We have audited the accompanying financial
statements of SHREE PRECOATED STEELS
LIMITED (“the Company”), which comprise the
Balance Sheet as at March 31,2024, the Statement
of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the
Statement of Cash Flows for the year ended on that
date, and a summary of the significant accounting
policies and other explanatory information
(hereinafter referred to as “the financial statements”).
In our opinion and to the best of our information
and according to the explanations given to us,
the aforesaid Ind AS 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 specified under Section 133 of the Act
and other accounting principles generally accepted
in India, of the state of affairs of the Company as at
31st March, 2024 and its loss, total comprehensive
income, changes in equity and its cash flows for the
year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements
in accordance with the Standards on Auditing
specified under section 143(10) of the Act (SAs).
Our responsibilities under those Standards are
further described in the Auditor's 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 independence requirements that
are relevant to our audit of the financial statements
under the provisions of the Act and the Rules
made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements and the ICAI's Code of Ethics. We
believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
audit opinion on the financial statements.
Material Uncertainty Related to Going Concern
We draw attention to the Note no. 33 of the
accompanied financial Statements, regarding
preparation of financial statements on going concern
basis. The Company's net worth is negative and it
indicates that a material uncertainty exists that may
cast significant doubt on the Company's ability to
continue as a going concern. The appropriateness
of the assumption of the going concern is dependent
on the Company's ability to raise finance and
generate cash flows in future to meet its obligation.
However, the Annual financial statements have been
prepared on “going concern” basis for the reasons
stated in aforesaid note.
Our conclusion is not modified in respect of this
matter.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the 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.
1. The Company has material matters under
dispute which involves significant judgement to
determine the possible outcome of these disputes
(Refer Note No. 23 to the Financial Statements).
We obtained the details of the disputes with
their present status and documents. We made
an in-depth analysis of the disputes. We also
considered legal procedures and other rulings
in evaluating management's position on these
disputes to evaluate whether any change was
required to management's position on these
disputes.
Information Other than the Financial statements
and Auditor’s Report Thereon
The Company's 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, Board's
Report including Annexures to Board's Report, but
does not include the financial statements and our
auditor's 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.
Management’s Responsibility for the Financial
statements
The Company's Board of Directors is responsible for
the matters 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 Indian Accounting Standards specified
under Section 133 of the Act. This responsibility also
includes the maintenance of adequate accounting
records in accordance with the provision of the
Act for safeguarding of the assets of the Company
and for preventing and detecting the 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 internal
financial control, that were operating effectively
for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation
and presentation of the financial statements 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 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
responsible for overseeing the Company's Financial
reporting process.
Auditor’s Responsibility 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 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 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 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 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 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
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 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 financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events
in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in
the financial statements that, individually or in
aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of
the financial statements may be influenced. We
consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in
the financial statements.
We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and significant
audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance
with a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters, if
any, 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 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 (Auditor's
Report) Order, 2020 (“the Order”), issued by the
Central Government in terms of sub-section (11)
of section 143 of the act, we give in ‘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, based
on our audit we report that:
a) We have sought and obtained all the
information and explanations which to the
best of our knowledge and belief were
necessary for the purposes of our audit.
b) In our opinion proper books of account
as required by law have been kept by
the Company so far as appears from our
examination of those books.
c) The Balance Sheet, the Statement of Profit
and Loss (including Other Comprehensive
Income), the Statement of Changes in
Equity and the Statement of Cash Flows
dealt with by this Report are in agreement
with the relevant books of account.
d) in our opinion, the aforesaid financial
statements comply with the Indian
Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014.
e) On the basis of written representations
received from the directors as on 31St
March, 2024, taken on record by the
Board of Directors, none of the directors is
disqualified as on 31St March, 2024, from
being appointed as a director in terms of
Section 164(2) of the Act.
f) With respect to the adequacy of the
internal financial controls over financial
reporting of the Company and the operating
effectiveness of such controls, refer to our
separate Report in “Annexure B”. Our report
expresses an unmodified opinion on the
adequacy and operating effectiveness of
the Company's internal financial controls
over financial reporting.
g) With respect to the other matters to
be included in the Auditor's Report in
accordance with the requirements of section
197(16) of the Act, as amended:
In our opinion and to the best of our
information and according to the
explanations given to us, the remuneration
paid by the Company to its directors during
the year is in accordance with the provisions
of section 197 of the Act.
h) With respect to the other matters to
be included in the Auditor's Report in
accordance with Rule 11 of the Companies
(Audit and Auditors) Rule, 2014, 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, if any,
on its financial position in its financial
statements.
ii. The Company has made provision,
as required under the applicable law
or accounting standards, for material
foreseeable losses, if any, on long-term
contracts including derivative contracts.
iii. There has been no delay in transferring
amounts, if any, 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, no funds (which are
material either individually or in the
aggregate) have been advanced
or loaned or invested (either from
borrowed funds or share premium
or any other sources or kind of
funds) by the Company to or in any
other person or entity, including
foreign entity (“Intermediaries”),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, whether,
directly or indirectly lend or invest in
other persons or entities identified
in any manner whatsoever by or on
behalf of the Company (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(b) The Management has represented,
that, to the best of its knowledge
and belief, no funds (which are
material either individually or in the
aggregate) have been received
by the Company from any person
or entity, including foreign entity
(“Funding Parties”), with the
understanding, whether recorded
in writing or otherwise, that the
Company shall, whether, directly
or indirectly, lend or invest in other
persons or entities identified in any
manner whatsoever by or on behalf
of the Funding Party (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures
that have been considered
reasonable and appropriate in the
circumstances, nothing has come
to our notice that has caused us
to believe that the representations
under sub-clause (i) and (ii) of Rule
11(e), as provided under (a) and
(b) above, contain any material
misstatement.
v. During the year, the company has not
declared / paid dividend.
vi. Based on our examination, which
included test checks, the Company
has used accounting software for
maintaining its books of account for the
financial year ended March 31, 2024
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
software. Further, during the course of
our audit we did not come across any
instance of the audit trail feature being
tampered with.
As proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 is applicable from April 1,2023, reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 on preservation of audit trail as
per the statutory requirements for record retention
is not applicable for the financial year ended March
31,2024.
FOR MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 115832W
MANESH P MEHTA PARTNER
PLACE : MUMBAI
MEMBERSHIP NO. 36032
DATED : 9th MAY, 2024
UDIN:- 24036032BKFCFX8763
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