To,
The Members,
Mahan Industries Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited standalone financial statements of Mahan Industries
Limited ("the company"), which comprise the Balance Sheet as at 31st March
2023, the Statement of Profit and Loss (including other Comprehensive Income), the
Statement in Changes in Equity and the Cash Flow Statement for the year then ended, and
notes to the financial statement, including a summary of significant accounting policies
and other explanatory information (hereinafter referred to as "the standalone
financial statement").
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 Act in 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, ("Ind AS") and
other accounting principles generally accepted in india, of the state of affairs of the
company as at 31st March, 2023 and profit and total comprehensive income, change in equity
and its cash flows 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 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 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 Ind AS financial statements of
the current period. These matters were addressed in the context of our audit of the
standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Information Other than the Financial Statements and Auditor?s
Report Thereon
The Company?s Board of Directors is responsible for the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Board?s Report including Annexures to Board?s Report,
Business Responsibility Report, Corporate Governance and Shareholder?s Information,
but does not include the standalone financial statements and our auditor?s report
thereon.
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
during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Management?s Responsibility for the Standalone 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 and presentation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act for safeguarding
of the assets of the Company and for preventing and detecting the 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 control, 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 Company?s ability to continue as a going concern, disclosing, as
applicable, matter related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease
operations, of 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
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 auditor?s 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 control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Companies Act, 2013, 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 management?s 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
Company?s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor?s 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 auditor?s 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 financial statements, including the disclosures, and whether the standalone
financial statements 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 financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the financial statement.
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 auditor?s 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 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. c) The Balance Sheet, the Statement of Profit
and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Cash
Flow statement dealt with by this Report are in agreement with the books of account. d) In
our opinion, the aforesaid financial statements comply with the Ind AS specified under
Section 133 of the Act. e) On the basis of 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. 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
Company?s internal financial controls over financial reporting.
g) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other matters to be
included in the Auditor?s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014: i. The Company has disclosed the impact of pending litigations on its
financial position in 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 were no
amounts which required to be transferred by the Company to the Investor Education and
Protection Fund. iv. (i) The management has represented that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, 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 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;
(ii) The management has represented, that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, 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, and
(iii) As per the information and explanation provided to us, the
representation under sub clause (i) and (ii) is not contained any material misstatement.
v. The company has not declared or paid any dividend during the year
under audit. vi. 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.
2. As required by the Companies (Auditor?s 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 B" a statement on the matters
Specified in paragraphs 3 and 4 of the Order.
ANNAEXURE "A" TO THE INDEPENDENT AUDITOR?S REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal
and Regulatory Requirements? section of our report to the Members of Mahan Industries
Limited of even date)
Report on the Internal Financial Controls over Financial Reporting
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 Mahan Industries Limited as of 31st March, 2023 in conjunction with
our audit of the standalone financial statements of the Company for the year ended on that
date.
Management?s Responsibility for Internal Financial Controls
The Board of Directors of the Company 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
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 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 auditor?s 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 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 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
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.
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, to the best of our information and according to the
explanations given to us, 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 31st March, 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.
ANNAEXURE "B" TO THE INDEPENDENT AUDITOR?S REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and
Regulatory Requirements? section of our report to the Members of Mahan Industries
Limited of even date)
i. In respect of company?s fixed assets: a. The Company has
maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.
b. The Company has a program of verification to cover all the items of
fixed assets in phased manner which, in our opinion, is reasonably having regard to the
size of the Company and the nature of its assets. Pursuant to the program, certain fixed
assets were physically verified by the management during the year. According to
information and explanations given to us by the management, no material discrepancy was
noticed on such verification.
c. According to information and explanations given by the management,
the title deeds of immovable properties, included under tangible fixed assets, are held in
the name of the Company.
d. According to the information and explanations provided to us, the
company has not revalued any Property, Plant and Equipment or intangible asset or both
during the year.
e. There has been no proceedings initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 and rules made thereunder.
ii. a. The company does not have any inventory and as such our comments
on physical verification are not required. According to information and explanations given
to us by the management, no material discrepancy was noticed on such verification.
b. The company has not been sanctioned working capital limits in excess
of five crores rupees (at any point of time during the year), in aggregate from banks or
financial institutions on the basis of security of current assets. iii. The Company has
not made investments in, 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. iv. According to the information and
explanations given to us, the Company has not granted loans and made any investments or
provided any guarantee or security to the parties covered under section 185 and 186.
