosed in the Standalone Ind AS Financial Statements as required
by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on or
examination of the records of the Company, the company is in the process of setting up an
internal audit system commensurate with the size and nature of its business.
(xv) On the basis of our examination of records and according to the information and
explanations given to us, the Company has not entered into any non-cash transactions with
directors or persons connected with them during the year under the provisions of section
192 of the Act. Therefore, clause 3(xv) of the said order is not applicable to the
Company.
(xvi) On the basis of our examination of records and according to the information and
explanations given to us, the Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
(xvii) The Company has not incurred cash losses during the in the Financial Year
2022-23 and in the immediately preceding Financial year 2021-22.
(xviii) There has been no resignation by the Statutory Auditors during the year and as
such the clause 3(xviii) of the said Order is not applicable.
(xix) According to the information and explanations given to us and based on our
examination of the records of the Company, the information accompanying the financial
statements, our knowledge of the Board of Directors and the management plans, no material
uncertainty exists as on the date of the audit report and the company is capable of
meeting its liabilities existing at the date of balance sheet as and when they fall due
within a period of one year from the balance sheet date.
(xx) According to the information and explanations given to us and based on our
examination of the records of the Company, the company does not have any other than
ongoing projects and as such the provisions of clause 3(xx) (a) and (b) of the said order
are not applicable to the Company.
(xxi) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company does not have any subsidiary
companies to which provisions of Companies (Auditor s Report) Order (CARO) is applicable.
As such, the provisions of clause 3(xxi) of the said Order is not applicable to the
Company.
For ANANT RAO & MALLIK
Chartered Accountants
Firm Regn. No. 006266S
V. ANANT RAO
Partner
M. No.: 022644
Date : 30-05-2023
UDIN : 23022644BGUPGZ8769
ANNEXURE B TO THE INDEPENDENT AUDITOR S
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 EDVENSWA
ENTERPRISES LIMITED (Formerly KLK ELECTRICAL LIMITED) ( the Company ) as of March 31,
2023 in conjunction with our audit of the Standalone Ind AS Financial Statements of the
Company for the year ended on that date.
Management s Responsibility for Internal Financial Controls :
The Company s 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 Company s 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 Company s 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, to the extent applicable to an audit
of internal financial controls, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting were established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor s judgement, including the assessment of the risks of
material misstatement of the Standalone Ind AS Financial Statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company s internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting :
A company s internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of Standalone Ind AS Financial Statements for external purposes in accordance
with generally accepted accounting principles.
A company s internal financial control over financial reporting includes those policies
and procedures that :
a) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company ;
b) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of Standalone Ind As 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
c) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company s assets that could have a
material effect on the Standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting :
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on 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 ANANT RAO & MALLIK
Chartered Accountants
Firm Regn. No. 006266S
V. ANANT RAO
Partner
M. No.: 022644
Date : 30-05-2023
UDIN : 23022644BGUPGZ8769
+91-9892691696
