M/s Atmastco Limited
Report on the audit of the Financial Statements Opinion
We have audited the accompanying standalone financial statements of M/s Atmastco Limited which comprise the Balance Sheet as at 31st March 2024, the statement of Profit & Loss and the statement of Cash Flow for the year then ended, and notes to the standalone financial statements, 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 standalone 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 March 31, 2024, its profits and 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 Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's 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 (ICAI) together with the ethical requirement that are relevant to our audit of the Financial Statement under the provisions of the Act and the rules there under, 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.
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 statement for the current period. These matters were addressed in the context of our audit of standalone financial statement as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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Fund raised from IPO
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• We performed detailed testing and verification procedures to ensure the accuracy and completeness of proceeds received from the Initial Public Offering (IPO). This included reconciling the amounts received to underwriting agreements, bank statements, and other relevant documentation.
• We reviewed the allocation of IPO expenses to ensure compliance with accounting standards and regulatory requirements. This involved examining invoices, expense reports, and management's allocation methodology to assess the appropriateness and accuracy of the expenditure allocation.
• We assessed the adequacy and accuracy of disclosures related to the IPO in the financial statements and accompanying notes. Our procedures included reviewing the disclosure of proceeds received, the use of funds, and any contingencies or commitments associated with the IPO.
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CSR expenditures
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• We conducted detailed testing and verification procedures to ensure the accuracy and completeness of CSR expenditures reported by the company. This involved examining supporting documentation such as invoices, payment records, and contracts to verify the legitimacy and appropriateness of expenditures.
• We reviewed the company's CSR policies and procedures to understand the framework within which CSR expenditures are authorized, recorded, and reported. Our assessment included evaluating whether expenditures were consistent with the company's CSR objectives and policies.
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Revenue Recognition(Sale of Service)
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Revenue from sale of service transactions is recognized as the service is performed. The completed service contract method is used for revenue recognition .In case of indivisible works contract; revenues are recognized on percentage completion method, synchronized to the billing schedules agreed by the customers. Revenue in respect of billed and unbilled contracts/property development in progress includes recognized profits based on percentage of completion and retention on bills. Provision for expected losses is made irrespective of percentage of completion.
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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 Board's Report including Annexure to the Board Report, Business Responsibility Report but does not include the standalone financial statements and our auditor's report thereon. Our opinion on 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, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement therein, we are required to report the matter and take necessary actions, as applicable under relevant laws and regulations. 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 stated in Section 134(5) of the Companies Act, 2013 ("the Act”) with respect to the preparation of the 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 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 standalone 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 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 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 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 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 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 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 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 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.
Emphasis of Matters
• We draw attention to fact that we have received confirmations from majority of debtors and creditors. While this provides reasonable assurance regarding reported balances in audited financial statements. Management responsibility includes estimating unconfirmed balances, and our audit opinion in based on the information available.
• We draw attention to the fact that as of 31.03.2024, the entity has not made payment of Rs. 231.03 Lacs to MSME suppliers within the stipulated period of 45 days as required under the MSME Development Act, 2006 since there is disagreement between the parties regarding quality issues. Hence, no provisioning for interest on delayed payments to MSMEs has been made in the financial statements.
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 of India in terms of sub-section (11) of section 143 of the Act, we give in "Annexure A", a statement on the matters specified in the paragraph 3 and 4 of the order.
2. 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, the company has kept proper books of accounts as required by law.Based on our examination of those books kept by the company so far as it appears from our examination stock registers are maintained both in digital form and manual form at various sites.Regarding valuation of stock reliance has been placed upon the valuation report obtained from IBBI Registered Valuer in this regard.
c) The Balance Sheet, the Statement of Profit and Loss and the statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account;
d) In our opinion, the aforesaid standalone 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 written representations received from the directors 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 Companies Act, 2013.
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.
(B) 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 in accordance to the explanations given to us;
a) The Company have pending litigations which would impact its financial position are:-
• Demand by Income Tax Department for which an appeal is pending with The Commissioner of Income Tax(Appeals) Raipur relating to Assessment year 2015-2016 and 2018-2019 Rs. 1,19,88,459/- and Rs. 34,68,190/- respectively.
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• Demand by Income Tax Department for which no appeal has been preferred against the said demand with Income Tax Department Raipur relating to:-
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Assessment Year
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Demand (In Rs)
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2009-10
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3,98,907.00
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2013-14
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1,49,930.00
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2016-17
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1,36,606.00
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2019-20
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3,30,080.00
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2023-24
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3,91,40,470.00
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• Demand by GST Department against which appeal has been filed with the Commissioner of GST-
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Financial Year
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Demand (In Rs)
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2017-18
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55,45,745.00
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2017-18
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4,50,59,089.00
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b) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
c) There has been no need to transfer any amount which required to be transferred, to the Investor
Education and Protection Fund by the Company.
d) (i) 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) during the year by the Company to or in any other persons or entities, 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 ("Ultimate Beneficiaries") by or on behalf of Company or
• Provide any guarantee, security or the like to or 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 persons or 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 ("Ultimate Beneficiaries") by or on behalf of the funding party or
• Provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries; and
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that representations under sub clause (d)(i) and (d)(ii) contain any material misstatement.
(iv) The Company has not declared or paid any dividend during the year.
(v) Based on our examination, 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 that has operated throughout the year for all relevant transactions recorded in the software and we did not come across any instance of the audit trail feature being tampered with.
(C) With respect to the matters to be included in the Auditor's Report under section 197(16) of the Act:
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 the Act.
For Rajesh Jalan & Associates
(Chartered Accountants) Firm's Registration No.: 326370E
Sd/-
CA Rajesh Jalan Membership No: 065792 UDIN No.: 24065792BKEXZC7165
Place: Kolkata Date: 29.05.2024
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