TO THE MEMBERS OF SPV GLOBAL TRADING LIMITED
Opinion
We have audited the accompanying standalone financial statements of SPV
Global Trading Limited (“the Company”), which comprise the Balance Sheet as at
31st March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and
notes to standalone financial statements and a summary of the 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 standalone 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 profit, total comprehensive income, its cash flows and the changes in equity
for the year ended on that date.
Basis of Opinion
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under section 143(10) of the Act
(SAs). Our responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone 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 standalone 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 ICAs Code of
Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the standalone financial statements of the
current period. These matters were addressed in the context of our audit of the standalone
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 matters to be communicated in our report.
| Key audit matters |
How our audit addressed the key audit matter |
| The Companys sale of traded goods |
(copper scrap) is majorly to its subsidiary.
|
| We identified the said related party |
Our audit procedures included the following: |
|
We have assessed the systems and processes
laid down by the Company to appropriately identify, account and disclose all material
related party transactions in accordance with applicable laws and financial reporting
framework. |
|
transactions and its disclosure as set out
in respective notes to the financial statements as a key audit matter due to the
significance of transactions with the related party. |
|
We have designed and performed audit
procedures in accordance with the guidelines laid down by ICAI in the Standard on Auditing
(SA 550) to identify, assess and respond to the risks of material misstatement arising
from the entitys failure to appropriately account for or disclose material related
party transactions which includes obtaining necessary approvals at appropriate stages of
such transactions as mandated by applicable laws and regulations. We have also reviewed
the Secretarial Audit report during the course of evaluating the internal control systems
in ensuring compliance with applicable laws, rules, regulations and guidelines. |
Other Information
The Companys Board of Directors is responsible for the other
information. The other information comprises Boards Report, Report on Corporate
governance and Business Responsibility report but does not include the standalone
financial statements, consolidated financial statements and our auditors report
thereon.
Our opinion on the standalone 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 standalone financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone 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 report that fact. We
have nothing to report in this regard.
Managements Responsibilities for the Standalone 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 standalone
financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows and changes in equity 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
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding 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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error. In preparing the standalone 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.
Those Board of Directors are also responsible for overseeing the
Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone
Financial Statements
Our objectives are to obtain reasonable assurance about whether the
standalone 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also: eo Identify and assess the risks of
material misstatement of the standalone 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. eo Obtain an understanding of
internal financial controls 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 standalone financial statements in place and the
operating effectiveness of such control.
eo Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the management. eo
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 standalone 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.
eo Evaluate the overall presentation, structure and content of the
standalone financial statements, including the disclosures, and whether the standalone
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 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 standalone 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 Section
143(11) of the Act, we give in the Annexure A, a statement on the matters specified in
paragraphs 3 and 4 of the Order.
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 Other
Comprehensive Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with
by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015 as amended.
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 with reference to standalone Ind As financial statements 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 Section 197(16) of the Act, in our opinion and to
the best of our information and according to the explanations given to wus, 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 knowledge and belief and according to the information
and explanations given to us:
i. The Company does not have any pending litigation which would impact
its financial position in its standalone financial statements.
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 during the year.
iv. (a) The management has represented that, to the best of its
knowledge and belief, no 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 Holding
Company or its subsidiary companies incorporated in India 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 (“Ultimate Beneficiaries”) by or on behalf of the Holding Company or
its subsidiary companies incorporated in India or provide any guarantee, security or the
like to or on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge
and belief, no funds have been received by the Holding Company or its subsidiary companies
incorporated in India from any persons or entities, including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or
otherwise, that the Holding Company or its subsidiary companies incorporated in India
shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf
of the funding parties or provide any guarantee, security or the like from or on behalf of
the Ultimate Beneficiaries.
(c) Based on such audit procedures as 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 (d)(i) and d(ii) contain any material
mis-statement.
(d) As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not
applicable.
v. The Company has not proposed or paid any dividend during the year.
Thus, the following point is not commented on.
