TO THE MEMBERS,
AJCON GLOBAL SERVICES LIMITED
REPORT ON THE AUDIT OF THE STANDALONE IND-AS FINANCIAL STATEMENTS
1. Opinion
We have audited the accompanying Standalone Ind AS financial statements
of Ajcon Global Services
Limited ("the Company"), which comprise the Balance sheet as
at March 31, 2023, the Statement of Profit and Loss, the statement of Cash Flow and the
Statement of Changes in Equity for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended ("Ind AS") and other accounting principles
generally accepted in India, of the state of affairs of the Company as at March 31, 2023
and its profit, total comprehensive income, changes in equity and its cash flows for the
year ended on that date.
2. Basis for opinion
We have conducted our audit of the standalone Ind-AS financial
statements in accordance with the Standards on Auditing(SAs), as specified under section
143(10) of the Companies Act,2013. Our responsibilities under those Standards are further
described in the ‘Auditors Responsibilities for the Audit of the Ind AS
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 the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the Act and the Rules there under, 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 audit opinion on the standalone Ind AS
financial statements.
3. Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the Ind AS financial statements of the current
year. These matters were addressed in the context of our audit of the Ind AS 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 the matters described below to be
the key audit matters to be communicated in our report.
Key Audit Matter |
How our audit addressed the Key Audit
Matter |
IT Systems and Controls |
We performed the following
procedures assisted by specialized IT auditors on the IT infrastructure and applications
relevant to financial reporting: |
The financial
accounting and reporting systems of the Company are fundamentally reliant on IT systems
and IT controls to process significant transaction volumes. |
Tested the design
and operating effectiveness of IT access controls over the information systems that are
important to financial reporting and various interfaces, configuration and other
identified application controls. |
Automated
accounting procedures and IT environment controls, which include IT governance, general IT
controls over program development and changes, access to programs and data and IT
operations, are required to be designed and to operate effectively to ensure accurate
financial reporting. |
Tested IT general controls
(logical access, change management and aspects of IT operational controls). This included
testing that requests for access to systems were appropriately reviewed and authorised. |
Tested the Companys
periodic review of access rights. We also inspected requests of changes to systems for
appropriate approval and authorization. |
Therefore, due to
the pervasive nature and complexity of the IT environment, the assessment of the general
IT controls and the application controls specific to the accounting and preparation of the
financial information is considered to be a key audit matter. |
In addition to the above, we
tested the design and operating effectiveness of certain automated and IT dependent manual
controls that were considered as key internal controls over financial reporting. |
Tested the design and
operating effectiveness compensating controls in case deficiencies were identified and,
where necessary, extended the scope of our substantive audit procedures. |
4. Other Information
The Companys Board of Directors is responsible for the other
information. The other information comprises of the Annual Report but does not include the
standalone Ind AS financial statements and our auditors report thereon.
Our opinion on the standalone Ind AS financial statements does not
cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the standalone Ind AS financial
statements, our responsibility is to read the other information identified above when it
becomes available and, in doing so, consider whether such other information is materially
inconsistent with the standalone Ind AS financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
When we read such other information, if we conclude that there is a
material misstatement therein, we are required to communicate the matter to those charged
with governance and to comply with the relevant applicable requirements of the standard on
auditing for auditors responsibility in relation to other information in documents
containing audited financial statements. We have nothing to report in this regard.
5. Responsibilities of Management for the Standalone Ind AS
Financial Statements
The Companys Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation of these Ind AS
financial statements that give a true and fair view of the financial position, financial
performance including total comprehensive Income, cash flows and changes in equity 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
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
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 the 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 Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements, management is
responsible for assessing the
Companys 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 are also
responsible for overseeing the Companys financial reporting process.
6. Auditors Responsibilities for the Audit of the Ind AS
Financial Statements
Our objectives are to obtain reasonable assurance about whether the
standalone Ind AS financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors 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 standalone Ind AS financial
statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the
standalone Ind AS 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 Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls with reference to financial
statements 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 managements 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
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors 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 auditors 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 Ind AS financial statements, including the disclosures, and
whether the Ind AS 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 Ind AS
financial statements for the financial year ended
March 31, 2023 and are therefore the key audit matters. We describe
these matters in our auditors 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.
