Delta Galaxy Unlisted Shares

Financial Report Summary

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Independent Auditor's Report

Rajesh Thakur & Associates, Chartered Accountants, have audited the standalone financial statements of DELTA GALAXY ENGINEERING SERVICES PRIVATE LIMITED, which include the Balance Sheet as of March 31, 2023, the Statement of Profit and Loss for the year then ended, and a summary of significant accounting policies and explanatory information.

Management's Responsibility for Financial Statements

The Company's Board of Directors is responsible for preparing standalone financial statements that give a true and fair view of the financial position, financial performance, and cash flows, in accordance with accounting principles generally accepted in India, including Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. This includes maintaining adequate accounting records, safeguarding assets, preventing fraud, selecting appropriate accounting policies, making reasonable judgments, and maintaining adequate internal financial controls.

Auditor's Responsibility

The auditor's responsibility is to express an opinion on the standalone financial statements based on their audit, taking into account the provisions of the Act, accounting and auditing standards, and relevant rules. The audit was conducted according to the Standards on Auditing specified under Section 143(10) of the Act, requiring compliance with ethical requirements and performance of the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements, assessing risks of material misstatement, considering internal financial control relevant to the Company's preparation of the financial statements, evaluating accounting policies, and assessing the overall presentation of the financial statements. The auditors believe that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion.

Opinion

The standalone 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, of the state of affairs of the Company as at 31st March, 2023, and its profits & loss for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. The Companies (Auditor's Report) Order, 2016 is not applicable.

2. The auditors report that:

   • TCS provision under section 206CR of income tax not complied.
   • TDS on Rent &
   • Proper books of account as required by law have been kept by the Company.

• The Balance Sheet and the Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.
• The standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
• None of the directors are disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
• 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".
• The Company doesn't have any pending litigations on its financial position in its financial statements.
• The Company didn't have any long term contracts including derivative contracts for which there were any material foreseeable losses.
• There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.

"Annexure A" - Report on Internal Financial Controls

This section refers to the auditor's report on the internal financial controls over financial reporting as required by Section 143 of the Companies Act, 2013.

• Management's Responsibility: Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control.
• Auditor's Responsibility: The auditor's responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on their audit, conducted in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting and the Standards on Auditing issued by ICAI.
• Meaning of Internal Financial Controls: Internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes.
• Inherent Limitations: Due to the inherent limitations of internal financial controls over financial reporting, material misstatements may occur and not be detected.

Opinion on Internal Financial Controls

According to the information and explanations given to the auditors and based on their audit, the following material weakness has-been identified as at March 31, 2023:

• The Internal control procedures including, timely recording of cash/bank transactions, reconciliation of accounts, maintenance of fixed assets records need further improvement, streamlining and strengthening.
• Cash in hand as on 31st march, 2023 are physically verified by the management. (certificate taken) Cash in hand reported 89,71,801/- on 31.03.2023
• Fixed Assets physically verified by the Management as on 31.03.2023.

Except for the possible effects of the material weakness described above on the achievement of the objectives of the control criteria, the Company has maintained, in all material respects, adequate internal financial controls over financial reporting.

Notes to the Financial Statements (Note No:1.)

These notes pertain to the period ended March 31, 2023, for M/S DELTA GALAXY ENGINEERING SERVICES PRIVATE LIMITED.

• Company Information: DELTA GALAXY ENGINEERING SERVICES PRIVATE LIMITED is a private limited company incorporated in India on 27/12/2011 (CIN-U45204BR2011PTC017932) with its registered office at FLAT NO- 4B, SAI NILYAM APARTMENT, POLICE COLONY, ROAD NO. 02, ANISHABAD, PATNA-800002.

• Nature of Operation: The Company is primarily involved in the business of Trading & manufacturing of construction materials & its allied areas.

