To,
The members of Purohit Construction Limited
Report on the Audit of the Financial Statements Opinion:
We have audited the accompanying financial statements of Purohit Construction Limited
(“the Company”), which comprise the balance sheet as at 31st March
2023, and the statement of profit and loss, statement of changes in equity and statement
of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information [herein to
referred as “the 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 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
(“Ind AS”) and other accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023 and its profit, total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion:
We conducted our audit 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 the
financial statements under the provisions of the Companies Act, 2013 and the Rules
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:
We have determined that there are no key audit matters to communicate in our report.
Other Matter:
The comparative financial information of the Company for the year ended March 31, 2022
prepared in accordance with Ind AS included in this Statement have been audited by the
predecessor auditor. The reports of the predecessor auditor on these comparative financial
information dated 20th April,2022, expressed unmodified opinion / conclusion.
Our conclusion on the Statement is not modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance for the Financial
Statement:
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 financial statements that give a true and fair view of the financial position,
financial performance, (changes in equity) and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including the accounting
Standards 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 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
In preparing the 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 intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process. Auditors Responsibilities for the Audit of the 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 company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by 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 disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the 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 materially 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 financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the 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:
1. As required by the Companies (Auditors Report) Order, 2016 (“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.
2. As required by Section 143(3) of the Act, based on our audit we report that:
(a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, 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.
(e) On the basis of the written representations received from the directors as on 31st
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.
(f) With respect to the adequacy of the internal financial controls with reference to
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 with reference to standalone financial statement.
(g) 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.
iii. There has been no delay in transferring amounts, 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 person or entity, including
foreign entity (“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, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (“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;
(c) Based on the audit procedures that have been 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 (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v. No Dividend is declared or paid during the year.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
Place |
: Ahmedabad |
For Naresh J. Patel & Co. |
Date : |
17/05/2023 |
Chartered Accountants |
UDIN |
: 23110741BGXILX7666 |
(FRN: 123227W) |
Chintan N. Patel
(Partner) Membership No.: 110741
ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT
Referred to in of our report of even date
In terms of the information and explanations sought by us and given by the company and
the books and records examined by us in the normal course of audit and to the best of our
knowledge and belief, we state that: -
i. In respect of the Companys Property, Plant and Equipment and Intangible Assets
(a) A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
B) The Company does not have any intangible assets
(b) No physical verification was carried out by the Management during the year.
Accordingly, the discrepancies, if any, could not be ascertained and therefore, we are
unable to comment on whether the discrepancies, if any, have been properly dealt with in
the books of account.
(c) Based on our examination of the property tax receipts and lease agreement for land
on which building is constructed, registered sale deed / transfer deed / conveyance deed
provided to us, we report that, the title deeds of all immovable properties (other than
properties where the company is the lessee and the lease agreements are duly executed in
favour of the lessee), disclosed in the financial statements are held in the name of the
Company as at the balance sheet date.
(d) The company has not revalued its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year.
(e) There are neither proceedings initiated nor pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made
thereunder.
ii. (a) The inventories have been physically verified during the year by the
Management. In our
opinion and according to the information and explanation given to us, no material
discrepancies were noticed during the course of physical verification. In our opinion and
according to the information and explanation given to us, the procedure of physical
verification of inventories followed by the management needs to be further strengthened.
(b) The Company does not have working capital limits in excess of five crore rupees (at
any point of time during the year), in aggregate, from banks or financial institutions on
the basis of security of current assets. Accordingly, the provisions of clause 3(ii) of
the Order are not applicable.
iii. The Company has not made investments in, companies, firms, Limited Liability
Partnerships, and granted unsecured loans to other parties, during the year, in respect of
which:
(a) The Company has not provided any loans or advances in the nature of loans or stood
guarantee, or provided security to any other entity during the year, and hence reporting
under clause 3(iii)(a) of the Order is not applicable.
(b) The Company has not made the investments during the previous year. Accordingly,
reporting under paragraph 3(iii)(b) of the Order is not applicable to the Company;
(c) The company has not granted any loans during the previous year. Accordingly,
reporting under paragraph 3(iii)(c) of the Order is not applicable to the Company;
(d) As stated above the company has not granted any loans during the previous year and
Accordingly, reporting under paragraph 3(iii)(d) of the Order is not applicable to the
Company;.
(e) No loan granted by the Company which has fallen due during the year, has been
renewed or extended or fresh loans granted to settle the overdues of existing loans given
to the same parties.
