To the Members of
SPACE INCUBATRICS TECHNOLOGIES LIMITED
REPORT ON THE AUDIT OF STANDALONE FINANCIAL STATEMENTS
Opinion.
1. We have audited the accompanying standalone financial statements of M/s SPACE
INCUBATRICS TECHNOLOGIES LIMITED, which comprise the Balance Sheet as at March 31,
2023, and the Statement of Profit and Loss for the period 1st April 2022 to 31st
March 2023 and Notes to the Financial Statements and 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 financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India including Indian Accounting Standards (‘Ind
AS) specified under Section 133 of the Act, a) In the case of the Balance Sheet, of the
state of affairs of the Company as at March 31, 2023; b) In the case of the Profit and
Loss Account, of the LOSS for the period ended on that date and; c) In the case of Cash
Flow Statement, for the cash flows for the year ended on that date; d) And the changes in
equity for the year ended on that date.
Basis for Opinion
2. 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.
Emphasis of Matter
3. As disclosed in Note No. 28C.The Statutory Auditors of Sybly International FZE, a
wholly owned subsidiary of Space Incubatrics Technologies Limited, have reported that
"a material uncertainty exists and that may cast significant doubt on the
establishment ability to continue as a going concern". Our opinion is not modified in
respect of this matter.
Key Audit matters
4. 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. ese 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.
Information other than the financial statements and auditors report thereon
5. The Companys board of directors is responsible for the preparation of the other
information.The other information comprises the information included in the Boards Report
including Annexures to Boards Report, Business Responsibility Report 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 thThe
standalone financial statements or our knowledge obtained during the course of our audit
or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibility of Management and ose Charged with Governance for the Standalone
Financial Statements
6. The companys Board of Directors are responsible for the matters 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 Accounting Standards specified in under Section 133
of the Act. This responsibility includes the maintenance of adequate accounting records in
accordance with the provision of the act for safeguarding the assets of the company and
for preventing and detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgment and estimates are
reasonable and prudent and design, implementation and maintenance of internal control,
that were operating efficiently for ensuring the accuracy and completeness of 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 to continue as a going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease the
operations or has no realistic alternative but to do so, ose Board of Directors are also
responsible for overseeing the financial reporting process.
Auditors Responsibility for the Audit of Standalone Financial Statements
7. 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 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 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 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.
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 deffciencies 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 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
8. 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 Act, we give in the Annexure "B" a statement on the matters specified
in paragraphs 3 & 4 of the Order, to the extent applicable.
9. 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 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 standalone financial statements dealt with by this Report are in agreement with
the books of accounts.
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS
specified under Section 133 of the Companies Act, 2013.
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 Section 164(2) of the
Act.
f) With respect to the adequacy of 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 matter to be included in the Auditors report under Section
197(16) of the Act, In our opinion and according to the information and explanation given
to us, the remuneration paid during the current year by the Holding Company and its
subsidiaries which are incorporated in India to its directors is in accordance with the
provisions of Section 197 of the Act. The remuneration paid to any director by the Holding
Company and its subsidiaries which are incorporated in India, is not in excess of the
limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not
prescribed other details under Section 197(16) of the Act which are required to be
commented upon by us.
h) With respect of 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 the 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 derivatives
contracts_for which there were any material foreseeable losses.
iii. there were no amounts which required to be transferred to Investor Education and
Protection Fund.
iv. 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
v. 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
vi. Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) contain any material mis-statement
vii. The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
Annexure to the Independent Auditors Report to the members of Space Incubatrics
Technologies Limited on the accounts of the Company for the year ended 31st
March, 2023
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
(i) (a) (A) The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
(B) The company has maintained proper records showing full particulars of Intangible
Assets.
(b) We are informed by the management that they have physically verified the fixed
assets at reasonable intervals during the year. No material discrepancies were noticed on
such verification.
(c) According to the information and explanations given to us and on the basis of our
examinations of the records of the Company, the Company doesnt possess any immovable
properties.
(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 (including Right-of-use assets) or Intangible assets or both during
the year
(e) According to the 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 thereunder (ii) the Company doesnt possess
any inventory hence this clause is not applicable.
(iii) (a) The Company has granted loan, to Companies, firms or other parties listed in
the register to be maintained under Section 189 of the Companies Act, as we are informed
Two party are involvedThe aggregate amount during the year, and balance outstanding at the
balance sheet date with respect to such loans, guarantees and securities to subsidiaries,
joint ventures and associates and to parties other than subsidiaries, joint ventures and
associates are as per the table given below (Rupees in Lacs)
|
Guarantees |
Securities |
Loans |
| Aggregate amount granted/ provided during the year |
|
|
|
| Subsidiaries(Currency Fluctuation) |
- |
- |
- |
| Joint Ventures |
- |
- |
- |
| Associates |
- |
- |
- |
| Other |
- |
- |
291.00 |
| Balance outstanding (gross) as at balance sheet date in respect of the above cases |
|
|
|
| Subsidiaries |
- |
- |
- |
| Joint Ventures |
- |
- |
- |
| Associates |
- |
- |
- |
| Other |
- |
- |
483.47 |
(b) In the absence of any written terms & conditions we cannot comment whether
loans and advances are prejudicial to the Companys interest or not.
