We have audited the Financial Statements of THE INDIAN LINK CHAIN MANUFACTURERS LIMITED("the
Company"), which comprise the Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss
(including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash flows for
the year then ended, and notes to the Financial Statements, including a summary of the significant
accounting policies and other explanatory information (hereinafter referred to as "the Financial
Statements").
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 matter described in the Basis for Qualified Opinion paragraph, the aforesaid
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 accounting principles generally accepted
in India, of the state of affairs of the Company as at March 31, 2024, and its losses including other
comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
1. During the year, the Company has advanced loan amounting to Rs.338 lacs for which the company
has not complied with the provisions of Section 186 of the Companies Act, 2023 for obtaining prior
approval by means of special resolution from shareholders. The company has issued notice for
seeking approval from shareholders through postal ballot. The e-voting period for this postal
ballot was commenced on 11th May 2024 and will end on 9th June 2024. In absence of information
related to penal consequences for not taking prior approval, we are unable to comment on the
provision required and impact of the same on profit/net worth of the company.
2. In the current year, the Company's financial assets and financial income have exceeded 50% of
total assets and total income respectively. Accordingly, the Company is categorized as a Company
having Financial activity as principal business , fulfilling eligibility criteria for registration as NBFC.
The Company has during the year, initiated transition of operations to new line of business ie.;
trading in agricultural goods (as authorized by the Memorandum of Association) and as explained
to us, is still under pre-operational stage and hence has not applied for registration with RBI for the
same. The situation caused on account of the above transition has led to the Company having
Financial activity as principal business for the reporting year. In absence of information related to
penal consequences, we are unable to comment on the provision required and impact of the same
on profit/net worth of the company.
We conducted our audit in accordance with the Standards on Auditing (SAs) 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 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
together with ethical requirements that are relevant to our audit of the Financial Statements 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 Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our qualified 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. We have determined that there are no key audit matters to
communicate in our report.
Other Information
The Company's Management and the Board of Directors are responsible for the other information. The
other information comprises the information included in the Company's annual report but does not
include the Financial Statements and our auditors' report thereon.
Our opinion on the 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 Financial Statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the Financial
Statements 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 Financial Statements
The Company's management and the Board of Directors is responsible for the matters stated in Section
134(5) of the Act with respect to the preparation of these Financial Statements that give a true and fair
view of the financial position, the financial performance, the changes in equity and the cash flows of the
Company in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under Section 133 of the Act. 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 Statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, the Management and the Board of Directors are 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.
The Board of Directors is 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, 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 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.
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 (Auditors' Report) Order, 2020 ("the Order") issued by the Central
Government of India in terms of Section 143 (11) 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. As required by Section 143(3) of the Act, we report that:
a) We have sought and except for the matters described in Basis for Qualified Opinion section,
obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit of the aforesaid Financial Statements.
b) Except for the matters described in Basis for Qualified Opinion section in our opinion, proper
books of account as required by law relating to preparation of the aforesaid Financial Statements
have been kept by the Company so 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 Report are in
agreement with the books of account maintained for the purpose of preparation of the Financial
Statements.
d) Except for the matters described in Basis for Qualified Opinion section in our opinion, the
aforesaid Financial Statements comply with the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Account) Rules, 2014.
e) On the basis of the written representations received from the directors as on March 31, 2024 and
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 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".
g) The provisions of section 197 read with schedule V of the Act are not applicable to the Company
for the period ended March 31, 2024
h) With respect to the other matters to be included in the Auditors' 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 on its financial position in its
Financial Statements (Refer Note 22 of the financial statement).
ii. The Company did not have any material foreseeable losses on long-term contracts including
derivatives contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company during the period ended March 31, 2024.
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 funds or share premium or
any other sources or kind of funds) by the Company to or in any other persons or entities,
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 ("Ultimate Beneficiaries") by or on behalf of the Company or
• provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
b. The management has represented, that, to the best of its knowledge and belief, no funds
have been received by the Company from any persons or entities, 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 ("Ultimate Beneficiaries") by or on behalf of the Funding Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; and
c. Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under subclause (d) (i) and (d) (ii) contain any material mis-statement.
v. The company has not paid any dividend during the year.
vi. Based on our examination which included test checks, the Company has used accounting
software for maintaining its books of account, which has a feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Further, we did not come across any instance of the audit trail
feature being tampered with. However, the feature of recording audit trail (edit log) facility
was not enabled at the database level to log in any direct data changes for accounting
software used for maintaining books of accounts relating to payroll.
For Kanu Doshi Associates LLP
Chartered Accountants
FRN. No. 104746W/W100096
Sd/-
Kunal Vakharia
Partner
Membership no. 148916
UDIN: 24148916B KCQO A1841
Place: Mumbai
Date: 28th May, 2024
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