We have audited the accompanying financial statements of Shelter Infra Projects Limited ("the
Company"), which comprise the Balance Sheet as at 31March 2024, 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 tinancial 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 ("hid AS") and other accounting principles generally accepted in India, of the
state of affairs of the company as at 3IstMarch 2024, the Loss, 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 in
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 observations
(i) Non provision against development rights cost amounting to Rs.556.30 lakhs (refer to note No.35(j)
which appears unrecoverable;
(ii) Liability of lease rent against land taken from local municipality for a period of 99 years has not been
provided for in terms of Ind AS - 116 (refer to note no.35(i);
Statutory Audit Report for the year ended 31s<Mareh, 2024 of Shelter Infra Projects Limited
(iii) Management's inability to determine fair value of non-current investments in equity instruments book
valuing Its.94.76 lakhs with consequent impact on OC’I
(Iv) Actuarial Valuation not done in this Financial Year as per IND -AS -19 no such Change from the last year
Actuarial Audit Report
ey Audit Matters
Key audit matters are those matters that, in our professional judgement, 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 of opinion thereon, and we do not provide a separate opinion on
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Kev audit matter
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How our audit addressed the kev audit matters
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A. Revenue Recognition
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Our key procedures included the following:
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Revenues for the company are primarily from
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a)
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Assessed the appropriateness of the company's
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construction contract on cost plus profit basis and
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revenue recognition accounting policies by
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related income.
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comparing with the applicable accounting
standards. No discount, incentive or rebate is i
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Bills are raised against construction contract
uptoprogressive billing stage in terms of
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involved in respect of the company.
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certification / acceptance by client as per
contract rates.
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b)
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Tested the operating effectiveness of the general IT
control environment and key IT application controls
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Rental income is recognized on accrual basis
w hich are free from dispute
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over recognition of revenue,
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Further, the company focuses on revenue as a
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c)
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Performed test of details:
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key performance measure. Therefore, revenue
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i)Agrced samples of contractual agreements
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was our area of focus included whether the
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^tenancy agreement documentation
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accruals were misstated and appropriately
valued, whether the significant transactions had
been accurately recorded in the Statement of
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and approvals; and
ii) Obtained supporting documents for ;
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Profit and Loss.
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transactions recorded either side of year end to
determine whether revenue was recognized in
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Refer corresponding note for amounts recognized
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the correct period.
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as revenue from sale of products
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<0
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Performed focused analytical procedures:
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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 bv considering both
internal and external benchmarks, overlaying our
understanding of enterprise; and
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e)
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Considered the appropriateness of the company's
description of the accounting policy, disclosures ;
related to revenue, and whether these arc adequately I
presented in the financial statement.
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these matters.
We have determined the matters described below to the Key Audit matters to be communicated in our Report.
Slalutorv Audit Report for the sear ended 31st March. 2024 of Shelter Infra Projects Limited /
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B. Litigations and claims — provisions and
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Our key procedures included the following:
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contingent liabilities
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• Assessed the appropriates of the company's
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As disclosed in Notes detailing contingent liability
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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 applicable accounting standards;
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involved in direct, indirect tax and other
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• Assessed the company process for identification
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litigations ( litigations') that are pending with
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of the pending litigations and completeness for
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different statutory authorities.
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financial reporting and also for monitoring of
significant developments in relation to such
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Whether a liability Ls recognized or disclosed as a
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pending litigations;
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contingent liability in the financial statements is
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• F.ngaged subject matter specialists to gain an
understanding of the current status of litigations
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inherently judgmental and dependent on a number
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and monitored changes in the disputes, if any,
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of significant assumptions and assessments.
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through discussions with the management and by
reading external advice received by the company.
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1 he amounts involved are potentially significant
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where relevant, to establish that the provisions had
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and determining the amount, if any, to be
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been appropriately recognized or disclosed as
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recognized or disclosed in the financial
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lvquiml;
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statements, is inherently
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• Assessed the company 's assumptions and estimates
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subjective.
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in respect of litigations, including the liabilities or
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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;
• Performed substantive procedures on the
underlying calculations sup|M>rting the provisions
recorded;
• Assessed the management's conclusions through
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C. Valuation of inv estments and impairment
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understanding precedents set in similar cases; and
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thereof
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Considering the appropriateness of the company's
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1. Non-Current Investments in
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description of the disclosures related to litigations and
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Unquoted equity instruments.
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whether these adequately presented in the financial
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statements.
Our key procedures included the following:
Non ascertainment of fair value by management
prompted qualificatory reference to the effect in ou>-
report
Verified with reference to banks' confirmation and
computation of interest accrued thereon.
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Statutory Audit Report for the year ended 3l" March, 2024 of Shelter Infra Projects Limited
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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
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Obtained details of completed indirect tax
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arovisions
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assessments and demands for the year ended March
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including matters under dispute which
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involves
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31, 2024 in uploaded context from management. We
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significant judgment to determine the
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possible
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involved our internal experts to challenge the
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outcome of these disputes.
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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, 2024 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 Repor'
including Annexures 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 ana.
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 lnd AS and other accounting principles generally accepted in India. Ihe respective Board
Statutory Audit Report for the year ended 31” March, 2024 of Shelter Infra Projects Limited
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;
• 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
Statutory Audit Report for the year ended 31st March, 2024 of Shelter Infra Projects Limited
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
anil ixlated 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.
• Obtain sufficient appropiiate 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.
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 know ledgeable 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
we identify during our audit.
We also provide those charged with governance with a statement that we hav e complied with relevant ethical
requirements regarding independence, and to communicate \v ith them all relationships and other matters that
Statutory Audit Report for (lie year ended 31st March. 202-4 of Shelter Infra I’ronsets Limited
may reasonably Ik- 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 Ik- 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 all the 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 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.
d) In our opinion, the aforesaid financial statements comply w ith 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 w ritten 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. 2024from
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 "Anncxure 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
Statutory Audit Report tor the year ended 31s March, 2024 of Shelter Infra Projects I imited
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A /
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 has not entered into derivative contracts. The company has entered into
long term contract in respect of which no material loss is foreseeable except for forfeiture
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of development rights appearing at Rs.556.30 lacs in the books of the company.
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the company.
iv. No fund has been advanced or loaned or invested by the Company to or in any other entity
or person including foreign entities or provide any guarantee or security as undertaken by
the Management.
v. No fund has been received by the Company from any person or entity including foreign
entity or provide any guarantee or security as undertaken by the Management.
vi. Nothing has come to our notice that has caused us to believe that the representation under
Clause (iv) and (v) above contain any material misstatement.
vii. No dividend or part was declared by Company during the year as per Section 123 of
Companies Act, 2013.
viii. The Company has used an 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 realted to financial reporting in the accounting software. Consequently
, we arc unable to comment on compliance of audit trail requirements by the said
software as envisaged under rule I l(g).
As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by
the Central Government in terms of Section I43(l l) of the Act, we give in "Annexure
2" a statement on the matters specified in paragraphs 3 and 4 of the Order.
pi w . • For BASU CHANCHAKI^DE^^^
Place: Kolkata CHARTERED ACCOUNTANTS
R. No.-304049c A \Pv
Date :27lh May 2024.
UDIN : 24053036BKBFF13627 / /
(SAWtR KU^aR GH^Sfl)
(y (MTno. 053036)
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