To,
The Members of
Suyog Gurbaxani Funicular Ropeways Limited,
Nagpur
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OPINION
We have audited the accompanying financial statements of SUYOG GURBAXANI
FUNICULAR ROPEWAYS LIMITED, which comprise the Balance Sheet as at 31st March 2023,
the statement of Profit and Loss and statement of cash flows for the year ended
on that date, and a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations
given to us, the 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 accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, the profit, and its cash
flows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the financial statements in accordance with 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 made
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 obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
EMPHASIS OF MATTER
We draw attention to Note No. 11 to the accompanying annual financial
statements, which describe managements assessment to disruption of business operations
due to Vajralepa to Goddess Saptashrungi on the Companys operations &
other related Matters.
Our report is not modified in respect of this matter.
Information Other than the Financial Statement and Auditors Report Thereon
The Board of Directors of the Company is responsible for the preparation of
other information. The other information comprises the information included in the
Management Discussion and Analysis, Boards Report including annexures to Boards Report,
Corporate Governance and Shareholders Information, but does not include the financial
statement and our auditors report thereon.
Our opinion on 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 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 appeals to be materially misstated.
If, based on the work we have performed, we conclude that there is
material misstatement of this other information, we are required to report that
fact. We have nothing to report in this regard.
Responsibility of Management and 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 these financial statements
that give a true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles generally accepted
in India, including 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 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 statement 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 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
Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors is 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 exits.
Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Companies Act, 2013, we are also responsible for expressing
our opinion on whether the company has adequate internal financial controls system in
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt
on the Companys ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors
report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, 29 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
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 the paragraph 3 and 4 of the
order, to the extent applicable.
As required by Section 143 (3) of the Act, based on our audit 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) I n 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 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 financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the
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 “B". Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Companys internal
financial controls with reference to financial statements.
(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:
I n 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 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-
1) The company has disclosed the impact of pending litigation on its financial position
in its financial statement - Refer Note 1 to the financial statements.
2) There are no long term contracts including derivative contracts, which require
provision for material foreseeable losses.
3) There are no amounts which were required to be transferred, to the
investors education and protection fund by the company.
4) (a) The Management has represented that, to the best of its knowledge and
belief, other than as
disclosed in the Note 1 to the Financial Statements, no funds (which are
material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person or entity,
including foreign entity ("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) The Management has represented, that, to the best of its knowledge and belief,
no funds (which are material either individually or in the aggregate) have been
received by the Company from any person or entity, including foreign entity
("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 the audit procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided
under (a) and (b) above, contain any material misstatement.
5) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for
maintaining books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable to the Company with effect from April 1,
2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors)
Rules, 2014 is not applicable for the financial year ended March 31,
2023.
| For, M/s. Aniket Kulkarni and Associates |
| Chartered Accountants |
| Firms Registration Number: - 130521W |
CA Aniket Kulkarni |
| Proprietor |
| Membership Number: - 127246 |
| UDIN:- 23127246BGSYQJ7508 |
| Place of Signature: - Mumbai |
| Date of Report:- 29th May 2023. |
annexure "a" to the independent auditors report of
SUYOG GURBAXANI FUNICULAR ROPEWAYS LIMITED
( As referred to in Paragraph 2 of Report on Legal and Regulatory
Requirements of our report 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 for the year ended on 31st March 2023).
To the best of our information and according to the explanations provided to us by the
company and books of
accounts and records examined by us in the normal course of audit and to the best of
our knowledge and belief,
we state that-
Property, Plant and Equipments :-
(i) (a) (A) The Company is maintaining proper records showing full particulars,
including quantitative details
and situation of Property, Plant and Equipments;
(B) The Company is maintaining proper records showing full particulars, including
quantitative details and situation of Intangible Assets;
(b) As explained to us, the management has physically verified Property, Plant and
Equipments at the year end and no material discrepancies were noticed on such
verification. In our opinion, verification of Property, Plant and Equipments at the
yearend is reasonable having regard to the size of the Company and the nature of
assets.
(c) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the company hold immovable property and the
title deeds are in the name of the company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company has not revalued its Property,
Plant and Equipments (including Right of Use assets) or Intangible Assets or
both during the year end.
(e) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, no proceedings have been initiated or
are pending against the company for holding any Benami property under Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder during
the year end.
Inventories :-
(ii) (a) The company has a regular program of physical verification of its
inventories. Inventories were verified
during the year and no material discrepancies were noticed on such verification.
According to the information and explanations given to us the coverage and procedure
followed by the management for physical verifications is appropriate.
(b) According to the information and explanations given to us there is no sanctioned
working capital limit in excess of five crores rupees, in aggregate, from banks
or financial institutions during the year end.
Loans & Advances to related Parties :-
(iii) (a) According to the information and explanations given to us, the company
has not made any investments,
provided any guarantee or security or granted any loans or
advances, in the nature of loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or other parties.
(b) According to the information and explanations given to us, the company has not
made any investments, provided any guarantee or security or granted any
loans or advances. Accordingly, paragraph 3(iii)(b) of the Order is not
applicable.
(c) The company has not provided any loans and advances in the nature of loans.
Accordingly, paragraph 3(iii)(c) of the Order is not applicable.
(d) The company has not provided any loans and advances in the nature of loans.
Accordingly, paragraph 3(iii)(d) of the Order is not applicable.
(e) The company has not granted any loans and advances in the nature of loans.
Accordingly, paragraph 3(iii)(e) of the Order is not applicable.
