To the Members of SURYAKRUPA FINANCE LIMITED
Report on the Audit of Financial Statements Opinion
We have audited the accompanying financial statements of M/s. SURYAKRUPA FINANCE
LIMITED ("the Company"), which comprises the Balance Sheet as at 31st
March, 2023, the Statement of Profit and Loss including statement of Other Comprehensive
Income, Statement of Changes in Equity and Statement of Cash Flow for the year then ended
and notes to the financial statements, including 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 aforesaid financial statements give the information required by the
Companies Act, 2013 (the Act) in the manner so required and give a true and fair view in
conformity with the Indian Accounting Standards prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind
AS") and other accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2023, its profit including other comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statement in accordance with the Standards on
Auditing ("SAs") specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the 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 ethical
requirements that are relevant to our audit of the 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 ICAIs Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Material Uncertainty Related to Going Concern:
We draw attention to note no 25 to the financial statements, regarding preparation of
financial result on going concern basis, notwithstanding the fact that the Company has
incurred the losses, its liabilities exceeded total assets and its net worth has been
fully eroded as on 31st March, 2023. These conditions indicate the existence of material
uncertainty that may cast significant doubt about the Companys ability to continue as
going concern. The appropriateness of preparation of the statement on going concern basis
is dependent upon the fact that logistics operations started by the company is continued
for a foreseeable period and the continuous financial support from the management of the
Company. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, 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.
We have determined the matters described below to be the Key Audit Matter to be
communicated in our report.
| Sr. No. |
Key Audit Matter |
Auditors Response |
| 1 |
Revenue Recognition |
Our procedures included: |
|
|
Understood the revenue and receivable business process for goods transport and
assessed the appropriateness of the accounting policy adopted by the Company for revenue
recognition. We assessed the design and tested the operating effectiveness of internal
controls related to revenue recognition, discounts and rebates. We performed sample tests
of individual sales transaction and related documents. We assessed that the disclosure of
revenue in accordance with Ind AS 115 Revenue from contracts with customers are
appropriately presented and disclosed in Note No. 2.9 to the financial statements. |
Information other than the financial statements and auditors report thereon
• The Companys Board of Directors is responsible for the other information. The
other information comprises the information included in the Companys annual report, but
does not include the financial statements and our auditors report thereon. The Companys
annual report is expected to be made available to us after the date of this auditors
report.
• Our opinion on the financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon;
• In connection with our audit of the financial statements, our responsibility is
to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated;
• If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to communicate the matter with
those charged with governance.
Responsibilities of Management and Those Charged with Governance 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 financial statements that give a true
and fair view of the financial position, financial performance including other
comprehensive income, changes in equity, 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. 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.
In preparing the financial statements, the Board of Directors is 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
the 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 also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an 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 judgement 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 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.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the 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 the 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 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 requirement 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
1. 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 A" a statement 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 Balance Sheet, the Statement of Profit and Loss including statement of other
comprehensive income, the Statement of Changes in Equity and the Cash Flow Statement dealt
with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid financial statements comply with the IND AS specified
under Section 133 of the Act,
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 is
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 the requirements of Section 197(16) of the Act, as amended, as there is no
payment made to directors, reporting under this clause in not applicable.
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 on its
financial position.
(ii) The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(iv) (a) Management has represented to us that, to the best of its knowledge and
belief, other than disclosed in the notes to the accounts not 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 persons or entities, 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;
(b) Management has represented to us that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts no funds have 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
(c) Based on our audit procedure conducted that are considered reasonable and
appropriate in the circumstances, nothing has come to our attention that cause us to
believe that the representation given by the management under paragraph (2) (h)(iv) (a)
& (b) contain any material misstatements.
(v) The company has not declared or paid any dividend during the year.
For Prakash Tekwani & Associates
Chartered Accountants
Firm Registration no. 120253W
(Prakash Tekwani)
Proprietor
Membership no. 108681
UDIN: 23108681BGSXMT7579
Place: Ahmedabad
Dated: 12th May, 2023
"Annexure A to the Independent Auditors Report
(Referred to in Paragraph 1 under Report on other Legal and Regulatory Requirements
section of our Report of even date).
