TO THE MEMBERS OF
SHALIMAR WIRES INDUSTRIES LIMITED
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying Standalone Financial Statements of Shalimar Wire
Industries Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows
for the year then ended, and notes to theFinancial statements, including a summary of
signi_cant accounting policies and other explanatory information (hereinafter referred to
as "the Standalone 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 Indian Accounting Standards prescribed under Section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015
("Ind AS") and other accounting principles generally accepted in India, of the
state of a_airs of the Company as at 31st March, 2023 and its Profit, total
comprehensive income for the year, changes in equity and its cash _ows for the year ended
on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with
Standards on Auditing (SAs) speci_ed under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the StandaloneFinancialStatementssection 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
independentrequirements that are relevant to our audit of the Standalone Financial
Statements under the provisions of the Act and the Rules made there underand we have
ful_lled our other ethical responsibilities in accordance with these requirements and the
ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is
su_cient and appropriate to provide a basis for our audit opinion on the Standalone
Financial Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
signi_cance in our audit of theFinancial statements of the current period. These matters
were addressed in the context of our audit of theFinancial 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 Standalone Financial Statements and Auditor’s Report
thereon
The Company’s Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Board’s Report including Annexure to Board’s Report,
Business Responsibility Report, Corporate Governance and Shareholders Information, but
does not include the Standalone Financial Statements and our Auditor’s 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 the Standalone Financial Statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is 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 is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section
134(5) of theAct with respect to the preparation of these Standalone Financial Statements
that give a true and fair view of theFinancial position,Financial performance,
includingother comprehensive income, changes in equity and cash _ows of the Company in
accordance with the Ind AS and other accounting principles generally accepted in
India.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 judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internalFinancial
controls, that were operating e_ectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Standalone
Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for
assessing the Company’s 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 Board of Directors are
responsible for overseeing the Company’sFinancial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtained reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or error
and to issue and auditor’s report that includes our opinion. Reasonable assurance is
a high label of assurance, but is not a guarantee that an audit conducted in accordance
with SAs with always detects a material misstatement when it exists. Misstatement can
arise from fraud or error and the considered material if, individually or in the
aggregate, they could reasonably be expected to in_uence the economic decisions of users
taken on the basis of these Standalone 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
standaloneFinancial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is su_cient 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 internalFinancial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internalFinancial controls system in place and the operating
e_ectiveness 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 management’s 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 signi_cant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the standaloneFinancial 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 auditor’s 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
standaloneFinancial statements, including thedisclosures, and whether the
standaloneFinancial statements represent the underlying transactions and events in a
manner that achieves fair presentation. Materiality is the magnitude of misstatements in
the standaloneFinancial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of theFinancial statements
may be in_uenced. 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 e_ect of any identi_ed misstatements in theFinancial statements. We
communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and signi_cant audit _ndings, including any signi_cant
de_ciencies 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 thatwere of most signi_cance in
the audit of the standaloneFinancial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s 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 Benefit s of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 ("the
Order") issued by the Central Government in terms of Sub-section (11) of Section 143
of the Act, we give in the Annexure – ‘A’ a statement on the matters
speci_ed in the paragraph 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit we report that a) We
have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit; b) 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. c) The Balance Sheet, the Statement of Profit and Loss
including Other Comprehensive Income, Statement of Changes in Equity and the Statement
Cash Flows 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 Indian Accounting
Standards (Ind AS) speci_ed under Section 133 of the Act. e) On the basis of written
representations received from the Directors as on 31st March, 2023 taken on
record by the Board of Directors, none of the Director is disquali_ed 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 over Financial Reporting
