TO THE MEMBERS OF
PMCC INTERNATIONAL FINANCIAL SERVICES LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of F MEC INTERNATIONAL FINANCIAL
SERV ICES LIMITED (the Company), which comprise the Balance Slice! as .at March 31. 2023.
the Statement oflroftt and Loss (including Other l omprchensivc Incomei,
the Statement of Changes in Equity and the Statement of Cash Plows for the year ended on
that date and a summuiy of significant accounting policies and other explanatory
information dure matter referred to ns the financial statements ).
In our opinion and to the best of out information and according to the explanation
given to us. the aforesaid financial statements give the information required by the
Companies Act. 2013 (the "Act") in the manner so required end give a true and
fair view in conformitv with the Indian Accounting Standards prescribed under section 133
of ihe Act read wiih the l urn panics 1 Indian Accounting Standards) Rules. 2(11 c,
as amended, ("Ind AS ) and other accounting principles generally accepted in India,
of the state of a Hairs 01 the Company its at March 31. 2023 and its profit, total
comprehensive income, changes in equity and its cash flow s for the year ended 011
that date.
liusis fur Opinion
We conducted our audit of the linuneial statements in accordance with Standards >11
Auditing C*SA"s) specified under section I43( ID) of the Act Our responsibilities
under those Standards arc further described ir? the Auditors Responsibilities for the
Audit of the financial Statements section of our report We are independent of the Company
in accordance with the-1 ode of ? .hies issued by the Institute of Chartered Accountants
of India ("KM") together with the ethical requirements that are relevant to our
audit of the financial statements under the provisions of the Act and the Rules made
thereunder, and we have fulJillcd our other ethical responsibilities in accordance with
these requirements and the ICAI s Code of Ethics. We believe hat the audit evidence we
have obtained by us is sufficient and appropriate to provide a huso lor our audit opinion
on the financial statement %
Key Audit Matters
Wc have detenu mod that there are no key audit matters to communicate in our report
Information Oilier than the Financial Statements and Auditors Report Thereon
The Companys Hoard of Directors is responsible for the other information, lhe other
information comprises the information included in the Management Discussion and Analysis,
Hoards Report including Anrtexures to Hoards Report. Corporate Governance Report and
Shareholders Information, hut dues not include the financial statements and our auditors
report thereon
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and. in doing so, consider whether the other information is materia
I h inconsistent with the financial statements or our knowledge obtained during the course
of our audit or otherwise appears to he materially misstated
If. based on the work wc have performed, we conclude that there is u material
mivitaicmcnt of this other information, we are required to report that fact, We have
nothing to report in this regard.
Responsibilities of Management anil Those Charged with Governance for the Financial
Statements
Hie Companys Board of Directors is responsible lor the matters stated in section I
>4<5) of the Act with respect to the preparation of these financial statements that
give a true and lair view of the financial position Financial performance, including other
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS und other accounting principles generally accepted in Indio, 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 arc reasonable und prudent; and
design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring ihe accuracv and completeness of the accounting
records, relevant to die preparation and presentation of the financial statements that
give a true ami fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing die
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 li > liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors ore also responsible for overseeing the Companys (Inaneint
reporting process.
Auditor s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether ihe 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 nl assurance. but is not a
guarantee that an audit conducted in accordance with SAs will always detect o material
misstatement when it exists. Misstatements can arise 1mm 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 pan 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 Iraud or error, design uud perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. Hie risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as Iraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under -.eelton
143l >)(i : of the Act, wc arc also responsible lor expressing our opinion on whether
the Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management
• Conclude on the appropriateness of 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 asa going concern. If wc conclude that a material uncertainty exists,
Wc are required to draw attention in our auditors report to the related disclosures in
the financial statements or. if such disclosures arc inadequate, to modify our opinion
tJur conclusions are based on the audit evidence obtained up to the date of our auditors
However, future events or conditions may cause the Company to cease to continue as a going
concern.
• i-valuate the overall presentation, structure and content of the financial
statements, including the disclosures, und whether the financial statements represent the
underlying transactions and events in a manner that achieves lair presentation
Materiality is the magnitude of misstatements in the financial Matcmcnts that,
individually or in aggregate, makes it pmbuhlc that the economic decisions of a reasonably
knowledgeable user u! the financial statements may be influenced. We consider quantitative
materially and qualitative factors in (i) planning ihe scope of our audit work and in
evaluating the results of our work, and (ji) to evaluate the effect of any identified
misstatements in the financial statements.
