TO THE MEMBERS OF KRISHNA VENTURES LIMITED
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of KRISHNA VENTURES LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2022, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year ended on that date, and
notes to the financial statements, including a summary of the 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 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 Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards)Rules, 2015, as amended,
and other accounting principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2022, the loss 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 statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) ofthe Act. 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 (ICAI) together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules made there under, 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 audit opinion on the financial
statements.
Emphasis of matter
We draw attention to Note No. 20 of the accompanying financial statement which
describes the uncertainty arising due to pending legal case with respect to the Deed of
assignment entered by the Company for acquiring the property rights of the land for which
Company has paid the advance amount which is reflected under Note No. 4 of the financial
statement.
The outcome of the pending legal case may have an impact on financials statement,
however, management is hopeful of the favourable outcome. Our report is not modified in
respect of this matter.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the Ind AS 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 conclusion thereon.
In connection with our audit of the 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 during the
course of our audit or otherwise appears to be materially misstated.
Responsibility of Managements and those charge with governance for the Financial
Statements
The Companys Management is responsible for the matters stated in section 134(5) of the
Act with respect to the preparation of these financial statements that give a true and
fair view of the state of affairs (Financial Position), Profit or Loss (financial
performance),total comprehensive income, changes in equity and cash flows of the Company
in accordance with the Ind-AS and other accounting principles generally accepted in India.
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 financial
statements 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 Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are 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 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 Report to the related disclosures in
the financial 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
1) As required by Section 197 (16) of the Act, we Report that the company has paid
remuneration to its directors during the year in accordance with the provisions of and
limits laid down under section 197 read with Schedule V to the Act.
2) As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of
the Order to the extent applicable.
3) Further to our comments in "Annexure A", 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 purpose 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), Statement of Changes in Equity and the Statement of Cash Flow 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 Ind AS specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014.
e) On the basis of the written representations received from the directors as on March
31, 2022 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2022 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 B".
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 in its financial statements - Refer Note No.20 to the Financial Statements.
ii) The Company has not entered into any long term contracts including derivative
contracts for which there were any material foreseeable losses, as required under the
applicable law or Indian Accounting Standards.
iii) There has been no delay in transferring the 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 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 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 Parties or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
Based on the audit procedures performed that have been 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) and (ii) of Rule 11(e) contain any
material misstatement.
V) During the current year no dividend is declared and paid by the Company and the same
is in compliance with Section 123 of the Act.
Annexure "A" to the Independent Auditors Report
(Referred to in Paragraph 2 under the heading of "Report on Other Legal and
Regulatory Requirements^ our report of even date)
(i) Since the Company does not have any Property, Plant and Equipment, commenting on
clause (a), (b), (c) & (d) of the Order are not applicable and hence not commented
upon.
(ii) Since the Company does not have inventories, the commenting on clause (a) and (b)
of the Order are not applicable and hence not commented upon.
(iii) According to the information and explanations given to us, during the year, the
Company has neither made any investments in companies, firms, Limited Liability
Partnerships, and nor granted unsecured loans to other parties. Further, the Company has
not provided any guarantee or security or granted any advances in the nature of loans,
secured or unsecured, to companies, firms, Limited Liability Partnerships or any other
parties. Hence reporting under clause 3(iii), (iii)(a), (iii)(b), (iii)(c), (iii)(d),
(iii)(e) and (iii)(f) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with provisions of Section 185 and 186 of the Companies Act, 2013 in
respect of loans, investment, guarantee and security.
(v) The Company has not accepted any deposits from the public. Accordingly, Clause 3(v)
of the Order is not applicable.
(vi) The Cost records prescribed under Section 148(1) of the Act is not applicable to
the Company and hence Clause 3(vi) of the Order is not applicable.
(vii) (a)According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, the Company is generally been regular in
depositing undisputed statutory dues including Provident Fund, Employees State Insurance,
Profession Tax, Investor Education and Protection Fund, Income Tax, Sales Tax, Service
tax, Custom duty, Excise duty, value added tax, cess and other statutory dues as
applicable with the appropriate authorities. There were no undisputed amounts payable in
respect of Provident Fund, Employees State Insurance, Income tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in
arrears as at March 31, 2022 for a period of more than six months from the date they
become payable.
