To,
The Members of
SHAIVAL REALITY LIMITED
I. Report on the Audit of the Standalone Financial Statements
1. Opinion
We have audited the Standalone Financial Statements of SHAIVAL REALITY LIMITED
("the Company"), which comprises 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 ended on that date, and notes to the financial statements,
including a 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 ("the Act") in the manner so required and give a true
and fair view in conformity with the Accounting Standards prescribed under section 133 of
the Act read with Companies ( Accounting Standards ) Rules 2015, as amended
("AS") and other accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2023, the Profit, changes in equity and its cash
flows for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act (SAs) Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone 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 (ICAI) together with the ethical requirements
that are relevant to our audit of the standalone financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion on the standalone financial statements.
3. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Financial Statements of the current period. These matters
were addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
4. Other Information – Board of Directors Report
A. The Companys Board of Directors is responsible for the preparation of other
information and presentation of its report (hereinafter called as the "Board
Report") which requires various information under section 134(3) of the Act. However,
our opinion on the financial statements does not cover the other information and we do not
any form of assurance conclusion thereon. B. 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 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 the fact. We have
nothing to report in this regard.
5. Managements and Board of Directors Responsibility for the (Standalone) Financial
Statements
A. The Companys Management and Board of Directors are responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 (‘the act) with respect to the
preparation of these standalone 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 Indian Accounting
Standards specified under Section 133 of the Act, read with Companies (Accounts) Rules,
2015.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of
the 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.
B. In preparing the standalone financial statements, management and Board of
Directors are 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 and the Board of Directors either intend to
liquidate the Company or to cease operations, or has no realistic alternative but to do
so. The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
6. Auditors Responsibilities for the Audit of the standalone Financial Statements
A. Our responsibility is to express an opinion on these standalone financial statements
based on our audit. In conducting our audit, we have taken into account the provisions of
the Act; the accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the Rules made
thereunder.
B. 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.
C. 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.
D. 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 materiality 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.
E. 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.
F. 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.
G. 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.
II Report on Other Legal and Regulatory Requirements:
1. 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 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.
2. (A) 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 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 and the Statement of Cash Flow
dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid 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 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
financial statements over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B".
g. In our opinion, the managerial remuneration for the year ended 31st
March, 2023 has been paid/provided by the Company to its directors in accordance with the
provisions of section 197 read with Schedule V to the Act;
h. 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,
other than as disclosed in note to the accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other persons or entities, including foreign entities
("Intermediaries"),with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Company 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, as
disclosed in notes to the accounts, no funds have been received by the Company from any
persons or 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 ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed 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) contain any
material mis- statement.
(v) The Company has not declared or paid dividend during the year covered by our audit.
|
For, Jaimin Deliwala & Co. |
|
Chartered Accountants |
|
Firm Reg. No. 0103861W |
|
Sd/- |
|
Jaimin Deliwala |
|
Proprietor |
Place: Ahmedabad |
M. No.: 044529 |
Date: 19th May, 2023 |
UDIN: 23044529BGQKCJ6771 |
ANNEXURE "A" TO INDEPENDENTS AUDITORS REPORT (Referred to in paragraph (1)
of our report of even date)
The Annexure referred to in the Independent Auditors Report to the Members of the
company on the Standalone Financial Statements of the Company for the year ended 31st
March, 2023, we report that:
(i) (a) (A) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Property, Plant & Equipment.
(B) The Company does not have any intangible assets.
(b) The Property, Plant & Equipment were physically verified by the Management once
in a year which, in our opinion is reasonable considering the size of the company and
nature of its Property, Plant & Equipment. According to the information and
explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records examined by
us and based on the examination of the conveyance deeds/registered sale deeds provided to
us, we report that, the title deeds, comprising all the immovable properties of buildings
which are free hold, disclosed in Note to standalone financial statements, are held in the
name of the Company as at the Balance Sheet date. In respect of immovable property of land
that have been taken on lease and disclosed as fixed assets in the financial statements,
the lease agreement is in the name of the Company.
(d) The company has not revalued its Property, Plant & Equipment during the year
and the company does not have any intangible assets.
(e) According to the information and explanations given to us and result of our audit
procedures, in our opinion, 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.
(ii) (a) The company does not have any inventories during the year.
(b) According to the information and explanations given to us, the company has not been
sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks
or financial institutions during the year, hence the provision of this clause is not
applicable.
(iii) (a) In our opinion and according to the information and explanations given to us,
during the year the company has not made any investments and also not provided any loans
or advances in the nature of loans or guarantee to companies, firms, Limited Liability
Partnerships and other parties.
(b) In views of the matters reported in paragraph
(iii) (a) above, the provisions of paragraph (iii) (b) is not applicable to the
company.
(c) In views of the matters reported in paragraph (iii) (a) above, the provisions of
paragraph (iii) (c) is not applicable to the company.
