TO THE MEMBERS OF SHELTER INFRA PROJECTS LIMITED Shelter Infra Projects Limited
Report on the Audit of the Financial Statements of Shelter Infra Projects Limited
Qualified Opinion
We have audited the accompanying financial statements of Shelter Infra Projects Limited
( the Company"), which comprise the Balance Sheet as at 3fMarch 2023, the
statement of profit and loss (including other comprehensive income), the statement of
changes in Equity and the cash flow statement for the year on that date, and a summary of
significant accounting policies and other explanatory information (hereinafter referred to
as "the financial statement").
In our opinion and to the best of information and according to the explanations given
to us, the aforesaid financial statements, subject to items referred to in the basis of
qualified opinion, 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 Indian Accounting Standards prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") and
other accounting principles generally accepted in India, of the state of affairs of the
company as at 3 f March 2023, the Loss, comprehensive income, changes in
equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
We conducted our audit of the 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 Financial Statements section of our report. We are independent of the company
in accordance with the Code of Ethics issued by the Institute of the Chartered Accountants
of India (ICAI) together with independence requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules made there under,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the lCAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide the basis for our audit opinion on the
financial statements. Attention is invited to our following observations
(i) Non provision against development rights cost amounting to Rs.556.30 lakhs (refer
to note No.35(j) which appears unrecoverable;
(ii) Liability of lease rent against land taken from local municipality for a period of
99 years has not been provided for in terms of Ind AS - 116 (refer to note no.35(i);
Statutory Audit Report for the year ended 31 March, 2023 of Shelter Infra Projects
Limited
(iii) Non provision for obsolete stocks Note No.35(p)
(iv) Managements inability to determine fair value of non-current investments in
equity instruments book valuing Rs.94.76 lakhs with consequent impact on OCI.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, 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 of opinion thereon, and we do not provide a separate opinion on these
matters.
| Key audit matter |
How our audit addressed the key audit matters |
| A. Revenue Recognition |
Our key procedures included the following: |
| Revenues for the company are primarily from construction contract on cost plus
profit basis and related income. |
a) Assessed the appropriateness of the companys revenue recognition accounting
policies by comparing with the applicable accounting standards. No discount, incentive or
rebate is involved in respect of the company |
| Bills are raised against construction contract upto progressive billing stage in
terms of certification / acceptance by client as per contract rates. |
b) Tested the operating effectiveness of the general IT control environment and key
IT application controls over recognition of revenue |
| Rental income is recognized on actual basis |
c) Performed test of details: |
| Further, the company focuses on revenue as a key performance measure. Therefore,
revenue was our area of focus included whether the accruals were misstated and
appropriately valued, whether the significant transactions had been accurately recorded in
the Statement of Profit and Loss. |
i)Agreed samples of contractual agreements &tenancy agreement documentation and
approvals; and |
| Refer corresponding note for amounts recognized as revenue from sale of products |
ii) Obtained supporting documents for transactions recorded either side of year end
to determine whether revenue was recognized in the correct period. |
| B. Litigations and claims — provisions and contingent liabilities |
d) Performed focused analytical procedures: Compared the revenue for the current
year with the prior year for variance/ trend analysis and where relevant, completed
further inquiries and testing to corroborate the variances by considering both internal
and external benchmarks, overlaying our understanding of enterprise; and |
| As disclosed in Notes detailing contingent liability and provision for
contingencies, the company is involved in direct, indirect tax and other litigations (
litigations) that are pending with different statutory authorities. |
e) Considered the appropriateness of the companys description of the accounting
policy, disclosures related to revenue, and whether these are adequately presented in the
financial statement. |
| Whether a liability is recognized or disclosed as a contingent liability in the
financial statements Ls inherently judgmental and dependent on a number of significant
assumptions and assessments. |
Our key procedures included the following: |
| The amounts involved are potentially significant and determining the amount, if
any, to be recognized or disclosed in the financial statements, is inherently subjective. |
• Assessed the appropriates of the companys accounting policies, including
those relating to provision and contingent liability by comparing with the applicable
accounting standards; |
| C. Valuation of investments and impairment thereof |
• Assessed the company process for identification of the pending litigations
and completeness for financial reporting and also for monitoring of significant
developments in relation to such pending litigations; |
| 1. Non-Current Investments in Unquoted equity instruments. |
• Engaged subject matter specialists to gain an understanding of the current
status of litigations and monitored changes in the disputes, if any, through discussions
with the management and by reading external advice received by the company, where
relevant, to establish that the provisions had been appropriately recognized or disclosed
as required; |
| D. Evaluation of Uncertain Indirect Tax Provisions |
• Assessed the companys assumptions and estimates in respect of litigations,
including the liabilities or provisions recognized or contingent liabilities disclosed in
the financial statements. This involved assessing the probability of an unfavorable
outcome of a given proceeding and the reliability of estimates of related amounts; |
| The Company has material indirect tax provisions including matters under dispute
which involves significant judgment to determine the possible outcome of these disputes.