(f) 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 during the
year. Accordingly, reporting under clause 3(iii) (f) is not applicable.
iv. The Company has not granted loans, guarantees and made securities, during the year
under audit, which require compliance in terms of the provisions contained in the section
185 or section 186 of the Act. Accordingly, reporting under paragraph 3(iv) of the Order
is not applicable to the Company;.
v. In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits or amounts which are deemed to be deposits in
contravention of Directives issued by Reserve Bank of India and the provisions of section
73 to 76 or any other relevant provisions of the Act and the rules framed there under,
where applicable. We have been informed by the management that no order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other tribunal.
vi. The maintenance of cost records has not been specified by the Central Government
under subsection (1) of section 148 of the Companies Act, 2013 for the business activities
carried out by the Company. Hence, reporting under clause (vi) of the Order is not
applicable to the Company.
vii. (a) The Company is regular in depositing undisputed statutory dues including Goods
and
Services Tax, provident fund, employees state insurance, income-tax, sales-tax,
service tax, duty of customs, duty of excise, value added tax, cess and any other
statutory dues, as applicable, with the appropriate authorities. Further, no undisputed
amounts payable in respect thereof were outstanding at the year-end for a period of more
than six months from the date they became payable.
(b) There are no dues in respect of Goods and Services Tax, provident fund, employees
state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues that have not been deposited with the
appropriate authorities on account of any dispute.
viii. 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. (a) the Company has not taken any loans or borrowings from financial institutions,
banks and government or has not issued any debentures. Hence reporting under clause 3
(ix)(a) of the Order is not applicable to the Company.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has not taken any term loan during the year and there are no
outstanding term loans at the beginning of the year and hence, reporting under clause
3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the Company, funds raised
on shortterm basis have, prima facie, not been used during the year for long-term purposes
by the Company.
(e) On an overall examination of the financial statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries.
(f) The Company has not raised any loans during the year and hence reporting on clause
3(ix)(f) of the Order is not applicable.
x (a) The company has not raised moneys by way of initial public offer or further
public offer (including debt instrument) and term loans and hence reporting under clause
3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
xi. (a) Based upon the audit procedures performed and according to the information and
explanations
given to us, no fraud by the company or any fraud on the company has been noticed or
reported during the course of our audit that causes the financial statements to be
materially misstated.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form
ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with
the Central Government, during the year and upto the date of this report.
(c) We have taken into consideration the whistle blower complaints, if any received by
the
Company during the year (and upto the date of this report), while determining the
nature, timing and extent of our audit procedures.
xii. The company is not a Nidhi Company hence reporting under clause (xii) of the Order
is not applicable.
xiii. Based upon the audit procedures performed and according to the information and
explanations given to us, all transactions with related parties are in compliance with
sections 177 and 188 of Companies Act, 2013 where applicable and the details have been
disclosed in the Financial statements etc. as required by the applicable accounting
standards.
xiv. (a) In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(b) We have considered the reports of the Internal Auditors for the period under audit;
xv. In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
Directors or persons connected to its directors and hence provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company.
xvi. (a) In our opinion, the Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934.
(b) In our opinion, there is no core investment company within the Group (as defined in
the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting
under clause 3(xvi)(d) of the Order is not applicable..
xvii. The Company has incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year, the details of the same is as below.
Sr. No. |
Financial Year |
Amount (In Lacs) |
1 |
FY 2021-22 |
(70.34) |
2 |
FY 2022-23 |
(74.93) |
xviii. There has been no resignation of the statutory auditors of the Company during
the year and accordingly this clause is not applicable to the company.
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 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 indicating that company is incapable 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.
xx (a) The provisions of Section 135 towards corporate social responsibility is not
applicable on the company. Accordingly, the provisions of clause 3(xx)(a) of the Order is
not applicable.
(b) There are no unspent amounts towards Corporate Social Responsibility
(CSR) pursuant to ongoing projects, accordingly, reporting under clause 3(xx)(b) of the
Order is not applicable for the year.
Place |
: Ahmedabad |
For Naresh J. Patel & Co. |
Date : |
17/05/2023 |
Chartered Accountants |
UDIN |
: 23110741BGXILX7666 |
(FRN: 123227W) |
|
|
Chintan N. Patel |
|
|
(Partner) |
|
|
Membership No.: 110741 |
ANNEXURE B TO THE AUDITORS REPORT
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 PUROHIT
CONTRUCTION LIMITED (“the Company”) as of 31 March, 2023 in conjunction with our
audit of the 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
PUROHIT CONSTRUCTION LIMITED
Financial Controls and, both 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 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:
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 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.
Place |
: Ahmedabad |
For Naresh J. Patel & Co. |
Date : |
17/05/2023 |
Chartered Accountants |
UDIN |
: 23110741BGXILX7666 |
(FRN: 123227W) |
|
|
Chintan N. Patel |
|
|
(Partner) |
|
|
Membership No.: 110741 |
+91-9892691696
