We have audited the accompanying standalone financial statements of M/s SPACE INCUBATRICS TECHNOLOGIES LIMITED, which
comprise the Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss for the period 1st April 2023 to 31st March 2024
and Notes to the Financial Statements and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India including Indian Accounting Standards ('Ind AS') specified under Section 133 of the Act,
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2024;
b) In the case of the Profit and Loss Account, of the Profit for the period ended on that date and;
c) In the case of Cash Flow Statement, for the cash flows for the year ended on that date;
d) And the changes in equity for the year ended on that date.
2. Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) 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 Companies Act, 2013 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.
3. Emphasis of Matter
1) We draw attention to note -28.3 to the Standalone Ind AS financial statements for the year ended March 31, 2024 which states that
The Statutory Auditors of Sybly International FZE, a wholly owned subsidiary of Space Incubatrics Technologies Limited, have
reported that "A material uncertainty exists and that may cast significant doubt on the establishment ability to continue as a going
concern".
2) We draw attention to note -28.4 to the Standalone Ind AS financial statements for the year ended March 31, 2024, which states that
Auditors of M/s Sybly Industries Limited have reported the material uncertainty of going concern. The company has outstanding
loans and advances of Rs. 5.46 Crore as on 31.03.2024 and the timely realisation of the same may be affected. However, No provision
for doubtful debt has been made in our books of accounts since in the opinion of the board of directors, it will realised in due course
of time.
3) We draw attention to note-28.5 to the standalone Ind AS financial results for the year ended March 31, 2024 which describes that The
foreign subsidiary namely M/s Sybly International FZE has turned into a loss investment in financial year 2022-23 and any amount
including the Loan receivable from the subsidiary, is not recoverable. Further In the financial year 2022-23 The company has made
of provision of Impairment Loss on the carrying amount of the Investment of Rs. 7.29 Lakhs and Provision of Unrecoverable Loan
Receivable of Rs. 5675.87 lakhs and write off provision of Currency Fluctuation Reserve of Rs. 2454.18 Lakh.
Our opinion is not modified in respect of this matter.
4. Key Audit matters
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.
5. Information other than the financial statements and auditors' 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, Business Responsibility 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 standalone 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.
6. Responsibility of Management and Those Charged with Governance for the Standalone Financial Statements
The company's Board of Directors are responsible for the matters in Section 134(5) of the Companies Act 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows
of the Company in accordance with the Accounting Principles generally accepted in India, including Accounting Standards specified
in under Section 133 of the Act. This responsibility includes the maintenance of adequate accounting records in accordance with the
provision of the act for safeguarding the assets of the company and for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making judgment and estimates are reasonable and prudent and design,
implementation and maintenance of internal control, that were operating efficiently for ensuring the accuracy and completeness of
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 is responsible for assessing the company's ability to continue as a going concern and
using the going concern basis of accounting unless management either intends to liquidate the Company or to cease the operations or
has no realistic alternative but to do so,
Those Board of Directors are also responsible for overseeing the financial reporting process.
7. Auditor's Responsibility for the Audit of Standalone Financial Statements
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 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.
8. 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 Companies Act, 2013, 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 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.
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.
9. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2020 ("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 paragraphs 3 & 4 of the
Order, to the extent applicable.
10. 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 purpose of our audit;
b) In 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 standalone financial statements dealt with by this Report are in agreement with the books of accounts.
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Companies
Act, 2013.
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 internal financial controls over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate report in "Annexure B"; and
g) With respect to the matter to be included in the Auditors' report under Section 197(16) of the Act, In our opinion and according
to the information and explanation given to us, the remuneration paid during the current year by the Holding Company and its
subsidiaries which are incorporated in India to its directors is in accordance with the provisions of Section 197 of the Act. The
remuneration paid to any director by the Holding Company and its subsidiaries which are incorporated in India, is not in excess of
the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section
197(16) of the Act which are required to be commented upon by us.
h) With respect of 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 the information and according to the explanations given to us:
i. the Company does not have any pending litigations which would impact its financial position.
ii. the Company did not have any long-term contracts including derivatives contracts for which there were any material
foreseeable losses.
iii. there were no amounts which required to be transferred to Investor Education and Protection Fund.
iv. The management has represented that, to the best of its 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 person(s) or entity(ies), 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
v. The management has represented, that, to the best of its 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; and
vi. Based on audit procedures which we 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 mis-statement
vii. The company has not declared or paid any dividend during the year in contravention of the provisions of section 123 of the
Companies Act, 2013.
viii. Based on our examination which included test checks and in accordance with requirements of the Implementation Guide
on Reporting on Audit Trail under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, the Company has used
accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all relevant transactions recorded in the respective software.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2024, 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.
As per our separate report of even date annexed.
For V. S. Gupta & Co.,
Chartered Accountants,
Sd/-
(CA. Hemant Kumar Gupta)
PLACE : Camp Muradnagar Partner.
DATE : 27th May, 2024 Membership No. 071580
Firm Reg. No. 00724C
UDIN: 24071580BKETLP1710
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