To
The Members of
M/S MAGNUM VENTURES LIMITED
Report on the Audit of Financial Statements Opinion
We have audited the financial statements of M/S MAGNUM VENTURES LIMITED
("the Company"), which comprises of the Balance Sheet as at 31st March 2023, the
Statement of Profit and Loss (including Other Comprehensive Income), Statement of Cash
Flows for the year ended, Statement of Changes in Equity 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 Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India including Indian Accounting
Standards (‘Ind AS) specified under Section 133 of the Act, of the state of
affairs (financial position) of the Company as at March 31, 2023, and profit and its cash
flows equity 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 Companies Act, 2013. 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 together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, 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 opinion.
Key Audit Matter
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 our opinion thereon, and we do not provide a separate opinion on these matters. a)
We refer to the note no-01 of the financial statement, the
Company has revalued its Property, Plant & Equipment as on March 31, 2023 by
adopting revaluation model, in accordance with Ind AS 16, based on valuation report of an
independent registered valuer. Earlier these Property, Plant & Equipment were valued
on cost model. The effect of revaluation has been recognized in Other Comprehensive Income
and credited to
Revaluation Surplus in Other Equity. Revaluation of PPE is consider to be a key Audit
Matter due to the magnitude of the underlying amount and judgement involved in the
assessment of fair value of these assets.
b) We refer to the note no-11 to the financial statement, the
Company has issued 1,77,50,000 warrants convertible into equivalent nos. of equity
shares at an exercise price of Rs. 25 (including a premium of Rs. 15 per warrant) under
preferential allotment. Further the company has allotted 45,00,000 equity shares of face
value of Rs. 10 each fully paid up on preferential basis.
Emphasis of Matter
a) Balances of M/s Alchemist Asset Reconstruction Company
Limited as on March 31, 2023 are subject to confirmation and any variation would be
subject to reconciliation and adjustment thereon and it may impact the true and fair view
of the affairs. b) The company and its director Including erstwhile directors and company
secretary had received the show cause notice dated September 02, 2022 U/S 11(1),11(4),
11(4A), 11B(1),
11B(2) read with section 15HA and section 15HB andthe statement ofchangesin of
Securities
Exchange Board of India Act 1992 and Rule 4 of Securities Exchange Board of India Rules
1995 subsequent to the investigation conducted by the Securities Exchange Board of India
for the year ended March 2017 to March 2020. The company has filed its detailed submission
on various dates in response to the said notice and no provision for any penalty or fines
(if Imposed) has been accounted in the financials. c) Balance of Debtors, Creditors &
Advances as on March
31, 2023 are subject to confirmation and reconciliation consequential effect (if any)
on the financial statement remains unascertained. d) The inventory has been physically
verified by the management and it being a technical matter we are unable to comment upon
the quantity, pricing and method being used for valuation of the Inventory and have relied
upon the value and quantity certified by the management. e) Refer Note No. 6 under other
notes in Notes to Accounts annexed with the financial statements for the year ended
March 31, 2023 wherein the total outstanding debtors for the year ended March 31, 2023
amounting to Rs. 3990.17 Lakhs include Rs.33.32 lakhs which are due for more than six
months Our opinion is not modified in respect of the above emphasis.
Information other than the financial statements and auditors report thereon
The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Annual
Report, but does 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
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance the accounting
principles generally accepted in India, including the Ind AS specified under section 133
of the Act.
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 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, 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
audit findings, 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 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 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
Standards on Auditing 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 scepticism 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 conditionsthatmaycastsignificantdoubt 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 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 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 financial statements of the
current period 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.
ReportonOtherLegalandRegulatoryRequirements
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 "Annexure A", a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2. Further to our comments in Annexure A, 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.
(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, and the Cash Flow Statement
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.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164 (2) of the Act. (f) We have also audited the internal financial controls over
financial reporting for the Company as on 31 March 2023 with respect to the adequacy of
the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls. Refer to our separate Report in "Annexure B".
