To the members of,
ULTRA WIRING CONNECTIVITY SYSTEM LIMITED
Report on the audit of Financial Statements
Opinion
We have audited the accompanying financial statements of ULTRA WIRING
CONNECTIVITY
SYSTEM LIMITED ("the Company"), which comprise the Balance
Sheet as at 31 March 2023, the
Statement of Profit and Loss and the Cash Flow Statement for the year
then ended, 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 accounting principles generally accepted in India, of
the state of affairs of the Company as at 31 March 2023, and its profit and its cash flows
for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing
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 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 accompanying 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 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 Matter |
How our audit addressed the key audit
matter |
| Nil |
Not Applicable |
Other Information
The Companys Board of Directors is responsible for the
preparation of the other information. The other information comprises the information
included in the Management Discussion and Analysis, Boards Report including
Annexures to Boards Report but does not include the financial statements and our
auditors report thereon.
Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our
knowledge obtained 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.
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 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 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 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, 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 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 Standards on Auditing, 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 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 explaining 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.
1. 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.
2. 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.
3. 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 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,
to the extent applicable.
Further to our comments in Annexure B, 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 purpose 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 financial statements 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 and taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2023 from being appointed as a director in terms of Section
164(2) of the Act;
f) we have also audited the internal financial controls over financial
reporting of the Company as on 31 March 2023 in conjunction with our audit of the
financial statements of the Company for the year ended on that date and our report as per
Annexure A expressed an unmodified opinion;
g) 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 (as amended), 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 Refer Note 28 to the 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 required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended 31 March 2023;
iv. (a) The management has represented that, to the best of its
knowledge and belief, as disclosed in the notes to the accounts, 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 Company to or in any other person or entity, 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) The management has represented that, to the best of its knowledge
and belief, as disclosed in the notes to the accounts, no funds have been received by the
Company from any person or entity, 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 and
(c) Based on such audit procedures that we 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 (a) and (b) contain any material
misstatement.
v. The company has not declared and paid any dividend during the year
in contravention of the provisions of Section 123 of the Companies Act 2013.
h) The Company has paid/ provided for managerial remuneration in
accordance with the requisite approvals mandated by the provisions of Section 197 read
with Schedule V to the Act.
Annexure A to the Independent Auditors Report
Referred to in paragraph 15(f) of the Independent Auditors Report of
even date to the members of Ultra Wiring Connectivity System Limited, on the financial
statements for the year ended 31 March 2023
Independent Auditors Report on the Internal Financial Controls under
Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (the Act)
1. We have audited the internal financial controls with reference to
financial statements of M/s Ultra
Wiring Connectivity System Limited ("the Company") as of 31
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
2. The Companys management and the Board of Directors 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 (the "Guidance Note")
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 the
Companys 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 with reference to financial statements based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing
deemed to be prescribed under section 143(10) of the Act 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 ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls with reference to financial
statements was established and maintained and if such controls operated effectively in all
material respects.
4. Our audit involves performing procedures to obtain audit evidence
about the adequacy of the Internal financial controls with reference to financial
statements and their operating effectiveness. Our audit of Internal financial controls
with reference to financial statements included obtaining an understanding of Internal
financial controls with reference to financial statements, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
5. 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 with reference to financial statements.
6. Meaning of Internal Financial Controls over Financial Reporting
A Companys Internal financial controls with reference to
financial statements is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A
Companys Internal financial controls with reference to financial statements 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 authorisations of management and directors of the
Company; and
(3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the Companys assets
that could have a material effect on the financial statements.
7. Inherent Limitations of Internal Financial Controls with
Reference to Financial Statements
Because of the inherent limitations of internal financial controls with
reference to standalone financial statements, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation of the internal financial
controls with reference to standalone financial statements to future periods are subject
to the risk that the internal financial controls with reference to standalone financial
statements may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
8. 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 March 31, 2023, based on the
criteria for internal financial control over financial reporting 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 ICAI.
Annexure B to the Independent Auditors Report
Referred to in paragraph 14 of the Independent Auditors Report of even
date to the members of Ultra Wiring Connectivity System Limited, on the financial
statements for the year ended 31 March 2023
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of property, plant and
equipment.
