Independent Auditor's Report
To
The Members of
Antony Waste Handling Cell Limited
Report on the Audit of the Standalone Financial
Statements
Qualified Opinion
1. We have audited the accompanying standalone financial
statements of Antony Waste Handling Cell Limited ('the
Company'), which comprise the Balance Sheet as at 31
March 2023, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Cash
Flow and the Statement of Changes in Equity for the
year then ended, and notes to the standalone financial
statements, including a summary of the significant
accounting policies and other explanatory information.
2. In our opinion and to the best of our information and
according to the explanations given to us, except for the
possible effects of the matter described in the Basis for
Qualified Opinion section of our report, 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 Indian Accounting Standards ('Ind
AS') specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015 and
other accounting principles generally accepted in India, of
the state of affairs of the Company as at 31 March 2023,
and its profit (including other comprehensive income), its
cash flows and the changes in equity for the year ended
on that date.
Basis for Qualified Opinion
3. As explained in Note 46 to the accompanying standalone
financial statements, the Company's non-current trade
receivables as at 31 March 2023 include certain long
outstanding receivables aggregating H 752.64 lakhs
due from various municipal corporations, which are
under dispute but considered good and recoverable
by the management. However, in the absence of
sufficient appropriate audit evidence to corroborate the
management's assessment of recoverability of these
balances, we are unable to comment on adjustments,
if any, that may be required to be made to the carrying
amounts of such receivables as at 31 March 2023 and the
consequential impact, on the accompanying standalone
financial statements. Our audit report for the year ended
31 March 2022 was also qualified in respect of this matter.
4. We conducted our audit in accordance with the Standards
on Auditing 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 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
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 qualified opinion.
Key Audit Matter
5. Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone 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.
6. In addition to the matters described in the Basis for
Qualified Opinion section of our audit report, we have
determined the matter described below to be the key
audit matters to be communicated in our report.
Information other than the Financial Statements and
Auditor's Report thereon
7 The Company's Board of Directors are responsible for the
other information. The other information comprises the
information included in the Annual Report but does not
include the standalone financial statements and our auditor's
report thereon. The Annual Report is expected to be made
available to us after the date of this auditor's report.
Our opinion on the 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 identified above when it becomes available
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.
When we read the Annual Report, if we conclude that
there is material misstatement therein, we are required
to communicate the matter to those charged with
governance.
Responsibilities of Management and Those Charged
with Governance for the Standalone Financial
Statements
8. The accompanying standalone financial statements have
been approved by the Company's Board of Directors. The
Company's Board of Directors are responsible for the
matters stated in section 134(5) of the Act 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 Ind AS specified
under section 133 of the Act 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 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.
9. In preparing the financial statements, the Board of Directors
are 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 the Board of Directors
either intend to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
10. Those 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
11. Our objectives are to obtain reasonable assurance about
whether the 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 Standards on Auditing 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.
12. As part of an audit in accordance with Standards on
Auditing, specified under section 143(10) of the Act 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 on whether the Company has
adequate internal financial controls with reference
to financial statements 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 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.
13. 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.
14. 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.
15. 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
16. As required by section 197(16) of the Act based on our
audit, we report that the Company has paid remuneration
to its directors during the year in accordance with the
provisions of and limits laid down under section 197 read
with Schedule V to the Act.
17. As required by the Companies (Auditor's Report) Order,
2020 ('the Order') issued by the Central Government of
India in terms of section 143(11) of the Act we give in
the Annexure I a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
18. Further to our comments in Annexure I, as required by
section 143(3) of the Act based on our audit, we report, to
the extent applicable, that:
a) We have sought and except for the matter described
in the Basis for Qualified Opinion section, obtained all
the information and explanations which to the best
of our knowledge and belief were necessary for the
purpose of our audit of the accompanying standalone
financial statements;
b) Except for the possible effects of the matter described
in the Basis for Qualified Opinion section, 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;
c) The standalone financial statements dealt with by this
report are in agreement with the books of account;
d) Except for the possible effects of the matter described
in the Basis for Qualified Opinion section, in our
opinion, the aforesaid standalone financial statements
comply with Ind AS specified under section 133 of the
Act;
e) The matters described in paragraph 3 and 6 under
the Basis for Qualified Opinion section and Key Audit
Matter section, in our opinion, may have an adverse
effect on the functioning of the Company;
f) On the basis of the written representations received
from the directors and taken on record by the Board
of Directors, none of the directors is disqualified as on
31 March 2023 from being appointed as a director in
terms of section 164(2) of the Act;
g) The qualification relating to the maintenance of
accounts and other matters connected therewith are
as stated in the Basis for Qualified Opinion section;
h) With respect to the adequacy of the internal financial
controls with reference to financial statements of the
Company as on 31 March 2023 and the operating
effectiveness of such controls, refer to our separate
Report in Annexure II wherein we have expressed a
modified opinion; and
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 (as
amended), in our opinion and to the best of our
information and according to the explanations given
to us:
i. Except for the possible effects of the matter
described in paragraph 3 of the Basis for Qualified
Opinion section, the Company, as detailed in
Notes 41(a), 41(d) and 48 to the standalone
financial statements, has disclosed the impact of
pending litigations on its financial position as at
31 March 2023;
ii. Except for the possible effects of the matter
described in the Basis for Qualified Opinion
section, the Company did not have any long¬
term contracts including derivative contracts for
which there were any material foreseeable losses
as at 31 March 2023;
iii. There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company during the year
ended 31 March 2023;
iv. a. The management has represented that, to the
best of its knowledge and belief, as disclosed
in Note 52 to the standalone financial
statements, no funds have been advanced
or loaned or invested (either from borrowed
funds or securities premium or any other
sources or kind of funds) by the Company
to or in any person(s) or entity(ies), including
foreign entities ('the 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 ('the Ultimate Beneficiaries') or
provide any guarantee, security or the like on
behalf the Ultimate Beneficiaries;
b. The management has represented that,
to the best of its knowledge and belief,
as disclosed in Note 52 to the standalone
financial statements, no funds have been
received by the Company from any person(s)
or entity(ies), including foreign entities ('the
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
as considered reasonable and appropriate
in the circumstances, nothing has come to
our notice that has caused us to believe that
the management representations under sub¬
clauses (a) and (b) above contain any material
misstatement.
v. The Company has not declared or paid any
dividend during the year ended 31 March 2023.
vi. Proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 requires all companies which use
accounting software for maintaining their books
of account, to use such an accounting software
which has a feature of audit trail, with effect
from the financial year beginning on 1 April 2023
and accordingly, reporting under Rule 11(g) of
Companies (Audit and Auditors) Rules, 2014
(as amended) is not applicable for the current
financial year.
For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
Rakesh R. Agarwal
Partner
Membership No.: 109632
UDIN: 23109632BGXEBD6379
Place: Mumbai
Date: 24 May 2023
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