mangalam global enterprise ltd Auditors report

TO THE MEMBERS OF

MANGALAM GLOBAL ENTERPRISE LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

1. We have audited the standalone financial statements of Mangalam Global Enterprise Limited ("the Company"), which comprise the standalone balance sheet as at 31st March 2023, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the "Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2023, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on 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 are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.

4. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

5. 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.

The key audit matter	How the matter was address in our audit
Revenue Recognition:	We applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
Revenue of the Company mainly comprises of sale of goods to its customers. Revenue from sale of goods is recognized when control is transferred to the customer and there is no other unfulfilled obligation. This requires detailed analysis of each contract/ customer purchase order regarding timing of revenue recognition. Inappropriate assessment could lead to a risk of revenue being recognized on sale of goods before the control in the goods is transferred to the customer. Accordingly, timing of recognition of revenue is a key audit matter.	• Assessing the Companys accounting policies for revenue recognition by comparing with the applicable accounting standards;
	• Testing the design, implementation and operating effectiveness of key internal controls over timing of recognition of revenue from sale of goods;
	• Performed testing on selected samples of customer contracts/ customer purchase orders. Checked terms and conditions related to acceptance of goods, acknowledged delivery receipts and tested the transit time to deliver the goods and its revenue recognition. Our tests of details focused on cut-off samples to verify only revenue pertaining to current year is recognized based on delivery documents along with terms and conditions set out in customer contracts/ customer purchase orders.

 

Key Audit Matter	How the matter was address in our audit
Carrying value of trade receivables and advances:	We applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
The collectability of the Companys trade receivables and advances (including trade advances), the valuation of allowance for impairment of trade receivables and provision for bad and doubtful debt require significant management judgement. As per the current assessment of the situation based on the internal and external information available up to the date of approval of these financial statements by the Board of Directors, the Company believes that there is no indication of any material impact on the carrying value.	• Assessing the Companys policies for recognizing loss allowance for trade receivable and advances to determine the carrying value of trade receivables and advances.
The management considers such information to determine whether a provision for impairment or for bad debt is required either for a specific transaction or for a customers balance overall. Accordingly, it has been determined as a key audit matter.	• Assessing trade receivables and advances on sample basis, based on its ageing along with historical trend/ pattern of collections received from the customers including the same received subsequent to year end, up to the date of completion of audit procedures.
	• Evaluating managements assessment of recoverability of outstanding receivables through inquiry with the management regarding disputes between the parties involved, attempts by the management to recover the amounts outstanding and on the credit status of significant counterparties wherever available.
	• Assessing the appropriateness of the loss allowance for trade receivables and advances made by the Company.
	• Assessing the disclosures made by the Company in this regard in the standalone financial statements.

 

Key Audit Matter	How the matter was address in our audit
Business Combination - Amalgamation Accounting pursuant to composite scheme of arrangement along with resolution plan under CIRP in respect of H. M. Industrial Private Limited:	We applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:
[Refer Note 1.3.29, 55 and 56 to the standalone financial statements]	• Understanding from the management, assessed and tested the design and operating effectiveness of the Companys key controls over the accounting of business combination.
Vide order dated 20th September 2022, Honble NCLT Ahmedabad (the adjudicating authority) has allowed, u/s 30(6) of the Insolvency and Bankruptcy Code, 2016 ("IBC, 2016"), the resolution plan submitted by Mangalam Global Enterprise Limited (MGEL) in respect of corporate debtor M/s H. M. Industrial Private Limited (HMIPL) (under Corporate Insolvency Resolution Process (CIRP).	• Reading the scheme and the NCLT order documents to understand the key terms and conditions of the composite scheme.
As per the composite scheme of arrangement submitted along with the approved plan, Steel Division of HMIPL is to be demerged and to be vested into Mangalam Worldwide Limited (MWL) a group company; and HMIPL and its rest business (i.e. Agro Business - Castor and Cotton) is amalgamated with MGEL with effect from appointed date i.e. 20th September 2022.	• Tracing assets, liabilities, tax losses of HMIPL from the audited financial statements as on (appointed date) 20th September 2022.
The Company has accounted for the business combination using the pooling of interest method in accordance with Appendix C of Ind AS 103 Business Combination.	• Testing managements assessment of accounting for the business combination and determined that it was appropriately accounted for in accordance with Appendix C of Ind AS 103 Business Combination.
Considering the magnitude and complex accounting involved, the aforesaid business combination treatment in standalone financial statements has been determined as a key audit matter.	• Assessing the adequacy and appropriateness of disclosures made in the standalone financial statements.

