sai industries ltd Auditors report


Report on the standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Sal industries Limited, CIN- L74999D11991PIC045678 (the Company}, which comprise the balance sheet as at 31" March, 2023, 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. 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, of the state of affairs of the Company as at 31" March, 2023, and profit & loss, 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 specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report, We are independent of company in accordance with Code of Ethics issued by the institute of Chartered Accountants of India together with 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 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

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 There are no Key Audit Matter to communicate in the auditors report.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises Boards Report, Report on Corporate governance and Business Responsibility report but does not include the consolidated financial statements, standalone financial statements and our auditors report thereon

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of standalone financial statements, our responsibility is to read the other Information and, in doing so, consider whether the other information is materially inconsistent wHi? 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 is a material misstatement of this other information, we are required to report that fact. We have nothing to report In this regard

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Board of the Directors is responsible for the matters stated In Section 134:SI of The Companies Act, 2013 (the Act") with respect to the preparation of these standalone financial statements that give a true & fair view of the financial position, financial performance in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with rule 7 of the Companies (accounts) Rules, 2014. This responsibility also includes maintenance of the 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, implementation and maintenance of accounting policies; making judgements 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 true & fair view and free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management 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 management 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 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 reasonabty be expected to influence the economic decisions if users taken on the basis of these financial statements.

As pan 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

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 m 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, 2016 Cthe 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, 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 & explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) in our opinion proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance sheets, the statement of Profit & 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 standalone financial statements comply with the accounting standards specifies 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 at 31n March, 2023 taken on record by the Board of Oirector none of the directors is disqualified as on 31 March, 2023 from being appointed as a director in terms of Section 164 {21 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 to our separate Report in "Annexure A

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 litigation which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the investor Education and Protection Fund by the Company.

"ANNEXURE A TO THE INDEPENDENT AUOITORS REPORT OF EVEN ON THE STANDALONE FINANCIAL STATEMENTS OF SAI INDUSTRIES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

I. We have audited the internal financial controls over financial reporting for Sai industries limited {"the Company") as of March 31.2023 in conjunction with our audit of the financial statements of the Company for the year endedon that date.

Managements Responsibility for internal Financial Controls

ii 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 "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

iii. 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 Guidance Note on Audit of Internal Financial Controls Over Financial Reporting Ithe "Guidance Note"! and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and. 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.

iv. Our audit involves performing procedures to obtain audit evidence about the adequacy of 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

v. 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

vi. 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 purpose 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 fairty 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 ^

vii. Because of the inherent limitations of internal 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 to detected Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the nsk that the financial control over financial reporting may become inadequate become inadequate because of changes m conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

vii. 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 March 31, 2022 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".

Annexure Referred to in Paragraph (2) of our Report of even date to the members of M/s Sal Industries Limited for the year ended on 31st March 2023.

II a) The Company has maintained proper records showing full particulars, Including quantitative details and situation of fixed assets.

b) According to the information & explanation given to us, the fixed asset has been physically verified by the management during the year at reasonable intervals, having regard to the site of the company and the nature of its asset. No material discrepancies were noticed on such verification.

c) The company is not having any immovable property therefore this clause is not applicable to the company.

2) The company does not hold any inventory during the financial year under review, hence this clause is not applicable to the company.

3) According to the information & explanation given to us, the Company has not granted any secured or unsecured loans to parties covered in the register maintained under section 189 of the Companies Act.

d) According the information and explanation provided to us and the examination of record during the course of audit, the company has complied with the provisions of section 18$ and 186 o(.the Companies Act, 2013 in respect of loans, investment, guarantees and security, which are applicable to it being a limited company.

5) In our opinion and according to the information and explanations given to us. the company has not accepted deposits within the meaning of provisions of Section 73 to 76 of the Companies Act. 2013 & rules framed there under

6) As explained to us the Central Government has not prescribed the cost record as pet the provisions of Section 148{1) of the Companies Act.

7) a) According to the records of the company, generally the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, wealth tax, sales tax, service tax. custom duty, excise duty, value added tax, cess and any other material statutory dues applicable to it. No undisputed amounts payable in respect of the above were outstanding, as at 31" March. 2023 for a period of more than six months from the date they became payable.

8) As informed to us the Company has not defaulted in repayment of loans or borrowings to a financial institutions, banks. Government and dues towards debenture holders during the financial year under review.

9) As per the information and explanation given to us the company has not raised any money by way of initial public offer, further public offer or by way of term loan during the financial year under review.

10) According to the information and explanation given to us no fraud by the company or fraud on the company by its officers or employees has been noticed or reported during the year.

11) As per the information and explanations provided to u$, no managerial remuneration has been paid or provided in the books. Hence, this clause is not applicable.

12) As per the information and explanation given to us the company is not a Nidhi Company,

13) As per the information and explanation given to us all the transactions with the related parties are in compliance with the provisions of Section 177 and 188 of the Companies Act, where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standard.

14) As per information & explanation provided to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.

15) As per information and explanations provided to u$, the company has not entered into any noncash transactions with directors or persons connected with him.

16) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act. 1934.