(b) The Company has a regular program of physical verification of its
fixed assets by which fixed assets are verified every year. In accordance with this
program, the fixed assets were verified during the year and no material discrepancies were
noticed on such verification. In our opinion, this periodicity of physical verification is
reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us, the tile
deeds of immovable properties, as disclosed in Note 13 to the financial statements, are
held in the name of the company.
(d) The Company has not revalued its Property, Plant and Equipment
during the year. Consequently, the question of our commenting on whether the revaluation
is based on the valuation by a Registered Valuer, or specifying the amount of change, if
the change is 10% or more in the aggregate of the net carrying value of each class of
Property, Plant and Equipment does not arise.
(e) Based on the information and explanations furnished to us, no
proceedings have been initiated or are pending against the Company for holding benami
property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in
2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules
made there under, and therefore the question of our commenting on whether the Company has
appropriately disclosed the details in its financial statements does not arise.
(ii) (a) The physical verification of inventory has been conducted at
reasonable intervals by the Management during the year and, in our opinion, the coverage
and procedure of such verification by Management is appropriate. There was no inventory
lying with third parties as at year end. The discrepancies noticed on physical
verification of inventory as compared to book records were not 10% or more in aggregate
for each class of inventory.
(b) During the year, the Company was not sanctioned working capital
limits in excess of Rs. 5 crore, in aggregate, from banks on the basis of security of
current assets and therefore the question of our commenting on whether the Company has
filed quarterly returns or statements with such banks, which are in agreement with the
unaudited books of account does not arise.
(iii) The Company has not made investments in any company during the
year. The Company has not granted secured / unsecured loans/advances in nature of loans,
stood guarantor, or provided security to any parties. Therefore, the reporting under
clauses (iii)(a), (iii)(b), (iii)(c), (iii) (d), (iii)(e) and (iii) (f) of the Order are
not applicable to the Company.
(iv) The Company has not granted any loans, or provided any
guarantees or security to the parties covered under Section 185 of the Act. Further, in
our opinion, and according to the information and explanations given to us, the Company
has not made any investments during the year and thus, question of complying with the
provisions of Section 186 of the Companies Act, 2013 in respect of the investments made by
it does not arise and the Company has not provided any loans, guarantees or security to
the parties covered under Section 186 of the Act.
The Company has not accepted any deposits or amounts, which are deemed
deposits within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed
there under to the extent notified.
(v) In our opinion, the company is not required to maintain the cost
records u/s 148(1) of the Companies Act for any of its products as the company is
classified under "Small" category as per Section 9(7) of the MSMED Act, 2006.
(vi) (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 goods and services tax, provident
fund, employees state insurance, income tax, duty of customs and other material
statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no statutory dues of provident fund,
employees state insurance, GST, excise and VAT , which have not been deposited on
account of any dispute. The particulars of other statutory dues referred to in subclause
(a) as at March 31, 2023 which have not been deposited on account of a dispute, are as
follows:
| Name of the Statute |
Nature of dues |
Amount of demand without netting off
amount paid under protest (Rs. in ‘000) |
Amount paid under protest (Rs. in
‘000) |
Period to which the demand relates
(Financial Year) |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Assessed at wrong rate of tax by the assessing officer |
1675.78 |
0.00 |
2017-18 |
CIT(A), Delhi |
The above amounts contain interest and penalty where included in the
order issued by the department to the Company.
(viii) According to the information and explanations given to us and
the records of the Company examined by us, there are no transactions in the books of
account that has been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of
account.
(ix) (a) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted in repayment of
loans or other borrowings or in the payment of interest to any lender during the year.
(b) According to the information and explanations given to us and on
the basis of our audit procedures, we report that the Company has not been declared
Willful Defaulter by any bank or financial institution or government or any government
authority.
(c) In our opinion, and according to the information and explanations
given to us, the term loans taken during the year have been applied for the purposes for
which they were obtained. In respect of the term loans which were taken in the previous
year, those were applied for the purpose for which the loans were obtained. (Also refer
Note 5(k) to the standalone financial statements).
