TO THE MEMBERS OF SOPHIA TRAEXPO LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of SOPHIA TRAEXPO LIMITED ("the
Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of
Profit and Loss, and theStatement of Cash Flows for the year ended on that date, and a
summary of the 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 ("the Act") 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, the profit and total comprehensive
income, 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 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 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 there under,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficientandappropriate to provide a basis for our audit opinion on the
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. In
our professional judgement, we have determined that there is no key audit matter to be
communicated in our report.
Information Other than the Financial Statements and Auditor’s 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, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report there on.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion there on.
In connection with our audit of thefinancial 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 Companys 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,andcash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards referred to in Section 133 of
Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.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
Companys ability tocontinue 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 Companys financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our responsibility is to express an opinion on these financial statements based on our
audit. We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the Accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
l 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 sufficientandappropriate 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.
l 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.
l Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
l 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.
l Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financialstatements 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 knowledgeableuserof 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 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 disclosureaboutthe matter or when, in
extremely rare circumstances, we determine that a matter should not be in ourreport
because the adverse consequences of doing so would reasonably be expected to outweigh the
public interestbenefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020, issued by the Central
Government of India, in terms of section 143 (11) of the companies Act, 2013, we give in
the "Annexure A" a statement on the matters specified in paragraph 3 and 4 of
the Order, to the extent applicable.
2. As required by section 143(3) of the Companies Act 2013, 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 and Statement of Profit and Loss including other comprehensive
income, Statement of changes in equity and Cash flow Statement dealt with by this Report
are in agreement with the books of account. d) In our opinion, the aforesaid financials
comply with the Accounting Standards specified under of Section 133 of the Companies Act,
2013 read with Companies (Indian Accounting standard) Rules 2015, as amended. e) On the
basis of written representations received from the directors as on March 31, 2023, and
taken on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2023, from being appointed as a director in terms of sub section (2) of section
164 of the Companies Act, 2013. 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"; and g) 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) There are no pending
litigations for or against the Company which would impact its financial position. ii) The
Company does not have any derivatives contracts. Further there are no long term contracts
for which provisions for any material foreseeable losses is required to be made. iii)
There are no amounts pending that are required to be transferred to Investor Education and
Protection Fund. iv) The Management has represented, to best of their knowledge and
belief, that 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. v) The
Management has represented, to best of their knowledge and belief, that 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. vi) Based on such audit procedures, that has been considered
reasonable and appropriate in the circumstances, performed by us, nothing has come to our
notice that has caused us to believe that the representation under para (iv) and (v)
contain any material misstatement. vii) 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
1 April 2023, and accordingly, reporting under rule 11(g) of Companies (Audit and
Auditors) Rules, 2014 is not applicable for the financial year ended 31 March 2023.
ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in
paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements’ section of our report to the Members of SOPHIA TRAEXPO LIMITED of
even date)
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that
i. (a) In respect of the Companys Property, Plant & Equipment:
(A) According to the information and explanations given to us and on the basis of our
examination of the records of the company, the company has maintained proper records full
particulars, including quantitative details and situation of Property, Plant and
Equipment.
(B) According to the information and explanations given to us and on the basis of our
examination of the records of the company, in our opinion, the company has maintained
proper records showing full particulars of intangible assets.
(b) The Company has a program of verification to cover all the items of Property, Plant
& Equipment in a phased manner which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. Pursuant to the program, certain
fixed assets were physically verified by the management during the year. According to the
information and explanations given to us, no material discrepancies were noticed on such
verification.
(c) According to the information and explanations given to us, the company does not
have immovable Property. Hence reporting under paragraph 3 (i)(c) is not applicable to the
company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalued its Property,
Plant and Equipment.
Accordingly, clause 3(i)(d) of the order is not applicable.
(e) According to information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made there under.
ii. (a) The company does not have any inventory and hence reporting under clause
3(ii)(a) is not applicable.
(b) The Company has not been sanctioned working capital limits in excess of ? 5 crore,
in aggregate, at any points of time during the year, from banks or financial institutions
on the basis of security of current assets and hence reporting under clause 3(ii)(b) of
the Order is not applicable.
iii. (a) According to the information and explanations given to us and on the basis of
our examination of the records of the company, During the year the company has not given
any advances in the nature of loan, provided any guarantee or given any security to its
subsidiaries, Joint ventures , other companies, firms , Limited Liability Partnerships or
any other parties.
(b) The company has not made investments, provided guarantees, provided security and
granted advances in the nature of loans to companies, firms, Limited Liability
Partnerships or any other parties. Accordingly, the requirement to report on clause
3(iii)(b) of the order is not applicable to the company to that extent.
(c) The company has not made investments, provided guarantees, provided security and
granted advances in the nature of loans to companies, firms, Limited Liability
Partnerships or any other parties. Accordingly, the requirement to report on clause
3(iii)(c) of the order is not applicable to the company to that extent.
