To the Members of MKP Mobility Limited (Formerly known as Chitradurga Spintex Limited)
Report on the IND AS Financial Statements Opinion
We have audited the accompanying IND AS financial statements of MKP Mobility Limited
(formerly known as Chitradurga Spintex Limited) ("the Company"), which comprise
the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss, including the
statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of
Changes in Equity for the year then ended, and a summary of significant accounting
policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the IND AS financial statements give the information required by the
Companies Act 2013,as amended("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 March 31, 2023, its profit including
other comprehensive income, its cash flows and the changes in equity for the year ended on
that date.
Basis for Opinion
We have conducted our audit of the financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013
(‘the Act). 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 (ICAI) together with the independence
requirements that are relevant to our audit of the 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 Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the financial statements.
Key Audit Matters
Key Audit matters are those matters that, in our professional judgement, were of most
significance in our audit of Financial Statements of current period. As per our judgement,
there are no Key Audit Matters that need to be reported under SA 701.
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 Annual Report, 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 such other information is materially inconsistent with the Standalone
Financial Statements or our knowledge obtained in the 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.
Managements Responsibility for the 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 IND AS financial statements that give a true and fair view of the financial
position, financial performance including other comprehensive income, cash flows and
changes in equity of the Company in accordance with accounting principles generally
accepted in India, including the Indian Accounting Standards (IND AS ) specified under
section 133 of the Act., read with Rule 7 of the Companies (Accounts) Rules, 2014 and the
Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the design,
implementation and maintenance of adequate internal financial control that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the IND AS financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these IND AS financial statements based
on our audit.
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an 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 financial statements.
We conducted our audit of the IND AS financial statements in accordance with the
Standards on Auditing, issued by the Institute of Chartered Accountants of India, as
specified under Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the IND AS
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Companys preparation of the
IND AS financial statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by the Companys Directors, as well as evaluating the overall presentation
of the IND AS financial statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion on the IND AS
financial statements.
Other Matter
The comparative financial information of the Company for the year ended March 31, 2023
in these IND AS financial statements, have been audited by previous auditor M N T &
Associates LLP for the relevant periods. The report furnished by the predecessor auditor
who had expressed an unqualified opinion.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books ;
(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other
Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt
with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid IND AS financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014, Companies (Indian Accounting Standards) Rules, 2015, as
amended;
(e) In our opinion, there are no matters that may have an adverse effect on the
functioning of the Company.
(f) On the basis of the written representations received from the directors as on 31 st
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.
(g) 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.
(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, 2018, 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.
iv. a) The management has represented that to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other persons or entities, including foreign
entities ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise , 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;
b) The management has represented that, to the best of its knowledge and belief , no
funds (which are material either individually or in the aggregate) have been received by
the company from any person or entities including foreign entity ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise , that
the company shall, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
ultimate beneficiaries;
c) Based on such audit procedures that were considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement.
v. The Company has not declared or paid any dividend during the year, therefore the
provisions of the section 123 of the Act is not applicable.
2. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of sub-section 11 of section 143 of the Act, we
give in the ‘Annexure B, a statement on the matters specified in paragraphs 3 and 4
of the Order.
Annexure A referred to in paragraph 2 (f) under the heading "Report on other Legal
and Regulatory requirements" of our report of 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 MKP
Mobility Limited (Formerly known as Chitradurga Spintex Limited) ("the Company")
as of March 31, 2023 in conjunction with our audit of the Ind AS 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 (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to 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 issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the Ind AS 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 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 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
According to the information and explanations given to us and based on our audit, the
Company, in all material respects, maintained adequate internal financial controls over
financial reporting 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 stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India, the
Companys internal financial controls over financial reporting were operating effectively
as of March 31, 2023.
ANNEXURE B TO INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR
THE PERIOD ENDED MARCH 31, 2023 OF MKP MOBILITY LIMITED (formerly known as CHITRADURGA
SPINTEX LIMITED) ("the Company")
[Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory
Requirements in the Independent Auditors Report]
Companies (Auditors Report) Order, 2020 issued by the Central Government in terms of
subsection 11 of section 143 of Companies Act, 2013 ("the Act")
i. According to the information and explanations given to us and on the basis of our
examination of the records of the company, the Company does not hold any tangible or
intangible assets for the year under consideration. Hence, reporting under clause (a) to
(e) is not applicable.
ii. (a) The inventory has been physically verified at reasonable interval by the
management to the extent possible. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and the nature of its
business.
(b) The Company has not sanctioned any working Capital limit, from banks on the basis
of security of current assets and hence reporting under this clause is not required.
iii. (a) According to the records of the Company, during the year the company has
granted an advance
in the nature of loan to other entity. Details of which has been provided in following
table:
|
Guarantees |
Security |
Loans |
Advances in nature of loans |
| Aggregate amount granted/provided during the year. |
|
|
|
|
| - Subsidiaries |
|
|
|
100 lakh |
| - Joint Ventures |
|
|
|
|
| - Associates |
|
|
|
|
| - Others |
|
|
|
|
| Balances outstanding as at balance sheet date in respect of above cases |
|
|
|
|
| - Subsidiaries |
|
|
|
100 lakh |
| - Joint Ventures |
|
|
|
|
| - Associates |
|
|
|
|
| - Others |
|
|
|
|
(b) According to the information and explanations given to us and based on the audit
procedures performed by us, we are of the opinion that the investments made, guarantees
provided, security given and the terms and conditions of the grant of all loans and
advances in the nature of loans and guarantees provided are not prejudicial to the
companys interest.
