We have audited the accompanying financial statements of SHREE METALLOYS LIMITED
("the Company"] which comprise the Balance Sheet as at March 31, 2024 and the Statement
of Profit and Loss (including the Other Comprehensive Income], Statement of Changes in
Equity and the Statement of Cash Flows for the year ended, and notes to financial
statement, including a summary of significant accounting policies and other explanatory
information (herein 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 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 ("Ind AS"] prescribed under section 133 of the Act read
with the Companies (Indian Accounting Standards] Rules, 2015, as amended, and other
accounting principles generally accepted in India, of the state of affairs of the Company as
at March 31, 2024, the profit and 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 ("SA"s] 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 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 requirements that are
relevant to our audit of the financial statements under the provisions of the companies
Act, 2013 and the Rules made 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 we have obtained is sufficient and appropriate to provide a basis
for our opinion on the financial statement.
Key Audit Matter
We have determined that there are no key audit matters to communicate in our audit
report.
Other Information
The Company's Management and Board of Directors are responsible for the other
information. The other information comprises the information included in the company’s
Annual Report, but does not include the financial statements and our auditor’s report
thereon. The Company’s annual report is expected to be made available to us after the date
of this auditor's report.
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 in the audit or
otherwise appears to be materially misstated.
When we read the Company's annual report, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance and take necessary actions, as applicable under the relevant laws and
regulations.
Management's Responsibility for the 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 with respect to the preparation and presentation of these Ind
AS financial statements that give a true and fair view of the state of affairs, profit/loss and
other comprehensive income, changes in equity and cash flows and 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 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 and Board of Directors 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
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 Company's financial reporting
process.
Auditor's Responsibility for Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 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 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 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 the management and Board of
Directors.
• 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.
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.
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 Section 143 [11) of the Act, we give in "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, 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 it appears from our examination of those books except
for the matters stated in the paragraph 2B[f) below on reporting under Rule
ll[g) of the Companies [Audit and Auditors) Rules, 2014.
[c) The Balance Sheet, the Statement of Profit and Loss including the statement of
other comprehensive income, the Cash Flows statement and Statement of
Changes in Equity dealt with by this Report are in agreement with the books of
account;
[d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act.
[e) On the basis of written representations received from the directors of the
Company as on 31stMarch, 2024 taken on record by the Board of Directors, none
of the directors is disqualified as on 31stMarch, 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) of the Act and paragraph 2B[f) below on reporting
under Rule ll[g) of the Companies [Audit and Auditors) Rule, 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". 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, as
amended in our opinion and to the best of our information and according to the
explanations given to us :
a] The Company has no pending Litigation as on 31st March 2024 which would
impact its financial position in its 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 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 the 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,
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 ("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 the representations under sub clause (d] (i] and (d] (ii] contain any material
mis-statement.
e] The company has not declared or paid any dividend during the year.
f) The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules,
2014 is applicable from 1 April 2023. Based on our examination, which included
test checks, the company has used accounting software for maintaining its books
of account, which has the feature of recording audit trail (edit log) facility, at the
database and application level. However, during the financial year, the company
has not enabled the audit log feature therefore we are unable to comment
whether there are any instances of the audit trail features been tempered 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.
(C) With respect to the matter to be included in the Auditor’s Report under Section
197(16) of the Act:
In our opinion and according to the information and explanation given to us, during
the current year, no remuneration is paid by the company to its directors.
For Talati & Talati LLP
Chartered Accountants
FRN: 110758W/W100377
Anand Sharma
(Partner)
Place of Signature: Ahmedabad Membership No: 129033
Date: 22/05/2024 UDIN : 24129033BKAAOD2260
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