Information Other than the Standalone Financial Statements and Auditors Report thereon

6. The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexure to Boards Report (but does not include the standalone financial statements and our auditors report thereon) and the rest of the Annual Report (the "Other Information"). The Other Information is expected to be made available to us after the date of this auditors report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available 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.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and those charged with governance for the Standalone Financial Statements

7. The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards ("Ind AS") specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring 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 and are free from material misstatement, whether due to fraud or error.

8. In preparing the standalone financial statements, the Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

Auditors Responsibilities for the Audit of the Standalone Financial Statements

10. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

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

• Identify and assess the risks of material misstatement of the standalone financial statements, 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to standalone financial statements 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 the Board of Directors;

• Conclude on the appropriateness of Board of Directors 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 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;

• 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.

12. 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 standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

13. 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.

14. 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.

15. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements 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

16. As required by Section 143(3) of the Act, we report to the extent applicable, 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 of the standalone financial statements;

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 standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act;

e) 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;

f) With respect to the adequacy of the internal financial controls over financial reporting with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in ‘Annexure A;

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 does not have any pending litigations which would impact its financial position.

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 to the Investor Education and Protection Fund by the Company during the year ended 31st March 2023.

iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in Note 57(o) to the standalone financial statements, 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 to or on behalf of the Ultimate Beneficiaries.

(b) The management has represented, that, to the best of its knowledge and belief, as disclosed in Note 57(p) to the standalone financial statements, 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 Party or provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

(c) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause 16(g)(iv)(a) and 16(g)(iv)(b) contain any material misstatement.

v. The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.

vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from 1st April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.

h) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197(16) of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

17. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the ‘Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

KUNAL KEDIA

(M. No.: 149403), Partner

for and on behalf of

K K A K & CO.

Chartered Accountants

FRN: 148674W

UDIN: 23149403BGXDTX6428

Place : Ahmedabad

Date : 15th May 2023

"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF MANGALAM GLOBAL ENTERPRISE LIMITED ON THE STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2023

(Referred to in para 16(F) under ‘Report on Other Legal and Regulatory Requirements section of our report of even date)

Independent Auditors Report on the Internal Financial Controls with reference to Standalone Financial Statements under clause (i) of Sub-Section 3 Of Section 143 of the Companies Act, 2013 ("the Act")

Opinion

1. We have audited the internal financial controls over financial reporting with reference to Standalone Financial Statements of Mangalam Global Enterprise Limited ("the Company") as at 31st March 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

2. In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to the standalone financial statements and such internal financial controls over financial reporting with reference to the standalone financial statements were operating effectively as at 31st March 2023, based on the internal financial controls over financial reporting with reference to the standalone financial statements criteria established by the Company considering the essential components of such 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 (the "Guidance Note").

Responsibilities of Management and those charged with governance for internal financial controls

3. The Companys Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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 Act.

Auditors Responsibility

4. Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting with reference to the standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls over financial reporting with reference to standalone financial statements. 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 with reference to the standalone financial statements was established and maintained and if such controls operated effectively in all material respects.

5. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial reporting with reference to the standalone financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting with reference to the standalone financial statements included obtaining an understanding of internal financial controls over financial reporting with reference to the standalone financial statements, 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 judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

6. 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 over financial reporting with reference to the standalone financial statements.

Meaning of Internal Financial Controls over Financial Reporting with Reference to the Standalone Financial Statements

7. A companys internal financial controls over financial reporting with reference to the standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial controls over financial reporting with reference to the standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and payments of the company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting with Reference to the Standalone Financial Statements

8. Because of the inherent limitations of internal financial controls over financial reporting with reference to the standalone financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to the standalone financial statements to future periods are subject to the risk that the internal financial controls over financial reporting with reference to the standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

KUNAL KEDIA

(M. No.: 149403), Partner

for and on behalf of

K K A K & CO.

