Sambhv Steel Unlisted Shares

Financial Report Summary

Here is a comprehensive summary of the provided PDF document:

Overview

The PDF presents the audited financial statements of Sambhv Sponge Power Pvt. Ltd. for the financial year 2022-23. The report includes an independent auditor's report from ADB & Company, Chartered Accountants, along with the balance sheet, statement of profit and loss, cash flow statement, and detailed notes on accounts. The audit was conducted in accordance with the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013.

Independent Auditor's Report

• Opinion: ADB & Company expressed an opinion that the financial statements give a true and fair view of the state of affairs of Sambhv Sponge Power Pvt. Ltd. as of March 31, 2023, and its financial results and cash flows for the year ended on that date, in conformity with accounting principles generally accepted in India.
• Emphasis of Matter: Attention is drawn to note 2.27, regarding Employee Benefits where no provision has been made in the books for post employment and other long-term benefits; however, the auditor's opinion is not modified in this matter.
• Responsibilities of Management: The Board of Directors is responsible for preparing and presenting financial statements that give a true and fair view, maintaining adequate accounting records, and implementing internal financial controls.
• Auditor's Responsibilities: The auditor's objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement and to issue an auditor's report. They also communicated findings to those charged with governance.
• Report on Other Legal and Regulatory Requirements: Annexure A provides a statement on matters specified in paragraphs 3 and 4 of the Companies (Auditor’s Report) Order, 2020. The auditor also reported that proper books of account have been kept, the financial statements comply with accounting standards, and none of the directors are disqualified. Internal financial controls are addressed in a separate report in Annexure B. The company does not have any pending litigations impacting its financial position or long-term contracts with material foreseeable losses, and no amounts required transfer to the Investor Education and Protection Fund.
• Other Key Points:
  • The management has represented that no funds have been advanced, loaned, or invested to any other person or entity with any understanding that the intermediary would further lend or invest.
  • The company has not declared/paid any dividend during the year.

Annexure B: Report on Internal Financial Controls

• The auditor provided an opinion on the internal financial controls over financial reporting, stating that the company maintained an adequate internal financial controls system that was operating effectively as of March 31, 2023.

Financial Statements Highlights (amounts in Lacs INR unless otherwise specified):

• Balance Sheet (as at March 31, 2023):

  • Equity and Liabilities:
    • Shareholder's Funds: ₹21,112.96 (Share Capital: ₹2,009.03, Reserves and Surplus: ₹19,103.93)
    • Non-Current Liabilities: ₹18,394.79 (Long-Term Borrowings: ₹16,963.20, Deferred Tax Liability: ₹1,431.59)
    • Current Liabilities: ₹13,807.18 (Short-Term Borrowings: ₹9,739.78, Trade Payables: ₹1,894.27, Other Current Liabilities: ₹2,145.21, Short Term Provisions: ₹27.91)
    • Total Equity and Liabilities: ₹53,314.93
  • Assets:
    • Non-Current Assets: ₹32,219.05 (Tangible Assets: ₹29,179.82, Intangible Assets: ₹12.82, Capital Work-in-Progress: ₹2,150.83, Long Term Loan & Advances: ₹875.58)
    • Current Assets: ₹21,095.88 (Inventories: ₹14,144.70, Trade Receivables: ₹1,719.05, Cash and Cash Equivalents: ₹338.05, Short-Term Loans and Advances: ₹4,213.95, Other Current Assets: ₹680.13)
    • Total Assets: ₹53,314.93

• Statement of Profit and Loss (for the year ended March 31, 2023):

  • Income:
    • Revenue from Operations: ₹93,627.27
    • Other Income: ₹517.20
    • Total Revenue: ₹94,144.47
  • Expenses:
    • Cost of Raw Materials & Stores Consumed: ₹69,211.85
    • Purchase of Trading Goods: ₹5,691.89
    • (Increase) / Decrease in inventories of Finished Goods: ₹(3,023.98)
    • Employee Benefits Expenses: ₹3,676.36
    • Other Expenses: ₹6,608.41
    • Financial Costs: ₹2,173.79
    • Depreciation and Amortization Expense: ₹1,592.03
    • Total Expenses: ₹85,930.35
  • Profit Before Tax: ₹8,197.62
  • Tax Expense: ₹2,170.91
  • Profit for the Period: ₹6,026.71

• Cash Flow Statement (for the year ended March 31, 2023):

  • Net Cash from Operating Activities: ₹8,417.32
  • Net Cash from Investing Activities: ₹(8,613.56)
  • Net Cash from Financing Activities: ₹387.06
  • Net Increase in Cash & Cash Equivalent: ₹190.82
  • Cash & Cash Equivalent at End of Period: ₹338.05

Key Accounting Policies:

• Financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principles in India.
• Revenue is recognized when services are rendered or related cost is incurred. Revenue from sale of goods is recognised upon delivery, when title passes to the customer.
• Property, Plant & Equipment are stated at cost of acquisition or construction, less accumulated depreciation/amortization.
• Inventories are valued at cost or Net Realizable Value, whichever is lower (on FIFO basis).
• Borrowing costs are expensed as incurred, except where directly attributable to qualifying assets, in which case they are capitalized.

Other Key Information:

• Details of long-term borrowings, short-term borrowings, trade payables, and related-party transactions are disclosed.
• The company identified Iron & Steel as its sole business segment.
• Contingent liabilities and capital commitments are disclosed.
• Analytical ratios (Current Ratio, Debt-Equity Ratio, etc.) are provided, along with explanations for variances between 2023 and 2022.
• Corporate Social Responsibility: The company spent ₹105.93 Lacs on CSR activities against a requirement of ₹105.17 Lacs.