(d) In the absence of any loans or advances in the nature of loans outstanding as at
the year end , the question of whether there are amounts overdue for more than ninety days
as the balance sheet date and reasonable steps have been taken by the company for recovery
of the principal and interest does not arise and accordingly this sub clause 3(iii)(d) is
not applicable.
(e) In the absence of any loans or advances in the nature of loans fallen due during
the year and hence the question of whether the loan has been renewed or extended or fresh
loans are granted to settle the overdue of existing loan given to the same parties does
not arise and accordingly this sub clause is not applicable.
(f) In the absence of any loans or advances in the nature of loans either repayable on
demand or without specifying any terms or period of repayment and hence the questions of
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 does not arise and accordingly, this sub clause 3(iii)(f) is not
applicable.
iv. There are no loans, investments, guarantees, and security in respect of which
provisions of section 185 and 186 of the companies act,2013 are applicable and accordingly
the requirement to report on clause 3(iv) of the order is not applicable to the company.
v. According to the information and explanation given to us the Company has not
accepted any deposits from the public and hence the directives issued by the Reserve Bank
of India and the provisions of Sections 73 to 76 or any other relevant provisions of the
Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits
accepted from the public are not applicable.
vi. According to the information and explanation given to us, the central government
has not prescribed the Maintenance of cost records under subsection (1) of section 148 of
the companies act,2013 for the services provided by the company. Accordingly, clause 3(v)
of the order is not applicable.
vii. In respect of statutory dues:
(a) In our opinion, the Company has generally been regular in depositing undisputed
statutory dues, including Goods and Services tax, Provident Fund, Employees State
Insurance, Professional tax Income Tax,Cess and other material statutory dues applicable
to it with the appropriate authorities.
There were no undisputed amounts payable in respect of Goods and Service tax, Provident
Fund, Employees State Insurance, Professional tax, Income Tax, Cess and other material
statutory dues in arrears as at March 31, 2023 for a period of more than six months from
the date they became payable.
(b) There are no disputed dues Pending as on March 31,2023.
viii. According to the information and explanation given to usand on the basis of our
examination of the records of the company, there were no transactions relating to
previously unrecorded income that have been surrendered or disclosed as income during the
year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
ix. (a) According to the information and explanation given to us and on the basis of
our examination of the records of the company, the Company has not defaulted in repayment
of loans or other borrowings or in the payment of interest to any lender during the year.
(b) The Company has not been declared a willful defaulter by any bank or financial
institution or government or any government authority.
(c) In our opinion, and according to the information and explanation given to us, the
terms loans have been applied for the purpose for which they have been obtained.
(d) According to the information and explanations given to us, and the procedures
performed by us, and on an overall examination of the financial statements of the company,
we report that the company has not use any short-term funds raised for long term purposes
during the year.
(e) According to the information and explanation given to usand on the basis of our
examination of the records of the company, the Company has not taken any funds from any
entity or person on account of or to meet the obligations.
(f) The Company does not have any subsidiary, associate, or Joint venture. Accordingly,
the requirement to report on clause (ix)(f) of the order is not applicable to the company.
x. (a) The Company has not raised money by way of an initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause is not applicable.
xi. (a) No fraud by the Company and no material fraud on the Company has been noticed
or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and up to the date of this report.
(c) No whistle blower complaints received by the Company during the year (and up to the
date of this report).
xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable.
xiii. In our opinion, the Company is in compliance with Section 177 and 188 of the
Companies Act, 2013 with respect to applicable transactions with the related parties and
the details of related party transactions have been disclosed in the standalone financial
statements as required by the applicable accounting standards.
xiv. In our opinion the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
xv. In our opinion during the year the Company has not entered into any non-cash
transactions with its directors or persons connected with its directors. and hence
provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. In our opinion, the Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and
(c) of the Order is not applicable.
In our opinion, there is no core investment company within the Group (as defined in the
Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under
clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has incurred cash losses of Rs.11.08 lakhs during the financial year
covered by our audit and Rs 10.41 lakhs in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during
the year.
xix. On the basis of the financial ratios, ageing and expected dates of realization 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 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. Transfer to fund specified under Schedule VII of Companies Act, 2013 not applicable
to the company.
ANNEXURE "B" 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 SOPHIA TRAEXPO LIMITED of
even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
Opinion:
We have audited the internal financial controls over financial reporting of SOPHIA
TRAEXPO LIMITED ("the Company") as of March 31,2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
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 31 March 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
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 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.
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 Section143(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 auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained,is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting of the Company.
Meaning of internal financial Controls over Financial reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statement for external purpose in accordance with generally
accepted accounting principles. A companys internal financial controls 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.
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.
|
For NSVR & ASSOCIATES LLP., |
|
Chartered Accountants |
|
(FRN No.008801S/S200060) |
|
R Srinivasu |
|
Partner |
| Date: 25.05.2023 |
M.No:224033 |
| Place: Hyderabad |
UDIN: 23224033BGPMVQ4230 |
+91-9892691696
