mahashree trading ltd share price Auditors report


To the Members of

Financial Statements of Mahashree Trading limited

Report on the Audit of Standalone Financial Statements

Qualified Opinion

We have audited the accompanying Standalone Financial Statements of Mahashree Trading limited ("the Company") which comprises the Balance Sheet as at March 31, 2022. the Statement of Profit and Loss (including other comprehensive income). Statement of Cash Flow and Statement, of Changes in Equity for the year then ended and summary of significant accounting policies and other explanatory information (herematter referred to as "the Standalone Financial Statements).

In our opinion and to The best of our information and according to the explanations given TO ns, except for the effects of the matter described in the Basis of Qualified Opinion section of our report, the aforesaid Standalone Financial Statements give The information required by the Companies Act. 201A (the Act) in the manner so required and give a true and fair view in conformity with the 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 March 31,2022 and its loss {including other comprehensive income), changes in equity and its cash flow for the year ended on that date.

Basis for Qualified Opinion

We conducted Our audit of the Standalone financial Statement in accordance with The Standards oil Auditing (‘SAs) 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 arc 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 Standalone Financial Statements under The provisions of the Act and the Rules framed thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the FAFs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate its provide a basis for our audit opinion on the Standalone financial Statement.

The Investments of the Company includes shares held in closely held private invited company, which have been designated as Fair Value through Profit and Loss, have not been fair valued as on the dare of the balance sheet as required by Ind AS 109 on Financial Instruments Prescribed under section 133 of the Companies Act, 2013. As stated in note no. 4.12 to the financial statement. such investments have been sold subsequent to the dare of the balance sheet at a value significantly higher than the carrying value of Rs. Nil as at March 31, 2022. In absence of the fair value determined as on the balance sheet date, we are unable let ascertain tile extent at which profit for the year and investment have been understated.

Emphasis of Matter

As described in note no. 4.13 to the financial results, as regards id the managements evaluation of impact on the operations of the Company and uncertain developments. The management continue to monitor implication on its operations. According the management have prepared the financials on a going concern basis.

Our opinion is not modified in respect of this mailer.

Key Audit Matters

Key audit matters are those mailers llial. 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 that there are no key audit matters Lo communicate in our report.

Information Other than the Standalone Financial Statements and Auditors Report thereon

The Companys management and Board of Directors arc responsible for the preparation of the other information. The other information comprises the information included in Annual Report. bur others not include the Standalone Financial Statements and Our auditors report thereon. The Annual Report is expected to be mode available Lo ns after the date of this report.

Our opinion on the standalone financial statements docs not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is Lo read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained ill the audit, or otherwise appears lo he materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to Those Charged with Governance and take appropriate actions in accordance with Standards on Auditing.

Responsibilities or Management for the Standalone Financial Statements

The Companys management and Board of Directors arc responsible for the matters staled in section 134(5) oldie Act with respect to the preparation of the Standalone Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity, cash flows of the Company in accordance with the accounting principles generally accepted in India, including the hid AS and relevant provisions of the Act. I his 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 judgements 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 financial Statements that give a true and fair view arid are free from material misstatement, whether due lo fraud or error.

In preparing the Standalone Financial Statements, Management and Board of Directors arc 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 lo liquidate the Company Of to cease operations, or has no realistic alternative but to do so.

The Board of Directors arc also responsible for overseeing the Company s financial reporting process.

Auditors responsibilities for the audit of the Standalone Financial Statements

Our objectives are In obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, hut is not a guarantee that an audit conducted in accordance with the 5 As 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 Standalone Financial Statements.

As part of an audit in accordance with the SAs. we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

a, Identify and assess The risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive lo 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 (had lor one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

h. Obtain an understanding of internal financial control relevant to the audit in order to design audii procedures that are appropriate in the circumstances. Under section 143(3X) 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,

C. Evaluate the appropriateness of accounting policies used mid the reasonableness of accounting estimates and related disclosures made by management.

d. Conclude on the appropriateness of managements USC 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 standalone 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.

c. Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transaction? and events in a manner that achieves fair presentation.

Vie 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 identity during our audit.

