Report on the financial statement
Opinion
We have audited the accompanying financial statements of Silicon Rental Solutions
Limited ("the Company") which comprises the Balance Sheet as at March 31,
2023, the Statement of Profit and Loss and statement of Cash Flow for the year then ended,
and notes to the financial statements, including a summary of significant accounting
policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid 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 its profit, and it cash flow for the year ended
on that date.
Basis for 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 the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibility of Management and Those Charged with Governance for the 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 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. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate implementation and maintenance of accounting
policies; making 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 statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Board of Directors is also responsible for overseeing the companys financial reporting
process.
Auditors Responsibility 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.
A further description of the auditors responsibilities for the audit of the financial
statements is included in Annexure A. This description forms part of our auditors
report.
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 "B" a statement on the
matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. 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 cash flow statement 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 Control with reference to
these standalone Financial Statements of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure C". Our report
expresses an unmodified opinion on the adequacy and operative effectiveness of the
Companys internal financial control over financial reporting.
g. With respect to the other matters to be included in Auditors report in
accordance with the requirement of section 197 (16) of the Act as amended in our opinion
and to the best of our information and according to explanation given to us the
remuneration paid by the company to its directors of the company 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 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; as such the question of commenting on any material foreseeable losses thereon
does not arise.
iii. There were no amounts which were 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 the notes 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 person(s) or entity(ies), 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) The management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities ("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 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; and
(c) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that the
representations under sub-clause (i) and (ii) contain any material mis-statement.
v. The company has neither declared nor paid any dividend during the year.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining
books of account using accounting software which has a feature of recording audit trail
(edit log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31, 2023.
For VINOD KUMAR JAIN & CO. Chartered Accountants, FRN 111513W
Sd/-
Vinod Kumar Jain Proprietor M. No. 36373 MUMBAI DATED: 30.05.2023
UDIN : 23036373BGSUTJ5210
Annexure A: Forming part of report of independent auditors to the members of SILICON
RENTAL SOLUTIONS LIMITED for the year ended 31st March 2023
Responsibilities for Audit of Financial Statement
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 internal financial controls with reference to Financial Statements 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.
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 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.
For Vinod Kumar Jain & Co. Chartered Accountants, FRN 111513W
Sd/-
Vinod Kumar Jain Proprietor M. No. 36373
Mumbai
Dated: 30.05.2023
ANNEXURE "B" OF AUDITORS REPORT to the Independent Auditors report 31
March 2023
Annexure "B" referred to in our report to the members of SILICON
RENTAL SOLUTIONS LIMITED on the accounts for the year ended 31st March, 2023. We
report that: (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
Based on the audit procedures performed for the purpose of reporting a true and fair
view on the financial statements of the Company and taking into consideration the
information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, we report that:
(i) In respect of its Property, Plant and Equipment
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 intangible
assets.
b. Property, Plant and Equipment have been physically verified by the management during
the year and in our opinion the frequency of verification is reasonable having regard to
the size of the company and the nature of its assets. No material discrepancies were
noticed on such verification.
c. The company does not own any immovable property. Therefore, the provisions of Clause
(i)(c) of paragraph 3 of the order are not applicable to the Company.
d. The company has not revalued its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year. Therefore, the provisions of
Clause (i)(d) of paragraph 3 of the order are not applicable to the Company.
e. No proceedings have been initiated or are pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder. Therefore, the provisions of Clause (i)(e) of paragraph 3 of the
order are not applicable to the Company;
(ii) In respect of its inventory
(a) In our opinion, physical verification of inventory has been conducted at reasonable
intervals by the management and the coverage and procedure of such verification by the
management is appropriate. No material discrepancies were noticed on such verification.
(b) The company has not been sanctioned working capital limits against current assets
in excess of five crore rupees. Therefore, the provisions of Clause (ii)(b) of paragraph 3
of the order are not applicable to the Company.
