TO THE MEMBERS OF SHELTER INFRA PROJECTS LIMITED Shelter Infra Projects Limited
Report on the Audit of the Financial Statements of Shelter Infra Projects Limited Qualified Opinion
We have audited the accompanying financial statements of Shelter Infra Projects Limited ("the Company"), which comprise the Balance Sheet as at 31* March 2025, the statement of profit and loss (including other comprehensive income), the statement of changes in Equity and the cash flow statement for the year on
that date, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the financial statement").
In our opinion and to the best of information and according to the explanations given to us, the aforesaid financial statements, subject to items referred to in the basis of qualified opinion, 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 Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended find AS") and other accounting principles generally accepted in India, of the state of affairs of the company as at 31a March 2025, the Profit comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act (SAs). 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 the Chartered Accountants of India ICAI) together with independence requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities m accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide the basis for our audit opinion on the financial statements Attention is invited to our following
(i) Liability of lease rent against land taken from local municipality for a period of 999 years has not been provided for in terms of Ind AS - 116 (refer to note no.33(F).
(ii) Actuarial Valuation not done in this Financial Year as per IND -AS -19 no such Change from the last year Actuarial Audit Report 33(d).
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, was 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 of opinion thereon, and we do not provide a separate opinion on these
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Kev audit matter
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How our audit addressed the key audit matters
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A. Revenue Recognition
Revenues for the company are primarily from construction contract on cost plus profit basis and related income.
Bills are raised against construction contract up to progressive billing stage in terms of certification / acceptance by client as per contract rates.
Rental income is recognized on accrual basis which are free from dispute
Further, the company focuses on revenue as a key performance measure. Therefore, revenue was our area of focus included whether the accruals were misstated and appropriately valued, whether the significant transactions had been accurately recorded in the Statement of Profit and Loss.
Refer corresponding note for amounts recognized as revenue from sale of products
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our key procedures included the following:
a) Assessed the appropriateness of the company's revenue recognition accounting policies by comparing with the applicable accounting standards. No discount, incentive or rebate is involved in respect of the company.
b) Tested the operating effectiveness of the general IT control environment and key IT application controls over recognition of revenue,
c) Performed test of details:
i) Agreed samples of contractual agreements &tenancy agreement documentation and approvals; and
ii) Obtained supporting documents for Transactions recorded either side of year end to determine whether revenue was recognized in the correct period.
d) Performed focused analytical procedures: .
Compared the revenue for the current year with the prior year for variance/ trend analysis and where relevant, completed further inquiries and testing to corroborate the variances by considering both internal and external benchmarks, overlaying our understanding of enterprise; and
c) Considered the appropriateness of the company's description of the accounting policy, disclosures related to revenue, and whether these are adequately presented in the financial statement.
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matters.
We have determined the matters described below to the Key Audit matters to be communicated in our Report.
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13. Litigations and claims — provisions and Contingent liabilities
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Our
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key procedures included the following:
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As disclosed in Notes detailing contingent liability
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•
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Assessed the appropriates of the company's accounting policies, including those relating to
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and provision for contingencies, the company is
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provision and contingent liability by comparing with the
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involved in direct, indirect tax and other
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applicable accounting standards;
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litigations ('litigations') that are pending with different statutory authorities.
Whether a liability is recognized or disclosed its a
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•
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Assessed the company process for identification of the pending litigations and completeness for financial reporting and also for monitoring of significant developments in relation to such pending litigations;
Engaged subject matter specialists to gain an
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contingent liability in the financial statements is
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•
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inherently judgmental and dependent on a number
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understanding of the current status of litigations
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of significant assumptions and assessments.
The amounts involved are potentially significant
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and monitored changes in the disputes, if any, through discussions with the management and by reading external advice received by the company,
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and determining the amount, if any, to be
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where relevant, to establish that the provisions had
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recognized or disclosed in the financial
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been appropriately recognized or disclosed as
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statements, is inherently
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nequred;
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Subjective.