We also provide those charged with governance with the 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 hear on our independence, and where applicable, related safeguards from the mailers communicated with those charged with governance. We determine those matters that were of most significance in the audit of the standalone 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, it extremely rare circumstances, we determine that a matter should nut 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 term of section 143(11) of the Act. we give in the Annexure I a statement on the matter specified in paragraph 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, based on our audit of separate financial Statements we report that:

(a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief w ere 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 hooks;

(e) I he Balance Sheet the Statement of Profit and loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash flow dealt with by this Report are in agreement with the books of account:

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with the rules made thereunder and the relevant provisions of the Act:

(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 104 (2) of the Act:

(f) With respect to the adequacy of the Financial Financial Controls with respect to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure II:

(g) With respect to the other mailers to he included in the Auditors Report in accordance with the requirements of section 197116) of the Act, as amended:

In Our Opinion and to the best of our information and according to the explanations given to us. during the year die Company has not provided managerial remuneration Lo directors. Accordingly, the provision of Section 197 has been complied: and

(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 by the Companies (Audit and Auditors) Rules. 2017. in our opinion and Lo the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position- Refer Note No 1.04 to the 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 amounts, which were required to be Transferred lo the Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of its knowledge and belief, other than as disclosed in the note no. 4.H to the Standalone Financial Statements, no funds (which are material either individually or in the aggregate; 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 lo or in any other person(s) or entity(ies), including foreign currencies ("Intermediaries"), with the understanding, whether recorded in writing or Otherwise, that the Intermediary shall, directly or indirectly lend or invest in Other persons or endues 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 Management has represented, that, to the hest of its knowledge and belief other than as disclosed ill the note no. 4.14 to the Standalone Financial Statements, no funds (which arc material either individually or in the aggregate) 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, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding Party ("Intimate Beneficiaries) or provide any guarantee, security or the like tin behalf of the Ultimate Beneficiaries.

(c) Based on The audit procedures That has been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us Lo believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and (b) above, contain any material misstatement.

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

For G.V. KAFADIA & CO
Chartered Accountants
Firms Registration Number: 104767W
Ashwin Damania
Place: Mumbai Partner
Dated: May 30, 2022 Membership No: 13315976
UDIN No. 22038976AJVSXS8293

Annexure I referred to in paragraph I under "Report on Other Legal and Regulatory Requirements" of our report of even date, to the member of the Company on the Standalone Financial Statements for the year ended March 31, 2022

(i) The Company docs not have any Property, plant and equipment or any intangible asset or right-to-use assets and hence reporting under sub-clause (a) to (d) of clause 3(i) of the Order is not applicable to the Company.

(c) As represented by the management there are no proceedings initiated or are pending against the company for holding any benami property under the Bonami Transactions (Prohibition) Act 198S (45 of 1988) and rules made thereunder.

(ii)(a) The Company does not have any inventories and accordingly, tire provision of The clause 3{ii)(a) of the Order is not applicable to the Company.

(b) The company has not been sanctioned working capital limits in excess of Jive crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets during any point, of time of the year, hence reporting under sub-clause (b) of clause 3(ii) of the Order is not applicable to the Company.

(iii) The Company has made investments in. companies, firms Limited Liability Partnerships, and granted unsecured loans to other parties, during the year.

(a) The (Company has not provided any loans or advances in the nature of loans or Stood guarantee, or provided security in any other entity during the year, and hence reporting under clause (iii)(a) of the Order is not applicable.

(b) In our opinion, the investments made during the year arc, prima facie, not prejudicial to the Companys interest.

(c) The Company has not provided any loans or advances in The nature of toans. hence reporting under clause (iii)(c) to (f) of the Order is not applicable.

(iv) In our opinion and according to the information and explanation given to us. the Company has complied with die provisions of Section 185 and 186 of the Act ill respect of investments made and Loans, guarantees and securities granted.

(v) The Company has not accepted any deposits from the public, within the meaning of sections 73 to 76 of the Act and The rules framed there tinder are not applicable to the Company. We are informed by the Management that no order 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 in this regard.

(vi) The provisions of section 148(1) of the Act, relating to maintenance of cost records arc not applicable to the Company.

(vii) (a) According to the information arid explanations given to us and according to the records of the Company examined by us, in our opinion, live Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident fund. Income-tax and Goods and Services Tax. According to the information .and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at March 31, 2022 for a period of more than 6 months from the dale They became payable except session Tax of Rs. 53.27 thousand and Provident fund of Rs. 0.55 thousand.

(b) Based on the records produced before us and books of accounts maintained by the Company, there arc no disputed dues of income tax, sales Tax, service tax, duty of customs, duty of excise or value added tax. goods and service lax on account of any dispuLe.

(viii) According to the information and explanations given to us. there arc no transactions not recorded in the books of account which have been surrendered or disclosed as income during the year in tile tax assessments under the Income Tax Act, 1961 (43 of 1961).

(ix) The Com pan v has not borrowed any Loans during the year, hence reporting under clause 3 (ix) (a), (c) and (d) of the Order is not applicable.

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

(c) The Company does not have any subsidiaries, joint ventures or associate companies Accordingly, paragraph 3 (ix)(e) of the order is not applicable to the Company:

(f) The Company docs not have any subsidiaries, joint ventures or associate companies Accordingly, paragraph 3 (ix)(f) of the order is not applicable to the Company:

(x) (a) The Company has not raised moneys by way of initial public offer or further public Offer (including debt instruments) during the year and hence reporting under clause (x)(n) of The Order is not applicable.

