on Quarterly and Year to Date Audited Standalone Financial Results of the Company
pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
To
Board of Directors NMS Resources Global Limited Report on the audit of Standalone
Financial Results Opinion
We have audited the accompanying quarterly and year to date standalone financial
results of NMS Resources Global Limited (the Company) for the quarter and
financial year ended 31st March, 2023 (the Statement), attached herewith,
being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the
Listing Regulations).
In our opinion and to the best of our information and according to the explanations
given to us these quarterly financial results as well as the year to date results:
i. are presented in accordance with the requirements of Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard subject
to our observations mentioned below; and
ii. gives a true and fair view in conformity with the applicable accounting standards
and other accounting principles generally accepted in India subject to our observations
mentioned below, of the net Profit and other comprehensive income and other financial
information of the Company for the quarter and year ended 31st March, 2023.
Basis of Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our
responsibilities under those Standards are further described in the "Auditors
Responsibilities for the Audit of the Standalone Financial Results" 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 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 except that our audit fee for
the previous financial year is not cleared till signing of this report. We believe that
the audit evidence obtained by us is sufficient and appropriate to provide a basis for our
opinion subject to our observations mentioned below.
Managements Responsibilities for the Standalone Financial Results
These statements have been prepared on the basis of Standalone financial statements.
The Board of Directors of the Company are responsible for the preparation and presentation
of the results that gives a true and fair view of the net Profit and other comprehensive
income and other financial information of the company in accordance with the applicable
accounting standards prescribed under Section 133 of the act read with relevant rules
issued thereunder and other accounting principles generally accepted in India and in
compliance with Regulation 33 of the Listing Regulations. 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 controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Statement that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Statement, the Board of Directors are 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.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a
whole is 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
the Statement.
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 Statement, 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 with reference to 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 the 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 financial results 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 Statement,
including the disclosures and whether the Statement represents the underlying transactions
and events in a manner that achieves fair presentation.
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.
Other Matter
1. The Statement includes the results for the quarter ended 31st March, 2023
being the balancing figure between the audited figures in respect of the full financial
year ended 31st March 2023 and the published unaudited year-to-date figures up to the
third quarter of the current financial year which were subjected to limited review by us.
2. Party Balances related to Borrowings, Advances given, Trade Receivables, Trade
Payables, Advances Received etc. were not confirmed from parties and these are taken at
book value. We cannot comment on the actual amount in this regard.
3. The balance of Banks stated in financial statements is on the basis of Bank
Statement received till 31st March 2023 in respect of current account
mentioned. We cannot comment if any other facility taken from Bank/ other financial
institutions.
4. Investments made in shares of subsidiary company at cost of Rs. 110.45 Lakhs was not
discharged through Bank payment. The liability payable towards all investments was
standing as payable in Books as on 31st March 2023 in the name of Seller.
5. Advance for Capital WIP Rs. 16.20 Lakhs was paid by the company in FY 2019-20. There
is no apparent expenditure on the development of any software in last three years. The
company has represented that there is no impairment on this payment and no provision for
impairment was booked. However, we did not find any convincing evidence in this regards.
6. Physical verification of Inventory was not conducted as the material was already
sold before the date of our audit. This have been taken on the basis of Management
representation.
7. The company has not made any provision for retirement benefits in accordance with
IndAS- 19. Therefore, the profit of the company is understated by the corresponding
amount. As we did not have any reasonable measurement basis or actuarial report, we cannot
quantify the same.
8. The company has taken loan of Rs. 20 Lacs from HDFC Bank for the purpose of purchase
of two motor vehicles. This loan was taken in due course by the company and Charges were
also created with ROC. However actual value of Motor Vehicles acquired were amounting Rs.
8.40 lacs and the balance amount taken was used for other business purpose. This has also
been reflected in its financial statements.
9. Disclosers of Trade Receivables, Borrowings/ Advances, Capital Work in Progress,
Borrowed Funds Utilization is not mentioned as per Schedule III of the Companies Act 2013.
10. Disclosers in relation to IndAS of Related Party Transactions, Segmental Reporting,
Impairment, Leases, Share based payments, Contract with Customers are not found in
conformity of Schedule III.
11. Company has not assessed the amount involved for Contingent Liability and no
discloser has been shown in its financial statements. We cannot reliably measure the value
of such liabilities.
12. Company has recognised Unbilled Revenue of Rs. 20 Lakhs in PY 2021-22 with was
expected to be billed during current financial year 2022-23. However, this was neither
billed nor derecognized by company during current year.
13. Investment in M/s Kuberakshi Advisory Services Private Limited was made during the
year for Rs. 50 Lakhs by the company. The Net worth of this company on the date of
acquisition was less than Investment amount. Company did not produce us any valuation
report for this purpose. Therefore, we cannot comment about actual fair value of these
investments which are reported at cost price.
14. There were defaults in payment of statutory dues including GST, TDS, ESIC etc.
Company has not made any provision or contingent liability in respect of penalties or
interest payable on these dues.
15. Attention is also drawn to our audit report issued under the Companies Act for
other observations including Internal Financial Control over financial reporting.
| Date: 03/06/2023 |
For SPS Associates |
| Place: Delhi |
Chartered Accountants |
|
Firm Regn. No. 012358N |
|
Mukesh Srivastava |
|
Partner |
|
M. No.: 525933 |
|
UDIN- 23525933BGYGLB7211 |
+91-9892691696
