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Unison Metals Ltd Auditor Reports

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Unison Metals Ltd Share Price Auditors Report

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Unison Metals Limited (the "Company") which comprise the standalone balance sheet as at March 31, 2024, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including material 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 ("Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted inIndia, of the state of affairs of the Company as at March 31, .2024, and its profit and other comprehensive income, changes in equity 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 (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs 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 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 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 obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matter

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.

The Key Audit.Matter

How the matter was addressed in our audit

Revenue Recognition - Refer Note 19 of the Standalone Ind AS Financial Statements;

Revenue is recognised when significant risk and rewards of ownership of the products have passed to customers and it is measured at the fair value of the- consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Our audit procedures included:
• Assessing the appropriateness of the revenue recognition accounting .policies, by comparing with applicable accounting standards.

• Performing substantive testing (including year- end cut-off testing) by selecting samples of revenue transactions recorded during the year (and before and after the financial year end) by verifying the underlying documents, ? which included sales invoices/contracts and shipping documents.

Owing to the variety of products, markets,- product specifications, credit terms, delivery terms and other terms of supply, discounts and volume related concessions, the product pricing, recognition and. measurement of revenue involves "a significant amount of management judgement and estimation.

• Comparing the historical Sales Price to current trends. We also considered the historical accuracy of the Companys estimates in previous years.

Therefore, there is a risk of revenue being misstated as a result of faulty judgements or estimations. There isalso a risk of revenue bding overstated due to fraud resulting from the pressure on management to achieve performance targets at the reporting date.

• Seeking management explanations and justifications, in specific cases, and examining and evaluating them with available documentary evidences wherever considered necessary ?
• Evaluating the adequacy of the Companys disclosures in respect of revenue.

Suspension of manufacturing operations of Cold Rolled Patta-Patti Plant - Refer Note 2.3 of the Standalone Ind AS Financial Statements.

Our audit of the Financial Statements for the year ending 31st March, 2024 included the evaluation of the Accounting Treatment and disclosure of assets classified as "Held for Sale", which have not been sold within one year from the classification date. The assets in question have not been sold within the expected timeframe due to limited availability of buyers in the market, primarily attributed to the high value and specialized nature of the assets.

Our audit procedures included:
• Evaluating the rationale and supporting documentation decision to classify these assets as held for managements for sale despite the absence of potential buyers within one year and assessing whether the decision ? was well-founded, considering factors such as market

Our -audit procedures revealed that managements decision to classify the assets as held for sale, even though a sale within one year was not feasible due to limited availability of buyers, .was supported by appropriate justifications. The market conditions and specialized nature of the assets were consistent challenges encountered in attracting potential buyers.

conditions, historical sales data, and expert opinions.

• Examining whether management conducted market research to

? identify potential buyers arid to

? assess the feasibility of sale-within the designated timeframe as well as determining the credibility of the reasons provided for the lack-of available buyers.

We confirmed that the fair value determination was .. appropriately conducted, taking into account the unique circumstances surrounding the assets. Additionally, the related disclosures were found to be in and transparent comprehensive communicating the reasons for the delayed sale and the potential impact on the entitys operations.

• Reviewing the methodologies employed by management to .determine the fair value less costs to sell relevant to the specialized nature of the assets and limited buyer availability and verified the inputs used in the valuation process and their- alignment with market data and expert opinions.

• Assessing whether the saje is anticipated to qualify for recognition as a completed sale within the stipulated time frame provided in Ind AS.

• Evaluating whether the assets classified as held for sale are ? measured at lower of its carrying amount or fair value less costs to sell and whether further impairment loss to be provided or not in accordance with Ind AS-36 Impairment of Assets.

• Reviewing the disclosures in the financial statements related to the classification of assets as held for sale and not sold within one year and evaluating the reasons for the delay in sale, potential impact on the entitys operations, and the uncertainties surrounding the timing . of sale are accurately.and adequately communicated to users of the financial statements.

• Evaluating whether the audit ? procedures applied provides a reasonable level assurance on the accounting treatment and disclosure of thes^ajSsets as "Held for Sale",

despite the extended timeframe, are in accordance with the applicable framework financial reporting specifically IND AS.

Other Information

The Companys Management and Board of Directors are ? responsible for the other information. The other information comprises the information included in the Companys annual report, but does not include the financial statements and auditors reports 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 in the audit dr 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, and Board of Directors Responsibilities for the Standalone Financial Statements

The Companys Management and Board of Directors are 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 fairview of the state of affairs, profit/ loss and other comprehensive income, changes in equity and cash flows 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. 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 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, the Management and Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern.and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is 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 includesour opinion. Reasonable assurance is a high level, ofassurance, 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 judgement and maintain ? professional skepticism throughout the audit. We also:

• 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.

