To the Members of
Suryo Foods and Industries Limited, Bhubaneswar Report on the Audit
of the Financial Statements
Opinion
We have audited the financial statements of Suryo Foods and
Industries Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2023, and the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and Statement of Cash Flows 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, and its Loss,
total comprehensive income, changes in equity and its cash flows and the 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 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 ("ICAI) 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 on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significant 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 that there are no key audit matters to communicate in our
report except that there is no revenue from operations during the reported financial year.
Other Information
The Companys Board of Directors is responsible for the other
information. The other information comprises the information included in the Directors
Report and Corporate Governance Report but does not include the financial statements,
consolidated financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other
information and we will 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 identified above when it becomes available
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.
Managements Responsibility for the 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 financial statements that give a true and fair view of the
financial position, financial performance, total comprehensive income, changes in equity
and cash flows of the Company in accordance with accounting principles generally accepted
in India, including the Indian Accounting Standards specified under section 133 of the
Act, read with rule 7 of Companies (Accounts) Rules, 2014 and the Companies (Indian
Accounting Standards) Rules, 2015, as amended. This responsibility 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 implementation and maintenance of
accounting policies; making judgments and estimates that are reasonable and prudent; and
design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for
assessing the Companys ability 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.
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 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 financial control relevant
to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)? 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.
Materiality is the magnitude of misstatements in the financial
statements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of 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 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, Statement of
Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement
with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Indian Accounting Standards prescribed under Section 133 of the Act read with Rule 7 of
Companies (Accounts) Rules, 2014.
(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 A".
(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: In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid/provided by the Company to its directors
during the year is in accordance with the provisions of section 197 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 has disclosed the impact of pending litigations on its
financial position in its financial statements.
ii. Provision has been made in the financial statements as required
under the applicable law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
2. 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 statement on the matters specified in
paragraphs 3 and 4 of the Order.
For SANJIT MOHANTY & CO.
Chartered Accountants ICAI Firm Registration No. 328858E
|
Sd /- |
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SOUMYA
RANJAN MUDULI |
|
Partner |
|
Membership No. 231555 |
|
UDIN:
23231555BGXLLM7496 |
| Place: Bhubaneswar |
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| Date:
22.05.2023 |
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Annexure A to the Independent Auditors Report
(Referred to in paragraph 1(f) under ‘Report on Other Legal
Regulatory Requirements section of our report to the Members of Suryo Foods and
Industries Limited the Company of even date)
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 Suryo Foods and Industries Limited ("the Company") as of 31st
March, 2023 in conjunction with our audit of the 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 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
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 SANJIT MOHANTY & CO. Chartered Accountants ICAI Firm
Registration No. 328858E
|
Sd /- |
|
SOUMYA
RANJAN MUDULI |
|
Partner |
|
Membership No. 231555 |
|
UDIN:
23231555BGXLLM7496 |
| Place: Bhubaneswar |
|
| Date:
22.05.2023 |
|
Annexure-B to the Independent Auditors Report
(Annexure referred to in our Independent Auditors Report of
even date on the standalone financial statements as at end for the year ended 31 March
2023 of Suryo Foods and Industries Limited.
1. In respect of the Companys Property, Plant and Equipment and
Intangible Assets:
(a) (1)The Company has maintained proper records showing full
particulars, including quantitative details and situation of Property, Plant &
Equipments.
(2) The company is not having any intangible asset. Therefore, the
provisions of Clause
(i)(a)(B) of paragraph 3 of the order are not applicable to the
company.
(b) A major portion of Property Plant & Equipments have been
physically verified by the Management in accordance with a phased programme of
verification adopted by the company, which, in our opinion, the frequency of the
verification is reasonable. To the best of our knowledge, no material discrepancies have
been noticed on such verification.
(c) According to the information and explanation and the records
provided to us, we report that all title deeds of immovable properties of the company held
as Property, Plant & Equipments are held in the name of the company. However, we
express no opinion on the validity of the title of the company to these properties.
(d) The company has not revalued its Property, Plant and Equipment
during the year hence Clause (i)(d) of paragraph 3 of the order are not applicable to the
company.
(e) No proceedings have been initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made there under hence Clause (i)(e) of paragraph 3 of the
order are not applicable to the company.
2. (a)There are No Inventories held by the company hence reporting
under the respective clause is not applicable.
(b)The company has not been sanctioned working capital limits from
banks & financial institutions on the basis of security of current assets hence
reporting under the respective clause is not applicable.
3.The Company has not made any investments in, companies, firms,
Limited Liability Partnerships, or granted unsecured loans to other parties, during the
year, reporting under the respective clause is not applicable.
The Company has not provided any guarantee or security or granted any
advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or any other parties.
4. 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
Companies Act, 2013.
5. The Company has not accepted any deposit or amounts which are deemed
to be deposits. Hence, reporting under clause 3(v) of the Order is not applicable.
6. The maintenance of cost records has not been specified by the
Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the
business activities carried out by the Company. Hence, reporting under clause (vi) of the
Order is not applicable to the Company.
7. (a) According to information and explanations given to us and on the
basis of our examination of the books of account, and records, the Company has been
generally regular in depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income-Tax, Goods and Service Tax, Value added Tax, Cess and
any other statutory dues with the appropriate authorities. According to the information
and explanations given to us, no undisputed amounts payable in respect of the above were
in arrears as at March 31, 2023 for a period of more than six months from the date on when
they become payable.
b) According to the information and explanation given to us, there are
no dues of income tax, Goods and Service Tax &, value added tax outstanding on account
of any dispute.
8. 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).
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of Principal and Interest dues
to banks& Other Financial Institutions.
10. (a)Based upon the audit procedures performed and the information
and explanations given by the management, the company has not raised moneys by way of
initial public offer or further public offer including debt instruments and term Loans.
Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the
Company and hence not commented upon.
(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.
11. a) Based upon the audit procedures performed and the information
and explanations given by the management, we report that no fraud by the Company or on the
company by its officers or employees 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.
(c) The company has not received any whistle-blower complaints during
the year.
12 In our opinion, the Company is not a Nidhi Company. Therefore, the
provisions of clause 4 (xii) of the Order are not applicable to the Company.
13 In our opinion, all transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 and the details have been
disclosed in the Financial Statements as required by the applicable accounting standards.
14 (a)In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(b) Internal Audit Report was made available to us and was taken into
account at the time of our audit.
15. Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, the provisions of
clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. (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.
17. The Company has earned cash profit of Rs. 7,20,000 /- during the
financial year covered by our audit and cash loss of Rs.12,46,000 /- during the
immediately preceding financial year.
18. There has been no resignation of the statutory auditors of the
Company during the year.
19. On the basis of the financial ratios, ageing and expected dates of
realization of financial assets and payment of financial liabilities, other information
accompanying the financial statements and 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 indicating that 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.
20. There are No CSR Liabilities arising for the Company during the
year, hence reporting under the respective clause is not applicable.
For SANJIT MOHANTY & CO.
Chartered Accountants ICAI Firm Registration No. 328858E
|
Sd /- |
|
SOUMYA
RANJAN MUDULI |
|
Partner |
|
Membership No. 231555 |
|
UDIN:
23231555BGXLLM7496 |
| Place: Bhubaneswar |
|
| Date:
22.05.2023 |
|
+91-9892691696
