We have audited the accompanying financial statements of Shree Narmada Aluminium Industries Limited,, (hereinafter referred to as "the Company"),
which comprise of the Balance Sheet as at 31st March 2024, the Statement of Profit & Loss (including Other Comprehensive Income), statement of
changes in equity and the Cash Flow Statement for the year then ended, and including a summary of Significant Accounting Policies and other
explanatory information (collectively referred to as 'Financial Statements').
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except the matter specified in the below para under
Basis of Qualified Opinion, the aforesaid Financial Statements give the information required by the Companies Act, 2013 (hereinafter referred to as
"the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, pnd AS") and other accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2024 and its profit, total comprehensive income, changes in equity and its
cash flows for the year ended on that date.
Basis for Qualified Opinion
The Company is a sick Company under Sick Industrial Companies Act, 1985. The order of the Honorable High Court of Gujarat dated May 16, 2008 for
rehabilitation is under the process of implementation. Meanwhile, a secured creditor filed an application before Debt recovery Tribunal-Ill (DRT-lil) and
the court receiver now having the possession of property. Despite net worth of the Company fully eroded, the Management is of the opinion that the
Going Concern Assumption is sustainable and accordingly the accounts of the Company have been prepared on going concern basis. (Refer Note 18 of
financial statements). This situation indicates that material uncertainty exists that may cast significant doubt on Company's ability to continue as going
concern. The financial statement does not adequately disclose this matter.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. 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 together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules 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.
Key Audit Matter
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.
Information Other than the Financial Statements and Auditors Report Thereon
The Company's Board of Directors is responsible for preparation of the other information. The other information com prises the information included
in the Board's Report Including Annexure to Board's Report, Corporate Governance and Shareholder's information, 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 statement 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.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these 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 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 statement 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.
Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities 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 materia) 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 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, to the extent applicable to the Company during the year 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 re port 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 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 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. Further, 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, proper books of account as required bylaw have been kept by the Company, so far as it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Cash
Flow Statement dealt with by this Report are in agreement with the Company's books of account;
d) In our opinion the aforesaid 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 as on March 31, 2024, and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31, 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 control over financial reporting of the company and the operating effectiveness of such
controls, refer to our separate report in "Annexure A",
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 accorda nee with the Rule 11 of the Com pa nies (Audit and Auditors)
Rule,2G14 according to the explanations given to us, we report that,
i) The Company has disclosed the impact of pending litigations on its financial position- Refer IMote.15 and 17 of the financial statements.
ii) The Company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the Investors Education and Protection Fund by the Company.
ivf (a) Management has represented to us that, to the best of it's knowledge and belief, other than as disclosed in the notes to the accounts 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, 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 a ny guarantee, security or the
like on behalf of the Ultimate Beneficiaries
(b) Management has represented to us that, to the best of it's knowledge and belief, other than as disclosed in the notes to the accounts
no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("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 our audit procedure conducted that are considered reasonable and appropriate in the circumstances, nothing has come to our
attention that cause us to believe that the representation given by the management under paragraph (1) (h) (iv) (a) & (b) contain any
material misstatement,
v) The Company has not declared or paid any dividend during the year and has not proposed final dividend for the year.
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 provisonto 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.
2. As required by the Companies (Auditor's Report) Order, 2020 issued by the Central Government of India in terms of sub-section (11) of Section 143
of the Act, we enclose in the "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable
to the Company during the period under review.
For SVH & Associates
Chartered Accountants
Firm Registration No. 138024 W
SD /-
Hiren Vora
Partner
Membership No. 153268
Mumbai, dated 30th June 2024 UDIN: 24153268BKEGAT8293
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