Accordingly, paragraph 3(iv) of the Order is not applicable. v. According to the
information and explanation given to us, the company has not accepted the any deposits and
does not have any unclaimed deposits as at 31st March, 2023 and therefore, the provisions
of the clause 3(v) of the Order are not applicable to the company.
vi. The maintenance of cost records has not been specified by the
Central Government under section 148(1) of the Companies Act, 2013 for the business
activities carried out by the company. Thus, reporting under clause 3(vi) of the order is
not applicable to the company.
vii. (a) According to the information and explanation given to us, the
company has generally been regular in depositing undisputed statutory dues including
Provident Fund, Employees?
State Insurance, Sales Tax, Goods & Service Tax, Duty of Customs,
Cess and any other statutory dues applicable to it with appropriate authorities and no
such undisputed amounts were in arrears for a period of more than six months from the date
they became payable.
(b) As per the information and explanation given to us, there are no
disputed dues outstanding on account of Provident Fund, Employees? State
Insurance, Income-tax, Sales Tax, Goods & Service Tax, Duty of Customs, Cess and any
other statutory dues.
viii. According to the information and explanation given to us, there
are no transactions which has been surrendered or disclosed as income during the year in
the tax assessments under the Income Tax Act, 1961.
ix. (a) According to the records made available to us and information
and explanation given to us by the management, in our opinion the company has not
defaulted in repayment of dues to a bank or financial institution.
(b) the company has not been declared wilful defaulter by any bank of
financial institution.
(c) According to the records made available to us, the term loans were
applied for the purpose for which the loans were obtained.
(d) No funds have been raised on short term basis by the company. Thus
the reporting under clause 3(ix)(d) of order is not applicable.
(e) According to the information and explanation given to us, the
company has not raised any loans during the year on the pledge of securities held in its
subsidiary. x. According to the information and explanation given to us and based on our
examination of the records of the company, the company has not raised money by way of
initial public offer of further public offer during the year.
xi. (a) According to the information and explanation given to us, no
fraud by the company or no material fraud on the company by its officers or employees has
been noticed or reported during course of our audit.
(b) According to the information and explanation given to us, no report
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) The company has not received any whistle-blower complaints during
the year. So the clause 3(xi)(c) of the order is not applicable.
xii. According to the information and explanation given to us the
company is not a nidhi company hence clause 3(xii) of companies (auditor?s Report)
order 2020 is not applicable.
xiii. According to the information and explanation given to us and
based on our examination of the records of the company, all transactions with the related
parties are in compliance with sections 177 and 188 of Companies Act, 2013 where
applicable and the details have been disclosed in the Financial Statements, as required by
the applicable accounting standards.
xiv. The company have an internal audit system. The reports of internal
auditors have been considered by us.
xv. According to the information and explanation 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 directors or persons connected with him. So the clause 3(xv) of
the companies
(auditor?s Report) order 2020 is not applicable.
xvi. The company is registered under section 45-IA of the Reserve Bank
of India, 1934.
xvii.According to the information and explanation given to us and based
on our examination of the records of the company, the company has not incurred cash losses
in the financial year and in the immediately preceding financial year. xviii. Based on our
examination of the records of the company, there has not been any resignation of the
statutory auditors during the year. hence clause 3 (xviii) of companies
(auditor?s Report) order 2020 is not applicable.
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, the auditor?s knowledge of the Board of
Directors and management plans, there is no material uncertainty exists as on the date of
the audit report that 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. As per the information and explanation given to us, the provisions
of Section 135 of
Companies Act, 2013 is not applicable to the company hence the
reporting under clause 3(xx) of the Companies (auditor?s report) Order, 2020 is not
applicable.
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.
| Date : 30/05/2023 |
For Roopen R Shah & Co. |
| Place : Ahmedabad |
Chartered Accountants |
|
Sd/- |
|
CA Roopen R Shah |
|
Proprietor |
|
M.No. 107279 |
|
UDIN:23107279BGVWCY7434 |
+91-9892691696
