TO THE MEMBERS OF
VARIMAN GLOBAL ENTERPRISES LIMITED
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of
affairs of the Company as at 31st March, 2023, and its profit and its cash flows for the
year ended on that date.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
VARIMAN GLOBAL ENTERPRISES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2023, the Statement of Profit and Loss, the Cash Flow Statement
and the statement of equity for the year ended, and a summary of the significant
accounting policies and other explanatory information.
Managements Responsibility for the Standalone 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 standalone 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, 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 of 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.
Auditors Responsibility
Our responsibility is to express an opinion on these standalone
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 thereunder.
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 the 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 financial control relevant to the
Companys preparation of the financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, 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 on the standalone financial
statements.
Report on Other Legal and Regulatory Requirements
As required by Section 143 (3) of the Act, we report that:
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.
(a) 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 except
the sales made through trading activities.
(b) 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.
(c) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(d) The going concern matter described in sub-paragraph (i) under the
Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the
functioning of the Company.
(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 are 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 controls
over financial reporting of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
(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. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements to the financial statements;
ii. The Company did not have any derivative contracts and the
Company has not made hedging on foreign currency exposure, for material
foreseeable losses, if any, on long-term contracts to the financial statements;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure – A to the Independent Auditors Report:
The Annexure referred to the independent auditors report to the
members of Variman Global Enterprise Limited on the Ind AS financial statements for the
year ended 31st March 2023:
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. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of all major fixed assets.
(b) A major portion of fixed assets have been physically verified by
the management during the year at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) Book of accounts of the company does not carry any immovable
properties for the reporting period. Hence the above point is not applicable.
ii. (a) As explained to us, the inventory has been physically verified
by the management during the year at reasonable intervals;
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories followed by the
Management were reasonable and adequate in relation to the size of the Company and the
nature of its business
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its inventories and no material
discrepancies were noticed on physical verification of stocks as compared to book records
iii. In our opinion and according to the information provided to us the
company has made investments and granted unsecured loans or advances in the nature of
loans as specified below:
Investments in Subsidiaries:
(Amt in Lakhs)
| S. No Name of the Company |
As on 31-03-2023 |
| 1 Straton Business Solutions Pvt Ltd |
288.30 |
| 2 Verteex Vending and Enterprises Pvt Ltd |
306.00 |
(A) Loans: to Subsidiaries, Joint Ventures, Associates:
(Amount in Lakhs)
| S. No Name of the Company |
Balance outstanding as on |
|
31-03-2023 |
| 1 Straton Business Solutions Pvt Ltd |
362.00 |
| 2 Verteex Vending and Enterprises Pvt Ltd |
217.90 |
(B) Loans: to other than Subsidiaries, Joint Ventures and Associates:
| S. No Name of the Company |
Balance outstanding as on 31-03-2023 |
| 1 Translite Energy Ltd |
100.80 |
| 2 Primus Partners International Pvt Ltd |
45.04 |
| 3 Supreme Weather Makers |
53.48 |
| 4 Unitas Business Services Pvt Ltd |
90.81 |
| 5 Saharsh Engineering Works |
54.55 |
| 6 Rasvat Food Specialities Pvt Ltd |
250.75 |
| 7 Wow Mart Retail Pvt Ltd |
50.66 |
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.
The Company has not accepted any deposits within the meaning of
Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and no order
has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any court or any tribunal.
In our opinion and according to the information and explanations given
to us, maintenance of cost records as specified by the Central Government under sub
section (1) of section 148 of the Companies Act, 2013 is not applicable to the company.
(a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company is regular in depositing
undisputed statutory dues including provident fund, employees state insurance,
income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax,
Goods and service Tax, cess and any other statutory dues to the appropriate authorities
and no undisputed amounts payable were outstanding 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 explanations given to us and the
records of the company examined by us, there are no dues of Sales Tax or Service Tax or
duty of customs or duty of excise or value added tax or Goods and service Tax or cess as
at 31st March, 2023 which have not been deposited on account of a dispute. expect for the
following dues relating to Income tax:
| S. No Assessment year |
Under section |
Amt in lakhs |
| 1 2016-17 |
147 |
120.49 |
| 2 2017-18 |
147 |
1,071.49 |
i. The company has not recorded any transactions in the books of
account which have been surrendered of disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961. The previously unrecorded income has been
properly recorded in the books of account during the year
ii. According to the information and explanations given to us and on
the basis of examination of the records, the Company has not defaulted in the repayment of
loans along with interest to any financial institutions, banks or dues to debenture
holders as at the balance sheet date.
iii. a) The Company did not raise any money by way of initial public
offer or further public offer (including debt instruments); hence this clause is not
applicable
b) The Company has made preferential allotment of shares or convertible
debentures (fully, partially or optionally convertible) during the year.
iv. According to the information and explanations given to us, no fraud
by the Company or on the Company by its officers or employees has been noticed or reported
during the course of our audit.
v. In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi company. hence this clause is not applicable
vi. According to the information and explanation given to us and based
on our examination of the records of the company, all transactions with the related
parties are in compliance with sections 177 and 188 of Companies Act where applicable and
the details have been disclosed in the financial statements, etc., as required by the
applicable accounting standards.
vii. According to the information and explanations given to us and
based on our examination the company have an internal audit system and reports of the
internal auditors been considered by the statutory auditor.
viii. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has not entered into
non-cash transactions with directors or persons connected with him as restricted in
section 192 of Companies Act, 2013; hence this clause is not applicable.
ix. The Company is not required to be registered under section 45-IA of
the Reserve Bank of India Act, 1934.
x. According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has not incurred any cash
losses in the financial year and in the immediately preceding financial year.
xi. There has been no instance of any resignation of the statutory
auditors occurred during the year.
xii. According to the information and explanations given to us and
based on our examination of the records of the Company, the company is able to pay off the
existing liabilities for next one year and material uncertainty doesnt exist as on
date of audit report.
xiii. CSR is not applicable to this company.
xiv. There are no adverse remarks in the audit reports issued by the
respective auditors in case of companies included in the consolidated financial
statements.
Annexure - B to the Independent Auditors Report:
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 M/S VARIMAN GLOBAL ENTERPRISES LIMITED ("the Company") as of 31st
March 2023 in conjunction with our audit of the 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). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to
companys policies, the safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal
financial controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI
and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit
of Internal Financial Controls and both issued by the Institute of Chartered Accountants
of India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditors 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 authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of un-authorized 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, 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 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 M M REDDY & CO., |
|
Chartered Accountants |
|
Firm Reg. No.010371S |
|
Sd/- |
|
M Madhusudhana Reddy |
|
Partner |
| Date: 30-05-2023 |
Membership No. 213077 |
| Place: Hyderabad |
UDIN: 23213077BGTRJI1169 |
+91-9892691696