We communicate with those charged with governance regarding, among other malterv. die
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
Wc oJso provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, ami to communicate with them
all relationships and other matters thnt may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
from the matters communicated w ilh those charged w ith governance, we determine those
matters that were or most significance in the uudit of the financial statements of
the current period and arc therefore the key audit matters. We describe these matters in
our auditors report unless law or regulation precludes public disclosure about the matter
or w hen, in extremely rare circumstances, we determine that a matter should not he
communicated in our repop 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
I. As required by Section 143(3) of the Act, based on our audit we repun that
?) Wc have sought and obtained all ihe information and explanations which to the best
of out knowledge and belief were necessary for the purposes 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 Pro lit and Loss including Other ( imprchensivc
Income. Statement of Changes in Equity and die Statement of Cash Flows deall with by this
Report urc in agreement with the books of account,
d) In our opinion, the aforesaid financial statements comply with the Ind VS specified
under Section 133 of the Act.
e) On the basis of the written representations received from the director- as -m March
31, 2023 and taken on record by the Hoard oflJircctors. none of the directors i-.
disqualified js on March 31. 2023 from bong appointed as a director in terms of section
164 (2) f the Act.
0 With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer u> our separate Report m Armcxure A". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls with reference to financial statements.
g) With respect to the other matter to he included in the Auditors Report in
accordance wiih the requirements of section 197( 16) of the Act. as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid/ provided by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act
H) With respect to the other mutters to be included in the Auditors Report in
accordance with Rule 11 of the Companies ( Audit and Auditors) Rules. 21)14 as amended, in
our opinion and to the best of our information and according to the explanations given to
us
i. Hie Company dews not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivatives contracts
for w hich there were am material foreseeable losses
iri. There were no amounts which required to be translerred to the Investor Education
and Protection I find by the Company
iv. (a) The Management has represented thut. to the best of its knowledge and belief,
no funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested leither From borrowed funds or share premium or any other sources or
kind of funds) by the ( ompany to or in any other person or entity, including
foreign entity ("Intermediaries"), with the understanding, whether, recorded in
writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or
invest in other poisons or entities identified in any manner \v hatsoever by or on behalf
of the Company ("Ultimate Betu-ficittrlcs") 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 know ledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including lorvign entity ("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 nr the like on behalf of the
Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe
that the representations under clause (i) and (iil ol Rule II (e), as provided under (a)
and (b) above, contain any material misstatement
v. The Company has not declared or paid any dividend during the year
vl. Proviso to Rule 3(1) of Lhe Companies (Accounts) Rules. 2014 for maintaining books
of account using accounting software w hich has u feature ol recording audit trail (edit
log) facility is applicable to the fompum with effect from April I. 2024. and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules,
2014 is not applicable for the financial year ended March >1 202 V
2. As required by the Companies (Auditors Report) Order, 2020 the "Order")
issued by the Central Government in terms of Section 143 ( 11) of the Act. we give
in "Annexure B a statement on the matters specified in paragraphs 3 and 4 of the
Order.
For SAN JAY K SINt.HAL & CO
Chartered Accountants
FRN024M7N
(Sanjay Kumar Slrtftlml)
Partner
M. No. 503475
LOIN: 23503475BGSWAV8764
Place: Delhi
Dale: 29/05/2023
ANNEXURE "A" TO I HE INDEPENDENT AUDITORS Rf PORT
(Referred to in paragraph 1(f) under Report on Other Legal and Regulator*
Requirement* section nf nur report to the Members of F Mec International Financial Sen
ices Limited of c\cn dale)
Report on the Internal Financial Control* with reference to Financial Statements under
Clause (i) of sub-section 3 of Section 143 nf the Companies Act, 2013 ("the
Act")
We huve audited the internal financial controls with refence to financial Statements of
F MEC INTERNATIONAL FINANCIAL SERVICES LIMITED (the "Company ) as ot March 31 2023
in conjunction with our audit of the financial statements of the Compan* lor the year
ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining interna)
(inaneml controls with reference to financial statements based on the internal control
o*er 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 (the K M"). The>e responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct oi its business, including adherence to
companys policies, the safeguarding of its assets, the prevention and detection of Ruuds
and errors, the accuracy and completeness of the accounting records, and the timely
preparation of rel iable financial information, os required under the Act
Auditors Responsibility
Our responsibility is to express an opinion on the C ompanys internal financial
controls with reference to financial statements bused on our audit. We conducted Our audit
in accordance with the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting tthe "Guidance Note") issued bv the ICAI and the Standards
on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls with reference tci financial statements. Those
Standards and the Guidance Note require that *ve comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whcihci adequate
internal financial controls with reference to financial statements wns csinhlishcd 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 with reference to financial statements and their operating
effectiveness Our uudit of internal financial controls with reference to financial
statements included obtaining an understanding ol internal financial controls w ith
reference to financial statements, assessing the risk thnt n mulcrinl weakness exists, and
testing and evaluating the design and operating effectiveness cif internal control based
on the assessed risk. The procedures selected depend on the auditors judgement, including
the assessment of the risks of material misstatement of the financial statements, w hether
due to fraud nr error.