(c) In the absence of any written terms & conditions and schedule of payment we
cannot comment whether repayment of principal and payment of interest has been stipulated
and whether the repayments or receipts are regular.
(d) The amount of repayment is not available hence we are unable to comment whether
there is any overdue or not.
(e) In the absence of any written terms & conditions, we cannot comment whether
loan granted has fallen due or not.
(f) In the absence of any written terms & conditions and schedule of payment we
cannot comment whether loan is repayable on demand or not.
(iv) In our opinion and according to the information and explanations given to us,
during the year, the company has not advanced any loan to its directors or any other
person in whom the directors are interested. Hence provisions of Section 185 of the
Companies Act, 2013 are not applicable. As regards, investments, the Company has duly
complied with the provisions of Section 186 of the Companies Act, 2013.
(v) In our opinion and according to the information and explanations given to us,The
Company has not accepted any deposits from the public covered under Section 73 to 76 of
the Companies Act, 2013.
(vi) The Maintenance of cost records has not been specified by the Central Government
under section 148(1) of the Companies Act, 2013 for the business activities carried out by
it. us reporting under clause 3(vi) of the order is not applicable to the Company.
(vii) (a)The company is regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Employees State Insurance, Investor Education
Protection Fund, Income Tax, Sales Tax, GST, Service Tax, Custom Duty, Excise Duty, Cess,
Value Added Cess and other material statutory dues applicable to it.
According to the information and explanation given to us, no undisputed amounts payable
in respect of statutory dues including Provident Fund, Employees State Insurance, Investor
Education Protection Fund, Income Tax, Sales Tax, GST, Service Tax, Custom Duty, Excise
Duty, Cess, Value Added Cess and other material statutory dues applicable to it, were in
arrears, as at 31st March, 2023 for a period of more than six months from the date they
became payable.
(b) According to the information and explanation given to us, there are no dues of
Sales Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty, GST and Cess, which have not
been deposited on account of any dispute.
(viii) 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 surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income-tax Act, 1961 as income during the year.
(ix)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 did not have any loans or
borrowings from any lender during the year. Accordingly, clause 3(ix)(a) of the Order is
not applicable
b. 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 been declared a wilful
defaulter by any bank or financial institution or government or government authority.
c. According to the information and explanations given to us by the management, the
Company has not obtained any term loans. Accordingly, clause 3(ix)(c) of the Order is not
applicable.
d. According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds have been raised
on short-term basis by the Company. Accordingly, clause 3(ix)(d) of the Order is not
applicable.
e. According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the
Order is not applicable.
f. According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries as defined under the Companies Act, 2013. Accordingly,
clause 3(ix)(f) of the Order is not applicable.
(x)a. The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not
applicable.
b. 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 made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year. Accordingly, clause 3(x)(b) of the Order is not applicable.
(xi)a. Based on examination of the books and records of the Company and according to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
b. According to the information and explanations given to us, no report under
sub-section (12) of Section 143 of the Companies Act, 2013 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. We have taken into consideration the whistle blower complaints received by the
Company during the year while determining the nature, timing and extent of our audit
procedures.
(xii) According to the information and explanations given to us, the Company is not a
Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us,
the transactions with related parties are in compliance with Sections 177 and 188 of the
Companies Act, 2013, where applicable, and the details of the related party transactions
have been disclosed in the financial statements as required by the applicable Indian
Accounting Standards.
(xiv) a. Based on information and explanations provided to us and our audit procedures,
in our opinion, the Company has an internal audit system commensurate with the size and
nature of its business.
b. We have considered the internal audit reports of the Company issued till date for
the period under audit.
(xv) In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are 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 3(xvi)(a) of the Order is not applicable.
b.The Company is not required to be registered under Section 45-IA of the Reserve Bank of
India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is 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, clause 3(xvi)(c) of the Order is not
applicable. d. According to the information and explanations provided to us during the
course of audit, the Group does not have any CIC. Accordingly, the requirements of clause
3(xvi)(d) are not applicable.
(xvii) The Company has not incurred cash losses in the current and in the immediately
preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3(xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us and 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, 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 the audit report that
the Company is not 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.
We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
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
(xx) In our opinion and according to the information and explanations given to us,
there is no unspent amount under sub-section (5) of Section 135 of the Companies Act, 2013
pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.
(xxi) In our opinion and according to the information and explanation given to us, the
statutory auditor of sybly international (FZE) A WHOLLY owned subsidiary of space
incubatrics technologies limited have reported in the para emphasis of Matter "A
material uncertainty exists and that may cast significant doubt on the establishment
ability to continue as a going concern.
ANNEXURE - B TO THE INDEPENDENT AUDITORS REPORT To the Members of SPACE INCUBATRICS
TECHNOLOGIES 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 "Space
Incubatrics Technologies Limited", as of 31st March, 2023 in conjunction with our
audit of thThe standalone Ind 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 (‘ICAI). ese
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 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 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 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 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.
|
As per our separate report of even date annexed. |
|
For V. S. Gupta & Co., |
|
Chartered Accountants, |
|
Sd/- |
|
(CA. Hemant Kumar Gupta) |
| PLACE : Meerut |
Partner. |
| DATE : 30th May, 2023 |
Membership No. 071580 |
|
Firm Reg. No. 00724C |
|
UDIN: 23071580BGVZTB1245 |
+91-9892691696