(d) According to the information and explanations given to us, and the
procedures performed by us, and on an overall examination of the financial statements of
the Company, we report that no funds raised on shortterm basis have been used for
long-term purposes by the Company.
(e) The company has no subsidiaries, therefore reporting under clauses
(ix)e and (ix)f are not applicable to it.
(x) (a) The Company has not raised any money by way of initial public
offer or further public offer (including debt instruments) during the year. Accordingly,
the reporting under 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 shares or fully or partially or optionally convertible debentures during the
year. Accordingly, the reporting under clause 3(x)(b) of the Order is not applicable to
the Company.
(xi) (a) During the course of our examination of the books and records
of the Company, carried out in accordance with the generally accepted auditing practices
in India, and according to the information and explanations given to us, we have neither
come across any instance of material fraud by the Company or on the Company, noticed or
reported during the year, nor have we been informed of any such case by the Management.
(b) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted auditing practices in
India, and according to the information and explanations given to us, a report under
Section 143(12) of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit
and Auditors) Rules, 2014 was not required to be filed with the Central Government.
Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the
Company.
(c) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted auditing practices in
India, and according to the information and explanations given to us, the Company has not
received any whistle- blower complaints during the year. Accordingly, reporting under this
clause is not required for the company.
(xii) As the Company is not a Nidhi Company and the Nidhi Rules, 2014
are not applicable to it, the reporting under clause 3(xii) of the Order is not applicable
to the Company.
(xiii) The Company has entered into transactions with related parties
in compliance with the provisions of Sections 177 and 188 of the Act. The details of such
related party transactions have been disclosed in the standalone financial statements as
required under Indian Accounting Standard
24, "Related Party Disclosures" specified under Section 133
of the Act.
(xiv) (a) In our opinion and according to the information and
explanation given to us, the Company has an internal audit system commensurate with the
size and nature of its business.
(b) The reports of the Internal Auditor for the period under audit have
been considered by us.
(xv) The Company has not entered into any non-cash transactions with
its directors or persons connected with him. Accordingly, the reporting on compliance with
the provisions of Section 192 of the Act under clause 3(xv) of the Order is not applicable
to the Company.
(xvi) (a) The Company is not required to be registered under Section
45-IA of the Reserve Bank of India Act, 1934. Accordingly, the reporting under clause
3(xvi)(a) of the Order is not applicable to the Company.
(b) The Company has not conducted non-banking financial / housing
finance activities during the year. Accordingly, the reporting under clause 3(xvi)(b) of
the Order is not applicable to the Company.
(c) The Company is not a Core Investment Company (CIC) as defined in
the regulations made by the Reserve Bank of India. Accordingly, the reporting under Clause
3(xvi) (c) of the Order is not applicable to the Company.
(d) Based on the information and explanations provided by the
management of the Company, the Group does not have any CICs, which are part of the Group.
We have not, however, separately evaluated whether the information provided by the
management is accurate and complete. Accordingly, the reporting under clause 3(xvi)(d) of
the Order is not applicable to the Company.
(xvii) The Company has not incurred any cash losses in the financial
year or in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during
the year and accordingly the reporting under Clause (xviii) is not applicable.
(xix) According to the information and explanations given to us and on
the basis of the financial ratios (Also refer Note 33 to the financial statements), ageing
and expected dates of realisation of financial assets and payment of financial
liabilities, other information accompanying the financial statements, 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 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.
(xx) The provisions of CSR are not applicable to the company as it has
not crossed the threshold limits defined for same under Section 135 of the Companies Act,
2013. Accordingly, reporting under clause 3(xx)(a) and 3(xx)(b) are not applicable to the
company.
(xxi) The reporting under clause 3(xxi) of the Order is not applicable
in respect of audit of Standalone Financial Statements. Accordingly, no comment in respect
of the said clause has been included in this report.
| For Sanmarks & Associates |
| Chartered Accountants |
| (Firmfs Registration Number: 003343N) |
| Sd/- |
| Santosh Kumar Agrawal |
| (Partner) |
| Membership No. 091127 |
| Place: Faridabad |
| Date: 27/05/2023 |
| UDIN : 23091127BGXZUY7754 |
+91-9892691696