|
• Performed substantive procedures on the underlying calculations supporting
the provisions recorded; |
|
• Assessed the managements conclusions through understanding precedents set
in similar cases; and |
|
Considering the appropriateness of the companys description of the disclosures
related to litigations and whether these adequately presented in the financial statements. |
|
Our key procedures included the following: |
|
Non ascertainment of fair value by management prompted qualificatory reference to
the effect in our report |
|
Verified with reference to banks confirmation and computation of interest accrued
thereon. |
|
Principal Audit Procedures |
|
Obtained details of completed indirect tax assessments and demands for the year
ended March 31, 2022 in uploaded context from management. We involved our internal experts
to challenge the managements underlying assumptions in estimating the tax provision and
the possible outcome of the disputes. Our internal experts also considered legal
precedence and other rulings in evaluating managements position on these uncertain tax
positions. Additionally, we considered the effect of new information in respect of
uncertain tax positions as at April I, 2023 to evaluate whether any change was required to
managements position on these uncertainties. |
Information Other than the Financial Statements and Auditors Report thereon
The Companys 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, Boards Report including Annexures to Boards Report and
Shareholders Information, but does not include the financial statements and our auditors
report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information 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 that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to preparation of these financial statements that give a
true and fair view of the financial position, financial performance, total comprehensive
income, changes in equity and cash flows of the companies in accordance with the Ind AS
and other accounting principles generally accepted in India. The respective Board
Statutory Audit Report for the year ended 31" March, 2023 of Shelter Infra
Projects Limited / of Directors of the companies are also responsible for
maintenance of the adequate accounting records in accordance with the provisions of the
Act for safeguarding the assets of the companies 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..
In preparing the financial statements, the Board of Directors of the company 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.
The Board of Directors is also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that 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 financial 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 which has companies incorporated in
Statutory Audit Report for the year ended 31st March, 2023 of Shelter Infra Projects
Limited India, 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 ability of
the Group 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.
• Obtain sufficient appropriate audit evidence regarding the financial information
of the entities or business activities within the company to express an opinion on the
financial statements. We are* responsible for the direction, supervision and performance
of the audit of the financial statements of such entities included in the financial
statements.
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 in the financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned 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 tatutory Audit Report for the year ended 31st
March, 2023 of Shelter Infra Projects Limited ay 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 in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements *
1. 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 purposes of our audit of the aforesaid
financial statements.
b) In our opinion, proper books of account as required by law relating to preparation
of the aforesaid financial satements have been kept so far as it 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 of Cash Flows dealt with by this
Report are in agreement with the relevant books of account maintained for the purpose of
preparation of the financial statements.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on March 31,
2023 taken on record by the Board of Directors, none of the directors is disqualified as
on March 31, 2022from 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 effectiveness of such controls, refer to our
separate report in "Annexure 1". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the companys internal financial controls over
financial reporting.
g) With respect to the other matters to be included in Auditors Report in accordance
with the requirements of Section 197(16) of the Act, we hereby report that in our opinion
and to the best of our Statutory Audit Report for the year ended 31s March, 2023 of
Shelter Infra Projects Limited information according to explanations given to us, no
remuneration has been paid by the company to its Directors during the year attracting
provisions of Section 197 of 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, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The financial statements disclose impact of pending litigations on the financial
position of the company in note no.34(b) of financial statements.
ii. The company has not entered into derivative contracts. The company has entered into
long term contract in respect of which no material loss is foreseeable except for
forfeiture of development rights appearing at Rs.556.30 lacs in the books of the company.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the company.
iv. No fund has been advanced or loaned or invested by the Company to or in any other
entity or person including foreign entities or provide any guarantee or security as
undertaken by the Management.
v. No fund has been received by the Company from any person or entity including foreign
entity or provide any guarantee or security as undertaken by the Management.
vi. Nothing has come to our notice that has caused us to believe that the
representation under Clause (iv) and (v) above contain any material misstatement.
vii. No dividend or part was declared by Company during the year as per Section 123 of
Companies Act, 2013.
viii. The Company has been using such accounting software to maintain its Books of
Accounts which has a feature of recording Audit trail facility and the same has been
operated through out the year for all transactions recorded in the software and the audit
trail feature has not been tampered with and the audit trail has been presented by the
Company as per the Statutory Requirements.
As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure
2" a statement on the matters specified in paragraphs 3 and 4 of the Order.
|
ForBASUCHANCHAWei |
|
CHARTERED ACCOUNTANTS |
Place : Kolkata |
R. No-304049E |
Date :29lh May 2023. |
|
UDIN :23053036BCWOTZ2881 |
Partner M. No. 053036 |
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the companies Act, 2013 ("the Act") referred to in Para V (2) (1) of our
report of Caen date.
