To
The Members of
EQUIPPP SOCIAL IMPACT TECHNOLOGIES LIMITED
(Formerly Proseed India Limited)
REPORT ON AUDIT OF THE STANDALONE FINANCIAL STATEMENTS OPINION
We have audited the accompanying standalone Financial Statements of EQUIPPP SOCIAL
IMPACT TECHNOLOGIES LIMITED (Formerly Proseed India Limited) ("the Company"),
which comprise of the Balance Sheet as at 31st March 2023, the Profit and Loss, including
the statement of Other Comprehensive Income, the Cash Flow Statement and the statements of
changes in equity for year then ended and a summary of the 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 aforesaid standalone financial statements give the information required
by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India including the state of affairs
(financial position) of the Company as at March 31, 2023 and its loss
(financialperformance including other comprehensive income), its cash flows and the
changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone Ind AS financial statements in accordance with
the Standards on Act 2013. Our responsibilities under Auditing(SAs)asspecified 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 the
financial statements under the provisions of the companies act 2013 and the Rules there
under, and we have fulfilled our ethical responsibilities in accordance with those
requirements and the code of Ethics. We believe that the audit evidence we have obtained
is Sufficient and appropriate to opinion on the Standalone Ind AS Financial Statements.
EMPHASIS OF MATTER PARAGRAPH
During the year under consideration, the management of the company has received the
estimated useful life of its intangible assets from the existing 11 years to 34 & 40
years, as in the opinion of the management, the ESG, CSR, Social Technology space are
expected to have a long useful life. Accordingly , the depreciation for the financial year
was calculate from the beginning of the year on balance useful life of the said intangible
assets. This change has resulted into lower charge of depreciation to the extent of
Rs.46.99 Lakhs during the year and higher statement of profit to that extent during the
year.
Our opinion on the Statement is not modified in respect of the above matter.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
OTHER INFORMATION
The Companys management and board of directors are responsible for the preparation of
the other information. The other information comprises the information included in the
companys annual report but does not include the financial statements and our auditors
report thereon.
Our opinion on the 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 financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial 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.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys Board of Directors are responsible for the matters stated in Section
134(5) of the Companies
Act, 2013 ("the Act") with respect to the preparation of these financial
statements that give a true and fair view of the state of affairs(financial position),
profit or loss (financial performance including other comprehen -sive income) cash flows
and changes in equity 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 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 account -ing records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatements, whether due to fraud or error.
In preparing the financial statements, management and Board 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 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 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.
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 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether
the companyhasadequateinternalfinancialcontrols 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 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 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 financial
statements, including the-sures, and whether the financial statements represent 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 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 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
01. 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 the
"Annexure A" a statement on the matters specified in paragraph 3 and 4 of the
said order.
02. As required by Section 143(3) of the Act, we report that:
(i) 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; (ii) In our
opinion, proper books of accounts as required by law been kept by the Company so far as it
appears from our examination of those books;
(iii) The Balance Sheet, Profit and Loss Account including 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;
(iv) In our opinion, the aforesaid financial statements comply with Accounting
Standards specified under
Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015,
as amended.
(v) On the basis of written representations received from the directors, as on 31st
March, 2023 and taken on record by the Board of Directors, we report that none of the
directors are disqualified as on 31st March, 2023 from being appointed as a director in
terms of section 164(2) of the Act.
(vi) 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 B".
(vii) In our opinion, Section 197 of the companies Act, 2013 is in complied by the
Company.
(viii) 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: 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; and iii. There were no pending 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, other than as disclosed in the notes to the accounts, 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 per-son(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;
b) The management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, 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,
c) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that the
representations under subclause (a) and (b) contain any material misstatement.