Chartered Accountants

FRN: 148674W

UDIN: 23149403BGXDTX6428

Place : Ahmedabad

Date : 15th May 2023

"ANNEXURE B" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF MANGALAM GLOBAL ENTERPRISE LIMITED ON THE STANDALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2023

(Referred to in paragraph 17 under ‘Report on Other Legal and Regulatory Requirements section of our report of even date)

Report on the Matters Specified Paragraphs 3 and 4 of the Companies (Auditors Report) Order, 2020 ("the Order") Issued by the Central Government in Terms of Section 143(11) of the Companies Act, 2013 ("the Act")

Based on the audit procedures performed for the purpose of reporting a true and fair view on the standalone financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

1 (a) (A) The Company has maintained records showing full particulars including quantitative details and situation of property, plant and equipment (PPE), which, in our opinion, are proper.

(B) The Company has maintained records showing full particulars of intangible assets, which, in our opinion, are proper.

(b) The Company has a regular programme of physical verification of its PPE by which PPE are verified in a phased manner over a period of three years. In accordance with this programme, certain PPE were verified during the year.

In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its PPE. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are held in the name of the Company except as included in Note 57(a) to the standalone financial statements and disclosed below:

(Rs. in Lakhs)

Description of Property	Gross Carrying Value	Title deed held in name of	Whether title deed holder is a promoter, director or their relatives or employee	Period held – indicate range, where appropriate	Reason for not being held in name of company
Land at GIDC Kapadvanj	13.61	Allotment letter in the name of H.M. Industrial Private Limited, issued by Gujarat Industrial Development Corporation	No	20/09/2022 (effective date of amalgamation)	Lease deed execution is under process

(d) The Company has not revalued its PPE (including Right of Use assets) or intangible assets or both during the year.

(e) There are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and rules made there under.

2 (a) The inventory, except goods-in-transit has been physically verified by the management during the year. For goods-in-transit, subsequent evidence of delivery has been verified. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by the management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were more than 10% in the aggregate of each class of inventory.

(b) As disclosed in Note 21 to the standalone financial statements, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate from banks during the year on the basis of security of current assets of the Company. The quarterly statements filed by the Company with such banks are not in agreement with the books of account of the Company and the details are as follows:

(Rs. in Lakhs)

Quarter	Particulars of Security	As per unaudited books of account	As reported in the quar- terly return statement	Difference	Reason for Discrepancy
Jun-22	Inventory	6,014.08	6,176.02	- (161.94)	There are differences on account of regrouping and reclassification of trade receivables and trade payables including compensatory adjustment of advances received/ given from/ to customers/ vendors. Further the Company consolidates more than one account of the same party lying in different groups/ classificactions.
Jun-22	Trade Receivable	5,832.68	4,987.23	845.45
Jun-22	Advance to Suppliers	2,284.91	2,795.28	(510.37)
Jun-22	Trade Payable	1,079.66	479.72	599.94
Jun-22	Advance from Customers	98.24	45.92	52.32
Sep-22	Inventory	5,082.02	3,626.56	1,455.46
Sep-22	Trade Receivable	7,128.14	7,027.35	100.79
Sep-22	Advance to Suppliers	3,031.79	2,516.51	515.28	Value of inventory reported in stock statements is derived based on cost method applied by the accounting software/ system. However, at the quarter end, the company identify the value of inventory based on accounting policy adopted by the company.
Sep-22	Trade Payable	591.54	95.87	495.67
Sep-22	Advance from Customers	60.53	19.70	40.83
Dec-22	Inventory	6,049.54	6,091.92	(42.38)
Dec-22	Trade Receivable	18,077.65	17,130.99	946.66
Dec-22	Advance to Suppliers	494.06	432.30	61.76	Differences in value of inventory/ party balances arises due to inward/ outward goods in transit, rejection of goods, etc. which is accounted in books as per the accounting policy and cut off procedure adopted by the Company at quarter end, which is generally subsequent to submission of stock statement to the banks as per the due dates.
Dec-22	Trade Payable	9,013.14	8,017.91	995.23
Dec-22	Advance from Customers	93.60	105.32	(11.72)
Mar-23 #	Inventory	6,893.83	7,808.62	(914.79)
Mar-23 #	Trade Receivable	16,168.04	12,408.80	3,759.24
Mar-23 #	Advance to Suppliers	3,916.81	4,222.45	(305.64)
Mar-23 #	Trade Payable	3,185.04	3,212.06	(27.02)	# Company has filed provisional return as on 26th March 2023 with the banks for quarter ended 31st March 2023
Mar-23 #	Advance from Customers	48.06	39.51	8.55

3 During the year:

• The Company has not made any investments in, 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.

