We have audited the accompanying financial statements of Foundry Fuel Products Limited (“theCompany”) which comprise the Balance Sheet as at 31st March, 2024, and the Statement of Profit andLoss (including Other Comprehensive Income), the Statement of changes in Equity, and the Statement ofCash Flows for the year then ended and a summary of significant accounting policies and other explanatoryinformation (together referred to as “financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, theaforesaid financial statements give the information required by the Companies Act, 2013 (“the Act”) in themanner so required and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state ofaffairs of the Company as at 31st March, 2024, and loss and total comprehensive income, changes inequity and its cash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Act. Our responsibilities under those Standards are further describedin the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we havefulfilled 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 forour opinion on the financial statements.
Material Uncertainty Related to Going Concern
We draw attention to Note 26 to the financial statements in respect of the Company's business which wasdependent on the commencement of mining operation by its holding company. However, during the F.Y2014-15, the Hon'ble Supreme Court had passed an order cancelling coal block allocations of variouscompanies including the holding company. Considering the aforesaid cancellation, the Company is lookingfor another business project. In view of no business operations, the Company has incurred loss on accountof administrative and other expenses, current liabilities are more than current assets as at current &previous year end and its net worth has also become negative. Further, depreciable fixed assets havebeen fully depreciated in the previous year considering no significant recoverable value. The Companyhas received commitment from holding company for infusing the funds as and when required for anyworking capital requirements or any other shortfall that may arise due to the lack of operations in theCompany Considering the same, accounts are prepared on going concern. Our opinion is not modified inrespect of this matter.
Above matter was also covered in Emphasis of Matters in audit report issued by us for the year ended 31stMarch, 2015 to 31st March, 2018 and Material Uncertainty Related to Going Concern paragraph in audit
report issued for the year ended 31st March, 2018 to 31 March, 2023. Our opinion was also not modifiedin respect of above matter in earlier financial years.
Key audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of ouraudit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. In addition to the matter described in the Material Uncertainty Relatedto Going Concern section above, we have determined that there are no key audit matters to communicatein our report.
The Company's Board of Directors is responsible for the preparation of the other information. The otherinformation comprises the information included in the Management Discussion and Analysis, Board'sReport including Annexures to Board's 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 will not express anyform of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other informationidentified above when it becomes available and, in doing so, consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwiseappears to be materially misstated.
When we read the other information, if we conclude that there is a material misstatement therein, we arerequired to communicate the matter to those charged with governance and make other appropriate reportingas prescribed.
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act withrespect to the preparation of these financial statements that give a true and fair view of the financialposition, financial performance, total comprehensive income, changes in equity and cash flows of theCompany in accordance with the Ind AS and accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design, implementation and maintenance of adequateinternal financial controls, that were operating effectively for ensuring the accuracy and completeness ofthe accounting records, relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company'sability to continue as a going concern, disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless the Board of Directors either intends to liquidate theCompany 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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit 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 ofthese financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for one resultingfrom 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 auditprocedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, weare also responsible for expressing our opinion on whether the company has adequate internalfinancial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company's ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditor's report to the related disclosures in the financial statementsor, if such disclosures are inadequate, to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However, future events orconditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, includingthe disclosures, and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,makes it probable that the economic decisions of a reasonably knowledgeable user of the financialstatements may be influenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.
From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the financial statements of the current period and are thereforethe key audit matters. We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when, in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
1. 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 ourknowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Companyso far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income,the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules, 2014.
e) The going concern matter described in ‘Material Uncertainty Related to Going Concern'paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;
f) On the basis of the written representations received from the directors as on 31st March, 2024taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.
g) With respect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls, refer to our separate report in“Annexure B. Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company's internal financial controls over financial reporting; and
h) The Company has not paid any remuneration to its directors and hence, provisions of section197 of the Act read with Schedule V to the Act in respect of managerial remuneration are notapplicable. Therefore, any reporting as required by Section 197(16) of the Act is not applicableto the Company.
i) With respect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended from time to time, inour 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 financialstatements;
ii. The Company did not have any long term contract including derivative contract for whichthere are any material foreseeable losses.
iii. According to the information and explanations given to us and on the basis of ourexamination of records of the Company, there are no amounts which were required tobe 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,no funds have been advanced or loaned or invested (either from borrowed fundsor any other sources or kind of funds)f by the Company to or in any other personor entity, including foreign entity (“Intermediaries”), with the understanding, whetherrecorded in writing or otherwise, that the Intermediary shall, whether, directly orindirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provideany guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refernote 32 to the standalone financial statements);
(b) The Management has represented, that, to the best of its knowledge and belief,no funds have been received by the Company from any person or entity, includingforeign entity (“Funding Parties”), with the understanding, whether recorded inwriting or otherwise, that the Company shall, whether, directly or indirectly, lendor invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee,security or the like on behalf of the Ultimate Beneficiaries (Refer note 32 to thestandalone financial statements);
(c) Based on the audit procedures that have been considered reasonable andappropriate in the circumstances, nothing has come to our notice that has causedus to believe that the representations under sub-clause (i) and (ii) of Rule 11(e),as provided under (a) and (b) above, contain any material misstatement.
j) The Company has not paid / proposed dividend during the year. Therefore, any reporting asrequired by Section 123 of the Act is not applicable to the Company.
k) Based on our examination, which included test checks, the Company has used accountingsoftwares for maintaining its books of account for the financial year ended March 31, 2024which has a feature of recording audit trail (edit log) facility and the same has operatedthroughout the year for all relevant transactions recorded in the softwares. Further, during thecourse of our audit we did not come across any instance of the audit trail feature being tamperedwith.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1,2023, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 onpreservation of audit trail as per the statutory requirements for record retention is not applicablefor the financial year ended March 31, 2024.
2. As required by the Companies (Auditor's Report) Order, 2020 (the “Order”) issued by the CentralGovernment in terms of Section 143(11) of the Act, we give in “Annexure A” a statement on thematters specified in paragraphs 3 and 4 of the Order.
Chartered AccountantsFirm Registration No. 127772WGaurav SamotaPartner
Membership No. 152186UDIN: 24152186BKFXEA8922
Place: MumbaiDate: 29/05/2024