INDEPENDENT AUDITOR’S REPORT
To
The Members of Skyline Ventures India Limited
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of Skyline Ventures India Limited
(‘the Company’), which comprise the Balance Sheet as at March 31, 2022, 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 ended on that date, and a
summary of the 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 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 as amended
(‘Ind AS’) and other accounting principles generally accepted in India, of the
state of affairs of the Company as at 31 March, 2022 the profit and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for 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. Our responsibilities under
those Standards are further described in the Auditor’s 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 (ICAI) together with the independence requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules made thereunder,
and we have fulfilled 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 sufficient and appropriate to provide a basis for our audit opinion on
the financial statements.
Information Other than the 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 Annexures to Board’s Report,
Business Responsibility Report, Corporate Governance and Shareholder’s Information,
but does not include the financial statements and our auditor’s 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.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the 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 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
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, 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’s financial
reporting process.
Auditor’s 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 auditor’s 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 controls.
• 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 has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• 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 significant 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 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 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 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.
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
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 benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (‘the
Order’) issued by the Central Government in terms of Section 143 (11) of the Act, we
give in Annexure- A, a statement on the matters specified in paragraphs 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 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 including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
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 the written representations received from the directors as on March
31, 2022 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2022 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 effectiveness of such controls, refer to our
separate Report in ‘Annexure-B’. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Company’s internal financial controls
over financial
3. With respect to the other matters to be included in the Auditor’s 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 Company has disclosed the impact of pending litigations on its financial
position in its financial
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the company.
4. With respect to the other matters to be included in the Auditor’s Report in
accordance with the requirements of amendments to section 197(16) of the Act:
In our opinion and to the best of our information and according to the explanations
given to us, the Company has neither appointed any whole time directors nor paid any
remuneration to its directors during the year. Accordingly the limits of remuneration in
accordance with the provisions of section 197 of the Act are not applicable to the company
for the year under review.
Hyderabad
Date: 10th March,2023
For NSVR & Associates
Chartered Accountants
(FRN No. 008801S/S200060)
R.Srinivasu
Partner
M.No.224033
Annexure B to the Independent Auditors’ Report
With reference to Annexure A as referred to in paragraph 1 under ‘Report on Other
Legal and Regulatory Requirements’ section of our report to the Members of the
company on the standalone financial statement for the year ended 31 March 2022, we report
the following:
| Sl. No. |
Ref to CARO |
Report by Independent Auditors |
| 1 |
3(i) |
Fixed Assets |
|
3(i)(a) |
The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets on the basis of
available information. |
|
3(i)(b) |
As explained to us, all the fixed assets have been
physically verified by the management in a phased periodically manner, which in our
opinion is reasonable, having regard to the size of the Company and nature of its assets.
No material discrepancies were noticed on such physical verification. |
|
3(i)(c) |
The company is not holding any immovable properties and
accordingly para 3(i)(c) of the Order is not applicable. |
| 2 |
3(ii) |
Inventories |
|
|
There are inventories during and at the close of the Year.
Accordingly the provisions of the clause 3 (ii) of the Order are not applicable to the
Company for the year under review |
| 3 |
3(iii) |
Loans to parties covered by Sec. 189 of the Companies
Act,2013 (‘the Act’ ) |
|
|
According to the information and explanation given to us,
the Company has not granted any loans, secured or unsecured to body corporate, firms,
Limited Liability Firms or other parties covered in the register required to be maintained
under section 189 of the Act. Accordingly the provisions of the clause 3 (iii) of the
Order are not applicable to the Company for the year under review. |
| 4 |
3(iv) |
Loans guarantees, securities to and investments in
other companies |
|
|
In our opinion and according to the information and
explanation given to us, the company has no transactions for compliance with the
provisions of Sections 185 and Section 186 of the Act in respect of investments made and
loans given.Accordingly the provisions of the clause 3 (iv) of the Order are not
applicable to the Company for the year under review. |
| 5 |
3(v) |
Acceptance of deposits |
|
|
In our opinion and according to the information and
explanations given to us, the Company has not accepted any deposits during the year as per
provisions of Section 73 or 76 of the Act or any other relevant provisions of the Act and
the relevant Rules framed thereunder. Accordingly the provisions of the Para 3 (v) of the
Order are not applicable to the Company for the year under review. |
| 6 |
3(vi) |
Maintenance of cost records |
|
|
According to the information and explanations given us,
the maintenance of cost records prescribed by the Central Government under section 148(1)
of the Act read with Rule 3 of the Cost Audit Rules is not applicable to the company.
