Report on the Audit of the ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of Sree Jayalakshmi Auto
Spin Limited ("the
Company"), which comprise the Balance Sheet as at 31 March 2023, the Statement of
Profit and Loss (including other comprehensive income), Statement of changes in Equity and
Statement of Cash Flows for the year then ended, and notes to the Ind AS financial
statements, including a summary of the significant accounting policies and other
explanatory information. (hereinafter referred to as "the Ind AS financial
statements"). In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Ind AS 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 conforrmity with the accounting principles generally accepted
in india, of the state of affairs of the Company as at 31 March 2023, and profit and other
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the
Act. Our responsibilities under those SAs 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 Ind AS
financial statements under the provisions of the Act 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.
Key Audit Matters
Key audit matters (KAM)) are those matters that, in our professional judgment, were of
most significance in our audit of the lnd AS financial statements of the current period.
These matters were addressed in the context of our audit of the Ind AS 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
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, Management Discussion and Analysis, Boards
Report including Annexures to Boards Report, Business Responsibility Report, Corporate
Governance and Shareholders Information, but does not include the Ind AS 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 the financial statements or our knowledge obtained in the
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.
Responsibilities of Management and those charges with governance for the Ind AS
financial statements
The Companys management and Board of Directors are responsible for the matters stated
in Section 134(5) of the
Act with respect to the preparation of these Ind AS financial statements that give a
true and fair view of the state of affairs, profit/loss and other comprehensive income,
changes in equity and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS)
specified under Section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate 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 Ind AS financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, management and Board of Directors are
responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Board of Directors is also responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements.
A further description of the auditors responsibilities for the audit of the Ind AS
financial statement is included in
Annexure A. The description forms part of our auditors report.
Our opinion on the Ind AS financial statements is not modified in respect of these
matters.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B"a statemnent on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable.
2 As required by Section 143(3) of the Act, we report that: a) We have sought and
obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit. b) In our opinion, proper books of
account as required by law have been kept by the Company so far as it appears from our
examination of those books. c) The Ind AS Balance Sheet, the statement of profit and loss
(including other comprehensive income), the Ind
AS statement of changes in equity and the statement of cash flows dealt with by this
Report are in agreement with the books of account. d) In our opinion, the aforesaid Ind AS
financial statements comply with the Ind AS specified under Section 133 of the Act. e) On
the basis of the written representations received from the directors as on 31 March 2023
taken on record by the Board of Directors, none of the directors is disqualified as on 31
March 2023 from being appointed as a director in terms of Section 164(2) of the Act.
With respect to the adequacy of the Internal Financial Controls with reference to
Financial Statements of the
Company and the operating effectiveness of such controls, refer to our separate Report
in "Annexure C" g) In our opinion and to the best of our information and
according to the explanations given to us, the remuneration paid by the Company to its
directors during the year is in accordance with the provisions of section 197(16) of the
Act h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us: i The Company does not have any
pending litigations which would impact its financial position. i. The Company did not have
any long-term contracts including derivative contracts for which there were any material
foreseeable losses.
ii There has been no delay in transferring amounts, required to be transferred, to the
Investor
Education and Protection Fund by the Company.
| For Karthik P & Co., |
Date: 24/05/2023 |
| Chartered Accountants |
Place: Chitradurga |
| Firm Regn.No. 018460S |
|
| PKasss |
|
| Karthik Prasanna |
|
| Proprietor (M.No.228852) |
|
Annexure A
Responsibilities for Audit of Financial Statement
As part of an audit in accordance with SAS, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
" ldentify and assess the risks of material misstatement of the Ind AS 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
Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls with reference to Ind AS financial statements in
place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the Ind AS 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 Ind AS financial
statements, including the disclosures, and whether the Ind AS 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 possible that the economic decisions of a
reasonable knowledgeable user of the financial statement 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 (i) 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 Ind AS 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.
| For Karthik P & Co., |
Date: 24/05/2023 |
| Chartered Accountants |
Place: ?hitradurga |
| Firm Regn.No. 018460S |
|
|
Accountant |
|
M.Nu-228352 |
|
VRNoQ18463 |
| Karthik Prasanna |
|
| Proprietor (M.No.228852) |
|
Annexure B to the Independent Auditors report on the Ind As financial statements
1. Fixed Asset:
The company has maintained proper records showing full particulars, including
quantitative details and situation of its fixed assets.
b. As explained to us, fixed assets have been physically verified by the management at
reasonable intervals: no material discrepancies were noticed on such verification.
C The title deeds of immovable properties are held in the name of the company.
2. Inventory:
As explained to us, inventories have been physically verified during the year by the
management at reasonable intervals. No material discrepancy was noticed on physical
verification of stocks by the management as compared to the book records.
3. Loans, Guarantee and Advances given
The company has not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of the Act.
Accordingly, the provisions of clause 3 (ii) (a) to (c) of the Order are not applicable to
the Company and hence not commented upon.
4. Loans, Guarantee and Advances to Directors of Company
In respect of loans, investments, guarantees and security provisions of the Section 185
and 186 of the Companies Act, 2013 have been complied with.
5. Deposits
Company has not accepted any deposits from the public and hence the directors issued by
the Reserve
Bank of India and the provisions of Section 73 to 76 or any other relevant provisions
of the Act and the Companies (Acceptance of Deposits) Rules, 2015 with regard to the
deposits accepted from the public are not applicable.