We have audited the internal financial controls over financial reporting of Shelter
Infra Projects Limited ("the Company") as of 31st March 2023 in
conjunction with our audit of END AS 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") 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.
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 judgement, including the assessment of
the risks of material misstatement of IND AS 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 IND AS 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 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 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, 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 3151 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 BASU CHANCHANT & DEB CHARTERED ACCOUNTANTS |
Place :Kolkata |
R. No-304049E |
Date :29th May 2023.
UDIN :23053036BGWOTZ2881 |
(SAMIR KUMAR GHOSH) (M.No-05036) |
Matters included in the auditors report pursuant to Companys (Auditors Report) Order
2020 issued by Central Government.
i) The company is maintaining records showing full particulars including quantitative
details and situation of the fixed asset
The fixed assets have not been physically verified by the management during the year
and accordingly no material discrepancies between the book of records and physical
inventory have not been identified.
The title deeds of immovable property are held in the name of the company.
ii) Physical verification of inventory has been conducted at reasonable intervals by
the management
A) The procedure of physical verification for inventory followed by the management is
reasonable and adequate in relation to the size of the company and the nature of its
business
B) The company is maintaining proper records of inventory and discrepancies noticed on
physical verification were not material have been properly dealt in the books of accounts.
iii) The company has not granted any loan secured or unsecured to companies, firms or
other parties covered in the register maintained under section 1 89 of the companies act
during the year
iv) The Company has not raised any loan from Directors.
v) The company has not accepted any deposits from public. Accordingly, paragraph 3(v)
of the order is not applicable.
vi) The central government has not prescribed any provision for maintenance of cost
records of the aforementioned company and accordingly no such cost record has been
maintained.
vii) a) The company is generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income tax. sales tax, wealth tax.
service tax, duty of customs, duty of excise, value added tax. goods & services tax.
cess and any other statutory dues to the extent applicable to it with the appropriate
authorities. However, following arrear of Statutory dues (i) Sales Tax-Rs. 129.02 Lacs.
Prop. Tax-Rs.232.86 Lacs and VAT-Rs.19.18 Lacs are outstanding more than six months which
is subjudice.
vii b Details of the dues not paid on account of disputes pending at different forum is
given below:
Statute |
Nature of Dues |
Amount (Rs. in Lacs) |
Asst Year |
Forum where dispute is pending to which the amount relates |
Income Tax Act |
Income Tax and Interest |
1082 |
2012-13 |
CIT. Appeal. Kolkata |
Income Tax Act |
Income Tax and Interest |
233.88 |
2014-15 |
CIT Appellate, Kolkata |
GST |
Service Tax & Penalties |
346.36 |
2011-16 |
Service Tax Appellate, Tribunal |
The following lone pendine amount not vet been paid.
SI.No. |
Particulars |
Amount (Rs. In Lacs) |
I. |
Income Tax on Dividend |
8.95 |
2. |
Municipal Tax |
294.36 |
|
Total |
303.31 |
viii) The company has not defaulted in repayment of dues to financial institution &
banks. Company has no debenture holder or financial institutional borrowings during the
year.
ix) The Company has not raised money by way of initial public offer or further public
offer or by way of term loan. .
x) No fraud has been noticed or reported on by the company during the year.
xi) No managerial remuneration paid by the company during the year in terms of section
197 of the Companies Act, 2013.
xii) The company is not a Nidhi Company.
xiii) There has been no noncompliance with relevant provisions of Companies Act in
respect of transaction with related parties.
xiv) The company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year.
xv) The company has not entered into any noncash transactions with directors or persons
connected with him.
xvi) The company is not required to be registered under section 45 IA of the Reserve
Bank of India Act 1934.
xvii) The Company has adequate internal audit system commensurate to size of the
business.
xviii) The Company has not incurred cash loses during the financial year and in the
immediately preceeding financial year
xix) There has not been any resignation of the statutory auditors during the year.
xx) According to the information and explanations given to us and on the basis of
financial ratios, ageing and expected date of realization of financial assets and payments
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 audit report that
company is not capable of meeting liabilities existing at the date of balance sheet as and
when they fall due within the period of one year from the balance sheet date. Our
statement, however is not an assurance as to the future viability of the company. Further
our reporting is based on the facts up to the date of audit report and we neither give any
guarantee nor any assurance that all liabities 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.
*
xxi) There is no unspent amount under sub-section(5) of section 135 of the Act to any
point. Accordingly clauses 3(xx) and 3(xx)(b) of the Order are not applicable.
Place : Kolkata |
For BASU CHANCHAN & DEB CHARTERED ACCOUNTANTS |
Date 29,h May 2023. |
|
udin : 23053036BGWOTZ2881 |
|
+91-9892691696
