To the Members of
Manor Estates and Industries Limited
Report on the Audit of the Standalone Financial Statements
1. Opinion
We have audited the accompanying standalone financial statements of Manor Estates and
Industries Limited (the "Company"), which comprise the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that
date and a summary of significant accounting policies and other explanatory information
(hereinafter referred to as the "standalone financial statements").
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 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 March 31, 2023 and its Loss, total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
2. Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing ("SA"s) 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 ("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 made thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ICAIs Code
of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate
to provide a basis for our audit opinion on the standalone financial statements.
3. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significant 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 to identify the matters depending on the facts
and circumstances of the entity. Based on the audit performed there are no key audit
matters to communicate as there are no significant audit judgements relating to areas in
the Standalone Financial Statements that involved significant management judgement
including accounting estimates that have been identified as having high estimation and
uncertainty.
4. Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Business Responsibility Report,
Corporate Governance and Shareholders Information, but does not include the standalone
financial statements and our auditors 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.
5. Managements Responsibilities for the Standalone Financial Statements
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, including
other comprehensive income, changes in equity and cash flows of the Company in accordance
with the Ind AS and other accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so. The Board of Directors are responsible for overseeing
the Companys financial reporting process.
6. Auditors Responsibilities for the Audit of the Standalone Financial Statements
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.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism 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 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 Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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.
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.
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 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.
7. Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 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 March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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 Companys internal financial controls over
financial reporting.
(g) 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, remuneration paid/payable by the Company to its directors is in accordance
with the provisions of the Act.
With respect to the other matters to be included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has no pending litigations which have an impact on its standalone
financial statements.
ii. The Company has no long term contract including derivative contracts requiring
disclosure of material foreseeable losses.
iii. There are no amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
2. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
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For NATARAJA IYER & CO. |
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CHARTERED ACCOUNTANTS |
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Firms Registration No. 002413S |
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Sd/- |
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E.S.RANGANATH |
| HYDERABAD |
PARTNER |
| DATE: 20.05.2023 |
Membership No. 013924 |
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UDIN: 23013924BGVUWD2168 |
ANNEXURE - "A" TO THE INDEPENDENT AUDITORS REPORT
(Refer to paragraph 1(f) under Report on Other Legal and Regulatory requirements
section of our report even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of MANOR
ESTATES AND INDUSTRIES LIMITED ("the company"), as of March 31, 2023 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 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 (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 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 168 Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting
Meaning of Internal Financial Controls over Financial Reporting
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 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 financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the company considering
the essential components of internal control stated in the Guidance Note
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For Nataraja Iyer & Co |
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Chartered Accountants |
| Place: Hyderabad, |
FRN: 002413S |
| Date: 20.05.2023 |
Sd/- |
|
E.S. Ranganath |
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Partner Name |
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M No: 013924 |
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UDIN: 23013924BGVUWD2168 |
Annexure "B" to the Independent Auditors Report of even date to the members
of Manor Estates and Industries Limited on the standalone financial statements for the
year ended 31st March 2023
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 information examined by us in the
course of audit, and to the best of our knowledge and belief we report that:
(i) a) A. The Company has maintained proper records showing full particulars including
quantitative details and situation of property, Plant and Equipment.
B. The company does not have intangible assets hence records are not maintained.
b) The Company carried out physical verification of its Property, Plant and Equipment
and no discrepancies were noticed on such verification.
c) The company does not hold any immovable properties under Property Plant &
Equipment.
d) The company has not revalued its Property Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year.
e) As informed there are no proceedings initiated or pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and rules made there under.
(ii) a) As informed, the company held land as stock in Trade and physical verification
of documents has been carried.
b) According to the information and explanation given to us the company during the year
does not have sanctioned working capital limits from banks or financial institutions.
(iii) According to the information and explanation given to us, during the year 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. Hence sub clauses (a) to (f) of
clause (iii) of the order are not applicable to the company for the year.
(iv) According to the information and explanation given to us, the company has not
given any loans, investments, guarantees, and security, in terms of provisions of section
185 and 186 of the Companies Act, 2013, and hence sub-clause (iv) is not applicable to the
company for the year.
(v) The Company has not accepted any deposits during the year as per section 73 to 76
of the Act. Hence sub-clause (v) is not applicable to the company for the year.
(vi) As informed, maintenance of cost records as per the provisions under Section 148
of the Companies Act, 2013 are not applicable to the Company.
(vii) (a) The company is generally regular in depositing the undisputed statutory dues
such as income-tax and goods and services tax, with the appropriate authorities;
According to the information and explanation given to us, no undisputed amounts payable
in respect of Income-tax, and Goods and Service Tax, 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 disputed statutory dues remaining unpaid due to pending litigations.
(viii) As per the information and explanations given to us there are no transactions
which are not recorded in the books of accounts and have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.
(ix) a) As per the information and explanation given to us the company has not borrowed
loans or other borrowings from banks, financial institutions or government. Hence default
on repayment of loans does not arise.
b) As informed the company was not declared as wilful defaulter by any bank or
financial institution or other lender during the year.
c) During the year the company has not availed any term loans hence reporting under the
clause about diversion of funds is not applicable.
d) During the year the company has not raised funds on short term basis hence reporting
under the clause is not applicable.
e) The company does not have any subsidiaries, associates or joint ventures hence
reporting under the clause is not applicable for the year.
f) The company does not have any subsidiaries, associates or joint ventures hence
reporting under the clause is not applicable for the year.
(x) The company has not raised moneys by way of Initial public offer or further public
offer including debt instruments and also has not made preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally
convertible).
(xi) a) To the best of our knowledge and according to the information and explanation
given to us, no material fraud by the Company or on the Company has been noticed or
reported during the year.
b) During the year no report under sub-section (12) of section 143 of the Act has been
filed by us in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government.
c) As per the information and explanations given to us there are no whistle-blower
complaints received by the company during the year.
(xii) The Company is not a Nidhi Company as per section 406 of the Act, and hence the
subclauses (a) to (c) of 3(xii) is not applicable to the company.
(xiii) According to the information and explanation given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and
details have been disclosed in the standalone Financial Statements to the extent
applicable.
(xiv) As per the information and explanation given to us the company has internal audit
system commensurate to the size and nature of its business and we have considered the
report of internal audit for the period under audit.
(xv) The company has not entered into any non-cash transactions with directors or
persons connected with them with regard to the provisions of section 192.
(xvi) The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
(xvii) The company has incurred cash losses in the financial year and in the
immediately preceding financial year to the tune of Rs. 60.01 lakhs and Rs. 175.82 lakhs
respectively.
(xviii) There has been no resignation of the statutory auditors 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, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that 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 explanations given to us provisions of section 135 of
the act are not applicable to the company and hence sub-clauses (a) and (b) of (xx) are
not applicable for the year.
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For NATARAJA IYER & CO. |
|
Chartered Accountants |
|
FRN:002413S |
|
Sd/- |
|
E.S RANGANATH |
|
Partner |
|
M No. 013924 |
| Place: Hyderabad |
UDIN: 23013924BGVUWD2168 |
| Date: 20.05.2023 |
|
+91-9892691696
