To
The Members of
Mipco Seamless Rings (Gujarat) Limited Bangalore
Report on the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of M/s Mipco Seamless
Rings (Gujarat) Limited ("the Company"), which comprises the Balance Sheet as of
March 31, 2023, the Statement of Profit and Loss, Statement of Changes in Equity and
Statement of Cash Flow for the year then ended, and Notes to the Standalone Financial
Statements, including a summary of Significant Accounting Policies and other explanatory
information [hereinafter referred to as "Standalone Financial Statements"].
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Financial Statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed under Section 133
of the Act and accounting principles generally accepted in India, of the State of Affairs
of the Company as at March 31, 2023, and its Profit, Changes in Equity and its Cash Flows
for the Year ended on that date.
Basis for Opinion
We conducted our Audit of the Standalone Financial Statements in accordance with the
Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements Section of our Report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of Standalone Financial Statements under the provisions of the Act and the
Rules defined thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the Audit
Evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key Audit Matters are those matter that, in our professional judgement, 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. During the year under consideration, we have no Key
Audit Matters to report.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Standalone Financial Statements that give a true and fair view of the Financial
Position, State of Affairs, Profit /loss (including 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 specified under
Section 133 of the Act, read with the Rules defined thereunder. 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 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, 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 intend to liquidate the Company or to
cease the operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys Financial
Reporting Process.
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 skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial
Statements, whether due to fraud or error, design and perform Audit Procedures responsive
to those risks, and obtain Audit Evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of Internal Controls.
• Obtain an understanding of Internal Controls relevant to the Audit in order to
design Audit Procedures that are appropriate in the circumstances. Under Section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the Company has adequate Internal Financial Controls System with reference to the
Standalone Financial Statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of the Accounting Policies used and the
reasonableness of accounting estimates and related disclosures made by the Management.
• Conclude on the appropriateness of the 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 Going Concern.
• Evaluate the overall presentation, structure, and content of the Financial
Statements, including the disclosures, and whether the Standalone Financial Statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
• Materiality is the magnitude of misstatements in the Standalone Financial
Statements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the Financial Statements may be
influenced. We consider quantitative materiality and qualitative factors in:
(i) Planning the Scope of our audit work and 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.
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 terms of Sub-section (11) of Section 143 of
the Companies Act, 2013, we give in the "Annexure- A" statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper Books of Accounts 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, the Statement of Changes in
Equity and the Cash Flow Statement dealt with by this Report are in agreement with the
Books of Account.
d) In our opinion, the aforesaid Financial Statements comply with the Ind AS specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the Written Representations received from the Directors as on March
31, 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 with reference to
the Standalone Financial Statements of the Company and the operating effectiveness of such
controls, refer to our separate Report in "Annexure- B". 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 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 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.
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, in our opinion
and to the best of our information and according to the explanations given to us:
a. The Company does not have any pending litigations which would impact its Financial
Position.
b. The Company did not have any long-term contracts including Derivative Contracts for
which there were any material foreseeable losses.
c. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
d. (i) The Management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from Borrowed Funds or Share
Premium or any other sources or kind of funds) by the Company to or in any other Person(s)
or Entity (ies), including Foreign Entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) The Management has represented, that, to the best of its knowledge and belief, no
funds have been received by the Company from any Person(s) or Entity(ies), including
Foreign Entities ("Funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
(iii) Based on the Audit Procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to their notice that has caused them to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided
under (a) and (b) above contain any material mis-statement.
e. The Company has not declared any Dividend and nor paid during the year.