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•
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Assessed the company's assumptions and estimates in respect of litigations, including the liabilities or provisions recognized or contingent liabilities disclosed in the financial statements. This involved assessing the probability of an unfavorable outcome of a given proceeding and the reliability of estimates of related amounts;
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Performed substantive procedures on the underlying calculations supporting the provisions recorded;
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Assessed the management's conclusions through understanding precedents set in similar cases; and
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Considering the appropriateness of the company's description of the disclosures related to litigations and whether these adequately presented in the financial
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statements.
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C. Yalstments and impairment thereof
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Our key prpcedures included.the following:
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1. Non-Current Investments
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Non
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ascertainment of fair value by management
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in Unquoted equity instruments.
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prompted qualificatory reference to the effect in our repor
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Verified with reference to banks' confirmation and
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computation of interest accrued thereon.
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D. Evaluation of Uncertain Indirect Tax
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Principal Audit Procedures ,
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Provisions
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The Company has material indirect tax provisions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes.
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Obtained details of completed indirect tax assessments and demands for the year ended March 31, 2025 in uploaded context from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally, we considered the effect of new information in respect of uncertain tax positions as at April 1, 2025 to evaluate whether any change was required to management's position on these uncertainties.
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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 Management Discussion and Analysis, Board's Report including Annexure to Board's Report 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 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 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 a 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 Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to preparation of these financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the companies in accordance with the Ind AS and other accounting principles generally accepted in India. The respective Board
of Directors of the companies are also responsible for maintenance of the adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the companies 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 Board of Directors of the company 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.
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:
UuOLiUI IO 1 '1 1 1 C11 '< Q I 'UUuU U ^
• 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 financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company which has companies incorporated in
India 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 ability of the Group 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 financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the 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 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 wt 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 Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained althea information and explanations (except Audit trial) which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid financial statements except for the matter stated in paragraph the matter sated in paragraph (v) on reporting under Rule 11(g) of the companies (Accounts and Audits) Rules 2014 have been kept 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), Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the financial statements.
it) in our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on March 31, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164(2) of the Act.
0 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 1". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company s internal financial controls over financial reporting.
g) With respect to the other matters to be included in Auditor's Report in accordance with the requirements of Section 197(16) of the Act, we hereby report that in our opinion and to the best of our information according to explanations given to us, no remuneration has been paid by the company to its Directors During the year attracting provisions of Section 197 of the Act.
h) 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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The financial statements disclose impact of pending litigations on the financial position of the company in note no.34(b) of financial statements.
ii. The company did not have any long term contract including entered into derivative contracts. The company has entered into contract which may have to material foreseeable loss.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
iv. a) Management has represented that to the best of its knowledge and belief no funds other than those disclosed in accounts has been advanced or loaned or invested by the Company to or in any other person or entity including foreign entity with the understanding that the intermediary shall directly or indirectly lend or invest in other persons or entity identified in any manner whatsoever by or on behalf of Company or providing any guarantee, security or the like on behalf of the ultimate beneficiary .
(b)The management has represented that to the best of its knowledge and belief no funds other than those disclosed in the notes has been received from any person or entity including foreign entity with the understanding that the Company shall directly or indirectly lend or invest in other persons or entity identified in any manner whatsoever by or on behalf of funding party or provide any guarantee, security or the like on behalf of funding party.
c) During application of Audit procedure as being considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under (a) and (b) above contain any material miss-statement.
(d) No dividend declared or paid during the year by the company
v. The Company has used accounting software for maintaining its books of account that does not have the feature of recording the audit trail. We are also unable to rely on automated controls related to financial reporting in the accounting software. Consequently, we are unable to comment on compliance of audit trail requirements by the said software as envisaged under rule 11(g).
As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure 2" a statement on the matters specified in paragraphs 3 and 4 of the Order.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the financial statements.
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