TO THE MEMBERS OF
SAFFRON INDUSTRIES LIMITED
Report on the audit of the financial statements
Opinion
We have audited the accompanying Standalone Ind AS, financial statements of SAFFRON
INDUSTRIES LIMITED, which comprise the balance sheet as at March 31, 2023, and the
Statement of Profit and Loss 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.
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 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 loss and cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the standards on auditing 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 Act and the rules there under, 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 i s sufficient and appropriate to
provide a basis for our opinion.
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 are of the opinion that there are no other key matters as per SA 701, to be reported
for the ensuing year under audit.
Information other than the financial statements and auditors report thereon:
The Companys board of directors i s responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexure to Boards Report, Business Responsibility 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 i s
materially inconsistent with the standalone financial statements 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 i s 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 are responsible for the matters stated in section 134
(5) of the Act with respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance 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 statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management i s 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 management
either intends to Liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The boards 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 i s sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud i s 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.
• 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
i aw 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:
As required by the Companies (Auditors Report) Order, 2020 ("the Order"), i
ssued 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", a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
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 i aw 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 i oss, and the cash flow statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone 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.
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the board of directors, none of the directors i s disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of internal financial controls over financial reporting
of the company and the operating effectiveness of such controls refer our separate report
in Annexure B. Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Companys internal financial controls over financial reporting.
g) In respect to the other matters to be included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the
best of our information and according to the explanations given to us;
a. The Company does not have any pending I itigations which would i mpact its financial
position.
b. The Company did not have any I ong-term contracts including derivative contracts for
which there were any material foreseeable losses; and
c. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
|
For Utsav Sumit & Associates |
|
Chartered Accountants |
|
Firm Reg. No. 016514C |
|
Sd/- |
| NAGPUR |
Sumit Agrawal |
| May 27, 2023 |
Partner |
|
Membership No. 151008 |
|
UDIN : 23151008BGUGPY5099 |
Annexure "A" to the Independent Auditors Report:
(Referred to in paragraph 1 under ‘Report on other legal and regulatory
requirements section of our report to the members of SAFFRON INDUSTRIES LIMITED (of May
27, 2023) for the financial statement for the year ended on March 31,2023.
1 In respect of the Companys fixed 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. Accordingly, paragraph 3(1)(a)(A)
of the Order is not applicable to the Company.
(b) The Property, Plant and Equipment of the Company were physically verified in full
by the management during the year. According to the information and explanations given to
us and records as examined by us, no material discrepancies were noticed on such
verification.
(c) According to the information and explanations given to us, on the basis of the
records examined by us, based on conveyance deeds provided to us, we report that the title
deeds in respect of all immovable properties are held in the name of the Company as at the
balance sheet date. In respect of immovable properties that have been taken on lease and
disclosed as fixed assets in the financial statements, the lease agreements are in the
name of the Company.
(d) According to the information and explanations given to us and on the basis of
records as examined by us, the Company has not revalued its Property, Plant and Equipment
(including Right of Use assets) or intangible assets or both, during the year.
(e) To the best of our knowledge and according to the information and explanations
given to us, no proceedings have been initiated or are pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and rules made there under.
2. (a) As explained to us, the inventory has been physically verified by the management
during the year. In our opinion, the coverage and procedure of such verification is
reasonable. According to the information and explanations given to us and as examined by
us, no material discrepancies were noticed on such verification.
(b) According to the information and explanations given to us and the records examined
by us, the Company has not been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets, at any point of time in the year. Hence, no quarterly returns or
statements are required to be filed by the Company with any bank or financial institution,
3. According to information and explanation given to us, the company has not granted
any loan, secured or unsecured nor has made any investment, nor provided any guarantee or
security to companies, firms, limited liability partnerships or other parties.
Accordingly, paragraph 3 (iii) of the order is not applicable to the Company
4. In our opinion and according to information and explanation given to us, the company
has not granted any loans or provided any guarantees or given any security or made any
investments to which the provision of section 185 and 186 of the Companies Act, 2013.
Accordingly, paragraph 3 (iv) of the order is not applicable.
5. In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits as per the provisions of Section 73 to 76 of the
Companies Act, 2013 and accordingly, paragraph 3(v) is not applicable to the Company.
6. As per information and explanations given to us ,the Central Government of India has
not prescribed the maintenance of cost records under sub-section (1) of section 148 of the
Act for any of the activities of the company and accordingly paragraph 3 (vi) of the order
is not applicable.
7. In respect of statutory dues:
(a) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including provident fund, employees state
insurance, income-tax, sales- tax, service tax, goods and service tax, duty of customs,
duty of excise, value added tax, cess and other material statutory dues have been
generally regularly deposited during the year by the company with the appropriate
authorities.