For KVSRY and Associates
Chartered Accountants
Firms Registration No. 008169S
Sd/-
CA K Venkateswarlu
Partner
Membership No. 207068
UDIN: 23207068BGXMNN2504
Date: May 31, 2023
Place: Hyderabad
Annexure - A to the Independent Auditors Report of even date to the Members of M/s
Mipco Seamless
Rings (Gujarat) Limited, on the Financial Statements for the Year ended March 31, 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 Books of Accounts and other records
examined by us in the normal course of Audit, and to the best of our knowledge and belief,
we report that:
(i) a. The Company has maintained proper records showing full particulars, including
quantitative details and situation of Fixed Assets.
b. The Company has a regular program of physical verification of its Fixed Assets under
which Fixed Assets are verified in a phased manner over a period for which we have
received the certificate of confirmation from the Management.
c. The Title Deeds of all the Immovable Properties (which are included under the head
(Property, Plant and Equipment) are held in the name of the Company.
d. The Company has not revalued any of its Property, Plant and Equipments during the
year.
e. As per the information given to us there are no proceedings initiated or pending
against the Company for holding any Benami Property under the Benami Transactions
(Prohibition) Act, 1988 and Rules made there under.
(ii) a. In our opinion and according to the information and explanation give to us, the
Management has conducted physical verification of Inventory at reasonable intervals during
the year, and no material discrepancies were noticed on the aforesaid verification, for
which we have received the certificate of confirmation from the Management.
b. The Company has not availed any Financial Assistance from any Bank or Financial
Institutions during the year under review.
(iii) The Company has not granted any Loans, secured or unsecured, to any Companies,
Firms, Limited Liability Partnerships or other parties.
(iv) The Company has complied with the provisions of Section 186 in respect of the
Investments and Loans. Further, in our opinion, the Company has not entered into any
transaction covered under Section185 and Section 186 of the Act in respect of Guarantees
and Security.
(v) The Company has not accepted any Deposits within the meaning of Sections 73 to 76
of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
Accordingly, the provisions of Clause 3(v) of the Order are not applicable.
(vi) The provisions of Section 148 are not applicable to the Company.
(vii) (a) In our opinion, the Company has been regular in depositing undisputed
statutory dues, including Goods and Services Tax, Provident Fund, Employees State
Insurance, Income Tax, Sales Tax, Service Tax, Duty of Custom, Value Added Tax, Cess and
other material statutory dues applicable to it with the appropriate authorities. There
were no undisputed amounts payable in respect of Goods and Service Tax, Provident Fund,
Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of
Excise, Value Added Tax, Cess and other material statutory dues in arrears as at March 31,
2023 for a period of more than six months from the date they become payable.
(b) There are no statutory dues referred to in sub-clause (a) above which have not been
deposited as on March 31, 2023 on account of disputes.
(viii) All the transactions recorded in the books of account have been disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
There were no transactions relating to previously unrecorded income that have been
surrendered or disclosed as Income during the year in the Tax Assessments under the Income
Tax Act, 1961 (43 of 1961).
(ix) According to the records of the Company examined by us and as per the information
and explanations given to us, we hereby report that:
a. The Company has not defaulted in repayment of Loans or Borrowings to any Bank during
the Year under review. The Company has No Outstanding Debentures during the year.
b. The Company is not declared Wilful Defaulter by any Bank or Financial Institution or
other Lender.
c. The Company has not raised any Term Loan from any Bank or Financial Institution
during the current year.
d. To the extent of our check, no funds raised by the Company for short-term has been
utilized for long term purposes.
e. The Company has not taken any funds from any entity or person on account of or to
meet the obligations of its Subsidiaries, Associates or Joint Ventures.
f. The Company has not raised loans during the Year on the Pledge of Securities held in
its Subsidiaries, Joint Ventures or Associate Companies.
(x) a. In our opinion, no fraud by the Company or any fraud on the Company has been
noticed or reported during the year under review.
b. No Report under sub-section (12) of Section 143 of the Companies Act has been filed
by the Auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and
Auditors) Rules, 2014 with the Central Government.
c. No Whistle Blowers Complaints were received during the year under review. As
represented to us by the Management, no Whistle Blowers Complaints were received during
the year under review.
(xi) In our opinion, the Company is not a Nidhi Company, and accordingly, provisions of
Clause 3(xii) of the Order are not applicable.
(xii) In our opinion, the Company is in compliance with Sections 177 and 188 of the
Companies Act, 2013, with respect to applicable transactions with related parties, and the
requisite details have been disclosed in the Financial Statements.