•. Obtain an understanding of interna) control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143{3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made.by the Management and Board of Directors.

• . Conclude on the appropriateness of the Management and Board of Directors use of

the going concern basis of accounting in preparation of standalone financial statements 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.

• 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 m.atter 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, to the extent applicable

2. A. 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 standalone balance.sheet, the standalone-statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.

? d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on May 02, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164(2) of the Act.

f) The modification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g)

. of the Companies (Audit and Auditosf-Rqles, 2014.

. g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".. . .

B. 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:

a. The Company has disclosed the impact of pending litigations as at March 31, 2024 on its financial position in its standalone financial statements

b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

d: (i) 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 Company to or in ? any other person(s) or entity(ies), including foreign entities ("Intermediaries".), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall 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.

(ii) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by of on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iii) Based on the audit procedures performed 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 (i) and (ii) above, contain any material misstatement. .

e. The company has not declared and paid any dividend during the year under review.

f. Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account which has a feature of. recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. Further, where audit trail (edit log) facility was enabled and operated throughout the year

forthe accounting software, we did not come across any instance of the audit trail feature being tampered with.

C. With respect to the matter to be included in the Auditors Report under Section . 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration, paid by the Company to its directors during the current year is in accordance with the provisions of- Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry.of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

AnriexureA

to the Independent Auditors Report on the Standalone Financial Statements .of Unison Metals Limitedfor the year ended March 31, 2024.

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment, and- capital work-ih- progress.

(b) 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 a regular programme of physical verification of its Property, Plant and Equipment by which all property, plant and equipment are verified in a phased manner over a period of three years. In accordance with this programme, certain property, plant and equipment were verified during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations, given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties (other than immovable properties where the Company is the lessee and the leases agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are held in the.name of the Company as at the balance sheet date.

(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 Equipment 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, there are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami- Property Transactions Act, 1988 and rules made thereunder.

(ii) .(a) The inventory, has been physically verified by the management during the year, except goods-in-transit and stock lying with third parties. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and book records that were more than 10% in aggregate of.each class of inventory.

(b) 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 been sanctioned working capital limits in excess of five crore rupees in aggregate from banks and financial institutions on the basis of security of current assets. As disclosed-in Note 38 of Standalone INd .As Financial Statements, the quarterly returns or statements comprising (stock statement, book debt statement and other stipulated financial information) filed by the company with such bank or financial institution are not in agreement with the books of account. The details of the same are as stated below:

(in Lacs) .

As on date

Name of Bank Particulars of

Security

Provided

Amount as per books of account(a) Amount reported : in the quarterly return/statement submitted > to bank(b) Amount of

difference

(a-b)

Percentage of variation d=(c/a)*100

30/06/2023

HDFC

Bank

Primary- Stock & 8ook Debts & Collateral- Land & Building

8,062.21 7,723.48 338.73 4.20

30/09/2023

6,860.57 6,408.55 452.02 6.59

31/12/2023 .

6,833.00 6,808.23 24.76. 0.36

31/03/2024

7,039.51 7,050.53 -11.02 -0.16

(iii) 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 made investments in and granted unsecured loans to companies and other parties, in respect of which the requisite information is as below.

(a) Based on the audit procedures carried on by us and as per the information.and . explanations given to us the Company has provided loans or advances in the nature of loans during the year and details of which are given:

Particulars

•Amount (in Lacs)

Aggregate amount made during the year:

-Others

6.6

Balance Outstanding as at 8alance Sheet date in respect of the above cases:

-Others

54.30

Aggregate amount of guarantee provided during the year

- to Subsidiary

1688.00

(b) According to the information and explanations given to us and based on the audit procedures conducted by us, we a re of the opinion thatthe investmentsmade and loans given during the year are, prima facie, not prejudicial to the interest of the Company.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of loans given, the loan are repayable on demand.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amOunt for more than ninety days in respect of loans given. Further, the Company has not given any advances in.the nature of loans to any party 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, there is no loan granted falling due during the year, vyhich has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties.

(f) :n respect of loans granted which are repayable on demand by the company during the year:

Particulars

Amount

Aggregate amount of loans granted

6.6 lacs

Percentage of Aggregate loans to total loans granted

100%

Loans granted to promoters and related party

Loan made to CFO Roshan Botra

(iv) According to the information and explanations given to us and on the basis of our examination of records of the Company, the Company has complied with the provisions of section 185 and section 185 of the Companies act, 2013 in respect of grant of loans, making investments and providing guarantees.and securities, as applicable.

v) The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.