ANNEXURE “A” TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements section of our Report of even date)
a) (A) The company does not have any tangible asset, thus has not
maintained any records related to the same.
(B) The company has maintained proper records showing full particulars
of intangible assets.
b) The company does not have any Property, Plant and Equipment and
accordingly the requirement to report on clause 3(i)(b) of the Order is not applicable to
the Company.
?) There is no Property, Plant and Equipment held by the company and
accordingly the requirement to report on clause 3 (i)(c) of the Order is not applicable to
the Company
d) The company has not revalued its intangible assets during the year
ended 31.03.2023.
e) There are no proceedings initiated or are pending against the
company for holding any benami property under the Prohibition of Benami Property
Transactions Act, 1988 and rules made thereunder.
The Companys business does not require maintenance of inventories
and accordingly, the requirement to report on clause 3 (ii)(a) and 3 (ii)(b) of the Order
is not applicable to the Company.
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 made
investments in, 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 any other parties. Accordingly, clause 3(iii)(a) to 3(iii)(f) are not applicable to the
Company.
There are no loans, investments, guarantees, and security in respect of
which provisions of sections 185 and 186 of the Companies Act, 2013 are applicable and
accordingly, the requirement to report on clause 3(iv) of the order is not applicable to
the company.
The company has neither accepted any deposits from the public nor
accepted any amounts which are deemed to be deposits within the meaning of sections 73 to
76 of the Companies Act, 2013 and the rules framed thereunder, to the extent applicable.
Accordingly, the requirement to report on clause 3(v) of the order is not applicable to
the company.
The company is not in the business of sale of any goods or provision of
such services as prescribed under sub section (1) of Section 148 of the Companies Act,
2013. Accordingly, the requirement to report on clause 3(vi) of the order is not
applicable to the company.
a) The company is regular in depositing with appropriate authorities
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 any other statutory dues applicable to it. According to the
information and explanations given to us and based on audit procedures performed by us, no
undisputed amounts payable in respect of these statutory dues were outstanding, at the
year end, for a period of more than six months from the date they become payable.
b) There are no dues of Goods and Service Tax, provident fund,
employees state insurance, income-tax, sales-tax, service tax, customs duty, excise
duty, value added tax, cess and any other statutory dues which have not been deposited on
account of any dispute.
8. The company has not surrendered or disclosed any transaction,
previously unrecorded in the books of account, in the tax assessments under the Income Tax
Act, 1961 as income during the year. Accordingly, the requirement to report on clause
3(viii) of the order is not applicable to the company.
9. a) According to information and explanations given to us and on the
basis of our examination of the records of the company, the company did not have any loans
or borrowings from any lender during the year. Accordingly, the requirement to report on
clause 3(ix)(a) of the order is not applicable to the company.
b) According to information and explanations given to us and on the
basis of our examination of the records of the company, the company has not been declared
willful defaulter by any bank or financial institution or government or any government
authority. Accordingly, the requirement to report on clause 3(ix)(b) of the order is not
applicable to the company.
Lo According to information and explanations given to us and on the
basis of our examination of the records of the company, the company has not obtained any
term loans. Accordingly, the requirement to report on clause 3(ix)(c) of the order is not
applicable to the company.
d) According to information and explanations given to us and on the
basis of our examination of the records of the company, the company did not raise any
funds during the year hence, the requirement to report on clause 3(ix)(d) of the order is
not applicable to the company.
?o According to information and explanations given to us and on the
basis of overall examination of the financial statements of the company, we report that
the company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries. Accordingly, the requirement to report on clause 3(ix)(e)
of the order is not applicable to the company.
f) According to information and explanations given to us and procedures
performed by us, we report that the company has not raised loans during the year on pledge
of securities held in its subsidiaries. Accordingly, the requirement to report on clause
3(ix)(f) of the order is not applicable to the company.