7. 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 sub-section (11) of section 143 of the
Companies Act, 2013, 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 obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit. b) In our opinion,
proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books. c) The Balance Sheet, the Statement of Profit
and Loss including Other Comprehensive income, the Cash Flow Statement and Statement of
Changes in Equity dealt with by this Report are in agreement with the books of account; d)
In our opinion, the aforesaid standalone Ind AS financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended; e) On the basis of written representations
received from the directors as on 31st March, 2023 taken on record by the Board of
Directors, none of the directors are disqualified as on 31st March, 2023 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 with
reference to these standalone IND AS financial statements and the operating effectiveness
of such controls, refer to our separate Report in "Annexure B" to this report;
g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been
paid by the Company to its directors in accordance with the provisions of section 197 read
with Schedule V to the Act; 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 does not have any pending litigation which would impact its financial
position. ii. The Company did not have any long-term contracts including derivative
contracts for which there were any material foreseeable losses. iii. There were no amounts
which were required to be transferred to the Investor Education and Protection Fund by the
Company. iv. (a) The management has represented, that, to the best of its knowledge and
belief, other than as disclosed in notes to the accounts, 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, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
(b)The management has represented, that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, 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, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries; and
(c) Based on the information and details provided and other audit
procedures followed, nothing has come to our notice that has caused us to believe that the
representations under sub-clause iv(a) and (b) contain any material misstatement. v. The
Company has no declared and paid dividend during the year. vi. Proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 for maintaining books of account using accounting
software which has a feature of recording audit trail (edit log) facility is applicable to
the Company w.e.f. April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies
(Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,
2023.
For Bhatter& Co. |
Chartered Accountants |
FRN: 131092W |
Sd/- |
D. H. Bhatter |
(Proprietor) |
Membership No.: 016937 |
UDIN: 23016937BGSDRA6532 |
Place: Mumbai |
Date: 24.05.2023 |
"Annexure A" to the Independent Auditors Report
Referred to in paragraph 1 under the heading ‘Report on Other
Legal & Regulatory Requirement of our report of even date to the financial
statements of the Company for the year ended 31st March, 2023:- (i) In respect
of the Companys Property Plant & Equipments: (a) (A) The Company is maintaining
proper records showing full particulars, including quantitative details and situation of
Property, Plant and Equipment. (B) Company is no having intangible assets. Hence clause is
not applicable to the Company.
(b) As explained to us, all the property, plant and equipment have been
physically verified by the management during the year, which in our opinion, is reasonable
having regard to the size of the Company and nature of its assets. As informed to us, no
discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties (other than
properties where the Company is the lease and the lease agreements are duly executed in
favour of the lessee) are held in the name of the Company.
(d) The Company has not re-valued its Property, Plant and Equipment
(including Right of use assets) or intangible assets during the year ended 31 March, 2023.
(e) There are no proceedings initiated or are pending against the
Company for holding any benami property under the Prohibition of Benami Property
Transactions Act, 1988 and rules made thereunder.
(ii) In respect of Inventory:- a. The management has conducted the
physical verification of inventory at reasonable intervals. b. No discrepancies noticed on
physical verification of the inventory as compared to book records. The Companys
inventory comprise only of shares and securities. The Management during the year has
physically verified those stocks which were not in dematerialize form and the rest were
verified through Demat Statements of Depositories. In our opinion, the procedure of such
verification was reasonable and adequate, considering the size and nature of the business.
c. Company has maintained proper records of inventories. As explained to us, there was no
material discrepancies noticed on physical verification of inventories as compared to the
book records. d. The sanctioned working capital limits is less than rupees five Crore on
the basis of security of current assets. Hence, the said clause is not applicable to the
Company.
(iii) (a) According to the information and explanations given to us,
the Company has granted loans secured or unsecured, to companies, firms, Limited Liability
Partnerships or any other parties. The Company has not provided guarantees and securities
during the year. The aggregate amount of loan given and balance outstanding as at the
balance sheet date, with respect to loans given is as under:
Name of the Party |
Relationship |
Nature |
Amount during the year
(‘ lakhs) |
Balance outstanding
(‘ lakhs) |
Ajcon finance Limited |
Subsidiary Company |
Net Loan Given (Unsecured) |
127.90 |
239.00 |
(b) In our opinion, the investments made and other terms and conditions
of the grant of loans during the year are, prima facie, not prejudicial to the interest of
the Company. The Company has not given guarantees or provided securities during the year.
(c) In respect of loans granted by the Company, the repayments of
principal amounts are generally regular considering the stipulation to repayment.
(d) the schedule of repayment of principal and payment of interest has
not been stipulated and payable on demand.
(e) There is no overdue amount in respect of loans granted for more
than 90 days considering the stipulations to repayment.
(f) On the basis of examination of records, the Company has not granted
any loans or advances in the nature of loans either repayable on demand or without
specifying any terms or period of repayment during the year.
(iv) In our opinion and according to the information and explanations
given to us, the Company has not given guarantees or provided securities during the year.
The Company has complied with the provisions of section 185 and 186 of the Act with
respect to loans given and investments made as applicable.
(v) The Company has not accepted any deposits or amounts which are
deemed to be deposits, from the public within the directives issued by Reserve Bank of
India and within the meaning of Sections 73 to 76 of the Act and the rules framed there
under.
