We have audited the financial statements of M/s Sri Chakra Cement Limited (“the Company”) which
comprise the Balance Sheet as at 31 March 2024, and the Statement of Profit and Loss (including other
comprehensive income), the statement of changes in equity and the statement of Cash Flows for the
year then, and notes to the financial statements including 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
aforesaid financial statements give the information required by the Companies Act 2013(“Act”) in the
manner so required (and give a true and fair view in conformity with the recognition and measurement
principles laid down in the Indian Accounting Standards (Ind AS) and other accounting principles
generally accepted in India of the state of affairs of the Company as at March 31, 2024, and its Loss,
total comprehensive income, the changes in equity and cash flows for the year ended as 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 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.
Emphasis of Matter: We draw attention to the financial results which describes that based on the
current indications of future economic conditions, the company expects to recover the carrying amount
of all its assets and revenue recognised. Our opinion is not modified in respect of this matter.
Emphasis of matter
Reference is invited to Note No.14(1) and note No.22 regarding company’s inability to identify and
disclose MSME creditors and non-provision of penal interest on delayed payments if any. Our opinion is
not modified in respect of this matter
Key Audit Matters
There are no reportable key audit matters.
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 Management Discussion and Analysis, Board’s
Report including Annexures to Board’s Report, A Business Responsibility 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
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.
Management’s Responsibility for the IND-AS Financial Statements
The Company’s Board of Directors is responsible for the matters stated 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 (including other comprehensive
income), Cash Flows and changes in equity 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 and Companies (Indian Accounting Standards) Rules 2016, as
amended from time to time, 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.
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.
The 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 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.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
scepticism 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 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 my 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 my reasonably be though 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 reasonable be expected to out weight the public interest
benefits of such communication.
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 B, 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) 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
it appears from our examination of those books.
c) The IND-AS Financial Statements (including other comprehensive income), Cash Flows Statement,
statement of changes in equity dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid IND-AS 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 the written representations received from the directors as on 31 March 2024 and
taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 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 controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure
A” Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company’s internal financial control over financial reporting:
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: and
h) 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. The company has disclosed the impact of pending litigations on its financial position in its financial
statements - refer Note 21 to the financial statements;
ii. The company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.
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 investing 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.
vi. Based on our examination which included test checks, the company has used on accounting softwar4e
for maintaining its books of account which has a feature of recording audit trail (edit log) facility and
the same has operate4d throughout the year for all relevant transactions recorded in the software.
Further during the course of our audit we did not came across any instance of audit trail feature being
tampere3d with (additionally the audit trail has been preserved by the company as per the statutory
requirements for record retention).
For M/s Satyanarayana & Co.,
Chartered Accountants
Firm’s Regn No.003680S
Sd/-
G Venkata Ratnam
Place: Hyderabad Partner
Date: 27-05-2024 Membership No.019455
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