(b) There were no dues which have not been deposited in respect of Income tax, Sales
Tax, Service Tax, Customs Duty, Excise Duty and Value Added Tax on account of any dispute.
(viii) According to the information and explanation given to us, and on the basis of
our examination of the records of the company, there are no such instances noticed where
transactions are not recorded in the books of account have been surrendered or disclosed
as income during the year in tax assessments under the Income Tax Act, 1961. There is no
previously unrecorded income which was required to be properly recorded in the books of
account during the year.
(ix) The Company has not borrowed any amount from the Financials Institutions, Banks,
and Debentures Holders, hence the question of our commenting Company on whether the
Company has defaulted in repayment of its loans and borrowings to financial institutions,
bank, government or dues to debentures holders does not arise.
(x)
(a) The Company has not raised any money by way of initial public offer or further
public offer (including debt instruments) during the year. Accordingly, paragraph 3 (x) of
the Order in respect thereof is not applicable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year. Accordingly, clause 3(x)(b) of the Order is not applicable.
(xi)
(a) Based upon the audit procedures performed and according to the information and
explanations given to us, no fraud by the Company or any fraud on the Company by its
officer/employees has been noticed or reported during the period nor have we been informed
about any such case by the Management.
(b) According to the information and explanations given to us, no Report under
sub-Section 12 of Section 143 of the Act has been filed by the Auditors in Form ADT-4 as
prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014, with the Central
Government.
(c) According to the information and explanations given to us, no whistle blower
complaint has been received by the Company during the year.
(xii) As the Company is not Nidhi Company, the reporting under clause 3(xii) of the
Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the
Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv)
(a) Based on information and explanation provided to us and our Audit Procedures, in
our opinion, the Company has an Internal Audit System commensurate with the size and
nature of its business.
(b) We have considered the Internal Audit Reports of the Company issued till date for
the period under audit.
(xv) In our opinion and according to the information and explanations given to us,
during the period the Company has not entered into any non-cash transactions with its
directors or persons connected with him and hence provisions of section 192 of the
Companies Act, 2013 are not applicable.
(xvi)
(a) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934 as the financing activities is not the principal business of the
Company.
(b) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, Clause 3(xvi)(c) and (d) of the Order are
not applicable.
(xvii) The Company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There has been no resignation of the Statutory Auditors during the year.
Accordingly, clause 3(xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us and 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 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 the 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) In our opinion and according to the information and explanations given to us,
there is no unspent amount under sub Section (5) of Section 135 of the Act pursuant to any
project. Accordingly, Clause 3(xx)(a) and (b) of the Order are not applicable.
(xxi) The Company has no Subsidiaries, Associates and Joint Venture Companies. The
Company need not prepare consolidated financial statements and hence the financial
statements have been prepared by the management of the company and audited by us on
standalone basis. Considering this, the question of qualification or adverse remarks of
the respective auditors in the Companies (Auditors Report) Order (CARO) reports of the
companies being included in consolidated financial statement does not arise.
Annexure "B" to the Independent Auditors Report
(Referred to in Paragraph 2(f) under the heading of "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 over financial reporting of Krishna
Ventures Limited ("the Company") as of March 31, 2022 in conjunction with our
audit of the financial statements of the Company for the period ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "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 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 judgement, including the assessment of the risks of
material misstatement of the 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting with respect to these
financial statements
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 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 financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting with
reference to these financial statements
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, to the best of information and explanations given to us, the Company
has, in all materials respects, an adequate internal financial controls system over
financial reporting and such financial controls over financial reporting are operating
effectively as at March 31, 2022 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 Shashikant J. Shah & Co. |
|
Chartered Accountants |
|
Firm Regn. No. 109996W |
|
Nisha G. Unadkat |
|
Partner |
| Place: Mumbai |
Mem.No. 145206 |
| Dated: June 09, 2022 |
UDIN: 22145206AKQUSE3105 |
+91-9892691696