(vi) According to information and explanation given to us, the Central
Government of India has not prescribed the maintenance of cost records under Section
148(1) of the Act, for any of the activities carried on by of the Company.
(vii) 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
regular in depositing undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-Tax, Goods & Services Tax (GST), Duty of Customs, Duty of Excise,
Value added Tax, Cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable
in respect of the above were in arrears as at 31st March, 2023 for a period of more than
six months from the date on when they become payable.
(viii) According to the records of the Company examined by us, and
information and explanations given to us, there are no such transactions related to
unrecorded income that have been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961 (43 of 1961). (ix) (a) According to the
records of the Company examined by us and the information and explanations given to us,
the Company has not defaulted in repayment of loans or borrowings to banks. The Company
has not taken any loans from Government and has not issued any debentures.
(b) According to the records of the Company examined by us, and
information and explanations given to us, the Company is not declared wilful defaulter by
any bank or financial institution or other lender.
(c) Term loans were applied for the purpose for which the loans were
obtained.
(d) According to the records of the Company examined by us, and
information and explanations given to us, funds raised on short term basis have been not
been utilised for long term purposes.
(e) According to the records of the Company examined by us, and
information and explanations given to us, the Company has not taken any funds from
entities to meet obligations of its subsidiaries and there are no joint ventures and
associates.
(f) According to the records of the Company examined by us, and
information and explanations given to us, the Company has not raised any loans during the
year on the pledge of securities held in its subsidiaries and there are no joint ventures
and associates.
(x) (a) In our opinion and according to the information and
explanations given to us, the Company has not raised any money by way of initial public
offer or further public offer (including debt instruments) and hence reporting on clause
3(ix)(f) of the Order is not applicable.
(b) According to the records of the Company examined by us, and
information and explanations given to us, the Company has not made any preferential
allotment or private placement of shares or fully or partly or optionally convertible
debentures and hence clause 3(x) (b) of the Order is not applicable.
(xi) (a) 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 and not
have been informed of any such case by the Management.
(b) No report under sub-section (12) of section 143 of the Act has been
filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules,
2014 with the Central Government during the year and upto the date of this report.
(c) According to the records of the Company examined by us and
information and explanations given to us, there are no whistle blower complaints received
during the year.
(xii) In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi company and the Nidhi Rules, 2014 are not
applicable to it. Hence clause (xii), of the order are not applicable.
(xiii) According to the information and explanations given to us and
based on our examination of the records of the Company, transactions with the related
parties are in compliance with Sections 177 and 188 of the Act, and details of such
transactions have been disclosed in the standalone Ind AS financial statements as required
by the applicable Accounting Standards.
(xiv) (a) During the year, Internal audit has been carried out by the
Independent firm of Chartered accountants. In our opinion and according to the information
and explanations given to us, the scope and coverage is commensurate with the size of the
Company and the nature of its business.
(b) We have considered the internal audit reports for the year under
audit, issued by Company during the year and till date, in determining the nature, timing
and extent of our audit procedures.
(xv) According to the records of the Company examined by us, and
information and explanations given to us, the Company has not entered into non-cash
transactions with directors or persons connected with him and hence provisions of section
192 of the Act are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section
45-IA of the Reserve Bank of India Act, 1934, hence this clause is not applicable.
(b) The company has not conducted any Non-Banking Financial or Housing
Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank
of India as per the Reserve Bank of India Act, 1934 hence this clause is not applicable.
(c) The company is not a Core Investment Company (CIC) as defined in the regulations made
by the Reserve Bank of India hence this clause is not applicable.
(d) The group has no CIC (Core Investment Company) as part of the group
hence this clause is not applicable.
(xvii) According to the records of the Company examined by us, and
information and explanations given to us, the Company has not incurred cash losses neither
in the current financial year nor in the immediately preceding financial year.
(xviii) There has been no resignation of statutory auditor during the
year, hence reporting under clause (xviii) of the Order is not applicable.
(xix) On the basis of the financial ratios, ageing and expected dates
of realisation of financial assets and payment of financial liabilities, other information
accompanying the financial statements, the auditors knowledge of the Board of
Directors and management plans, there is no material uncertainty that exists as on the
date of the audit report and that the Company is capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date. We, however, state that this is not an assurance as to
the future viability of the company. We further state that our reporting is based on the
facts up to the date of the audit reportand we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance
sheet date, will get discharged by the company as and when they fall due.
(xx) The Company is not required to spend towards Corporate Social
responsibility (CSR) and hence clause 3(xx) of the Order is not applicable.
For Bhatter & Co. |
Chartered Accountants |
FRN: 131092W |
Sd/- |
D. H. Bhatter |
(Proprietor) |
Membership No.: 016937 |
UDIN: 23016937BGSDRA6532 |
Place: Mumbai |
Date: 24.05.2023 |
+91-9892691696
