We have audited the accompanying financial statements of Stanpacks India Limited, which
comprise the Balance Sheet as at March 31,2024, 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 ended and a summary of the material 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 standalone financial statements give the information required by the Companies
Act, 2013 (the “Act”) in the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed 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 of affairs of the company as at
March 31, 2024; and its Profit, Total Comprehensive Income, the changes in Equity, and Cash
Flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) 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 (ICAI) together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions of
the Companies Act, 2013 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
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Key Audit Matter
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Auditors’ Response
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1
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Revenue Recognition - Sale of goods
Revenue from sale of goods is
recognized when the control of goods
is transferred to the customers. In
terms of the application of the new
revenue accounting standard Ind
AS 115 (Revenue from Contracts
with Customers), for some contracts,
control is transferred either when the
product is
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Our audit procedures include:
• Assessing the Company’s revenue
recognition policy for compliance with
Ind AS
• Testing the design and implementation,
and operating effectiveness of internal
controls relating to revenue recognition.
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Key Audit Matter
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Auditors’ Response
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delivered to the customer’s site or when
the product is shipped, depending on
the applicable terms. The Management
has exercised judgement in applying
the revenue accounting policy while
recognizing revenue.
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• Performing testing on selected statistical
samples of revenue transactions recorded
throughout the year and at the year end
and checking delivery documents.
• We carried out a combination of
procedures involving enquiry, observation
and inspection of evidence in respect of
operation of these controls.
• Tested the relevant information
technology general controls, automated
controls, and the related information used
in recording and disclosing revenue.
• Assessing and testing the adequacy of
presentation and disclosures
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2
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Property, Plant and Equipment
Management judgement is utilized
for determining the carrying value
of property, plant and equipment,
intangible assets and their respective
depreciation/ amortization rates. These
include the decision to capitalize
or expense costs; the annual asset
life review; the timelines of the
capitalization of assets and the
measurement and recognition criteria
for assets retired from active use.
Please refer accounting policy.
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We have done verification of controls in
place over the fixed assets cycle, evaluated
the appropriateness of capitalization process,
performed tests to verify the capitalized costs,
assessed the timelines of the capitalization
of the assets and assessed the derecognition
criteria for assets retired from active use.
Useful life review of assets has been assessed
by the management. In performing these
procedures, we reviewed the judgements
made by management including the nature of
underlying costs capitalized; determination
of realizable value of the assets retired from
active use; the appropriateness of asset lives
applied in the calculation of depreciation/
amortization; and the useful lives of assets
prescribed in Schedule II of the Companies
Act, 2013.
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3
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Provisions and Contingent Liabilities
The Company is involved in certain
legal and tax disputes and the
assessment of the risks associated with
the litigations is based on Management
assumptions, which require the use
of judgment and such judgment
relates, primarily, to the assessment
of the uncertainties connected to
the prediction of the outcome of the
proceedings.
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Our audit procedure in response to same is
included, among others,
• Assessment of the process to identify
legal and tax litigations, and pending
administrative proceedings.
• Assessment of assumptions used in the
evaluation of potential legal and tax risks
performed by the legal and tax department
of the Company considering the legal
precedence and other rulings/judgement in
similar cases.
• Analysis of opinion received from the tax
consultant where available.
• Review of the adequacy of the disclosures
in the notes to the financial statements.
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Information Other than the Financial Statements and Auditor’s 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 Board’s report, Management
discussion and analysis and Report on corporate governance, but does not include the standalone
financial statements and our auditor’s report thereon.
Our opinion on the standalone 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 standalone 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 no 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 Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of
the Act, with respect to the preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance, including other comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS
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 statement 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.
Those 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 skepticism 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, misrep¬
resentations, 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 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 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.
Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements
in the standalone financial statements.
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 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 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 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 of India in terms of sub-section (11) of section 143 of the Act, we give
in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
(2) A. 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 purposes 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;
c) the Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with
by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act.
e) On the basis of written representations received from the directors as on March 31,
2024 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2024 from being appointed as a director in terms of Section 164(2)
of the Act.
f) 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 according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to
any director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16)
of the Act which are required to be commented upon by us.
g) 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”.
B. 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, if any, on its financial
position in its standalone financial statements.
ii. The Company has made provision, as required under the applicable law and
Accounting standards, for material foreseeable losses, if any, on long-term contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the
investor’s education and protection fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
no funds (which are material either individually or in the aggregate) 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 or
entity, including foreign entity (“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;
(b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received
by the Company from any person or entity, including foreign entity (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall, whether, directly or indirectly, lend or invest in 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;
(c) Based on the audit procedures that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused
us 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.
v. The Company has not declared or paid any dividend during the year, hence
compliance with provision of section 123 is not applicable for the year.
vi. Based on our examination, which included test checks, the company has used
accounting software for maintaining its books of account for the financial year ended
March 31, 2024 which has a feature of recording of audit trail (edit log) facility from
April 21, 2023 and the same has operated throughout the year since that date for
all relevant transactions recorded in the software. Further, during the course of our
audit we did not come across any instance of the audit trail being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from
1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014 on preservation of audit trail as per the statutory requirements for
records retention is not applicable for the financial year ended March 31, 2024.
for M/s Darpan and Associates
Chartered Accountants
ICAI Firm Registration
No.016156S
Darpan Kumar
Place: Chennai Partner,
Date: 30th April 2024 Membership. No: 235817
UDIN: 24235817BKFAZI6263
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