(vi) The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under Sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us, in respect of statutory dues:

(a) Undisputed statutory dues including provident fund, employees state Insurance, income-, tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess have been regularly deposited by the company with the appropriate authorities in all cases during the

year, except Goods and Services tax and Income Tax. Goods aricLServices tax and Income Tax

?

have not generally been regularly deposited by the company with the appropriate authorities though the delays in deposit have not been serious

There were no undisputed amounts payable in respect of provident fund, employees! state insurance, income tax, customs duty, cess, goods and services tax and other materia) statutory, dues in arrears as at March 31, 2024, for a period of morethan six months from the date they became payable.

(b) There are no disputed amounts in respect of statutory dues referred to in sub-clause (a) above an therefore reporting under sub-clause (b) is not applicable.

(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 any transactions, previously unrecorded as income in the books of account, in the tax ? assessments under the Income Tax Act, 1961 as income during the.year. . .

(ix) -(a) 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 defaulted in repayment of loans and borrowing or in the payment of interest thereon to any lender.

(b) 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 been declared a wilful defaulter by any bank or financial institution or government or government authority.

(c) According to the information and explanations given to us by the management, the Company has not obtained any term loans during the year. Accordingly, clause 3(ix)(c) of the Order is not applicable.

(d) According to.the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overall examination of the standalone 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, associates or joint ventures as defined under the Act.

(f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on. the pledge of securities held in its subsidiaries, joint ventures or associate companies (as defined underthe Act).

(x) .(aj The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not applicable,

(b) The Company has not made any preferential allotment or private placement of (fully or partly or optionally) convertible debentures during the year.

(xi) (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us, no- report under sub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed.under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) We have taken into consideration the whistle blower complaints received by the Company during the year while determining the nature, timing and extent of our audit procedures.

(xii) According to the information and explanations given to us, the Companyis not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us, the transactions with related parties are in compliance with Section 177 and 188 of the Act, where applicable, and the details of the related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

(xiv) (a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal-audit system commensurate with, the size and nature of its business.

(b) We have considered the internal audit reports of the Company issued till date for the period under audit.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and. hence, provisions of Section 192 of the Act are not applicable to the Company.

(xvi) (a) The Companyis not required to be registered under Section 45-IAofthe Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) (a) of the Order is not applicable.

(b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of. India Act, 1934-. Accordingly; clause 3(xvi) (b) of the Order is not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Fleserve Bank of India. Accordingly, clause 3(xvi) (c) of the Order is not applicable.

(d) The group (the Company and its subsidiary companies) does not have any core investment company (as defined rn the core investment companies) (Reserve Bank) Directions, 2016) as part of. the group and accordingly reporting under clause (xvi) (d) of the order is not commented upon.

(xvii) The Company has not incurred cash losses in the current and in the immediately preceding financial year.

(xviii) There has been resignation of the statutory auditors during the year, there were no issues,.objections or concerns raised by the outgoing auditors.

(xix) According to the information and explanations given to us and 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 standalone 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 cometo our attention,which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of.meetingits 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 rior any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date, will get discharged by.the Company as and when they fall due.

(xx) In our opinion, provisions.of section 135 is not applicable to the company. Accordingly, clauses 3(xx) (a) and 3(xx) (b) of the Order are not applicable.

(xxi) The auditor of the subsidiary company has qualifications in certain clauses companies auditors Report Order Report as per given table

Sr No. Name

CIN Relationship Clause

Number of CARO which is qualified

1 Chandanpanf Private Limited

U28999GJ2018PTC102117 Subsidiary . (10(b)

(vii)(a)

(xviii)

Annexure B

to the Independent Auditors Report on the standalone financial statements of Unison Metals Limited for the year ended March 31, 2024. .-

Report on the Internal Financial Controls with Reference to the Aforesaid Standalone Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Act (Referred to in Paragraph 2(A)(g) under Report on other Legal and Regulatory Requirements Section of our Report of Even Date)

Opinion.

We have audited the internal financial controls with reference to financial statements of Unison Metals Limited ("the Company") as of March 31, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. In our opinion, the.Company has, in all material-respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at March 31, 2024, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls-Over Financial Reporting issued by the Institute of Chartered Accountants of India (the "Guidance Note")

Managements and Board of Directors Responsibilities for Internal Financial Controls

The Companys Management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in 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

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, prescribed under Section 1.43(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. 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 were established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with refergacejo 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 interna) 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 standalone financial statements, .whether due to fraud or

y

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 with reference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A companys internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting arid 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 include 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 detecti.on.of unauthorised acquisition, use, or.disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to 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 financial, ?statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures.may deteriorate.

For Purushottam Khandelwal and Co
Chartered Accountants
FRN: 0123825W

 

Mahendra singh S Rao
Partner

Place: Ahmedabad

Membership No: 154239

Date: May 30, 2024

UDIN: 24154239BKCRFA1597

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