We were engaged to audit the financial statements of MILESTONE FURNITURE LIMITED
("the entity"), which comprise the balance sheet as at March 31, 2024, the statement of
Profit and Loss, and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies. We do not
express an opinion on the accompanying Ind AS financial statements of the entity. Because
of the significance of the matters described in the Basis for Disclaimer of Opinion section of
our report, we have not been able to obtain sufficient appropriate audit evidence to provide
a basis for an audit opinion on these financial statements.
Basis for Disclaimer of Opinion
In continuation of Disclaimer of Opinion issued by us in our audit report dated 04.08.2023
for the financial year 2022-2023, we would like to state that the standoff between New
Owners and management and the Old Owners and management continues. Hence the New
Owners and Management are still unable to themselves comment or provide verifiable
evidence on the reliability of assets, liability and results of Financial Operations. As on the
date of our report the New management is still in the process of seeking clarity on the
financial position and operation of the Company from the previous management and
alternate means.
In view of the same we do not express an opinion on the accompanying financial statements
of the company. Because of the significance of the matter described above, we have not
been able to obtain sufficient appropriate audit evidence to provide a basis for an audit
opinion on these financial statements.
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
Annexures to Board's Report, 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 statements or our knowledge obtained during the course of
our 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
Standalone 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 Ind AS 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 Indian Accounting Standards ("Ind AS")
notified under Section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to time.
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 Ind AS 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, the 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 the Board of
Directors 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 Standalone Financial Statements
Our responsibility is to conduct an audit of the entity's financial statements in accordance
with Standards on Auditing and to issue an auditor's report. However, because of the
matters described in the Basis for Disclaimer of Opinion section of our report, we were not
able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on
these financial statements. We are independent of the entity in accordance with the ethical
requirements in accordance with the requirements of the Code of Ethics issued by ICAI and
the ethical requirements as prescribed under the laws and regulations applicable to the
entity.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order"), as
amended, 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 paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
a. As described in the Basis for Disclaimer of Opinion paragraph, we sought but were
unable to obtain all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
b. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether 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. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether the Balance Sheet and the
Statement of Profit and Loss including other comprehensive income, the Cash Flow
statement and the statement of changes in equity dealt with by this Report are in
agreement with the books of account;
d. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether the Balance Sheet, Statement of
Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement
with the books of account.
e. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether the aforesaid financial
statements comply with the Accounting Standards under Section 133 of the Act read
with Rule 7 of the Companies (Accounts) Rules, 2014.
f. The matter described in the Basis for Disclaimer of Opinion paragraph above, in our
opinion, may have an adverse effect on the functioning of the Company.
g. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether any of the directors are
disqualified as on March 31, 2024 from being appointed as a director in terms of
Section 164 (2) of the Act.
h. With respect to adequacy of the internal financial control over the financial reporting of
the company and the operating effectiveness of such controls, refer to our separate
report in "Annexure B"
i. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether there is any violation of the
provisions of section 197 read with Schedule V to the Act, regarding managerial
remuneration.
j. 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:
i. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether the Company has disclosed
the impact of pending litigations on its financial position in its financial
statement;
ii. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether the Company has made
provision, as required under the applicable law or accounting standards, for
material foreseeable losses, if any, on long-term contracts including derivative
contracts;
iii. Due to the possible effects of the matter described in the Basis for Disclaimer of
Opinion paragraph, we are unable to state whether the Company is required to
transferany amount to the Investor Education and Protection Fund
k. Based on our examination, which include test checks, the Company has not used
feature of recording audit trail (edit log) facility in its accounting softwares for
maintaining its books of account for the financial year ended March 31, 2024
throughout the year. As a result we cannot comment on any instance of the audit trail
feature being tampered with during the course of our audit.
For S. Agarwal & Co.
Chartered Accountants
FRN: 000808N
SD/-
S.N. Agarwal
Place: New Delhi (Partner)
Date: 13.06.2024 M. No. : 012103
UDIN: 24012103BKDHQE2913
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