(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) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us: i. The Company, as detailed in
Note 31(B) to the
Financial Statements, has disclosed the impact of pending litigations on its financial
position as at 31 March 2023. ii. The Company did not have any long-term contracts
including derivative contracts for which there were any material foreseeable losses as at
31 March 2023. iii. There were no amounts required to be transferred, to the Investor
Education and Protection Fund by the
Company during the year ended 31 March 2023.
For Aggarwal & Rampal
Chartered Accountants
FR No. 003072N
Vishal Kohli
(Partner)
Membership No: 504122
UDIN: 23504122BGWRNX9063
Place: Ghaziabad Date: May 29, 2023
"Annexure A" to the Independent Auditors Report
With reference to the Annexure A referred to in the Independent Auditors Report to the
members of the M/S MAGNUM VENTURES LIMITED on the financial statements for the year
ended 31 March 2023, we report the following: i. a) The company has maintained proper
records showing full particulars, including quantitative details and situation of
Property, Plant & Equipment. b) According to the information and explanations given to
us, the Property, Plant & Equipments are physically verified by the management on
annual basis which in our opinion is reasonable, having regard to the size of the company
and nature of its assets. As per information and
explanationsgiventous,nomaterialdiscrepancieswerenoticedonsuchverification. c) According
to the information and explanation given to us and on the basis of our examination of the
records, the title deeds of the immovable properties are held in the name of the Company.
d) The company has revalued its Property, Plant and Equipments under the revaluation
model based on the valuation made by
Registered valuer and no intangible assets revalued during the year.
The details of change in the aggregate of the net carrying value, pursuant to the
revaluation as stated above, Property, Plant & Equipment is as follows;
Description |
Amount of change |
Percentage of Change |
Remarks |
| Property, Plant & Equipment |
Rs. 73075 lakhs |
407% |
Refer note-01 of the financial statement. |
e) According to the information and explanation given to us, no proceedings have been
initiated or are pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 and rules made thereunder. ii. a) According to
the information and explanations given to us, the inventory has been physically verified
during the year by the management. Since it being a technical matter we are unable to
comment upon the quantity, pricing and method being used for valuation of the inventory
and have relied upon the value and quantity certified by the management b) As explained to
us, during any point of time of the year the Company has not been sanctioned any working
capital limits from banks or financial institutions on the basis of security of current
assets. iii. As explained to us, the Company has not made any investments in or provided
any guarantee or security or granted any loan, secured or unsecured, to companies, firms,
Limited Liability Partnerships or other parties or to promoters or related parties. iv. In
our opinion and according to the information and explanations given to us, the Company has
not granted any loans or made any investments, guarantees or security to which the
provisions of section 185 and 186 of the Companies Act 2013 apply. v. According to the
information and explanation given to us, the company has not accepted any deposits or any
amounts that are deemed to be deposits under the directives issued by the Reserve Bank of
India to which the provisions of Section 73 to 76 of Companies Act,
2013 apply. vi. The Company has prepared and maintained cost records as prescribed by
Central Government under sub section (1) of section 148 of the Companies Act 2013.
vii. a) The company is generally regular in depositing undisputed statutory dues
including applicable provident fund, employees state insurance, income tax, goods and
service tax, sales tax, service tax, duty of customs, duty of excise, value added tax,
cess and any other statutory dues to the extent applicable to it. Further there are no
undisputed amounts payable in respect thereof were outstanding at the year-end for a
period more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no statutory
dues as mentioned in sub-clause (a) which have not been deposited on account of any
dispute except the following:
Name of the Statute |
Nature of Dues |
Assessment Year |
Amount Involved (Rs.) |
Forum where dispute is pending |
| Service Tax Law |
SCN for Service Tax from Hotel |
2010-11 |
1,64,00,749 (Plus Interest & Penalty) |
Order passed in company favour, but department filled appeal in
Allahabad High Court |
viii. There are no amounts that are in the nature of undisclosed transactions or
amounts surrendered as income in assessments under the Income Tax Act, 1961. ix. a) The
company had not defaulted in repayment of loans and borrowing from financial institutions
and banks stated below. b) According to the information and explanations given to us, the
company is not declared wilful defaulter by any bank or financial institution or other
lender. c) No term loans have been availed by the Company during the year.
