We were engaged to audit the accompanying standalone financial statements of Mega Nirman and Industries
Limited (“the Company”), which comprise the standalone balance sheet as at March 31, 2024, 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 a summary of the significant accounting policies and other explanatory information
(hereinafter referred to as “the standalone financial statements”).
We do not express an opinion on the accompanying standalone financial statements of the Company.
Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our
report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit
opinion on these standalone financial statements.
Basis for Disclaimer of Opinion
1. The company has balances of Trade Receivables Rs. 5,39,43,365/-, Trade Payables Rs. 6,51,69,901/-and
Misc. Expenditure (Assets) Rs. 52,22,886/- as at 31st March 2024 .Management were unable to provide us
the supporting documents in regards to the nature and confirmations of above balances.
2. There are Investments in equity shares of Rs. 20,00,000/- by the company. Management were unable to
provide us the share certificates.
As a result of the matters described in paragraph 1 and 2 above, we were not able to obtain sufficient
appropriate evidence to provide a basis of our opinion on the standalone financial results.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgment, were of most significance in our
audit of the standalone Ind AS financial statements of the current period. These matters were addressed in
the context of our audit of the Standalone Ind AS financial statements as a whole, and informing 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.
Information Other than the Standalone Ind AS financial Statements and Auditor’s Report Thereon
The Company’s management and Board of Directors are responsible for the matters stated in section 134(5)
of the Companies Act 2013 (“Act”) with respect to the preparation of these standalone financial statements
that give a true and fair view of the state of affairs, profit 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.
Our opinion on the standalone Ind AS 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 Ind AS 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 Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have nothing to report in this
regard.
Management Responsibility for the Standalone Ind AS financial Statements
The Company’s 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 standalone Ind AS financial statements that
give a true and fair view of the financial position, financial performance, including other comprehensive
income, changes in equity and cash flows of the Company in accordance with accounting principles
generally accepted in India, including Indian Accounting Standards (Ind AS) prescribed 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 of the assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate implementation and maintenance of accounting
policies; making judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of the standalone
Ind AS financial statement that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible
for overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of Standalone Ind AS financial Statement
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone Ind AS financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we
are also responsible for expressing our opinion on whether the company has 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 management.
• Conclude on the appropriateness of management’s 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 Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the standalone Ind AS 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 auditor’s 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 Ind AS financial
statements, including the disclosures, and whether the standalone Ind AS 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 Ind AS financial statements for the financial year ended
March 31, 2024 and are therefore the key audit matters. We describe these matters in our auditor’s 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 in terms of section 143 (11) of the Act, and except for the possible effects, of the matter
described in the Basis for Disclaimer of Opinion section, 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. As required by Section 143(3) of the Act, we report that:
a) As described in the Basis for Disclaimer of Opinion section, we were unable to obtain all the
information and explanations which to the best of our knowledge and belief were necessary for
the purposes of our audit.
b) Due to the effects/possible effects of the matter described in the Basis for Disclaimer of Opinion
section, we are unable to state whether 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) Due to the effects/possible effects of the matter described in the Basis for Disclaimer of Opinion
section, we are unable to state whether the financial statements comply with the Indian
Accounting Standards specified under section 133 of the Act.
e) The matter described in the Basis for Disclaimer of Opinion section may have an adverse effect
on the functioning of the Company.
f) On the basis of the written representations received from the directors and taken on record by
the Board of Directors, none of the directors are disqualified as on 31 March 2024 from being
appointed as a director in terms of section 164(2) of the Act
g) The reservation relating to maintenance of accounts and other matters connected therewith are as
stated in the Basis for Disclaimer Opinion section.
h) 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, remuneration
paid by the Company to its directors during the current year is in accordance with the provisions
of section 197 of the Act.
i) With respect to the adequacy of the internal financial controls with reference to standalone
financial statements of the Company and the operating effectiveness of such controls, refer to
our separate Report in “Annexure B”.
j) In our opinion the managerial remuneration for the year ended March 31, 2024 has been
paid/provided by the Company to its directors in accordance with the provisions of section 197
read with Schedule V to the Act.
k) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
(i) Except for the possible effects of the matter described in the Basis for Disclaimer of
Opinion section, the Company has disclosed the impact of pending litigations as at
March 31, 2024 on its financial position in its standalone financial statements - Refer
Note 33 to the standalone financial statements.
(ii) Except for the possible effects of the matter described in the Basis for Disclaimer of
Opinion section, the Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
(iv) a) The Management has represented that, to the best of its knowledge and belief, other
than as disclosed in notes to accounts, no funds (which are material either individually
or in the aggregate) have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company to or in
any other person or entity, including foreign entity (‘Intermediaries’) with the
understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Company (‘Ultimate Beneficiaries’) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (‘Funding Parties’)
with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate
Beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.
c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our attention that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11 (e) as provided under (a) and
(b) above, contain any material misstatement.
(v) The Company has not declared or paid any dividend during the year
(vi) Based on our examination which included test checks, the company has used accounting
software for maintaining its books of account which has operated throughout the year
for all relevant transactions recorded in the software. Further, during the course of our
audit we did not come across any instance of audit trail feature being tampered with.
For ANSK & Associates
Chartered Accountants
(Firm’s Registration No. 026177N)
Sd/-
CA Akhil Mittal
Partner
(Membership No. 517856)
Place: New Delhi
Date: 29/05/2024
UDIN:24517856BKHCCM8525
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