(c) According to the information and explanations given to us and based on the audit
procedures performed by us, Repayment of principal and payment of interest has been
stipulated and the repayment of the same is in accordance with the schedule in respect of
the advances in the nature of loan given by company during the year.
(d) In our opinion and according to the information and explanations given to us, no
amount is overdue for more than ninety days. Therefore, the requirements of Para 3(iii)(d)
of the Order are not applicable to the Company.
(e) In our opinion and according to information and explanation given to us, no amount
of loans and advances which had fallen due during the year, has been renewed or extended
or fresh loan granted to settle existing loans given to the same parties.
(f) In our opinion and according to the information and explanations given to us, the
company has not granted any loans or advances in the nature of loans either repayable on
demand or without specifying any terms or period of repayment.
iv. According to the information and explanations given to us and on the basis of our
examination of the records of the company, the company has not given any loans or provided
any guarantee or security as specified under section 185 of the Companies Act, 2013.
The company has given loan during the year which is within the limit specified under
section 186 of the Companies Act, 2013.
v. In our opinion and according to the information and explanations given to us, there
are no amounts outstanding which are in the nature of deposits as per the provisions of
sections 73 to 76 or any other relevant provisions of the Companies Act and the rules made
thereunder as on 31st March, 2023 and the Company has not accepted any deposits
during the year.
vi. In our opinion and according the information and explanation given to us, the
requirement of sub- section 1 of section 148 of The Companies Act is not applicable to the
company.
vii. (a) According to the records of the Company, the Company is generally regular in
depositing with appropriate authorities, undisputed statutory dues including Provident
fund, Employees State Insurance, Income Tax, Service Tax, Duty of Customs, Duty of
Excise, Goods and Services Tax and other applicable statutory dues.
(b) According to the records of the Company, the Company has no disputed statutory dues
including Income Tax, and Service Tax, Goods and Services Tax and other statutory dues.
viii. According to the records of the Company, the Company has not recorded any
transactions in the books of account which have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961.
ix. According to the information and explanations given to us and on the basis of our
examination of the records of the company, the company has not raised any loans or
borrowings from bank or financial institution, hence reporting under this clause is not
applicable to the company.
x. (a) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments). Accordingly, para x(a) of the Order is not
applicable to the Company.
(b) The Company has made preferential allotment during the year in compliance with
section 42 of the act and Rule 14 of the Companies (Prospectus and Allotment of
Securities) rules, 2014.
In our opinion and according to the information and explanations given to us, the
company has utilized funds raised by way of preferential allotment for the purposes for
which they were raised, except for the following:
| Nature of Securities |
Purpose for which funds were raised |
Total Amount Raised/ opening unutilized balance |
Amount utilized for the other purpose |
Unutilized balance as at balance sheet date |
Remark, any |
| Equity Shares |
Working Capital Requirement |
Rs.442.50 lakh |
Rs.100 lakh |
Rs.336.08 lakh |
|
xi. (a) During the course of our examination of the books and records of the company
and according to the information and explanations given to us, we have neither come across
any instance of material fraud by the Company or on the Company by its officers or
employees during the course of our audit.
(b) No report under sub section (12) of section 143 of the Companies Act, 2013 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) We have not received any whistle blower complaints during the year by the Company.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
xiii. According to the information and explanations given to us, transactions with the
related parties are in compliance with provisions of section 177 and section 188 of the
Companies Act, 2013 where applicable and details of such transactions have been disclosed
in the financial statements as required by the applicable Indian Accounting Standards.
xiv. (a) According to the information and explanations given by the management, the
Company has an internal audit system corresponding with the size and nature of its
business.
(b) We have considered the reports of the Internal Auditors to the extent required by
us.
xv. According to the information and explanations given to us and based on our
examination of the records of the company, the company has not entered into non-cash
transactions with directors or persons connected with them. Accordingly, paragraph 3(xv)
of the Order is not applicable.
xvi. In our opinion, the company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3
(xvi)(a) to (d) of the Order are not applicable to the Company.
xvii. According to the records of the Company, the Company has incurred cash losses of
Rs.25.90 lakh in the financial year and cash losses of Rs.5.42 lakh in the immediately
preceding financial year.
xviii. There has been resignation of the Statutory Auditor during the year and
accordingly, we have taken into consideration the issues, objections or concerns raised by
the outgoing auditor.
xix. 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
financial statements, our 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 and
that the 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. According to the information and explanations given to us and based on our
examination of the records of the Company, the provisions of section 135 are not
applicable to the company. Accordingly the requirements of para 3(xx)(a) and (b) are not
applicable.
| For Shah Khandelwal Jain & Associates |
| Chartered Accountants |
| Firm Registration No.:142740W |
| Ashish Khandelwal |
| Partner |
| Membership No.: 049278 |
| UDIN: 23049278BGVMZM3222 |
| Date: 31/08/2023 |
| Place: |
+91-9892691696