Report of even date on Companies (Auditors Report) Order 2020 (The Order) issued
by the Central Government in terms of Section 143(11) of the Act.
i) a. The Company do not have any property, plant and equipment. Thus, paragraph
3(i)(a), (b), (c) & (d) of the Order is not applicable to the Company.
b. According to information and explanations and representation given to us by the
management, no proceedings have been initiated during the year or are pending against the
Company as at March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii) a. The nature of business of the Company is such that it does not hold any physical
inventories. Thus, paragraph 3(ii)(a) of the Order is not applicable to the Company.
b. According to the information and explanations given to us, at any point of time of
the year, the Company has not been sanctioned any working capital facility from banks of
financial institutions and hence reporting under clause 3(ii)(b) of the Order is not
applicable to the Company.
iii) The Company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Act. Therefore, the provisions of Clause 3(iii) (a), (b), (c), (d), (e)
& (f) of the said Order are not applicable to the Company.
iv) The company has not granted any loans or made investments or provided any
guarantees or security to the parties covered U/s. 185 and 186 of the Companies Act, 2013.
In our opinion and according to the information and explanations given to us, the
provisions of clause 3(iv) of the said Order is not applicable to the Company.
v) According to the information and explanations given to us, the company has not
accepted any deposits from the public to which directives issued by the Reserve Bank of
India and within the meaning of Sections 73, 74, 75 and 76 of the Companies Act, 2013 or
any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules,
2014, as amended, would apply. Hence, reporting under clause (v) of the Order is not
applicable.
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
the Company. Thus reporting under clause 3(vi) of the order is not applicable to the
Company.
vii) (a) According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, the Company is regular in depositing the
undisputed statutory dues, including provident fund, employees state insurance, income
tax, sales-tax, service tax, GST, duty of customs, duty of excise, value added tax and
other material statutory dues as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us, there were no undisputed
amount payable in respect of including provident fund, employees state insurance, income
tax, sales-tax, service tax, GST, duty of customs, duty of excise, value added tax and
other material statutory dues outstanding as at 31.03.2023 for a period of more than six
months from the date they became payable.
(c) According to the information and explanations given to us and the records of the
company examined by us, there are no dues of Income Tax, Service Tax, Sales Tax, Customs
Duty, Excise Duty and GST which have not been deposited with appropriate authorities on
account of any disputes as at 31.03.2023.
viii) 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) The Company has not taken any loans or borrowings from financial institutions,
banks and government or has not issued any debentures. Hence reporting under clause 3 (ix)
of the Order is not applicable to the Company.
x) a. The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) or term loans and hence reporting under clause 3
(x)(a) of the Order is not applicable to the Company.
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 3(x)(b) of the Order 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 upto the date of this report.
c. The Company has not received any whistle blower complaints during the year (and upto
the date of this report), and hence reporting under clause (xi) (c ) of the Order is not
applicable.
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) a. As informed to us by the management, the Company has an internal audit system
in place however, we have not been provided with copy of said audit reports.
b. We are unable to obtain internal audit reports of the Company, hence the internal
audit reports have not been considered by us.
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) a. 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.
b. 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 not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
xviii) There has been resignation of the statutory auditors of the Company during the
year and no issues or concern has been raised by the resigning auditors.
xix) 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 and our knowledge of the Board of Directors and Management plans and
based on our examination of the evidence supporting the assumptions, as mentioned in
"Material Uncertainty Related to Going Concern" section of our audit report of
given date, the Companys ability to meet its obligation will depend on continuous
financial support from the management and on the fact that the logistics operations
started by the Company is continued for a foreseeable period. 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) The provisions of Corporate Social Responsibility (CSR) is not applicable to the
Company and accordingly, reporting under clause 3(xx)(a) & (b) of the Order is not
applicable.
For Prakash Tekwani & Associates
Chartered Accountants
Firm Registration no. 120253W
(Prakash Tekwani)
Proprietor
Membership no. 108681
UDIN: 23108681BGSXMT7579
Place: Ahmedabad
Dated: 12th May, 2023
Annexure B to the Independent Auditors Report
(Referred to in Paragraph 2(e) under Report on other Legal and Regulatory Requirements
section of our report of even date to the members of SURYAKRUPA FINANCE LIMITED as at
and for the year ended 31st March, 2023).
Report on the Internal Financial Controls over financial reporting 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 SURYAKRUPA
FINANCE 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 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, 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 internal financial controls over
financial reporting of the Company based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India and the standards on auditing prescribed under Section 143 (10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. Those
standards and the guidance note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting were 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 judgement, including the assessment of the risks of
material misstatement in 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 control 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 (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) 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 (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized 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 of 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
According to the information and explanations given to us and based on audit of test of
controls, except for strengthening of internal audit function which we were informed that
is in process, in our opinion, the Company has, in all material respects, an adequate
internal financial control system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at March 31, 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 Prakash Tekwani & Associates
Chartered Accountants
Firm Registration no. 120253W
(Prakash Tekwani)
Proprietor
Membership no. 108681
UDIN: 23108681BGSXMT7579
Place: Ahmedabad
Dated: 12th May, 2023
+91-9892691696