• Significant Accounting Policies:

  • Financial statements are prepared according to generally accepted accounting principles in India (Indian GAAP) and comply with the accounting standards notified under Section 133 of the Companies Act, 2013.
  • Assets and liabilities are classified as current or non-current.
  • Revenue is recognized when risks and rewards incidental to ownership are transferred to the customer and it can be reliably measured.
  • Property, plant, and equipment are stated at cost, less accumulated depreciation/amortization. Depreciation is provided using the written down value method as per the useful life specified in Part "C" of Schedule III of the Companies Act,2013 and after retaining the residual value of 5% of the original cost of the assets as specified in the said Schedule.
  • The company makes an assessment of any indicator that may lead to impairment of assets on an annual basis.
  • Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings.
  • Investments are classified as current or long-term.
  • Inventories are valued at cost or net realizable value, whichever is lower.
  • Income-tax expense comprises current tax.
  • Foreign currency transactions are accounted for at the exchange rate prevailing on the date of the transaction.
  • Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases.
  • The Company recognizes a provision when there is a present obligation as a result of a past event and it is more likely than not that there will be an outflow of resources embodying economic benefits to settle such obligation and the amount of such outflow obligation can be reliably estimated.
  • Basic Earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.
  • Cash comprises cash on hand and demand deposits with banks.

• Additional Disclosures:

  • Title deeds of immovable property are not held in the name of the Company.
  • Related party disclosures are provided as required under Accounting Standard (AS) – 18. Key related parties are Amit Kumar and Mithilesh Kumar, both Directors.
  • Solvency ratios are provided.

• Other Notes:

  • Auditors' remuneration is disclosed (excluding taxes).
  • Details of basic earnings per share are provided.

• Other Information:

  • Expenditure in Foreign Currency Rs.O/--
  • Figures have been rounded off to the nearest hundred.
  • The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006

• The statement of significant accounting policies and the notes form an integral part of the Accounts for the period ended March 31, 2023.

Directors' Report

The Directors present the 12th Annual Report, including audited accounts for the financial year ended March 31, 2023. The summarized financial results include:

• Revenue from Operations: INR 794,864,640.00 (Year ended 31.03.2023) compared to INR 151,906,982.00 (Year ended 31.03.2022)
• Net Profit/Loss after tax: INR 27,171,771.41
• No dividend is recommended.

The Board proposes to carry to reserve & surpluses the amount of Rs. 27,171,771.41. The Directors have reviewed the business operations and found them satisfactory and are continuously looking for avenues for future growth. No material changes and commitments affecting the financial position of the Company occurred.

• Foreign Exchange Earnings and Outgo- There were no foreign exchange earnings and outgo during the year under review.
• Risk Management- The company does not have a Risk Management Policy
• Loans, Guarantees or Investments-There were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review and hence the said provision is not applicable.
• Contracts or Arrangements with Related Parties- There was no contract or arrangements made with related parties as defined under Section 188 of the Companies Act, 2013 during the year under review.
• Auditor Qualifications- There was no qualification, reservations or adverse remarks made by the Auditors in their report.
• Number of Board Meetings conducted during the Year under Review- During the financial year 2023-2022 the company held 4 (four) meetings of the Board of Directors as per Section 173 of Companies Act, 2013 which is summarized below.
• Directors Responsibility Statement

Form No. MGT-9 (Extract of Annual Return)

• Provides details of registration, principal business activities, holding/subsidiary/associate companies, and shareholding patterns.
• Lists the top shareholders, including changes in promoter shareholding.

Financial Statements Extracts

The document includes detailed balance sheets, profit and loss statements, and notes on accounts with information on:

• Share capital, reserves, and surplus
• Long-term and short-term borrowings
• Trade payables and receivables
• Inventories, cash, and bank balances
• Revenue from operations and other income
• Cost of materials, employee benefits, and finance costs
• Depreciation and amortization
• Earnings per share.
• Unsecured Borrowings- Lists amounts and to who the amounts are owed.
• Trade Payables ageing schedule (on 31-03-2023 and 31-03-2022)- Lists payment in relation to Trade Payables
• Trade Receivables ageing schedule (on 31-03-2023 and 31-03-2022)-Lists payment in relation to Trade Receivables

Overall Summary

The document presents the independent auditor's report and financial statements of Delta Galaxy Engineering Services Private Limited for the year ended March 31, 2023. While the audit identifies a material weakness in internal controls related to cash/bank transactions and asset management, the auditor's opinion states that the financial statements present a true and fair view of the company's state of affairs. The financial statements include detailed information on the company's assets, liabilities, equity, revenue, expenses, and significant accounting policies.