(b) During the year the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly7 or optionally! and hence reporting under clause (x)(b) ofthe Order is not applicable to the Company.

(xi) (a) As stated in note no. 4.10 there are no material frauds have been noticed or repotted during the period by the Company.

(b) No report under section 143(12) of the Companies Act, 2013, has been filed in form Act as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and not to the dale of this report.

(c) As stated in note no 4,19 there are no whistle-blower complaints received by The management during the year.

(xii) The Company is not a chit fund or a nidhi company. Hence, the question of repotting under clause 3(xii) of the Order does not arise.

(xiii) In our opinion, all transactions with related parties are in compliance with Section 177 and 188 of the Act. and the details have been disclosed in the financial statements as required by the applicable accounting standards

(xiv) (a) In our opinion and based on our examination, though the Company is required to have un internal audit system under Section 13k of the Act, it. does not have the same established for the year,

(b) The Company did not have au internal audit system for the period under audit.

(xv) the Company has not entered into any non-cash transactions with directors or persons connected with him covered under the provisions of section 192 of the Act. Accordingly, para 3(xv) of the under is not applicable to the Company.

(xvi) (a) In our opinion, the Company is not required to he registered under section 45-1A and the Reserve Hank of India Act. 1934. Hence, reporting under clause 3(xvi)(a), (b)and (c) of the Order is not applicable.

(d) In our opinion, and according to the information arid explanation given to us. in the group (in accordance with Core Investment Companies (Reserve Bank) Directions. 2016) tilde arc no companies limning part of the promoter promoter group of the Company which are CICs.

(xvii) As per the Financial statements of the Company, the Company has incurred cash losses in the financial year ended March 31, 2022 and in the immediately preceding financial year ended March 31. 2021 amounting to Rs. 4,105 5ft thousand and Rs. 31,190.76 thousand respectively.

(xviii) There has been no resignation of the statutory auditor of the Company during the year.

(xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of The Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attract which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at rite 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 upto 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 dale, will eel discharged by the Company as and when they fall due.

(xx) In our opinion, the provisions of section 135 of the Companies Act, 2013 are not applicable to the company and hence clause 3 (x) is mil applicable to the Company.

For G.V. KAFADIA & CO
Chartered Accountants
Firms Registration Number: 104767W
Ashwin Damania
Place: Mumbai Partner
Dated: May 30, 2022 Membership No: 13315976
UDIN No. 22038976AJVSXS8293

Annexure IT - referred to in paragraph 3(g) under "Report on Other Legal and Regulatory Requirements" of our report of even date

Report on the Internal Financial Controls with respect to financial statements 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 respect to financial statements of MAI IASI IRfE TRADING LIMITED ("the Company") as of March 31.2022 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 infernal financial controls based on the internal control with respect to financial statements 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 the there 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 tinder the Act.

Auditors Responsibility

Our responsibility is to express an opinion on The Companys internal financial controls with respect to financial Statements based on our audit. We conducted Our audit in accordance with tile 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 113(10) of the Act. 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 Mote require that. We comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with respect to financial Statements 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 intern financial control respective financial statements cuts and their operating effectiveness,

Our audit of internal financial controls with respect to financial statements included obtaining ail understanding of internal financial controls system with respect to financial statements, assessing the risk that a material weakness exists, and testing and evaluating tile 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 statements, whether due to fraud or error.

We believe that the audit evidence we l?a\e obtained is sufficient and appropriate to provide a basis for our audit Opinion on the Companys internal financial controls system with respect to financial statements.

Meaning of internal Financial Controls with respect to financial statements

A Companys internal financial control with respect to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with respect to financial statements includes those policies and procedures that to 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 an; recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorization s of management and directors of the company: and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companys assets that could have a material effect on the standalone financial statements.

Inherent Limitations of internal Financial Controls with respect to financial statements

Because of the inherem limitations of internal financial controls with respect to financial statement, including the possibility of collusion or improper management override of controls, material misstatements due lo error or fraud may occur and not be detected. Also, projections or any evaluation of the internal financial controls with respect to financial statements to future periods are subject to the risk that the internal financial control with respect to 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 not all material respects, an adequate internal financial controls system with respect to financial statements and such internal financial controls with respect to financial statements were operating effectively as at March 31, 2022. based on the internal control with respect to financial Statements criteria established by the Company considering the essential Components of internal control stated in the Guidance Note (in Audit of Internal Financial Controls Over financial Reporting, issued by the Institute rtf Chartered Accountants of India (ICAI).

For G.V. KAFADIA & CO
Chartered Accountants
Firms Registration Number: 104767W
Ashwin Damania
Place: Mumbai Partner
Dated: May 30, 2022 Membership No: 13315976
UDIN No. 22038976AJVSXS8293