According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees state insurance, income-tax, sales- tax,
service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess
and other material statutory dues were in arrears as at March 31,2023 for a period of more
than six months from the date they became payable
(b) According to the information and explanations given to us and the records of the
company examined by us, there are no dues of income-tax, sales- tax, service tax, goods
and service tax, duty of customs, duty of excise and value added tax which have not been
deposited on account of any dispute.
8. According to the information and explanations given to us and the records of the
company examined by us, there are no transactions that were not recorded in the books of
account and have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961. Accordingly, paragraph 3(viii) is not
applicable to the Company.
9 (a) In our opinion and according to the information and explanations given to us, the
company has not defaulted in repayment of loans or other borrowings or in the payment of
interest thereon to any lender during the year.
(b) As per information and explanations given to us, the company is not a declared
willful defaulter by any bank or financial institution or other lender.
(c) As per our examination of records the Company has not availed any term loans Hence
no instance of term loan applied for the purpose other than purpose for which the loans
obtained were noticed.
(d) As per our examination of records, funds raised on short term basis have not been
utilized for long term purposes.
(e) According to the information and explanations given to us and the records examined
by us, the company does not have any subsidiaries, associates or joint ventures. Hence,
para 3(ix)(e) is not applicable to the company
(f) According to the information and explanations given to us and the records examined
by us, the company does not have any subsidiaries, associates or joint ventures. Hence,
paragraph 3(ix)(f) is not applicable to the company
10. According to the information and explanations given to us and the records examined
by us the Company has not raised any money by way of initial public offer or further
public offer (including debt instruments),nor the company has made any preferential
allotment or private placement of shares or convertible debentures (fully, partially or
optionally ) during the year.Hence paragraph 3(x) is not applicable to the Company.
11. To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company or no material fraud on the Company by its officers
or employees has been noticed or reported during the year. Accordingly, paragraph 3(xi) is
not applicable to the Company.
12. The Company is not a Nidhi Company and accordingly, paragraph 3 (xii) of the order
is not applicable to the Company.
13. According to the information and explanations given to us and based on our
examination of the records of the company, transactions with the related parties are in
compliance with section 177 and 188 of the Act. Where applicable, the details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
14. According to the information and explanations given to us and based on our
examination of the records of the company, the company does not have an internal audit
system commensurate with the size and nature of its business and hence the reports of the
Internal Auditors for the period under audit were unavailable to be considered by the
statutory auditor
15. 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.
16. According to the information and explanations given to us and based on our
examination of the records of the company, the company is not required to be registered
under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi)
is not applicable to the Company.
17 As per our examination of records of the company, the company has not incurred cash
losses in the financial year and but had incurred cash losses 1098817 in Financial Year
2021-22 immediately preceding financial year.
18 According to the information and explanations given to us, there has been no
resignation of the statutory auditors during the year. Accordingly, paragraph 3(xix) is
not applicable to the Company.
19 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, the auditors 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 that 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.
20 Provisions of section 135 of the Companies Act, 2013 are not applicable to the
Company and accordingly paragraph 3(xx) is not applicable to the company.
21 The company is not required to present consolidated financial statements and hence,
paragraph 3(xxi) is not applicable to the company.
|
For Utsav Sumit & Associates |
|
Chartered Accountants |
|
Firm Registration No 016514 |
|
Sd/- |
|
Sumit Agrawal |
|
Partner |
| NAGPUR |
M.No. 151008 |
| May 27,2023 |
UDIN:23151008BGUGPY5099 |
Annexure "B" to the Independent Auditors Report
(Referred to in paragraph 2 (f) under ‘ Report on other Iegal and regulatory
requirements section of our report to the Members of SAFFRON INDUSTRIES LIMITED of
May 27, 2023)
Report on the internal financial controls over financial reporting under clause (i) of
sub - section 3 of section 143 of the Companies Act, 2013.
We have audited the internal financial controls over financial reporting of SAFFRON
INDUSTRIES LIMITED as at March 31, 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 board of directors 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 efficient
conduct of its business, 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 i s 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
financial controls over financial reporting were established and maintained and i f 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 in 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 control system
over financial reporting.
Meaning of internal financial controls over financial reporting
A companys internal financial control over financial reporting i s 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 (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of 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 (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
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 of 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 and according to the information and explanations given to us, the
Company has, in all material respects, an adequate internal financial control system over
financial reporting and such internal financial controls over financial reporting were
operating effectively as at 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.
|
For Utsav Sumit & Associates |
|
Chartered Accountants |
|
Firm Reg. No. 016514C |
|
Sd/- |
| NAGPUR |
Sumit Agrawal |
| May 27, 2023 |
Partner |
|
Membership No. 151008 |
|
UDIN : 23151008BGUGPY5099 |
+91-9892691696
