To the Members of
SARDA PROTEINS LTD
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Sarda Proteins Ltd
(‘the Company) which comprise the Balance Sheet as at 31st March 2023,
the Statement of Profit &Loss and Cash Flow Statement for the year then ended, and a
Notes to the Financial Statements, including summary of significant accounting policies
and other explanatory information (hereinafter referred to as "the financial
statements").
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 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, and loss, and its cash flows for the year
ended on that date.
Basis of Our 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 Companies Act, 2013and the Rules there under
and we have fulfilled our other ethical responsibilities in accordance with 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 standalone financial statements of the current period. No
matters were addressed in the context of our audit of the standalone financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Management and Board of Directors are responsible for 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.
The other information is expected to be made available to us after the date of this
Auditors report.
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 statements or our knowledge obtained in the
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.
When we read the Companys annual report, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance.
Management Responsibility for the Standalone Financial Statements
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
and presentation 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, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of adequate accounting
records in accordance with the provision of the Act for safeguarding of the assets of the
Company and for preventing and detecting the 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 control, 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 management either intends to liquidate the entity or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is 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 SA, 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 with reference to
financial statements and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of the 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.
Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act.
(ii) As required by section 143(3) of the Act, we report that:
1. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit;
2. In our opinion proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
3. The Balance Sheet, the Statement of Profit and Loss including Statement of Other
Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity
dealt with by this Report are in agreement with the books of account.
4. In our opinion, the financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014; and
5. On the basis of written representations received from the directors as on 31 March
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on 31 March 2023, from being appointed as a director in terms of section 164(2) of the
Act.
6. 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 A". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
7. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended, we report
that:
In our opinion and according to the records of the Company examined by us and the
information and explanation given to us, the Company has paid/ provided for managerial
remuneration in accordance with the requisite approvals mandated by the provisions of
Section 197 read with Schedule V to the Act.
8. With respect to 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 derivatives contracts
for which there were any material foreseeable losses.
(iii). There were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund.
(iv). (a) The Management has represented that, to the best of its knowledge and belief,
no funds (which are material either individually or in 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 persons or any entities, 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) Management has represented that to the best of its knowledge and belief, no funds
(which are material either individually or in aggregate) have been received by the company
from any persons or any entities, including foreign entities ("Funding Parties")
with the understanding, whether recorded in writing or otherwise, that the company shall
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 representation under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
(v). (a) The company did not declare or paid dividend during the year hence question of
compliance with section 123 of the Companies Act, 2013 does not arise.
KHETAWAT AGARWAL & CO. |
|
| Chartered Accountants |
|
FRN: 003960C |
|
Sd/- |
|
(M.L.AGARWAL) |
|
| Partner |
|
M. No.: 072854 |
Place : Jaipur |
UDIN: 23072854BGVZWN1106 |
Date : 30.05.2023 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph (ii) (6) under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date to the Members of Sarda Proteins Ltd)
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 Sarda
Proteins Ltd ("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.
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. 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") 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 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 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 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, to the best of our information and according to the explanations given
to us, 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, 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.
KHETAWAT AGARWAL & CO. |
|
| Chartered Accountants |
|
FRN: 003960C |
|
Sd/- |
|
(M.L.AGARWAL) |
|
| Partner |
|
M. No.: 072854 |
Place : Jaipur |
UDIN: 23072854BGVZWN1106 |
Date : 30.05.2023 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in paragraph (i) under the heading "Report on Other Legal
and Regulatory Requirements" of the Our Report of to the members of Sarda Proteins
Ltd, on the accounts of the company for the year ended 31st March, 2023.
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
1. (a) (A) The company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipment. (B) The company has
maintained proper records showing full particulars of its Intangible Assets.
(b) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the records of the company, the Property, Plant and
Equipment have been physically verified by the management at reasonable regular intervals;
no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the records of the company, the company does not have any
Immovable Properties, and hence reporting under clause 3(i)(c) of the Order is not
applicable.
(d) 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 re-valued any of its
Property, Plant and Equipment or Intangible assets, therefore requirements of paragraph
3(i)(d) of the order is not applicable to the company, hence not commented upon.
(e) In our opinion and according to the information and explanations given to us and on
the basis of our examination of the records of the company, no proceedings have been
initiated or are pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made there under, therefore
requirements of paragraph 3(i)(e) of the order is not applicable to the company, hence not
commented upon.
2. (i) In our opinion and according to the information and explanation given to us the
inventory has been physically verified by the management at reasonable intervals and
procedures and coverage as followed by management were accurate. No discrepancies were
noticed on verification between the physical stocks and the book records. However, there
is no Inventory at the end of the year.
(ii) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of account, the company has not been
sanctioned any working capital limit in excess of five crore rupees during the year, in
aggregate, from banks or financial institutions on the basis of security of current
assets, therefore requirements of paragraph 3(i)(d) of the order is not applicable to the
company, hence not commented upon.
3. 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 made investments in, or
provided guarantee or security. The Company has granted loans or advances, secured or
unsecured, to companies, firms or Limited Liability Partnerships or any other parties
during the year.
(a) The Company has provided loans or advances in the nature of loans and business
advance.
(b) In our opinion, the loans and advances made and the terms and conditions of the
grant of loans are prima facie, not prejudicial to the Companys interest.
(c) In respect of loans granted by the Company, no schedule of repayment of principal
and payment of interest has been stipulated, hence question of regularity of repayment or
receipts does not arise.
(d) In respect of loans granted by the Company, there is no overdue amount remaining
outstanding as at the balance sheet date.
(e) No loan granted by the Company has fallen due during the year and has been renewed
or extended or fresh loans granted to settle the over dues of existing loans given to the
same parties.