6. Maintenance of Costing Records
As per information & explanation given by the management maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
7. Deposit of Statutory Liabilities
According to the records of the company, undisputed statutory dues including Provident
Fund,
Investor Education and Protection Fund, Employees State Insurance, Income Tax,
Sales-tax, Service
Tax, Goods and Service Tax, Custom Duty, Excise Duty, Value added tax, cess and any
other statutory dues to the extent applicable, have generally been regularly deposited
with the appropriate authorities. According to the information and explanations given to
us there were no outstanding statutory dues as on 31* March 2023 for a period of more than
six months from the date they become payable.
According to the information and explanations given to us, there is no amount payable
in respect of income tax, service tax, sales tax, customs duty, excise duty, value added
tax and cess which applicable, which have not been deposited on account of any disputes.
8. Default in repayment of borrowings:
In our opinion and according to the information and explanations given by the
management, we are of the opinion that the Company has not defaulted in repayment of dues
to a financial institution, bank,
Government or debenture holder as applicable to the Company.
9. Funds raised and utilisation:
Based on our audit procedures and according to the information given by the management,
the company has not raised any money by way if initial offer or further public offer
(including debt instruments) or taken any term loan during the year.
10. Fraud and whistle-blower complaints:
According to the information and explanations given to us, we report that no fraud by
the company or any fraud on the Company by its officers or employees has been noticed or
reported during the year.
11. Managerial Remuneration: given to us, we report that managerial remuneration has
According to the information and explanations approvals mandated by the provisions of
section 197 read not been paid in accordance with the requisite during the reporting
period related to FY 2022-23. with Schedule V of the Companies Act
12. Nidhi Company:
(xii) of the order is not applicable to the company. Company is not aNidhi Company.
Therefore clause The
13. Related Party Transactions: transactions with the related parties were in
information and explanations given to us, all According to the where applicable and the
details have been sections 177 and 188 of Companies Act, 2013 compliance with required by
the applicable accounting standards. disclosed in the Financial Statements etc as
14. Internal Audit: not have an internal audit system commensurate with the size
and nature of the The Company does business.
15. Preferential Allotment: placement of shares or fully or partly made any
preferential allotment or private The Company has not debentures during the year under
review. convertible
16. Non-Cash Transactions: transactions with directors or persons connected with
him. has not entered into non-cash The Company
17. Cash Losses: losses in the financial year and in the immediately preceding
financial Company has not incurred cash The KHIK year.
18. Resignation of Statutory Auditors:
There has been no instance of any resignation of the statutory auditors occurred during
the year. However, as per section 139(2) of the Companies Act, 2013 the previous auditor
Sumanth A has completed the 5 year term and the eligibility for re-appointment as
auditors has been ceased. Therefore, the Company in its board meeting has appointed
Karthik P & Co Chartered Accountants as its new Statutory Auditors for the next 5-year
term.
19. Material uncertainty on meeting liabilities:
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
fal due within a period of 1 year from the balance sheet date.
20. Transfer to fund specified under Schedule Vll of Companies Act, 2013:
In respect of other than ongoing projects, the company has not transferred unspent
amount to a Fund specified in Schedule VIl to the Companies Act within a period of six
months of the expiry of the financial year in compliance with second proviso to
subOsection (5) of section 135 of the said Act.
21. Registration under RBl act:
The company is not required to be registered under the section 45-1A of the Reserve
Bank of India Act, 1934.
|
For, Karthik P & Co., |
|
Chartered Accountants |
|
Firm Registration No.018460S |
|
PKah |
|
Karthik Prasanna |
| Date: 24/05/2023 |
Proprietor |
| Place: Chitradurga |
Membership No. 228852 |
Annexure C to the Independent Auditors report on Internal Financial Control
Report on the Internal Financial Controls with reference to the aforesaid standalone
financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013
(Referred to in paragraph 2() under Report on Other Legal and Regulatory Requirements
section of our report of even date)
Opinion
We have audited the internal financial controls with reference to standalone financial
statements of Sree Jayalakshmi Auto Spin Limited ("the Company") as of 31 March
2023 in conjunction with our audit of the Ind
AS financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial
controls with reference to financial statements and such internal financial controls were
operating effectively as at 31 March 2023, based on the internal financial controls with
reference to financial statements 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 lnstitute of Chartered
Accountants of India (the "Guidance Note").
Managements Responsibility for Internal Financial Controls
The Companys management and the Board of Directors are responsible for establishing
and maintaining internal financial controls based on the internal financial controls with
reference to financial statements criteria established by the Company considering the
essential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as
"the Act").
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note and the Standards on Auditing, prescribed under
Section 143(10) of the Act, to the extent applicable to an audit of internal financial
controls with reference to financial statements. 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 with reference to
financial statements were established and maintained and whether 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 with reference to financial statements and their operating
effectiveness. Our audit of internal financial Controls with reference to financial
statements included obtaining an understanding of such internal financial controls,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the standalone 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 audit opinion on the Companys internal financial controls with
reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A companys internal financial controls with reference to financial statements 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 controls
with reference to financial statements include 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 with reference to Financial
Statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, 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 with
reference to financial statements to future periods are subject to the risk that the
internal financial controls with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
|
For, Karthik P & Co.., |
|
Chartered Accountants |
|
Firm Registration No.018460S |
|
PKasts |
|
Karthik Prasanna |
| Date: 24/05/2023 |
Proprietor |
| Place: Chitradurga |
Membership No. 228852 |
+91-9892691696