(d) In views of the matters reported in paragraph (iii) (a) above, the provisions of
paragraph (iii) (d) is not applicable to the company.
(e) In views of the matters reported in paragraph (iii) (a) above, the provisions of
paragraph (iii) (e) is not applicable to the company.
(f) In views of the matters reported in paragraph (iii) (a) above, the provisions of
paragraph (iii) (f) is not applicable to the company.
(iv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any transaction of granting of loans or making of investments
or providing guarantees or security to any person covered under the provisions of Section
185 and Section 186 of the Act.
(v) According to the information and explanations given to us, and based on our audit
procedure, the Company has not accepted any deposits within the meaning of Sections 73 to
76 of the Act or any other relevant provisions of the Companies Act, 2013.
(vi) The provisions of Section 148(1) of the Companies Act, 2013 with regards to
maintenance of cost records are not applicable to the Company.
(vii) In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues including Income
Tax, Service Tax, Goods and Service Tax (GST), Cess and other material statutory dues have
been generally regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable in respect of the
aforesaid dues for a period of more than six months from the date of they becoming payable
and outstanding on March 31, 2023.
b) According to the information and explanations given to us, there are no dues of
Income- tax or Sales tax or Service tax or Goods and Services tax or duty of Customs or
duty of Excise or Value added tax which has not been deposited by the Company on account
of disputes. (viii)According to the information and explanations given to us, there was no
transaction found unrecorded in the books of accounts of the company which 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) According to the information and explanations given to us and as
verified from the books of accounts, the Company does not have any loans or borrowings
from banks, financial institutions or government and has not issued any debentures.
Therefore the question of default in repayment does not arise.
(b) In our opinion and according to the information and explanations given to us, the
company is not declared wilful defaulter by any bank or financial institutions or other
lender.
(c) In our opinion and according to the information and explanations given to us, the
Company has not raised any new term loan during the year, hence provisions of clause
3(ix)(c) is not applicable to the Company.
(d) In our opinion and according to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, we report that no funds
raised on short term basis have been used for long term investment by the Company.
(e) In our opinion and according to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, we report that, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiary, associates or joint ventures.
(f) In our opinion and according to the information and explanations given to us, the
Company has not raised any term loan during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate Companies, hence provisions of clause
3(ix)(f) is not applicable to the Company.
(x) (a) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not raised moneys by way of
initial public offer or further public offer (including debt instruments) during the year.
Accordingly, paragraph 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year. Accordingly, paragraph 3(x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the Company by its
officers or employees has been noticed or reported during the year.
(b) In view of above, the Auditor had no reason to file Form ADT-4 as prescribed under
Rule 13 of the Companies (Audit and Auditors) Rules 2014 with the central Government
(c) To the best of our knowledge and according to the information and explanations
given to us, the Company has not received any whistle blower complaints during the year.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company and the Nidhi Rules, 2014 are not applicable to it.
Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us,
the Company is in compliance with sections 177 and 188 of the Act, where applicable, for
all transactions with the related parties and details of related party transactions have
been disclosed in the standalone financial statements as required by the applicable
accounting standards.
(xiv) (a) The company has an internal audit system commensurate with the size and
nature of its business. (b) We have considered the internal audit reports of the company
issued till date, 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
Act are not applicable.
(xvi)(a) In our opinion and according to the information and explanations given to us,
the Company is not required to be registered under section 45-IA of the Reserve Bank of
India Act 1934.
(b) The company is not a NBFC and hence reporting under this clause is not required.
(c) The company is not a NBFC and hence reporting under this clause is not required.
(d) This clause is not applicable to the company as it is not CIC.
(xvii) The company has not incurred cash losses in the current financial year. The
company has incurred cash losses of Rs. 48,88,652/- in the immediately preceding financial
year.
(xviii)There is no resignation of the statutory auditors during the year.
(xix) According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation 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 not capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date. We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
(xx) In our opinion and according to the information and explanations given to us, the
provisions of section 135 of the Companies Act, 2013 regarding CSR Activities were not
applicable to the company, hence reporting requirement under paragraph 3(xx)(a) and
paragraph 3(xx)(b) of the order are not applicable to the company.
|
For, Jaimin Deliwala & Co. |
|
Chartered Accountants |
|
Firm Reg. No. 0103861W |
|
Sd/- |
|
Jaimin Deliwala |
|
Proprietor |
Place: Ahmedabad |
M. No.: 044529 |
Date: 19th May, 2023 |
UDIN: 23044529BGQKCJ6771 |
ANNEXURE –B TO THEINDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controlsover 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 Shaival
Reality Limitedas of 31stMarch 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 ("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 financial controls, 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. of the Company.
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 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.
For, JaiminDeliwala& Co.
Chartered Accountants
Firm Regn. No. 0103861W
Sd/-
Jaimin Deliwala
Proprietor
M. No. 044529
UDIN: 23044529BGQKCJ6771
Place: Ahmedabad
Date: 19thMay, 2023
+91-9892691696
