We have audited the accompanying financial statements of
Modern Steels Limited, 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 Statement of Cash Flows for the year
ended, and a summary of significant accounting policies and
other explanatory information.
OPINION
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 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 profit and cash flows for the year ended
on that date.
Basis for Opinion
We conducted our audit in accordance with the standards on
auditing 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 together with the ethical requirements that are relevant
to our audit of the financial statements 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.
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
with respect to the preparation and presentation of these
standalone 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 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.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding 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.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these
standalone financial statements based on our audit. We have
taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act
and the Rules made there under.
We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Companies
Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the financial
statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair
view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting and the
operating effectiveness of such controls. An audit also includes
evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made
by the Company's Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the standalone financial statements.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order,
2016 (“the Order”) issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Act,
we give in the Annexure-A, a statement on the matters
specified in the paragraph 3 and 4 of the Order, to the
extent applicable.
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. I n 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, Statement of
Changes in Equity and the Statement of Cash Flow
dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards prescribed under section 133 of the Act.
e. There are no observations or comments on financial
transactions or matters which have any adverse effect
on the functioning of the company.
f. On the basis of the written representations received
from the directors as on March 31, 2024, 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.
g. 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;
h. The remuneration paid by the company to its director
during the financial year is in accordance with the
provision of section 197 of the Act.
i. 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
according to the explanations given to us:
1. The Company has disclosed the impact of pending
litigations on its financial position in its financial
statements;
2. The Company has made provision, as required
under the applicable law or Indian accounting
standards, for material foreseeable losses, if
any, on long-term contracts including derivative
contracts;
3. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company.
4. (a) 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, 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
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, 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; and
c) Based on such audit procedures performed
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) contain any material misstatement.
5. No dividend has been declared or paid during the year by
the Company
6. Based on our examination, which included test checks,
the Company has used accounting softwares 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 softwares. Further, during the course of our audit
we did not come across any instance of the audit trail
feature being tampered with.
FOR APT & CO LLP
Chartered Accountants
CA Amrit Pal Singh
Partner
Membership no. 508134
Place: Chandigarh (Firm Registration No. 014621C/
N500088)
Date: 18th May, 2024 UDIN: 23508134BGYDZF9901
|