For ANJANEYULU& CO.,
Chartered Accountants FRN: 000180S
D V Anjaneyulu
Partner-MNo: 026012
UDIN- 23021036BGYXWG5231
Date: 29/05/2023
Place: Hyderabad
ANNEXURE – "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements of our Audit Report of even date to the members of EQUIPPP SOCIAL IMPACT
TECHNOLOGIES LIMITED (Formerly known as Proseed India Limited) ("the Company"),
on the STANDALONE Financial Statements of the Company for the year ended on 31st March
2023)
1) a) The Company is maintaining proper records showing full particulars including
quantitative details and situation of Property, Plant & Equipment, on the basis of the
information made available to us; The company has intangible assets and required to
maintain proper records showing full particulars of intangible assets and maintained
proper records. b) As explained to us, the Property, Plant & Equipment have been
physically verified by the Management at reasonable intervals; and no material
discrepancies were found on such verification. c) The company has no land and clause
1(iii) is not applicable. d) The company has not revalued in property, plant and equipment
(including right to use assets) or intangible assets or both during the year. e) According
to information and explanations given to us and on the basis of our examination of the
records of the company, there are no proceedings initiated or pending against the company
for holding any Benami property under the Prohibition of Benami Property Transactions Act,
1988 and rules made thereunder and the details have been appropriately disclosed in the
financial statements. 2) a) There is no inventory for the company during financial year
and Physical verification of inventory is not applicable. b) The company is not having any
working capital from Banks or Financial Institutions on the basis of security of current
assets. Hence Clause 3(v) of the Order is not applicable .
3) The Company has not granted any loans, secured or unsecured to companies, firms
LLPs or other parties covered in the register maintained under section 189 of the
Companies Act. Therefore, sub clauses (a),
(b), (c) of Paragraph 3(iii) of the Order is not applicable.
4) In our opinion and according to the information and explanation given to us, the
Company has not granted any loans nor made any investments and provided guarantee and
securities, as per the provisions of Section 185 and Section 186 of the Companies Act,
2013. Therefore Paragraph 3(iv) of the order is not applicable.
5) According to the information and explanation given to us the Company has not
accepted any deposits from the public during the year. Hence Clause 3(v) of the Order is
not applicable.
6) Maintenance of cost records has not been specified by the Central Government under
sub-section (1) of Section 148 of the Companies Act. Hence this clause 3(VI) of the Order
is not applicable.
7) (a) According to the information and explanations given to us, and the records of
the Company examined by us, in our opinion, the Company is generally regular in depositing
the undisputed statutory dues as applicable with the appropriate authorities. There are no
arrears of undisputed statutory dues outstanding as at March 31, 2023 for a period of more
than six months from the date they become payable.
(b) According to the information and explanations given to us and the records of the
Company examined by us, there are no statutory dues which have not been deposited on
account of any dispute.
8) There are no transactions that are recorded in the books of accounts to be
surrendered or disclosed as income during the year in the assessments under the Income Tax
Act, 1961
9) According to the information and explanations given to us and after the Completion
of CIRP under IBC 2016, the company has not defaulted in repayment of loans to the banks,
and to promoters. Pursuant to the approval of the order by the Honble NCLT, and as per
the terms of the Resolution Plan outstanding loans are settled partially and balance will
be waived off. The company has not taken any loans or borrowings from the government or
has not issued any debentures.
(a) 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 defaulted in repayment of
dues to any bank or financial institution or bank or debenture holders after completion of
CIRP.
(b) 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 been declared a willful
defaulter by any bank or financial institution or other lender after completion of CIRP.
(c) According to the information and explanations given to us by the management, the
Company has not obtained any term loans during the year. Hence Clause 3(IX)(c) of the
Order is not applicable.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds raised on short
term basis have been used for long-term purposes by the Company.
(e) According to the information and explanations given to us and on an overall
examination of the stand-alone financial statements of the Company, we report that 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 as defined under the Act.
(f) According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries, associate companies or joint ventures as defined
under the Act.
10) (a) According to the information and explanations given to us, the company has not
raised any monies by way of initial public offer or further public offer (including debt
instruments) during the year. Hence, clause 3(x)(a) of the order is not applicable.
