VLE a | MRPPL MR PRO TCCH PRIVATE LIMITED MRPPL FINANCIAL YEAR 2021-2022 M/s. M R PRO TECH PVT LTD No.10,CMC COMPLEX,BCH ROAD, RAJARAJESWARI NAGAR, BENGALURU-560 098. CIN No.:U452010KA201 0PTC05 2042 PAN NoAAGCM3696KMSPR & CO Chartered Accountants INDEPENDENT AUDITOR'S REPORT To the Members of M/s. M R PROTECH PRIVATE LIMITED Report on the Audit of Financial Statements: We have audited the accompanying financial statements of M/s. MR PRO TECH PRIVATE LIMITED, which comprise the Balance Sheet as at March 31, 2022, the Statement of Profit and Loss, the Cash flow Statement and the Statement of Changes in the Equity for the year then ended, and notes to the financial statements including a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements: ‘The Management is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (The ‘Act’) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity in accordance with the Accounting Standards referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 as amended, 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 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, 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. Auditor's Responsil ur responsibilty is to express an opinion on these financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the ‘Act and the Rules made thereunder and the Order issued under section 143(11) of the Act. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Charte Accountants of India. Those standards require that we comply with ethical requirements and plan and BANGALORE : Branch-1: # 2768, Block, Ist Main, Sahekar Nagar, Bangalore-560092 Branch-2: # 7, nd Floor, Sri Nanjundeshrara Complex, New Thippasandra Main Road, Bangalore-560075. HYDERABAD : F.No.G-1, H.No.8-3-169/32, ri Sai Nilayam, Siddartha Nagar, Hyderabad ~500038. Pht 040-40141012 BRANCHES : NAGARKURNOOL DISTRICT, TELANGANA AND CHENNAI TAMILNADU Email :madhu.mspr@gmail.com | info@msprco.comperform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 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 ‘An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion, Opinion: In our opinion and to the best of our information and according to the explanations given to us, the 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: i) Inthe case of the Balance sheet, of the state of affairs of the Company as at March 31, 20222; ii) In the case of the Statement of Profit and Loss, of the Profit for the year ended on that date. ill) In the case of the Cash Flow Statement, of the cash flows and changes in equity for the year ended on that date. Report on Other Legal and Regulatory Requirements: 1. As required by the companies (Auditor's Report) Order, 2016 ('the order’) issued by the central Government of India in terms of sec 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order 2. AS required by Section 143(3) of the Act, based on our audit we report to the extent applicable that: i We have sought and obtained all the information and explanations which to the best of ‘our knowledge and belief were necessary for the purpose of our audit. ii, In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.vi vil. ‘The Balance Sheet and the Statement of Profit & Loss, the statement of Cash Flows and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account. In our opinion, the Balance Sheet and the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards notified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and On the basis of written representations received from the directors as on March 31, 2022, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2022, 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 8"; 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: a. The Company does not have any pending litigations which would impact its financial position. b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company For MSPR&CO., Chartered Accountants FRN: 0101525 CAV Madhusudhan Partner M No.208701 Place : Bengaluru Date : September 9" 2022Annexure A to the Independent Auditor’s Report “Report on other legal and regulatory requirements” of our report of even date to the financial statements of the company for the year ended March 31, 2022. Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the company and taking into consideration, the information and explanations given to us and the books of accounts and other records examined by us in the normal course of audit and to the best of knowledge and belief, we report th: i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. {b) As informed to us, the Company had carried out the physical verification of Fixed Assets during the year under review and such verification did not reveal any material discrepancies. {c) The title deeds of immovable properties are held in the name of the directors of the company ii) In our opinion, the management has conducted the physical verification of inventory at reasonable intervals during the year, no material discrepancies were noticed on such verification. ill) As per the information and explanations given to us, the company has not granted any loans, secured or unsecured to Companies, Firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clause 3(Ii) (a) to (c) of the order are not applicable to the company. iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security. v) According to the information and explanations given to us, the Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable. vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. vii) (2) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident fund, employees state insurance, Income Tax, Sales Tax, Service Tax, GST, value added tax, and any other statutory dues applicable to it with appropriate authorities and in respect of these statutory duesrthere are no-Outstanding dues Ag)as on 31.03.2022 which are outstanding for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, service tax, GST, , value added tax. viii) In our opinion and according to the information and explanations given to us, the company has not defaulted in the repayment of dues to banks and financial institutions. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures, ix) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term loans. Accordingly, the provisions of clause 3(ix) of the order are not applicable to the company. x) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the company or on the company by its officers or employees has been noticed or reported during the year. xi) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Companies Act 2013, i) In our opinion, the company is not a Nidhi company. Therefore, the provisions of clause 3 (xii) of the order are not applicable to the company. xii) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of companies act, 2013 and the details have been disclosed in the financial statements as required by the applicable accounting standards. xiv) Based upon the audit procedures performed and the information and explanations given by the ‘management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, provisions of clause 3(xiv) of the order are not applicable to the company. xv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transaction with directors or persons connected with him. Accordingly, the provisions of clause 3(xv) of the order are not applicable to the company.xvi) In our opinion, the company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3{xvi) of the order are not applicable to the company. For MSPR&CO., Chartered Accountants FRN: 0101525 Partner MNo.208701 engaluru eptember 9 2022Annexure B to the Independent Auditor’s Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2043 (“the Act”) We have audited the internal financial controls over financial reporting of M/s.M R PRO TECH PRIVATE LIMITED as of 31 March 2022 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Management's Responsibility for Internal Financial Controls: ‘The Company's 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 stated in the Guidance Note on Audit of internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of. frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. ‘Auditors’ Responsi ity: ur responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.