We have audited the accompanying Ind AS Financial Statement of Supreme Engineering Limited
(Formerly known as Supreme Heatreaters Private Limited) (“the Company”), which comprise the Balance
Sheet as at March 31, 2025. the Statement of Profit and Loss (including the Statement of Other
Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year
then ended and notes to the Ind AS Financial Statement, including a summary of significant accounting
policies and other explanatory information.
Qualified Opinion
We have conducted our audit of the Ind AS Financial Statement in accordance with the Standards on Auditing
(“SAs”) as 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 Ind AS Financial Statement’ 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
Ind AS Financial Statement 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 ICAI Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Ind AS Financial Statement. We believe that the audit evidence obtained is sufficient and
appropriate to provide a basis for our Qualified Opinion.
Basis for Qualified Opinion (Matters)
1. Non-Compliance with Laws & Regulations:
a. The company is required to file Audit report under income tax act 1961 and file income tax
return under the same act: however, the same has not filed for the two financial years i.e. FY
2019-20, FY 2020-21
b. The company has not paid/short paid the statutory dues such as TDS, PF, Professional Tax
etc., that have become overdue and remained unpaid. Interest, penalties in respect of the same
remained unascertained and unaccounted for.
c. The Company is liable to appointment Company Secretary as per section 203 of Companies
Act 2013 read with rules thereof. However, currently there is no Company Secretary on board
of the Company and accordingly the Financials are not being signed by all the Key Managerial
Persons as required under section 134(1) of Companies Act 2013.
d. The Secretarial Report of Independent Company Secretary has highlighted various delays and
non-compliances, the effect of the same is presented as a part of Contingent Liability.
2. The Company has long-outstanding trade receivables, trade payables, recoverable advances, and
borrowings, including cash credit accounts, which have remained unsettled for a substantial period.
The consequential impact, if any, on the financial statements remains unascertained since very few
ledger confirmations has been provided. However, the Management on conservative basis and as per
IND AS has provided for Expected Credit Losses on such Assets.
3. The classification of trade payables between MSME and other parties as at March 31, 2025, could
not be verified due to non-availability of adequate records and documentary evidence.
4. The inventory is valued and verified by the management. We have not conducted physical verification
of inventory as at March 31, 2025, due to our late appointment as statutory auditors of the Company.
We also faced a further limitation due to non-availability of the stock movement register or supporting
documentation to cross-verify the accuracy of valuation. Accordingly, we are unable to comment on
the correctness of the quantities and valuation of inventory as reported by the management.
5. The Company is required to get cost audit conducted as per the requirement of section 148 of the
Companies Act, 2013. However, the same has not been conducted from the financial year 2020-21
and onwards.
6. The Company is required to conduct an internal audit under the provisions of the Companies Act,
2013. However, no internal audit has been carried out for the previous financial year. Further, no
records or evidence were provided to substantiate whether internal audits were conducted for years
prior to the previous year.
Qualified Opinion
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 matters described in the Basis for Qualified Opinion paragraph above, the
accompanying Statement:
• presents financial results in accordance with the recognition and measurement principles laid down
in the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with
relevant rules issued thereunder; and
• gives a true and fair view, in conformity with the accounting principles generally accepted in India,
of the net loss, total comprehensive income/(loss), and other financial information of the Company
for the quarter and year ended March 31, 2025.
EMPHASIS OF MATTER PARA
We draw your attention to the notes mentioned in the Results declared by the company as follows:
1. The Company had a secured loan account which was classified as NPA on August 19, 2021, and has
since stopped repayment of principal and interest. The Company has been incurring losses
continuously and incurred a loss for the quarter ended March 31, 2025. The Company’s current
liabilities exceed its total assets, resulting in negative net worth. These conditions indicate the
existence of a material uncertainty that may cast significant doubt on the Company’s ability to
continue as a going concern. However, management has prepared the financial results on a going
concern basis, as they are in the process of loan restructuring and exploring fund infusion, preferential
allotment, and asset monetization options. The Company has deposited a preliminary deposit of 10%
with the bankers and submitted an application for One Time Settlement Plan with the bank. The
appropriateness of the going concern assumption depends upon successful implementation of these
plans, which are yet to be concluded.
2. The company has not provided accrued interest, charges, penalties or any other charges from the date
of being classified as Non-performing Assets and the impact of the same on the financial results and
statement remains unaccounted for.
3. The Company has ongoing litigations before the Hon’ble Supreme Court and other forums under
Income Tax and GST laws, the impact of which is contingent upon the outcome of such proceedings.
Information Other than the financial statements and Auditor’s Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises
the Board of Directors' Report, but does not include the Ind AS Financial Statement and our Auditor's report
thereon.
Our opinion on the Ind AS Financial Statement does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the Ind AS Financial Statement, our responsibility is to read the other
information and, in doing so, consider whether such other information is materially inconsistent with the Ind
AS Financial Statement or our knowledge obtained in the 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 Ind AS Financial
Statement
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 Ind AS 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 accounting principles generally accepted in
India, including the Indian Accounting Standards (“Ind AS”) prescribed under Section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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 the 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 Ind AS 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.
Those charged with governance are also responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 but it is not a guarantee that an audit conducted in accordance with the Standards on
Auditing (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 Ind AS financial statements.
As part of an audit in accordance with the SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Ind AS 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 Ind AS 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 Ind AS financial statements, including
the disclosures, and whether the Ind AS 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 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 Ind AS 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 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
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by
the Central Government in terms of Section 143(11) of the Act, we give in “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 Companies Act, 2013, 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) Except for matters stated in the Qualification Para, 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) Except for matters stated in the Qualification Para, The Balance Sheet, the Statement
of Profit and Loss (including the Statement of Other Comprehensive Income), the
Statement of Cash Flows, and the Statement of Changes in Equity dealt with by this
report are in agreement with the books of account.
d) Except for matters stated in the Qualification Para, In our opinion, the aforesaid Ind
AS Financial Statements comply with the Indian Accounting Standards specified under
Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. However, since the Company has been classified as a Non¬
Performing Asset (NPA), Ind AS 23 on Borrowing Costs has not been applied.
e) On the basis of written representations received from the directors as on 31st March
2025, and taken on record by the Board of Directors, none of the directors is disqualified
as on 31st March 2025 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 B” to this report.
g) In our opinion, the managerial remuneration for the year ended 31st March 2025
has been provided by the Company to its directors in accordance with the provisions of
Section 197 read with Schedule V of the Act.
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 does not have any pending litigations which would impact its financial
position.
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) (a) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the financial statements, no funds have been
advanced, loaned, or invested (either from borrowed funds, share premium, or any other
source 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, 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, other
than as disclosed in the notes to the financial statements, 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, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Parties (“Ultimate
Beneficiaries”) or provide any guarantee, security, or the like on behalf of the Ultimate
Beneficiaries.
(c) Based on the audit procedures performed that were considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the 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 and has not
proposed a final dividend for the year.
vi) Based on the audit tests and procedures performed in respect of the financial year
ended 31st March 2025, the Company has maintained its books of account using Tally
Edit Log (Gold) accounting software. The audit trail feature, however, had not been
enabled at the database level in the said software to keep a log of any direct data
changes, and therefore, it did not operate throughout the year.
For RUSHABH DAVDA & ASSOCIATES
Chartered Accountants
(Firm’s Registration No. 156559W)
CA. RUSHABH K DAVDA
Proprietor
Membership No: 188053
Peer Review No: 016545
Place: Mumbai
Date: 29/10/2025
UDIN: 25188053BMJHPH4268
|