(b) According to the information and explanations given to us and based on the
examination of the records of the Company, the Company has not made any preferential
allotment or private placements of shares or fully or partly convertible debentures during
the year. Accordingly clause 3(x)(b)) of the Order is not applicable.
11) a) According to the information and explanations given to us, no fraud by the
Company or on the Company by its officers or employees has been noticed or reported during
the course of our audit.
b) According to the information and explanations given to us, 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 the Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) According to the information and explanation given to us, the company has not
received any whistle-blower complaints during the year and hence the consideration of the
same does not arise.
12) In our opinion and according to the information and explanation given to us, the
Company is not a Nidhi
Company. Accordingly, Paragraph 3(xii) of the Order is not applicable.
13) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions entered into with the related
parties are in compliance with Sections 177 & 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 accounting standards.
14) a) According to the information & explanations given to us, the company has an
internal audit system commensurate with the size and nature of its business. b) The
reports of the Internal Auditors for the period under audit has been considered.
15) According to the information and explanations given to us and based on the
examination of the records of the Company, the Company has not entered into non- cash
transaction with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
16) (a) 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) of the Order is not applicable.
(b) The Company is not conducted any Non-Banking Financial or House Finance Activities
without a valid certificate of Registrartion from the Reserve Bank of India as per Reserve
Bank of India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable
(c) 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) of the Order is not
applicable.
(d) The Group has not more than one CIC as part of the Group.
17) According to the information & explanations given to us, The Company has not
incurred any cash loss during the current Financial year. However incurred cash loss of
Rs. 59,72,309 in the immediately preceding Financial Year due to no sales transactions.
18) There was no resignation of the statutory auditors during the year. However, a new
audit firm was appointed as the term of the existing auditors was completed .
19) According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates
ofrealizationoffinancialassetsandpaymentoffinancialliabilities, other information
statements, our knowledge of the Board of Directors and management plans accompanying
thefinancial 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 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.
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 balance sheet date, will get discharged
by the Company as and when they fall due.
20) According to the information and explanation sec 135(5) is not applicable as the
company has not crossed the threshold limits of the CSR . Hence the clause (XX)(a) and (b)
are not applicable.
For ANJANEYULU & CO.,
Chartered Accountants FRN: 000180S
D V Anjaneyulu
Partner-MNo: 026012
Date: 29/05/2023
UDIN- 23021036BGYXWG5231
Place: Hyderabad
ANNEXURE "B" To the Independent Auditors Report of even date on the
Financial Statements of EQUIPPP SOCIAL IMPACT TECHNOLOGIES LIMITED (Formerly known as
Proseed India Limited)
Report on the Internal Financial Controls Over Financial Reporting 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 EQUIPPP
SOCIAL IMPACT TECHNOLOGIES LIMITED (Formerly known as Proseed India 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.
OPINION
In our opinion, the company has, in all material aspects, an adequate internal
financial control system over financial reporting and such internal financial controls
over financial reporting were operating effectively at March 31, 2023, based on the
internal financial controls over financial reporting criteria established by the company
considering essential components of internal control stated in the Guidance Note on Audit
of Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Management of the Company 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.
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
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 internal financial controls over
financial reporting of the
Company 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") issued by the Institute of Chartered
Accountants of India and the Standards on Auditing prescribed under Section 143(10) of
the Companies Act,
2013, to the extent applicable to an audit of internal financial controls. 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 financialcontrols 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-cial 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
financialstatements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate audit
opinion on the internal financial controls system over financial reporting of the Company.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financialcontrol over financial reporting is a process designed to
provide reasonable as -surance 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 possi -bility 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 finan -cial
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.
For ANJANEYULU& CO.,
Chartered Accountants FRN: 000180S
D V Anjaneyulu
Partner-MNo: 026012
UDIN- 23021036BGYXWG5231
Date: 29/05/2023
Place: Hyderabad
+91-9892691696