We believe that ihc audit evidence we have obtained, is sufficient mid appropriate to
provide a basis for our audit opinion on the Companys internal financial controls with
reference to financial statements.
Meanint> ?f Internal F inancial Controls with reference lu Financial Statements
A companys internal financial control with reference to financial statements is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting .ind the preparation of financial statements lor external purposes in accordance
with general!) accepted accounting principles. A companys internal financial control with
reference to financial statements includes those policies und procedures that (1) pertain
to file maintenance of records that, m reasonable detail, accuratcl} 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 w ith 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
companys assets that could base a material effect oil the financial statements.
Inherent Limitations of Internal Financial Controls w ith reference to Financial
Statements Because of the inherent limitations of internal financial controls over
linancral reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
delected. Also, projections of any evaluation of the internal financial controls with
reference to financial statement- to future period* are subject to the risk that the
internal financial control with reference to financial statements may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may dclcrianitc.
Opinion
In our opinion, to the best of OUT information and according to the explanations
given to us. (he Company has, in all material respects, an adequate internal
financial controls with reference to financial statements and such internal financial
controls with reference to financial statements were operating effectively us at March 31,
2023, based on the criteria for internal financial control with reference to financial
statements established by the Company considering the essential components of
internal control *tuled in the Guidance Kote on Audit of Internal f inancial C
ontrols Over Financial Reporting issued by the ICAI
Annex ore B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements
section of our report in the Members of F Mec International Financial Services Limited of
even date)
fo the best of our information and according to the explanations provided to us
by the Company and the books of account and records examined by us in the normal course of
audit, we state that
i. In respect of the Companys Property. Plant and Equipment and Intangible Assets:
a. A, rhe company is maintaining proper records showing Full particulars, including
quantitative details and situation of Property. Plant and Equipment.
B. The company is maintaining proper records showing full particulars of inlnngible
assets.
b. 1 he Property, Plant and Equipment have been physically verified by die management
at reasonable intervals and no material discrepancies were noticed on such verification.
c. I he company docs not own any immovable property as on the Balance Sheet date.
d. The Company has not revalued any oT its Property Plant and Equipment
(including right-of-ttse assets) and intangible assets during the year
e. No proceedings have been iniLiatcd during the year or are pending against the <
ompam as at Mnrch 31. 2023 for holding any bciui mi property under the Henami I ran sue
turns (Prohibition) Act, I*>88 (osamended in 2016) and rules made thereunder
ii a. Ehc Company does not have any inventory as on the Balance Sheet date Accordingly
reporting under clause 3 (Ii) (u ) of the Order is not applicable to the Company
b. fhe Company has not been sanctioned working etiptlal limits in excess of * 5 crone,
in aggregate, at any points of time during the year, from banks or financial institutions
on the basts of security of current assets and hence reporting under clause 3(ii) (b: of
the Order is not applicable.
iii. The Company has not made investments in. Companies and granted unsecured loans to
other parties, during the year in respect ol which:
a The Company is a Non- Banking Financial Company, whose principal business is to give
loans, and hence reporting under clause 3(iii) la) of the Order is not applicable
b. In our opinion, the investments made and the terms and conditions of the grant of
loans during the year are. prima fucie. not prejudicial to the Companys interest
c. In respect of loans granted by the Company, the schedule of repayment of principal
and payment of interest has been stipulated and the repayments of principal amounts and
receipts of interest arc generally been regular as per stipulation.
d. In respect of loans granted by the Company, there is no overdue amount
remaining outstanding as at the balance sheet date
c. The Company is a Non- Banking Finunuiul Company, whose principal business is to give
loans, and hence reporting under clause 3(iii) (c) of the Order is not applicable.
f. The Company has granted loans or advances In the nature of loans either repayable on
demand or without specifying any terms or period of repayment during the year aggregating
to R.s. 416.64 :,ac>. which is 88.68% to total loans granted
The Company has not made investments in firms anti Limited Liability Partnerships
during the year. Further the Cum puny has not provided any guurantcc or security or
granted any advances in the nature of loans, secured or unsecured, to C ompanies, Firms, I
imited I iability Partnerships or any other parties.
iv The Company has complied with the provisions of Sections 185 and 186 of the
Companies AeL 2013 in respect of loans grunted, investments made and guarantee^ and
securities provided, os applicable.
v The Cum puny has not accepted un\ deposit or amounts which are deemed i be deposits
Hence, reporting under clause 3{v) of the Order is not applicable
vi. lhc maintenance of cost records has not been specified by the Central Government
under sub-section (I) of section MS of the Companies Act. 2013 lor the business activities
curried out by the Company. Hence, reporting under clause tvi) of the Order is not
applicable to the Company.
vii. In respect of statutory dues.