(iii) During the year the company has not made any investments and has not provided
any guarantee or security; has granted any loans or advances in the nature of loans,
secured or unsecured, to companies, firms, Limited Liability Partnerships or any other
parties, -
(a) During the year the company has provided loans or provided advances in the nature
of loans, or stood guarantee, or provided security to any other entity, if so, indicate-
(A) No amount was provided in the nature of loan during the year and the company did
not provide any guarantees or security to subsidiaries, joint ventures and associates; (B)
The aggregate amount provided in the nature of loans during the year was Rs.
93,00,000/-, and balance outstanding at the balance sheet date with respect to such
loans or advances was Rs. 93,00,000/- and company did not provide any guarantees or
security to parties other than subsidiaries, joint ventures and associates;
(b) The company has not made any investment during the year and terms and conditions of
loans and advances in the nature of loans were not prejudicial to the companys interests.
The company has not given any guarantee and has not given any security as such question of
whether their terms and conditions are prejudicial or not does not arise.
(c) In respect of loans and advances in the nature of loans, the schedule of repayment
of principal and payment of interest has been stipulated and the repayments or receipts
are regular and the amount outstanding as at the end of the year is Rs.
93,00,000/-;
(d) No amount is overdue, as such question whether the total amount overdue for more
than ninety days or not does not arise, and there is no question whether any steps being
taken by the company for recovery of the principal and interest does not arise;
(e) No loan or advance in the nature of loan granted which has fallen due during the
year, has been renewed or extended or fresh loans granted to settle the overdue of
existing loans given to the same parties.
(f) The company has not granted any loans or advances in the nature of loans either
repayable on demand or without specifying any terms or period of repayment, as such there
is no question to specify the aggregate amount, percentage thereof to the total loans
granted, aggregate amount of loans granted to Promoters, related parties as defined in
clause (76) of section 2 of the Companies Act, 2013;
(iv) 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 Act, with
respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us,
the company has not accepted deposit or amounts which are deemed to be deposits within the
meaning of the provisions of sections 73 to 76 or any other relevant provisions of the Co.
Act, 2013 and the Companies (Acceptance of Deposits) Rules, framed there under.
According to the information and explanations given to us no order has been passed by
the Company Law Board, or National Company Law Tribunal or Reserve bank of India or any
court or any other tribunal.
(vi) As informed to us, the Central Government has not prescribed the maintenance
of cost records under section 148(1) of the Companies Act, 2013. Therefore, the provisions
of clause (vi) of paragraph 3 of the order are not applicable to Company.
(vii) According to information and explanations given to us and records produced in
respect of statutory dues:
(a) The Company has generally been regular in depositing with the appropriate
authorities undisputed statutory dues including Goods and service tax, Provident Fund,
Employees state insurance, Income-tax, sales tax, service tax, duty of customs, duty of
appropriate authorities, there were no arrears of outstanding statutory dues as at March
31st 2023 for a period of more than six months from the date they became
payable. As informed to us that provisions of Provident Fund and Employees State insurance
do not apply to company.
(b) There are no dues in respect of Goods and service tax, Income-tax, sales tax,
service tax, duty of customs, duty of appropriate authorities that have not been deposited
on account of any dispute. As informed to us that provisions of Provident Fund and
Employees State insurance do not apply to company.
(viii) In our opinion and according to the information and explanations given to
us, there is no any transaction not recorded in the books of account have been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961.
(ix) (a) In our opinion and according to the information and explanations given to
us, the Company has not defaulted in repayment of any loan or other borrowings or any
interest due thereon to any lender.
(b) In our opinion and according to the information and explanations given to us, the
company has not been a declared willful defaulter by any bank or financial institution or
other lender.
(c) In our opinion and according to the information and explanations given to us, the
loans were applied for the purpose for which the loans were obtained.
(d) In our opinion and according to the information and explanations given to us, there
are no funds raised on short term basis which have been utilized for long term purposes.