‘Meaning of internal Financial Controls over Financial Reportin, ‘A company's 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 in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded ‘as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Inherent Limitations of Internal Financial Controls over Financial Reporting: Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control cover financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opi In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2022, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, For MSPR&CO., Chartered Accountants FRN:0101525 Partner MNo.208701, Place : Bengaluru Date : September 9" 2022M/s.M R PRO TECH PRIVATE LIMITED CORPORATE OFFICE Notes to the financial statements for the year ended 31 March, 2022 Corporate information: M/s. MR PRO TECH PVT LTD was incorporated in India under Companies Act, 1956 with its registered office at Bangalore. The Company is carrying on the business of Civil Works. Board of Directors: i), MrRaviMuralidharan - Managing Director ii) Mr.NishanthOamodaran Ravi Director Statutory Auditors: MSPR & Co., Chartered Accountants. 1. Significant accounting policies: 1.01 Basis of accounting and preparation of financial statements: The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements are presented in Indian Rupees rounded off to the nearest rupee. The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Revised Schedule III to the Companies Act, 2013 ("the Act”). The Cash Flow Statement has been prepared and presented as per the requirements of ‘Accounting Standard (AS) 3 “Cash Flow Statements”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in ‘the Revised Schedule Ill to the Act, are presented by way of notes forming part of accounts. along with the other notes required to be disclosed under the notified Accounting Standards The accounting policies adopted in the preparation of the financial statements are consistent with those of previous year.1.02 Use of estimates: "The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable, Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. 1.03 Current and non-current classificatio All the assets and liabilities have been classified as current or non- current as per the Company's normal operating cycle and other criteria set out in the Schedule Ill to the Companies Act, 2013. Asset An asset is classified as current when it satisfies any of the following criteria a) It is expected to be realised in, or is intended for sale or consumption in, the Company's normal operating cycle; . b) itis held primarily for the purpose of being traded; ©) Itis expected to be realised within twelve months after the reporting date; or 4) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. Liabil liability is classified as current when it satisfies any of the following criteria: a) Itis expected to be settled in the Company's normal operating cycle; b) tis held primarily for the purpose of being traded; ¢) tis due to be settled within twelve months after the reporting date; or 4) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current assets / liabilities include the current portion of non- current assets / liabilities respectively. All other assets / liabilities are classified as non -current. 1.04 Cash and cash equivalents: Cash and cash equivalents for the purpose of cash flow statement comprise cash, balance and demand deposit with banks and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.1.05 Depr ion and amortisation: Tangible fixed assets Depreciation on tangible fixed assets is provided using the written-down-value (WDV) method based on the useful life of the assets as specified under Schedule II to the Companies Act, 2013 ("Schedule"). Depreciation is calculated on a pro-rata basis from the date of installation till the date the assets are sold or disposed. 1.06 Investments Investments, which are readily realisable and are intended to be held for not more than one year from the date of acquisition, are classified as current investments. All other investments are classified as long term investments. 1.07 Fixed Assets: Property plant and Equipment Fixed assets are carried at the cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets, Subsequent expenditure related to an item of tangible fixed asset is capitalised only if it increases the future benefits from the existing assets beyond its previously assessed standards of performance. Gains or losses arising from the disposal of Tangible assets are recognised in the statement of profit and loss. 1.08 Employee benefits: Employee benefits includes Provident fund, ESI, Insurance and compensated absences Provident fund The Company is contributing to the employee's provident fund maintained under the employees provident fund scheme by the Central Government. Employee State Linked insurance Scheme The Company is contributing to the employees state linked insurance scheme maintained under the employees state linked insurance scheme by the Central Government1.09 Inventori Work- in- progress and Finished goods are valued at lower of cost or net realizable value.Cost includes direct materials and labour and a proportion of manufacturing ‘overheads based on normal operating capacity. 1.10 Revenue recognition: Revenue from construction contracts is recognised on the percentage of completion method as mentioned in Accounting Standard (AS) 7 "Construction contracts" notified by the Companies Accounting Standards Rules, 2006. 4.11 Earnings per share: Basic earnings per share is computed by dividing the net profit / (loss) for the period attributable to equity shareholders (after tax including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential eq! shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. But during the current and previous year the Basic and diluted EPS is same since there is no allotment of potential equity shares. 1.12 Taxes on income: Income tax expense comprises current tax and deferred tax charge or credit. Current Tax Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the relevant tax regulations applicable to the Company Deferred tax Deferred tax charge or credit reflects the tax effects of timing differences between ‘accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assetsDeferred tax assets are reviewed at each balance sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised jum Alternate Tax: Mir economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT Is recognised as an asset in the Balance Sheet when it is probable that jum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future future economic benefit associated with it will flow to the Company. 1.13 Provisions, contingent liabilities and contingent assets: A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Disclosure for 2 contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if itis virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. 1.14 Leases: {At the inception of the lease, a lease arrangement is classified as either a finance lease or an operating lease, based on the substance of the lease arrangement. Finance leases A finance lease is a lease that transfers substantially all the risks and rewards incident to ‘ownership of an asset. A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the present value of the minimum lease payments. Initial direct costs, if any, are also capitalized and, subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liabiOperating leases Other leases are operating leases, and the leased assets are not recognized on the Company's balance sheet. Payments made under operating leases are recognized in the statement of profit and loss on a straight-line basis over the term of the lease. 1.15 Borrowing Co: Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalized as part of asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred For MSPR&CO., Chartered Accountants FRN: 0101525 Partner MNo.208701 Date : September 9" 2022 For M R PROTECH PRIVATE LIMITED Ravi Murulidharan Nishanth Damodaran Ravi Director Director DIN:07346267 Date : September 9 2022