(f) The company has not granted any loans and advances in the nature of loans.
Accordingly, paragraph 3(iii)(f) of the Order is not applicable.
(iv) 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.
Acceptance of Deposits:-
(v) According to the information and explanations given to us, the company has not
accepted deposits under the provisions of sections 73 to 76 or any other
relevant provisions of the Companies Act and the rules framed there under.
Maintenance of Cost Records :-
(vi) According to the information and explanations given to us, the Central Government
has not prescribed maintenance of cost records under sub-section (1) of Section 148
of the Companies Act, 2013.
Payment of Statutory Dues :-
(vii) (a) According to the information and explanations given to us and on the
basis of our examination of the
books of accounts, the company has generally been regular in depositing with
appropriate authorities the undisputed statutory dues including Goods and Service Tax,
Provident Fund, Employees State Insurance, Income-tax, Sales-tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues applicable
to it during the year.
(b) According to the information and explanations given to us, there were no
amounts of Goods and Service Tax, Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and
other statutory dues have not been deposited by the Company on account of any dispute.
Unrecorded Income :-
(viii) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the company has not surrendered or
disclosed as income in the tax assessment under the Income Tax Act, 1961 (43 of
1961) in respect of any transaction nor recorded in the books of accounts during the year.
Repayment of Borrowings :-
(ix) (a) The company has not defaulted in repayment of loans and other
borrowings or in the payment of
interest thereon to banks or financial institution.
(b) The company is not a declared wilful defaulter by any bank or financial
institution or other lender.
(c) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the term loans are applied for the
purpose for which the loans were obtained.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, funds raised on short term basis have not been
utilised for long term purposes during the year.
(e) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the company has not taken any funds from
any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures during the year.
(f) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the company has not raised loans during the
year on the pledge of securities held in its subsidiaries, joint ventures or
associate companies.
Initial Public Offer :-
(x) (a) The Company has not raised moneys by way of initial public offer
or further public offer (including debt
instruments) during the year and hence reporting under clause 3(x)(a) of the
Order is not applicable.
(b) According to the information and explanations give to us and based on our
examination of the records of the Company, the company has not made any preferential
allotment or private placement of shares or convertible debentures (fully,
partially or optionally convertible) during the year and hence reporting under
clause 3(x)(b) of the Order is not applicable.
Frauds:-
(xi) (a) According to the information and explanations given to us, no material
fraud by the Company or on the
Company has been noticed or reported during the course of our audit.
(b) No material fraud by the Company or on the Company has been noticed or
reported during the year. Accordingly, paragraph 3 (xi)(b) of the Order is not
applicable.
(c) No material fraud by the Company or on the Company has been noticed or
reported during the year. Accordingly, paragraph 3 (xi)(c) of the Order is not
applicable.
Nidhi Company :-
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
Transactions with related parties:-
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are
in compliance with sections 111 and 188 of the Act where applicable and details of
such transactions have been disclosed in the financial statements as required by the
applicable accounting standards.
Internal Audit:-
(xiv) (a) I n our opinion, the company has an internal audit system commensurate
with the size and nature of
its business.
(b) The Company is not required to appoint Internal Auditors as per section 138 of
The Companies Act 2013 read with Rule 13 of Companies (Accounts) Rules, 2014.
Accordingly, paragraph 3(xiv)(b) of the Order is not applicable.
Non-Cash Transactions with Directors:-
(xv) 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. Accordingly, paragraph 3(xv)
of the Order is not applicable.
Registration with RBI :-
(xvi) 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), (c) and
(d) of the Order is not applicable.
Cash Losses :-
(xvii) The Company has not incurred any cash losses during the year, but the
cash losses of Rs. 28,93,426.49 was incurred in the immediately preceding financial
year.
Resignation of Statutory Auditors :-
(xviii) There has been no resignation of the statutory auditors of the Company during
the year.
Material Uncertainty :-
(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, the auditors knowledge of the Board of Directors and management
plans, in our opinion no material uncertainty exists as on the date of the audit report
that the company is 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.
Corporate Social Responsibility :-
(xx) According to the information and explanations given to us and based on our
examination of the records of the Company, section 135 of the Companies Act 2013 is
not applicable to the company. Accordingly, paragraph 3 (xx) of the Order is not
applicable.
Consolidated Financial Statements :-
(xxi) The company is not required to prepare consolidated financial statements.
Accordingly, paragraph 3 (xxi) of the Order is not applicable.
| For, M/s. Aniket Kulkarni and Associates |
| Chartered Accountants |
| Firms Registration Number:- 130521W |
CA Aniket Kulkarni |
| Proprietor |
| Membership Number: - 127246 |
| UDIN:- 23127246BGSYQT7508 |
| Place of Signature: - Mumbai |
| Date of Report: - 29th May 2023 |
annexure "B" to the independent auditors report of
SUYOG GURBAXANI FUNICULAR ROPEWAYS LIMITED
(As referred to in Paragraph 3(f) of Report on Legal and Regulatory Requirements of
our report and in terms of section 143 (3)(i) of the Act for the year ended 31st
March 2023 )
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 SUYOG
GURBAXANI FUNICULAR ROPEWAYS 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, 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/s. Aniket Kulkarni and Associates |
| Chartered Accountants |
| Firms Registration Number:- 130521W |
CA Aniket Kulkarni |
| Proprietor |
| Membership Number: - 127246 |
| UDIN:- 23127246BGSYQJ7508 |
| Place of Signature: - Mumbai |
| Date of Report: - 29th May 2023 |
+91-9892691696