(e) In our opinion and according to the information and explanations given to 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) In our opinion and according to the information and explanations given to us, the
company has not raised loans during the year on the pledge of securities held in its
subsidiaries, joint ventures or associate companies.
(x) (a) The Company has raised money by way of initial public offer and other
public offer during the year and have been applied for the purpose for which those were
raised, out of IPO Rs. 2115.36 Lakhs, a sum of Rs. 1745.31 Lakhs have been used during the
year and balance Rs. 370.05 Lakhs is carried forward for specified application in next
year. Further, the company has not raised any debt instruments during the year.
(b) In our opinion and according to the information and explanations given to us, the
company has made preferential allotment or private placement of shares during the year and
the requirements of section 42 and section 62 of the Companies Act, 2013 have been
complied with and the funds raised have been used for the purposes for which the funds
were raised.
(xi) (a) We have not noticed any case of fraud by the company or any fraud on the
Company by its officers or employees during the year. The management has also not reported
any case of fraud during the year.
(b) During the year no report under sub-section (12) of section 143 of the Companies
Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government.
(c) As auditor, we did not receive any whistle- blower complaint during the year.
(xii) (a) In our opinion and according to the information and explanations given to
us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable and clause (b) and clause (c) of Caro paragraph (xii) are not applicable.
(xiii) Accordingly to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards. Identification of related parties were made and provided by the
management of the Company.
(xiv) (a) Based on the data provided and, subject to sub clause (b) of clause 3
(xiv) of the Order the Company has an adequate internal audit system commensurate with the
size and the nature of its business
(b) We have considered the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company has not entered into non-cash transactions with
directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not
applicable to the Company.
(xvi) (a) The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934. Accordingly, clause (b) and (c) of paragraph 3(xvii) of
the order is not applicable.
(b) The Company has not conducted any Non- Banking Financial or housing Finance
activities during the year. Accordingly, paragraph 3(xvi)(b) of the Order are not
applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India. Accordingly, paragraph 3(xvi)(c) and (d) of the Order
are not applicable.
(xvii) The Company has not incurred cash losses during the current financial year
as well as in the immediately preceding financial year.
(xviii) There has been no resignation of the previous statutory auditors of the
Company during the year.
(xix) 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, the auditors knowledge of the Board of Directors
and management plans, we are of the opinion that no material uncertainty exists as on the
date of the audit report that company is 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.
(xx) (a) There is no unspent amount towards Corporate Social Responsibility (CSR)
required to transfer a Fund specified in Schedule VII to the Companies Act within a period
of six months of the expiry of the financial year in compliance with second proviso to
sub- section (5) of section 135 of the said Act.
(b) There are no ongoing CSR projects run by the company and hence, there is no amount
remaining unspent under sub-section (6) of section 135 of the Companies Act, pursuant to
any ongoing project, which is required to transferred to special account in compliance
with the provision of sub-section (6) of section 135 of the said Act.
(xxi) The company has not made investments in subsidiary company. Therefore, the
company does not require to prepare consolidated financial statement. Therefore, the
provisions of Clause (xxi) of paragraph 3 of the order are not applicable to the Company.
For VINOD KUMAR JAIN & CO. Chartered Accountants, FRN 111513W
Sd/-
Vinod Kumar Jain Proprietor M. No. 36373
PLACE : MUMBAI DATED : 30.05.2023
ANNEXURE ‘C TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
FINANCIAL STATEMENTS OF SILICON RENTAL SOLUTIONS LIMITED
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 internal financial controls over financial reporting of Silicon
Rental Solutions Limited ("the Company) as of 31st March, 2023 in
conjunction with our audit of the 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 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 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 purpose in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and 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; (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, 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 31st 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 Vinod Kumar Jain & Co., Chartered Accountants, FRN 111513W
Sd/-
Vinod Kumar Jain Proprietor. M No. 36373
MUMBAI, DATED:30.05.2023
+91-9892691696