Accordingly cost audit under Sec.148(2) of the Act read with Rule 4 of the Cost Audit
Rules under Para 3(vi) of the Order is not applicable to the Companyfor the year under
review. |
| 7 |
3(vii) |
Statutory Dues |
|
3(vii)(a) |
According to the information and explanations given to us
and on the basis of our examination of the records of the Company, amounts deducted /
accrued in the books of account in respect of undisputed statutory dues including
Provident Fund, Employee’s State insurance, Income Tax, Goods and Service Tax, duty
of Customs, Cess and other material statutory dues have been generally deposited during
the year by the Company with the appropriate authorities.According to the information and
explanations given to us, no undisputed amounts payable in respect of Provident Fund,
Employees’ State Insurance, Income tax, Goods and Service Tax, duty of Customs, Cess
and other material statutory dues in arrears as at March 31, 2019 for a period of more
than six months from the date they became payable. |
|
3(vii)(b) |
According to the information and explanation given to us,
there are no dues of statutory dues of Income tax, sales tax, Service tax, Goods and
Service tax, Customs duty, Excise duty, Value added tax, cess and other dues that have not
been deposited by the Company on account of any disputes. |
| 8 |
3(viii) |
Defaults in repayments to Financial
Institutions/Banks/Debenture holders |
|
Check loans |
The company has not borrowed Term loans and working
capital loans from banks and has not issued any debentures. Accordingly the provisions of
the clause 3 (ii) of the Order are not applicable to the Company for the year under review |
| 9 |
3(ix) |
Initial public offer/further offer |
|
|
In our opinion and according to the information and
explanation given to us, the company has not raised any monies by way of any (i) initial
public offer; or (ii) further public offer of securities (including debt instruments);
and(iii) term loans that are to be applied for the purpose for which those are raised
during the year.Accordingly reporting under Para 3(ix) of the Order is not applicable to
the company.for the year under review. |
| 10 |
3(x) |
Frauds by or on the company |
|
|
In our opinion and according to the information and
explanation given to us, no material fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the course of our audit. |
| 11 |
3(xi) |
Managerial Remuneration |
|
|
The company has not approinted any whole time directors
during the year and hence the Company has not paid/provided managerial remuneration.
Therefore, requisite approvals and compliances mandated by the provisions of section 197
read with Schedule V to the Act.and reporting under Para 3(xi) are not applicable to the
company for the year under review. |
| 12 |
3(xii) |
Nidhi company |
|
|
In our opinion and according to the information and
explanation given to us, the company is not a Nidhi Company as prescribed under Section
406 of the Act and accordingly paragraph 3(xii) of the Order is not applicable to the
company. |
| 13 |
3(xiii) |
Transactions with Related parties |
|
|
In our opinion and according to the information and
explanation given to us and based on our examination of the records of the Company, all
transactions with related parties are in compliance with provisions of section 177 and
section 188 of the Act where applicable, and the details of such transactions have been
disclosed in the standalone financial statements as required by the applicable Indian
Accounting Standards. |
| 14 |
3(xiv) |
Preferential allotment u/s 62 or private placement u/s
42 of the Act |
|
|
TheCompany has not made any preferential allotment u/s 62
of the Act orprivate placement under section 42 of the Act of shares or fully or partly
convertible debentures during the year.Accordingly reporting compliance of provisions for
making private placement of shares or issuing debentures under paragraph 3(xiv) of the
Order is not applicable to the company. |
| 15 |
3(xv) |
Non-cash transactions with directors u/s 192 of the Act |
|
|
In our opinion and according to the information and
explanation given to us and based on our examination of the records of the Company, the
company has not entered during the year into any non cash transactions with its Directors
or persons connected to its Directors and hence provisions of Sec 192 of the Act and
paragraph 3(xv) of the Order are not applicable to the company. |
| 16 |
3(xvi) |
Registration u/s 45-1A of Reserve Bank of India
Act,1934 |
|
|
According to the information and explanation given to
us,the company is not required to be registered under section 45-1A of the Reserve bank of
India Act, 1934 and accordingly paragraph 3(xvi) of the Order is not applicable to the
company.1 |
Place : Hyderabad
Date: 10th March, 2023
Annexure-A to the Independent Auditor’s Report
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory
Requirements’ section of our report to the Members of Skyline Ventures India Limited
of even date)
Report on the Internal Financial Controls Over Financial Reporting under Para (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 Skyline
Ventures India Limited ("the Company") as of March 31, 2022 in conjunction with
our audit of the financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company 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 respective 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
reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s 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 internal financial controls system over
financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s 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 company’s 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 company’s
assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2022, 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.
Place: Hyderabad
Date: March 10th,2023
For NSVR & Associates
Chartered Accountants
(FRN No. 008801S/S200060)
R.Srinivasu
Partner
M.No.224033.
+91-9892691696
