To the Members of
M/S MARUTI SECURITIES LIMITED Report on the Ind AS Financial Statements Qualified
Opinion
We have audited the accompanying Ind AS Financial Statements of MARUTI SECURITIES
LIMITED ("the company"), which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash
Flow Statement and the Statement of changes in equity for the year then ended, and notes
to 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, except for the possible effects of the matters described in the Basis for
Qualified opinion section of our report, the aforesaid Ind AS Financial Statements give
the information required by the Act in the manner so required and give a true and fair
view in conformity with Indian Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
("Ind AS") and other accounting principles generally accepted in India of the
state of affairs of "the Company" as at March 31, 2023, its Loss including other
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Qualified Opinion
Material uncertainty related to Going Concern: In respect of preparation of financial
results of the company on going concern basis, the company has incurred a Net Loss (after
tax) Rs. 64.50 lakhs respectively resulting into accumulated losses of Rs. 3967.53 Lakhs
as at 31st March 2023. The accumulated Loss of the company has been completely eroded the
net worth. The company has suffered recurring losses and there are no operations during
the current financial year. The above events and conditions indicate material uncertainty
which cast a significant doubt on "the companys" ability to continue as a going
concern, and therefore may be unable to realize its assets and discharge its liabilities
including potential liabilities in the normal course of its business.
We conducted our audit in accordance with 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 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.
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 consolidated financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Depending on the facts and circumstances of the entity and the Audit, there are no key
audit matters to conununicate in the Audit Report.
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 Management
Discussion and Analysis, Boards Report including Annexure to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, 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 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.
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.
Managements Responsibility for the Financial Statements
The Companys Board of Directors are 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, total comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS and
other 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 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.
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 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 exerdse professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the finandal
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 finandal controls relevant to the audit in
order to design audit Procedures that is appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal finandal controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting polides used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists;
we are required to draw attention in our auditors report to the related disclosures in
the finandal 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 finandal
statements, including the disclosures, and whether the finandal statements represent the
underlying transactions and events in a manner that achieves fair presentation.
• Materiality is the magnitude of misstatements in the finandal statements that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the finandal statements may be influenced. We consider
quantitative materiality and qualitative fadors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the finandal statements.
• 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 conmrunicate
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 pubhc interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the 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, based on our audit we report that:
a) We have sought and except for the matters described in the Basis for Qualified
Opinion Section, obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit of the accompanying
financial statements;
b) Except for the possible effects of the matters described in the Basis for Qualified
Opinion Section, in our opinion, proper books of account as required by law have been kept
by "the company" so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) Except for the possible effects of the matters described in the Basis for Qualified
Opinion Section, In our opinion, the aforesaid financial statements comply with the Ind AS
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014.
e) The matters described in the Basis for Qualified Opinion section, material
uncertainty related to going concern section and emphasis of matter section, in our
opinion, may have an adverse effect on the functioning of the Company:
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 are 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 B". Our report expresses a qualified 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 11 of the Companies (Audit and Auditors) Rules, 2014, as amended 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.
ii. The Company does not have any long term contracts including derivative contracts
for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. 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 persons
or entities, including foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectiy lend or invest in other persons or entities identified in any
manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or
provide any guarantee, security or the tike on behalf of the Ultimate Beneficiaries.
v. The Management has represented that, to the best of its knowledge and belief, no
funds have been received by the Company from any persons or entities, including foreign
entities ("Funding Parties"), with the understanding, whether recorded in
writing or otherwise, that the Company shall directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever ("Ultimate
Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
vi. Based on the audit procedures performed 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 as above in (iv) and (v) under subclause (i) and (ii) of
Rule 11(e) contain any material misstatement.
vii. The company has not declared or paid any dividend during the year.
| For P. Murali & Co., |
| Chartered Accountants |
| FRN: 007257S |
| A Krishna Rao |
| Partner |
| M.No. 020085 |
| UDIN No: 23020085BGQXHP4485 |
| Place: Hyderabad |
| Date: 15.05.2023. |
ANNEXURE-A TO THE INDEPENDENT AUDITORS REPORT
Annexure-A referred to in Independent Auditors Report to the Members of M/s. Maruti
Securities Limited on the Ind AS Financial Statements for the year ended 31st
March 2023, we report that:
i. (a)The Company is not having any Property, Plant and Equipment, Hence this clause is
not apphcable to the company.
(b)The company doesnt have any intangible assets.
ii. (a)The Company does not have any inventory and as such the physical verification
and maintenance of records of the same does not arise.