10.a) The company has not raised any money during the year by way of
initial public offer /further public offer (including debt instruments) hence, the
requirement to report on clause 3(x)(a) of the order is not applicable to the company.
b) The company has not made any preferential allotment or private
placement of the shares fully or partially or optionally convertible debentures during the
year under the audit hence, the requirement to report on clause 3(x)(a) of the order is
not applicable to the company.
11.a) According to information and explanations given to us and on the
basis of our examination of the records of the company, no fraud by the company or no
fraud on the company has been noticed or reported during the year.
b) During the year, no report under sub-Section (12) of Section 143 of
the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13
of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
?) As informed by the management, there are no whistle blower
complaints received by the company during the year.
12. The company is not a Nidhi company as per the provisions of the
Companies Act, 2013. Therefore, the requirement to report on clause 3(xii) of the order is
not applicable to the company.
13. According to the information and explanations given to us and based
on our examinations of the records of the Company, transactions with the related parties
are in compliance with sections 177 and 188 of the Act, where applicable and the details
have been disclosed in the Financial Statements as required by the applicable Accounting
Standards.
14. a) The company has implemented internal audit system on a voluntary
basis which is commensurate with the size of the company and nature of its business.
b) The internal audit reports of the company issued till date of the
audit report, for the period under audit have been considered by us.
15. The company has not entered into any non-cash transactions with its
directors or persons connected with its directors and hence requirement to report on
clause 3(xv) of the order is not applicable to the company.
16. a) The provisions of section 45-IA of the Reserve Bank of India
Act, 1934 (2 of 1934) are not applicable to the company. Accordingly, the requirement to
report on clause 3(xvi)(a) of the order is not applicable to the company.
b) The company has not conducted any Non-Banking Financial or Housing
Finance activities without obtaining a valid Certificate of Registration (CoR) from the
Reserve Bank of India as per the Reserve Bank of India Act, 1934.
?) The company is not a Core Investment company as defined in the
regulations made by Reserve Bank of India. Accordingly, the requirement to report on
clause 3(xvi)(c) of the order is not applicable to the company.
d) There is no other Core Investment company part of the group. Hence,
the requirement to report on clause 3(xvi)(d) of the order is not applicable to the
company.
17. The company has not incurred any cash losses in the current
financial year and the immediately preceding financial year.
18. There has been no resignation of the statutory auditors during the
year and accordingly the requirement to report on clause 3(xviii) of the order is not
applicable to the company.
19. According to information and explanations given to us and on the
basis of financial ratios, ageing and expected dates of realization 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,
and based on our examinations 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 that 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. We, however, state that this is not an assurance as of 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. The company doesnt fall within the provisions prescribed
under section 135 of Companies Act, 2013 for CSR expenditure. Accordingly, the requirement
to report on clause 3(xx)(a) and 3(xx)(b) of the order is not applicable to the company.
21.In The audit report and financials are of a standalone company and
thus clause 3(xxi) is not applicable to the company.
ForSSRCA&Co Chartered Accountants (FRN 108726W)
SD
Shubham Jain Partner M. No. 443522
Dated: May 30, 2023 Place: Mumbai
UDIN: 23443522BGWPMR8694
ANNEXURE “B” TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report 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”)
1. We have audited the internal financial controls over financial reporting of SPV
Global
Trading Limited (“the Company”) as of 31st March, 2023 in conjunction with
our audit of
the standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
2. 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 (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 Act.
Auditors Responsibility
3. 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 Standards on Auditing prescribed under section 143(10) of Act and the Guidance
Note,
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 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 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 our audit opinion on the Companys internal financial controls
system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. 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 standalone 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
standalone 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
standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial
Reporting
7. 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
8. 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
criteria for 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.
ForSSRCA&Co Chartered Accountants (FRN 108726W)
SD
Shubham Jain Partner M. No. 443522
Dated: May30, 2023 Place: Mumbai
UDIN: 23443522BGWPMR8694
SPV GLOBAL TRADING LIMITED CIN: L27100MH1985PLC035268
+91-9892691696
