Auditor's Opinion

The auditors issued an unqualified opinion, stating that the financial statements give a true and fair view of the company's financial position, performance, and cash flows in accordance with accounting principles generally accepted in India. The audit was conducted in accordance with Standards on Auditing.

Key Financial and Operational Highlights

Company Size & Exemptions: The company is exempt from the full requirements of the Companies (Auditor's Report) Order, 2020 (CARO) because:

  • It is not a subsidiary or holding company of a public company.
  • Its paid-up capital and reserves & surplus did not exceed ₹1 crore as of the balance sheet date.
  • Its total borrowings from banks/financial institutions did not exceed ₹1 crore at any time during the year.
  • Its annual turnover did not exceed ₹10 crore during the year.

The company is also exempt from a detailed audit opinion on internal financial controls as its turnover was below ₹50 crore and borrowings were below ₹25 crore.

Compliance Findings:

  • Fixed Assets: Proper records are maintained. Assets were physically verified per a phased program, and no material discrepancies were found. Title deeds of immovable properties are in the company's name.
  • Inventory: Physically verified by management at reasonable intervals. Discrepancies were not material.
  • Loans & Investments: The company had not granted any loans to parties covered under Section 189 of the Act. It complied with Sections 185 and 186 concerning loans, investments, guarantees, and security.
  • Deposits: The company did not accept any public deposits.
  • Statutory Dues: The company was generally regular in depositing undisputed statutory dues (PF, ESI, Income Tax, etc.). No undisputed amounts were in arrears for more than six months as of March 31, 2022. There are no disputed dues.
  • Default: The company has not defaulted in repaying bank dues. It has not taken loans from financial institutions or the government nor issued debentures.
  • Fraud: No fraud by or on the company was noticed or reported during the year.
  • Managerial Remuneration: Paid in accordance with requisite approvals under the Companies Act.
  • Related Party Transactions: All transactions were in compliance with Sections 177 and 188 of the Act.

Other Material Disclosures:

  • Litigations: The company has no pending litigations impacting its financial position.
  • Contracts: No long-term contracts, including derivatives, with material foreseeable losses.
  • Investor Education Fund: No amounts were required to be transferred to the Investor Education and Protection Fund.
  • Fund Transfers: Management represented that no funds were advanced or received for the purpose of lending to ultimate beneficiaries, and the auditor has no reason to believe these representations are materially misstated.
  • Dividend: The company did not declare or pay any dividend during the year.

Internal Financial Controls

A separate audit was conducted on internal financial controls over financial reporting. The auditor's opinion is that the company has an adequate internal financial controls system that was operating effectively as of March 31, 2022, based on criteria established by the company.

Significant Accounting Policies

The financial statements were prepared under the historical cost convention using the accrual basis. Key policies include revenue recognition upon transfer of risk/reward, depreciation on Written Down Value (WDV) method, and inventory valuation at the lower of cost or net realizable value.