To the Memebers of MANSI FINANCE (CHENNAI) LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of MANSI FINANCE (CHENNAI)
LIMITED (‘the Company ) which comprises the balance sheet as at 31st March 2023
, the statement of Profit & Loss Account,Statement of Changes in Equity and the Cash
Flow statement for the year ended and 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 the
Companies Act,2013 (the Act) in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023, and profit/loss, changes in equity and its
cash flow 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 obtained by
us is sufficient and appropriate to provide a basis for our opinion on the financial
statements.
Key Audit Matter
Key Audit Matters are those matters that, in our professional judgement, were of most
significant 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. We
determine in accordance with Para 10 of SA 701 that there were no key audit matters that
require significant attention of Auditor.
Information other than Financial Statement and Auditors Report thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises Boards Report, Report on Corporate governance and Business
Responsibility 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 standalone financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated. If, based
on the work We have performed, We conclude that there is a material misstatement of this
other information, We are required to report that fact. We have nothing to report in this
regard.
Responsibility of Management and those charged with the governance for the Standalone
Financial Statements
The Companys Board of Directors is reponsible 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 with the accounting
principles generally accepted in India including the accounting standards specified under
section 133 of the Act, read with relevant rules issued thereunder. 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 accouting
policies; making judgements 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
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors is 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.
A further description of the auditors responsibilities for the audit of the standalone
financial statements is included in Annexure A. This desciption forms part of our
auditors report.
Report on other legal & regulatory requirements
1. As required by the Companies (Auditors Report) order, 2020 issued by the Central
Government of India in terms of sub section (11) of section 143 of the
Companies Act, 2013, We annexed hereto (Annexure B) a statement on the matters
specified in paragraphs 3 & 4 of the said 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 explanation 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 such books.
(c) The Company has no branches during the year, hence Section 143(8) of Companies Act
2013 is not applicable.
(d) The Balance Sheet, Statement of Profit & Loss including other comprehensive
income, statement of changes in equity and Cash Flow Statement dealt with by this report
are in agreement with the books of account of the Company.
(e) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
(f) On the basis of the written representations received from the directors as on March
31, 2023, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31,2023 from being appointed as a director in terms of section 164 (2) of the
Act.
(g) 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 C". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11of 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 has disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note to the financial statements.
(ii) The Company did not have any long term contracts including derivatives contracts
for which there were any material foreseeable losses.
(iii) There were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund.
(iv) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts,
i. 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) or entity(ies), 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; and
ii. no funds have been received by the company from any person(s) or entity(ies),
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.
iii. Based on audit procedures carried out by us, that we have considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has caused us
believe that the representations under sub-clause (i) and (ii) contain any material
misstatement.
(v) The Company has not declared or paid any dividends during the year and accordingly
reporting on the compliance with section 123 of the Companies Act, 2013 is not applicable
for the year under consideration.
(vi) With respect to the matter to be included in the auditors report under 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 by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
(vii) 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 with effect from 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 SIROHIA & CO. |
|
Chartered Accountants |
|
ICAI Firm Registration No.003875S |
| PLACE : Chennai |
Vinod Kumar |
| DATE : 29-05-2023 |
Partner |
| UDIN: 23207094BGYGTP3006 |
(Membership No.207094) |
ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT
Responsibilities for Audit of standalone Finanacial statements
As part of an audit in accordance with SAs, We exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone 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
basis for our opinion. The risk of not detecting a material mistatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or 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
effecting of such controls.
Evaluate the appropriateness of accounting policies used and reasonable 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 uncertainity
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 uncertainity
exists, We are required to draw attention in our auditors report to the related
disclosures in the standalone financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained upto 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 standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves the 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 reasonbly 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 standalone financial statemnts
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unles 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 resonably be
expected to outweigh the public interest benefits of such communication.
|
For SIROHIA & CO. |
|
Chartered Accountants |
|
ICAI Firm Registration No.003875S |
|
Vinod Kumar |
| PLACE : Chennai |
Partner |
| DATE : 29-05-2023 |
(Membership No.207094) |
ANNEXURE ‘B TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to in our Independent Auditors Report to the members of the
Company on the financial statement for the year ended 31 March 2023, We report that :
1. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of property, plant and equipement. According to the
information and explanations given by the management, the Company does not have any
intangible assets and hence the provisions of Clause 3(i)(a)(B) of the order are not
applicable to the Company and hence not commented upon.
(b) All these assets have been physically verified by the management at reasonable
intervals. As Informed to us that no material discrepancy have been noticed between the
physical verification and books of the Company.
(c ) According to the information and explanations given to us on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
(d ) During the year Company has not done any revaluation of its property, plant and
equipement.
(e ) According to the information and explanations given to us and based on our
examination of the records of the Company no proceedings have been initiated or pending
against the Company for holding any benami property under the Benami transactions
(Prohibition Act), 1988 (45 of 1988) and rules made thereunder.
2. (a) Physical verification of Inventory is not applicable since the company has not
traded in goods during the year
(b) The Company has not been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets and hence reporting under clause 3(ii)(b) of the Order is not applicable.
