To,
The Members Of,
JOY REALTY LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Financial statements of JOY REALTY LIMITED ("the
Company"), which comprise the Balance Sheet as at 31 March 2023, the Statement of
Profit and Loss, the Cash Flow Statement and the Statement of Changes in Equity for the
year then ended, and a summary of significant accounting policies and other explanatory
information (hereinafter referred to as "the financial statements").
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 the Indian Accounting Standards prescribed u/s 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 31st March, 2023 in equity and its cash flows for
the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those standards are further
described in the Auditors 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 Chartered Accountants of India (ICAI) together with the
ethical requirements that are relevant to our audit of the Financial Statements under the
provision of the Act and the rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, 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 our opinion thereon, and we do not provide a separate opinion on these matters.
Managements Responsibility for the 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 financial statements that give
a true and fair view of the financial position, financial performance, cash flows and
changes in equity of the Company in accordance with the Ind AS and accounting principles
generally accepted in India. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the Financial Statements, management is responsible for assessing the
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.
Auditors Responsibility 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 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 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 control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for 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 as a going concern. If we conclude that a material uncertainty does
not exists. 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 financial statements,
including the disclosures, and whether the 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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("The Order")
issued by the Central Government of India in terms of Section 143 (11) of the Act, we give
in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the
Order.
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 purposes of our audit; the Company so far as appears from
our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, Cash Flow Statement and the
Statement of changes in Equity dealt with by this Report are in agreement with the books
of account
d) In our opinion, the aforesaid Financial Statements comply with the Ind AS specified
under Section 133 of the Act read with the relevant rule 7 of the Companies (Accounts)
Rules, 2014;
e) On the basis of written representations received from the directors as on 31 March,
2023 taken on record by the Board of Directors, none of the directors is disqualified as
on 31 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 and the operating effectiveness of such controls, refer to
separate report of another Accountant. The said report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rule, 2014, as amended in
our opinion and to the best of our information and according to the explanation given to
us:
i. The Company does not have any pending litigations which shall impact its financial
positions.
ii. The Company does not have any long terms contracts for which provisions are
required to be made.
iii. The Company is not liable to transfer any amount to the Investor Education and
Protection Fund.
iv (a) The Management has represented that, to the best of its knowledge and belief, 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
person(s)/ entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
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, no
funds have been received by the Company from any person(s) or entity(ies), including
foreign entity ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall, 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;
(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 sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
v) No dividend has been declared by the company
Annexure A to the Auditors Report
The Annexure referred to in paragraph 1 under "Report on Other legal and
Regulatory Requirements" section of our Report to the members of the Company on the
Financial= Statements for the year ended 31st March 2023.
Statement on Matters specified in paragraphs 3 & 4 of the Companies (Auditors
Report) Order, 2020:
i) a) A) The Company has generally maintained proper records showing full particulars,
including quantitative details and situation of Property, Plant and Equipment.
B) The Company does not have any intangible assets.
b) As explained to us, the Company has physically verified fixed assets at periodic
intervals, and no discrepancies reported on such verification.
c) The company does not have any immovable property.
d) According to the information and explanations given to us and based on records of
the Company examined by us, the Company has not revalued its Property, Plant and Equipment
(including Right of Use) assets during the year.
e) According to the information and explanations given to us and based on records of
the Company examined by us, no proceedings have been initiated or are pending against the
Company as at March, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. ii) a) The Management has
conducted physical verification of inventory at reasonable intervals. In
In our opinion, the frequency of verification is reasonable. There are no discrepancies
reported on such verification.
b) According to the information and explanations given to us and based on records of
the Company, the company has not been sanctioned working capital limits in excess of Rs.
five crore,
iii) & iv) According to the information and explanations given to us, the Company
had made investments in M/s. Abhishek Properties, partnership firm but not provided any
guarantee or security or granted any loans or advances in the nature of loans, secured or
unsecured to companies, firms, Limited Liability Partnerships or other parties during the
year. However, the company has retired from the said firm from April 15,2022.
v) According to the information and explanations given to us, the Company has not
accepted deposits or amounts which are deemed to be deposits during the year. Hence, the
reporting under clause 3 (v) of the Order are not applicable to the Company.
vi) The maintenance of cost records has not been specified by the Central Government
under subsection (1) of section 148 of the Companies Act, 2013 for the business activities
carried out by the Company. Hence, reporting under clause (vi) of the Order is not
applicable to the Company.
vii) a) According to the information and explanation given to us and the records
examined by us, the Company is generally regular in depositing undisputed statutory dues,
including dues pertaining to provident fund, employees state insurance, income-tax
(except TDS) goods and service tax, duty of customs, cess and other statutory dues with
the appropriate authorities, wherever applicable. TDS payable is Rs. 53,32,967- as at
March 31, 2023, for a period of more than six months from the date they became payable b)
There are no statutory dues which are disputed.
viii) According to the information and explanations given to us and the records
examined by us, 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).
ix) a) According to the information and explanation given to us and the records
examined by us, the Company has not defaulted in repayment of loans or other borrowings or
in the payment of interest thereon to any lender. Hence reporting under 3(ix)(a) of the
Order is not applicable.
b) According to the information and explanation given to us, the Company has not been
declared wilful defaulter by any bank or financial institution or other lender.
c) According to the information and explanation given to us and the records examined by
us, the Company has taken term loan during the year and the same were applied for the
purpose for which the loan was obtained.
d) According to the information and explanation given to us and the records examined by
us, on an overall examination of the financial statements of the Company, funds raised on
short-term basis have, prima facie, not been used during the year for long-term purposes
by the . e) The Company does not have any subsidiaries, associates or joint ventures and
therefore the provisions of paragraph 3 (ix) (e) & (f) of the Order are not
applicable.
x) a) According the information and explanations given to us and the records examined
by us, the Company has not raised moneys by way of initial public offer or further public
offer (including debt instruments) during the year and hence reporting under clause
3(x)(a) of the Order is not.
b) According to the information and explanations given to us and the records examined
by us, the Company has not made any preferential allotment or private placement of shares
or convertible debentures (fully or partly or optionally) during the year and hence
reporting under clause 3(x)(b) of the Order is not applicable.
xi) a) Based upon the audit procedures performed by us, to the best of our knowledge
and belief and according to the information and explanations given to us by the
Management, no material fraud by the Company and no fraud on the Company, has been noticed
or reported during the year.
b) No report under sub-section (12) of section 143 of the 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) According to the information and explanations given to us and as represented to us
by the Management, there are no whistle blower complaints received by the Company during
the year.
xii) our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is 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 where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
xiv) The Company does have an adequate internal audit system commensurate with the size
and the nature of its business, and we have considered the same
xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
xvi) a) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934 and hence reporting under clause 3(xvi)(a) (b) (c) & (d) of the
Order is not applicable.
xvii) The Company has incurred cash losses of Rs. 1,21,38,104/- during the financial
year covered by our audit and immediately preceding financial year amounting to Rs.
62,24,987/-.
xviii) There has been no resignation of the statutory auditors of the Company during
the year.
xix) On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements and our knowledge and of the Board of Directors and Management plans
and based on our examination of the evidence supporting the assumptions, nothing has come
to our attention, which causes us to believe that any material uncertainty exists as on
the date 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 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 report 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 by the Company as and when they fall due.
xx) a) There are losses and therefore Corporate Social Responsibility (CSR) is not
applicable Accordingly, reporting under clause 3(xx)(a) & (b) of the Order is not
applicable for the year.
xxi) The Company is not required to prepare consolidated financial statements and hence
reporting under clause 3 (xxi) of the Order is not applicable.
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