(?) In our opinion, the Company has generally been regular in depositing undisputed
statutory dues, including Goods and Services tax. Prov ideal Fund, Employees Stale
Insurance, Income lax. Sales Tax. Sen ice Tax, duty of Custom, duty of Excise. Value Added
rax. Cess and other material statutory dues applicable to it with the appropriate
authorities.
There were no undisputed amounts payable in respect of Goods .md Service tax Provident
Fund. Employees State Insurance. Income Tax. Sales lav Service Tax. duly of Custom, duty
of Excise, Value \dded lax. Cess and other material statutory dues in arrears as at March
31. 2023 for u period of more than six months from the date they became payable.
(b) There were no undisputed amounts payable in respect of statutory dues referred to
in sub-clause (a).
viti There were no transactions relating to previously 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).
is a. fhc companv has not defaulted in repayment of loans or other borrowings or m the
payment of interest thereon to any lender.
b The Company lias not been declared wilful defaulter by any bank r financial
institution or government or am government authority.
c. The Company has not taken any term loan during the year and there arc no outstanding
term loans at the beginning of the year und hence, reporting under clause 3(iv) (c) of the
Order is not applicable
d On un overall examination of the financial statements of the Company, it has not
raised any funds on .short-term basis and hence, reporting under clause 3(ixi (d> of
the Ordi is not applicable.
c. The Company does not have any subsidiaries, associates or joint ventures and hence,
reporting under clause 3(i.\) (e) of the Order is not applicable.
I flic Company does not have any subsidiaries, associates dr joint ventures anti hence,
reporting under clause 3(ix) (0 of the Order is not applicable.
x. a. live Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year nnd hence reporting under clause
3(x) (a) of the Order is not applicable.
b. During ihe year, the Company lias not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and lienee
reporting under clause 3(x) (b) of the Order is not applicable.
xi. a. No fraud by the Company and no fraud on Ihe Company has been noticed or reported
during the year.
b. No report under sub-section (12) of section 143 of die Companies 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. No whistle blower complaints received by the Company during the year and hence
reporting under ctauv^JUxi) (cj of the Order is not applicable.
xii. The Company is not a Nidhi Company and hence reporting under clause <xii) o(
the Order is not applicable
xiii In our opinion, the Company is in compliance with Section 177 mid IKS of the
Companies
Act, 2013 with respect to applicable transactions with the related parties and the
details of related party transactions have been disclosed in the financial statements as
required by the applicable accounting standards.
Xtv. a. In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
b. Wc have considered, the internal audit reports for the year under audit, issued to
the Company during the year and til! dale, in determining the nature, timing and extent of
our audit procedures.
xv. In our opinion during the year the Company has not entered into any non-cash
transactions with its Directors or persons connected with its directors and hence
provisions of section 192 of the Companies AcL 2013 arc not applicable to the Company.
xvi. a. The company is required to be registered under section 45*1 A of the Reserve
Hank of India Act, 1934 and the registration has been obtained by the Company, which is
14.01129.
h I he company luts not conducted any Non-Banking Financial nr Housing Finance activ
ities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as
per the Reserve Hank of India Act, 1934.
c. The company is not a Core Investment Company (C1C) as defined in the regulations
made by the Reserve Hunk oT India and hence reporting under clause (xvi) (c) and fd) of
the Order is not applicable.
xvii fhc Company has not incurred cash losses during the financial year covered h>
our audit and the immediately preceding financial year
vviil. Ihere has been no resignation of the statutory auditors ol the Companv during
the year.
xix. On the basis of the financial ratios, ageing and expected dates of realisation f
financial us sets and payment of financial liabilities, other information accompanying (he
financial statements and our knowledge of the Board of Directors and Management plans und
based on our examination of the evidence supporting the assumptions, nothing has come in
our attention, which causes us to believe that any mutcrial uncertainty exist-, as on the
duu- of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they tall 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. Wc further state that our reporting is based -m the
facts up to
Ihc date of the audit repon and 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 b> the Company as and w hen they lull due.
x\. ITie provisions vil section 135 of the Companies Act does not applicable to the com
pans and hence reporting under clause (xx) (a) and (b) of the Order is not applicable.
xxi. Ihc Company docs not have any subsidiaries, associates or joint ventures,
therefore not prepared consolidated financial statements and hence reporting under
clause (xxi) of the Order is not applicable.
For SAN JAY K SINt.HAL & CO
Chartered Accountants
FRN024M7N
(Sanjay Kumar Slrtftlml)
Partner
M. No. 503475
LOIN: 23503475BGSWAV8764
Place: Delhi
Dale: 29/05/2023
+91-9892691696