3. During the year, Company has not granted any loans to Companies, firms or other
parties listed in the Register maintained under section 189 of the Companies Act, 2013.
Consequently, the provisions of clauses 3 of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Section 185 and 186 of the Act, with respect
to the loans and investments made.
5. In our opinion and according to the information and explanations given to us, the
Company has not accepted any public deposits during the year.
6. The Central Government has not prescribed the maintanance of cost records under
section 148 (1) of the Act, in respect of the activities carried on by the Company. Hence
reporting under clause 6 of the order is not applicable to the Company.
7. (a) According to the records of the Company and information and explanations given
to us, the Company has generally been regular in depositing undisputed statutory dues,
including Goods & Service Tax, Income Tax, Tax Deducted at Source and other material
statutory dues applicable to it, with the appropriate authorities. As explained to us, the
Company did not have any dues on account of Provident Fund, Employees State Insurance,
duty of customs and GST.
(b) According to the information and explanations given to us, there were no undisputed
amounts payable in respect of Income tax,Wealth Tax, GST, Cess and other material
statutory dues in arrears/were outstanding as at 31 March 2023 for a period of more than
six months from the date they became payable. However , according to information and
explanations given to us, the following dues of Income Tax have not been deposited by the
Company on account of dispute :
| Particulars |
Amount (Rs. in lakhs) |
Period to which amount relates |
Forum where the dispute is pending |
| Income Tax |
0.42 |
Financial year 2003-2004, |
Commissioner of Income tax (Appeals) Chennai. |
| Income Tax |
1.19 |
Financial year 2004-2005, |
Commissioner of Income tax (Appeals) Chennai |
8. According to the information and explanations given to me and based on our
examination of books, no transactions which have not been recorded in books of accounts
have been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961.
9. (a) In my opinion and according to the information and explanations given to me, the
Company has not defaulted in payments to any lender.
(b) According to the information and explanations given to us and on the basis of our
audit procedures, we report that the company has not been declared wilful defaulter by any
bank or financial institution or government or any government authority.
(c ) The Company did not raise any money by way term loans during the year.
(d) During the year Company did not raise any fund on short term basis.
(e ) The Company does not have any subsidiaries, joint ventures or associate companies
hence this clause is not applicable.
(f) The Company does not have any subsidiaries, joint ventures or associate companies
hence this clause is not applicable.
10. (a) The Company did not raise any money by way of initial public offer or further
public offer (Including debt instruments), hence paragraph 3(x) of the order is not
applicable.
(b) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
11. (a) According to the information and explanations given to me, no material fraud on
or by the company has been noticed or reported during the course of our audit.
(b) During the year no report under sub-section (12) of Section 143 of the Companies
Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government;
(c ) According to the information and explanations given to us and based on our
examination no whistle-blower complaint received during the year by the company.
12. In 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.
13. 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.
14. Company has internal audit system commensurate with the size and nature of the
business. We have considered the reports of Internal Auditors for the period under audit.
15. 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 directors.
Accordingly, paragraph 3(xv) of the order is not applicable.
16. (a) The Company is registered NBFC under section 45-IA of the Reserve Bank of India
Act,1934. The Company is having a valid registration certificate obtained from RBI.
(b) The company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
17. The Company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
18. There has been no resignation of the Statutory auditors of the Company during the
year.
19. In our opinion and according to the information and explanations given to us and 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, our knowledge of the board of directors and management plans, there are no
material uncertainty exists as on the date of the 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. 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.
20. According to information and explanation given to us and based on the records of
the Company there is no amount required to be Transfer to fund specified under Schedule
VII of Companies Act, 2013.
21 The preparation of consolidated financial statements is not applicable to the
Company and therefore reporting under this clause is not applicable.
|
For SIROHIA & CO. |
|
Chartered Accountants |
|
ICAI Firm Registration No.003875S |
|
Vinod Kumar |
| PLACE : Chennai |
Partner |
| DATE : 29-05-2023 |
(Membership No.207094) |
ANNEXURE ‘C TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph (g) under ‘Report on other legal and regulatory
requirements section of our report of even date)
We have audited the internal financial controls over financial reporting of MANSI
FINANCE (CHENNAI) LTD as at 31 March 2023 in conjunction with our audit of the stand
alone Financial Statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls based on "the internal control over 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. 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 company 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
Our responsibility is to express an opinion on the Companys Internal Financial Control
over financial reporting based on our audit. We conducted our audit in accordance with the
Guidance Note and the Standards on Auditing (‘the Standards), issued by the ICAI and
deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls, both issued by the ICAI. 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 system 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 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 have a material effect
on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of 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 changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March 2023, based on the
internal control over 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.
|
For SIROHIA & CO. |
|
Chartered Accountants |
|
ICAI Firm Registration No.003875S |
|
Vinod Kumar |
| PLACE : Chennai |
Partner |
| DATE : 29-05-2023 |
(Membership No.207094) |
+91-9892691696