of the Company and the operating e_ectiveness of such controls, refer to our separate
Report in Annexure – B. Our report expresses an unmodi_ed opinion on the
adequacy and operating e_ectiveness of the Company’s internalFinancial controls
overFinancial reporting. g) With respect to the other matters to be included in the
Auditor’s Report in accordance with the requirements of section 197(16) of the Act,
as amended: In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act. h) With respect to
the other matters to be included in the Auditor’s Report in accordance with amended
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and
to the best of our information and according to the explanations given to us: i) The
Company has disclosed the impact of pending litigations on itsFinancial position, wherever
ascertainable – Refer Note No. 31. ii) The Company did not have any long-term
contracts including derivative contracts for which there was any material foreseeable
loss. iii) Since the Sick Industrial Companies Act has been repealed by the Government of
India, the exemption granted to the Company by the erstwhile BIFR from transferring any
amount to the Investor Education and Protection Fund is no longer available. Also refer
Footnote No. (ii)(a) of Note No.14. iv) (a) The Management has represented that, to the
best of its knowledge and belief, no funds (which are material either individually or in
the aggregate) have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other
person or entity ("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 identi_ed in any manner whatsoever by or on behalf of
the Company ("Ultimate Bene_ciaries") or provide any guarantee, security or the
like on behalf of the Ultimate Bene_ciaries; (b) The Management has represented, that, to
the best of its knowledge and belief, no funds (which are material either individually or
in the aggregate) have been received by the Company from any person or entity
("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, directly or indirectly, lend or invest in
other persons or entities identi_ed in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Bene_ciaries") or provide any guarantee, security or
the like on behalf of the Ultimate Bene_ciaries; (c) Based on the audit procedures that
have been considered reasonable and appropriate in the circumstances, nothing has come to
our notice that has caused us to believe that the representations under sub-clause (i) and
(ii) of Rule 11(e), as provided under (a) and (b) above, contain any material
misstatement.
(d) The Company has not declared or paid any dividend during the year in Contravention
of the Seciton 123 of the Companies Act, 2013.
For KHANDELWAL RAY & CO
Chartered Accountants
Firm Registration No. 302035E
|
CA. P. Sarkar |
| Place: Kolkata |
Partner |
| Date: 27thMay, 2023 |
(Membership No. 051449 |
Annexure - B
to the independent auditors’ report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internalFinancial controls overFinancial reporting of Shalimar
Wires Industries Limited ("the Company") as of 31 March 2023 in conjunction with
our audit of the Standalone Financial Statements of the Company for the year ended on that
date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining
internalFinancial controls based on the internal control overFinancial 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
internalFinancial controls that were operating e_ectively for ensuring the orderly and
e_cient conduct of its business, including adherence to company’s 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
reliableFinancial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
OurresponsibilityistoexpressanopinionontheCompany›sinternal_nancialcontrolsover_nancialreportingbased
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
prescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternal_nancial
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 internalFinancial controls overFinancial
reporting was established and maintained and if such controls operated e_ectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internalFinancial controls system overFinancial reporting and their operating
e_ectiveness. Our audit of internalFinancial controls overFinancial reporting included
obtaining an understanding of internalFinancial controls overFinancial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating e_ectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of theFinancial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is su_cient and appropriate to
provide a basis for our audit opinion on the Company’s internalFinancial controls
system overFinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company›s internalFinancial control overFinancial reporting is a process
designed to provide reasonable assurance regarding the reliability ofFinancial reporting
and the preparation ofFinancial statements for external purposes in accordance with
generally accepted accounting principles. A company›s internalFinancial control
overFinancial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly re_ect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation ofFinancial
statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being
Annexure - B
to the independent auditors’ report
made only in accordance with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the company›s assets that
could have a material e_ect on theFinancial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internalFinancial controls overFinancial
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 internalFinancial controls overFinancial
reporting to future periods are subject to the risk that the internalFinancial control
overFinancial 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 internalFinancial controls
system overFinancial reporting and such internalFinancial controls overFinancial reporting
were operating e_ectively as at March 31, 2023, based on the internal control
overFinancial 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 KHANDELWAL RAY & CO.
Chartered Accountants
Firm Registration No. 302035E
|
CA. P.Sarkar |
| Place: Kolkata |
Partner |
| Date: 27th May, 2023 |
Membership No: 051449 |
+91-9892691696