d) On an overall examination of the financial statements of the Company, funds raised
on the short-term basis have prima facie not been used during the year for long term
purposes by the Company. e) The Company did not have any subsidiary or associate or joint
venture during the year and hence reporting under clause 3(ix)(e) of the Order is not
applicable f) The Company did not have any subsidiary or associate or joint venture during
the year and hence reporting under clause 3(ix)(f) of the Order is not applicable g) The
company has not raised any money by way of initial public offer or further public offer
(including debt instruments) and term loans raised during the year were applied for the
purpose for which those were raised. x. According to the information and explanation given
to us and based on our examination of the records of the company, the Company has made
preferential allotment of shares during the year and funds raised have been used for the
purpose for which the funds were raised. xi. Based upon the audit procedures performed and
information and explanations given to us, no fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the year under audit. xii. In
our opinion and according to the information and explanations given to us, the Company is
not a Nidhi company, hence clause (xii) of paragraph 3 of the Order is not applicable to
the Company. 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 the provisions of section 177 and 188 of the Act where applicable and
the details of such transactions have been disclosed in the financial statements as
required by the applicable accounting standards. xiv. a) In our opinion and according to
the information and explanation given to us, the Company has adequate internal audit
system which commensurate with the size and nature of its business. b) The reports of the
Internal Auditors for the period under audit were considered by us. 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. Therefore, provisions of clause (xv) of paragraph 3 of the
Order are not applicable to the Company. xvi. The Company is not required to be registered
under section 45-Ia of the Reserve Bank of India Act 1934. xvii. According to the
information and explanations given to us, the Company has not incurred cash losses in the
current and immediately preceding financial year. xviii. There has been no instance of any
resignation of Statutory Auditors occurred during the year. xix. On the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial information accompanying the financial statements, and our knowledge of the
Board of Directors and management plans, we are of opinion that no material uncertainty
exists as on the date of our audit report that 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. xx. According to the information and
explanations given to us, there is no pending amount which is required to be transferred
to a fund specified in Schedule VII of the companies Act within financialyear in
compliance with periodofsixmonthsoftheexpiryofthe second proviso to sub-section (5) of
section 135 of the said Act; xxi. The company does not have any subsidiaries or associate
or joint ventures the accounts of which are to be consolidated and as such there are no
consolidated financial statements.
For Aggarwal & Rampal
Chartered Accountants
FR No. 003072N
Vishal Kohli
(Partner)
Membership No: 504122 UDIN: 23504122BGWRNX9063 Place: Ghaziabad Date: May 29, 2023
"Annexure B" to the Independent Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act ")
We have audited the internal financial controls over financial reporting of M/S
MAGNUM VENTURES LIMITED ("the Company") as of March 31, 2023 in conjunction
with our audit of the financial statements of the Company for the year ended as at that
date.
Responsibility of Management and Those Charged With Governance for Internal Financial
Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India.
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records and the timely preparation of reliable
financial information, as required under the Companies Act, 2013.
Auditors Responsibility for the Audit of the Internal Financial Controls
Our responsibility is to express an opinion on the Companys internal financial
controls over the financial reporting based on our audit. We conducted our audit in
accordance with the Guidance
Note on Audit of Internal Financial Controls over Financial Reporting (the
"Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under Section 143(10) of the Companies Act, 2013 to the extent applicable to an
audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established 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 over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the
Companys internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that:
(1) Pertain to the maintenance of records that, in reasonable detail, accurately 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 with
authorities 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 have a material effect on the financial
statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of the internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of the changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion and according to the information and explanations given to us, the
Company has an internal financial controls system over financial reporting however it is
needed to be further strengthened to commensurate with the size of the company and nature
of the business.
For Aggarwal & Rampal
Chartered Accountants
FR No. 003072N
Vishal Kohli
(Partner)
Membership No: 504122
UDIN: 23504122BGWRNX9063
Place: Ghaziabad
Date: May 29, 2023
+91-9892691696