• The Company has granted loans to companies and other parties.

• The Company has not granted any loans to firms or limited liability partnerships.

(a) To subsidiaries: Stood guarantee: Aggregate amount provided during the year NIL, and balance outstanding at the balance sheet date Rs. 4,933.10 lakhs.

To others: Granted loans: Aggregate amount provided during the year Rs. 250.00 lakhs, and balance outstanding at the balance sheet date Rs. 257.56 lakhs.

(b) In our opinion, guarantees provided and the terms and conditions of grant of all loans and guarantees provided, prima facie, are not prejudicial to the interest of the Company.

(c) In respect of loans, the schedule of repayment of principal and payment of interest has been stipulated and the repayments or receipts are regular.

(d) There is no amount overdue remaining outstanding as at the year end.

(e) There is no loan granted which has fallen due during the year, which has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

(f) The Company has not granted loan or advance in the nature of loan either repayable on demand or without specifying any terms or period of repayment.

4 In our opinion, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

5 The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.

6 We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed examination of the same.

7 (a) Amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including goods and service tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities.

No undisputed amounts payable in respect of goods and service tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31st March 2023 for a period of more than six months from the date they became payable.

(b) There are no dues of income-tax, sales-tax, service tax, goods and service tax, duty of customs, duty of excise and value added tax which have not been deposited as on 31st March 2023 on account of any dispute.

8 The Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, clause 3(viii) of the Order is not applicable.

9 (a) The Company has not defaulted in the repayment of loans or borrowings or in the payment of interest thereon to any lenders.

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

(c) The term loans obtained during the year were applied for the purpose for which the loans were obtained.

(d) On an overall examination of the standalone financial statements of the Company, in our opinion, no funds raised on short-term basis have been used for long-term purposes by the Company.

(e) On an overall examination of the standalone financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries. The Company does not hold any investment in any associate companies or joint ventures as defined under the Act.

(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries. The Company does not hold any investment in any associate companies or joint ventures as defined under the Act.

10 (a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not applicable.

(b) In relation to the preferential allotment of convertible warrants and subsequent allotment of shares on conversion of convertible warrants, in our opinion the company has complied with the requirements of section 42 and section 62 of the act. Further, in our opinion, the amounts so raised have been used for the purposes for which the funds were raised. The Company has not made allotment of any fully or partly convertible debentures during the year.

11 (a) No fraud by the Company or on the Company has been noticed or reported during the course of the audit.

(b) 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) There are no whistle blower complaints received by the Company during the year.

12 The Company is not a Nidhi Company. Accordingly clauses 3(xii)(a), 3(xii)(b) and 3(xii)(c) of the Order are not applicable.

13 In our opinion, the Companys transactions with its related parties are in compliance with section 177 and 188 of the Act, where applicable, and the details of the related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

14 (a) 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.

15 In our opinion, the Company has not entered into non-cash transactions covered under the provisions of Section 192 of the Act with its directors or persons connected with its directors. Accordingly, paragraph 3 (xv) of the order is not applicable to the Company.

16 (a) & (b) In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, clause 3(xvi)(a) and clause 3(xvi)(b) of the Order is not applicable.

(c) & (d) In our opinion, 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 clause 3(xvi)(d) of the Order is not applicable.

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

18 There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.

19 On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of standalone balance sheet as and when they fall due within a period of one year from the standalone 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 standalone balance sheet date, will get discharged by the Company as and when they fall due.

20 There is no unspent amount under sub-section (5) of section 135 of the Act pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

KUNAL KEDIA

(M. No.: 149403), Partner

for and on behalf of

K K A K & CO.

Chartered Accountants

FRN: 148674W

UDIN: 23149403BGXDTX6428

Place : Ahmedabad

Date : 15th May 2023