(xiii) In our opinion, the Company has an adequate Internal Audit System commensurate
with the size and nature of its business.
(xiv) In our opinion the Company has not entered in any non-cash transactions with the
Directors or persons connected with them covered under Section 192 of the Act.
Accordingly, the provisions of Clause 3(xv) of the Order are not applicable.
(xv) According to the information and explanation given to us, the Company is not
required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and
the Company has not conducted any NBFC activities during the year.
(xvi) The Company has incurred Cash losses in the Financial Year and in the immediately
preceding Financial Year also.
(xvii) There has been no resignation of the Statutory Auditors of the Company during
the year.
(xviii) The Company is not liable to contribute under Section 135 of the Companies Act,
2013. Accordingly, the provisions of Clause 3(xx) of the order are not applicable.
(xix) In our opinion and according to the information and explanations given to us,
Company does not have any subsidiaries; associates and joint venture Therefore this clause
is not applicable.
(xx) There has been no qualifications and adverse remarks by the respective Auditors in
the Companies (Auditors Report) Order (CARO) Reports of the Companies to be included in
the Consolidated Financial Statements.
(xxi) The reporting under clause 3(xxi) is not applicable in respect of Audit of
Financial Statements of the Company. Accordingly, no comment has been included in respect
of said Clause under this Report.
For KVSRY and Associates
Chartered Accountants
Firms Registration No. 008169S
Sd/-
CA K Venkateswarlu
Partner
Membership No. 207068
UDIN: 23207068BGXMNN2504
Date: May 31, 2023
Place: Hyderabad
Annexure - B to the Independent Auditors Report of even date to the Members of M/s
Mipco Seamless Rings (Gujarat) Limited, on the Financial Statements for the Year ended
March 31, 2023
Independent Auditors Report on the internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
In conjunction with our Audit of the Financial Statements of M/s Mipco Seamless Ring
(Gujarat) Limited (the Company) as at and for the year ended March 31, 2023, we have
audited the Internal Financial Controls Over Financial Reporting (IFCoFR) of the Company
as at that date.
Managements Responsibility for Internal Financial Controls
The Companys Board of Directors 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, as stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants
of India (ICAI). These responsibilities include the Design, Implementation and
Maintenance of adequate Internal Financial Controls that were operating effectively for
ensuring the orderly and efficient conduct of the Companys Business, including adherence
to the 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
Our responsibility is to express an opinion on the Companys IFCoFR based on our Audit.
We conducted our Audit in accordance with the Standards on Auditing issued by the ICAI and
deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an
Audit of the IFCoFR, and the Guidance Note issued by the ICAI. 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 IFCoFR were 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 IFCoFR and their operating effectiveness. Our Audit of IFCoFR includes obtaining an
understanding of IFCoFR, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of the Internal Controls based on
the assessed risk. The procedures selected depend on the Auditors judgment, including the
assessment of the risks of material misstatement of the Financial Statements, whether due
to fraud or error.
We believe that the Audit Evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion on the Companys Internal Financial Controls Over
Financial Reporting.
Meaning of Internal Financial Controls Over Financial Reporting
The Companys Internal Financial Controls 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 the
Generally Accepted Accounting Principles. A Companys IFCoFR include those policies and
procedures that:
(i) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the Assets of the Company;
(ii) Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of the Financial Statements in accordance with the 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
(iii) 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 the IFCoFR, 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 IFCoFR
to future periods are subject to the risk that the IFCoFR 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 and to the best of information and according to the explanations given
to us, the Company has maintained, in all material respects, adequate Internal Financial
Controls Over Financial Reporting and such controls were operating effectively as of March
31, 2023, based on the Internal Control Over Financial Reporting criteria established by
the Company, considering the essential components of Internal Control as stated in the
Guidance Note issued by the Institute of Chartered Accountants of India.
For KVSRY and Associates
Chartered Accountants
Firms Registration No. 008169S
Sd/-
CA K Venkateswarlu
Partner
Membership No. 207068
UDIN: 23207068BGXMNN2504
Date: May 31, 2023
Place: Hyderabad.
+91-9892691696