(b)The company has not taken working Capital loan from Banks or Financial Institutions
on the basis of security of current assets.
iii. The company has not granted any loans, secured or unsecured, to companies, firms,
and Limited Liability partnerships or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the
Company has not given any loans, guarantees and securities as referred to in section 185
and 186 of the Act. The investments made are in compliance with section 186 of the Act.
v. The Company has not accepted any deposits from the pubhc covered under Section 73 to
76 of the Companies Act, 2013 and rules framed there under to the extent notified.
vi. According to information and explanations given to us and as per our opinion, the
central government does not prescribe maintenance of cost records under section 148(1) of
the companies Act.
vii. (a) According to the information and explanations given to us and based on the
records of the company examined by us, the company is regular in depositing the undisputed
statutory dues of Provident Fund, Employees State Insurance, Income-tax, Goods and
Services Tax and other material statutory dues, as apphcable, with the appropriate
authorities in India
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income-tax, Goods and Services Tax and other material statutory dues in
arrears as at 31st March 2023 for a period of more than 6 months from the date
they became payable.
(c) According to the information and explanations given to us and based on the records
of the company examined by us, there are no statutory dues which have not been deposited
on account of any disputes.
viii. Based on our audit procedures and according to the information and explanations
given to us, we are of the opinion that the company does not have any transactions which
are not recorded in the books of account have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961. The Company has not
raised any moneys by way of initial public offer, further public offer (including debt
instruments) and term loans.
ix. In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of loans or other borrowings or in the payment of
interest thereon to any lender during the year.
x. (a) The Company has not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under
review.
xi. According to the information and explanations given to us, no material fraud by the
company or on the company by its officers or employees has been noticed or reported during
the course of our Audit.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable
to it.
xiii. The company has not entered transactions with related transactions as per
provisions of section 177 and 188 of the Act. Hence this clause is not applicable as such.
xiv. (a) In our opinion the company has an adequate internal audit system which
commensurate with the size and nature of its business.
(b) We have considered, the internal audit reports for the year under audit, issued to
the Company during the year and till date, in determining the nature, timing and extent of
our audit procedures.
xv. The Company has not entered into non-cash transactions with its directors or
persons connected with him.
xvi. The Company is not required to be registered under section 45-IA of The Reserve
Bank of India Act 1934.
xvii. "The Company" has incurred Cash losses in the current financial year
and in the immediately preceding financial year amounting to Rs. 64.49 Lakhs and Rs. 17.42
Lakhs respectively.
xviii. There is resignation of P C N & Associates ("statutory auditors")
of "the Company" during the year and we did not receive any issues/objections/
concerns from the outgoing auditors.
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, based on our knowledge of the Board of Directors/ and
management plans, we are of the opinion that there is material uncertainty exists as on
the date of the audit report that cast significant doubt whether the company is capable of
meeting its liabilities existing at the date of balance sheet as and when they fall due
within a period of one year from the balance sheet. (Refer Basis for Qualified Opinion
Paragraph).
xx. The company is not covered under the provisions of Sec 135 of the Companies act,
2013.
| For P. Murali & Co. |
| Chartered Accountants |
| FRN: 007257S |
| A Krishna Rao |
| Partner |
| M.No. 020085 |
| UDIN: 23020085BGQXHP4485 |
| Place: Hyderabad |
| Date: 15.05.2023. |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls over Financial Reporting under Clause(i) of
Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of MARUTI
SECURITIES LIMITED ("the Company") as of March 31, 2023 in conjunction with our
audit of the 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 (ICAI). 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Sectionl43(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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 internal financial controls system over
financial reporting of the Company.
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 Ind AS 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 detailed, 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 Ind AS
Financial Statements in accordance with generally accepted principles, and that receipts
and expenditures are being made only in accordance with authorization 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 Ind AS Financial Statements.
Inherent Limitation of Internal Financial Controls over Financial Reporting
Because of the inherent limitation 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.
Qualified Opinion
In our opinion except for the possible effects of the matter described in the
"Basis For Qualified Opinion", the company has, in all material respects,
reasonable internal financial controls system over financial reporting but not adequate
and such internal financial controls over financial reporting were operating effectively
as at March 31st, 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 P. Murali & Co. |
| Chartered Accountants |
| FRN: 007257S |
| A Krishna Rao |
| Partner |
| M.No. 020085 |
| UDIN: 23020085BGQXHP4485 |
| Place: Hyderabad |
| Date: 15.05.2023 |
+91-9892691696