4. In our opinion and according to the information and explanations given to us, the
company has complied with the provisions of section 185 and 186 of the Companies Act, 2013
in respect of loans, investments, guarantees and security.
5. In our opinion and according to the information and explanations given to us,
directives issued by Reserve Bank of India and the provision of section 73 to 76 or any
other relevant provisions of Companies Act and the relevant rules framed there under are
not applicable, as company has not accepted any deposits or amounts deemed to be deposits.
6. In our opinion and according to the information and explanations given to us,
maintenance of cost records has been prescribed by the Central Government under
sub-section (1) of section 148 of the Act are not applicable to the company, therefore the
provisions of Paragraph 3(vi) of the Order are not applicable to the Company.
7. (a) According to the information and explanations given to us and on the basis of
our examination of the records of the company, undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Goods and Services Tax (GST),
Custom Duty, Cess and other material statutory dues have generally been regularly
deposited during the year with the appropriate authorities.
According to the information and explanations given to us there were no outstanding
undisputed amounts payable in respect of Provident Fund, Employees State Insurance,
Income Tax, Goods and Services Tax and other material statutory dues as on 31st
of March, 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, there are no dues of
Provident Fund, Employees State Insurance, Income Tax, Goods and Services Tax (GST)
,Custom Duty, Cess and other statutory dues which have not been deposited on account of
any disputes.
8. Based on our audit procedures and on the information and explanations given by the
management and on the basis of our examination of the records of the company, we are of
the opinion that the company has not surrendered or disclosed any transactions, previously
unrecorded as income in the books of accounts, in the tax assessments under the Income Tax
Act, 1961 as income during the year.
9. (a) Based on our audit procedures and on the information and explanations given by
the management, we are of the opinion that, the Company has not defaulted in repayment of
loans or other borrowings or interest thereon to any lender, therefore the provisions of
Paragraph 3(ix)(a) of the Order are not applicable to the Company, hence not commented
upon.
(b) In our opinion and according to the information and explanation given to us, the
company has not been declared as willful defaulter by any bank, financial institution or
government or any lender.
(c) In our opinion and according to the information and explanation given to us, no
term loans raised and accordingly no need of any disclosure.
(d) In our opinion and according to the information and explanation given to us and on
an overall examination of the balance sheet, no short term funds raised have been utilized
for long term purpose by the company.
(e) According to the information and explanations given to us and according to the
books and records as produced and examined by us, 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.
(f) According to the information and explanations given to us and according to the
books and records as produced and examined by us, the company has not raised loans during
the year on the pledge of securities held in its subsidiaries, joint ventures or associate
companies.
10. In our opinion and according to the information and explanation given to us, no
moneys raised by way of initial public offer/further public offer/ debt instruments during
the year, hence, reporting under paragraph (x) of the Order is not applicable to the
company and hence not commented upon.
11. Based on the audit procedures performed for the purpose of reporting the true and
fair view of financial statements and according to the information and explanations given
by the management, considering the principles of materiality outlined in Standards of
Auditing, to the best of our knowledge we report that no material fraud on the Company or
by the Company has been noticed or reported during the course of our audit, nor have we
been informed of such case by the management.
Further we have not received whistle blower complaints from the company and no report
under section 143(12) of the Companies Act has been filed with the Central Government.
12. In our opinion and based on the information and explanations given to us, the
company is not a Nidhi company, as prescribed under section 406 of the Act. Therefore, the
provisions of the clause 3(xii) of the order are not applicable to the company and hence,
not commented upon.
13. Based on our audit procedures and on the information and explanations given by the
management, all transactions with the related parties are in compliance with section 177
and 188 of Companies Act, 2013 where applicable and the details of such transactions have
been disclosed in the Financial Statements as required by the applicable accounting
standards.
14. (i) Based upon the audit procedures performed and the information and explanations
given by the management, the company has an internal audit system commensurate with the
size and nature of its business.
(ii) The reports of the Internal Auditors for the period under audit were considered
during the preparation of Statutory Audit Report.
15. Based on our audit procedures and on the information and explanations given by the
management, the company has not entered into any non-cash transactions with directors or
persons connected to its directors as referred to in section 192 of the Companies Act,
2013. Accordingly the provisions under paragraph 3(xv) of the order are not applicable to
the company, and not commented upon.
16. Based on our audit procedures and on the information and explanations given by the
management the company, the Company is not required to be registered under section 45-IA
of the Reserve Bank of India, 1934, Accordingly, the provisions under paragraph 3(xvi) of
the order are not applicable to the company, and not commented upon.
17. Based on the books of accounts and financials of the company, the company has not
incurred cash losses in the current and immediately preceding financial year.
18. Based upon the audit procedures performed and the information and explanations
given by the management, there has not been any resignation of the statutory auditors
during the year.
19. In our opinion and according to the information and explanations given to us and on
the basis of financial ratios, ageing and expected dates of realization of financial
assets and payment of financial liabilities of the company, our knowledge of the
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 on the date of audit report that the company is not capable of meeting
its liabilities existing at the date of balance sheet and 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 upto the date of 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. In our opinion and according to the information and explanations given to us,
section 135 of the Companies Act, 2013 is not applicable to the Company, and hence
reporting requirements under paragraph 3(xx) of the order are not applicable to the
company, and not commented upon.
21. In our opinion, provisions of Para 3(xxi) of the order are not applicable on the
company.
KHETAWAT AGARWAL & CO. |
|
| Chartered Accountants |
|
FRN: 003960C |
|
Sd/- |
|
(M.L.AGARWAL) |
|
| Partner |
|
M. No.: 072854 |
Place : Jaipur |
UDIN: 23072854BGVZWN1106 |
Date : 30.05.2023 |
+91-9892691696
