To
The Members of
M/s RAJPUTANA INVESTMENTS & FINANCE LIMITED Report on the Audit of Standalone Ind
AS Financial Statements
Opinion
We have audited the accompanying standalone Ind As financial statements of RAJPUTANA
INVESTMENT & FINANCE LIMITED (the company), which comprise the Balance Sheet as at
31st March 2023, the Statement of Profit and Loss (Including Other
Comprehensive Income), Statement of changes in equity and Statement of Cash Flow for the
year ended and notes to financial statement including a summary of significant accounting
policies and other explanatory information (herein referred to as "standalone
financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act 2013 as amended (the "Act") in the manner so required and
give a true and fair view in conformity with the 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 31st March 2023, its profit
including other comprehensive income, its change in equity and its cash flow for the year
ended on that date.
Basis for Opinion
We conducted our audit of the financial statements 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 standalone 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 standalone 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 on the financial statements.
Key Audit Matters
| Key Audit Matters |
How our audit addressed the key audit matter |
| Revenue of Rs.83,99,267 /- received from BRD Car world is the main operating income
received on the sale of luxurious pre-owned car based on the gross margin received,
involves the key judgements relating to identification of distinct performance
obligations, determination of transaction price of the identified performance obligations,
the appropriateness of the basis used to measure revenue recognized at a point of time.
Due to the judgement relating to determination of point of time in satisfaction of
performance obligations, this matter is considered as Key Audit Matter. |
Our audit approach consisted testing of the design and operating effectiveness of the
internal control and substantive testing as follows: |
|
We evaluated the design of internal controls relating to the revenue accounting
standard. We selected on sample basis, and tested the operating effectiveness of the
internal control, relating to identification of the distinct performance obligations and
determination of transaction price. We carried out a combination of procedures involving
inquiry and observation, reperformance and inspection of evidence in respect of operating
evaluation of these controls. |
|
We selected on sample basis and performed the following procedures: |
|
a) Read, analysed, and identified the distinct performance obligations. |
|
b) Compared these performance obligations with that identified and recorded by the
Company. |
|
We tested on sample basis whether specific revenue transactions around the year end
have been recognised in appropriate period. |
Information other than the financial statements and auditors report thereon
The Companys Board of Directors are responsible for the other information. The other
information comprises the information included in the Annual Report but does not include
the standalone financial statements and our auditors report thereon.
Our opinion on the standalone 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 standalone 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 in the 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 standalone Ind AS 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 standalone financial statements that give a true and fair view of the financial
position and financial performance including other comprehensive income, cash flows and
changes in equity of the company in accordance with 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 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 standalone
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 is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
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 standalone 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 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 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 financial control with reference to standalone financial statements
in place and the operating effectiveness of the 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 companys ability to
continue as 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
standalone 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 standalone financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors 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 standalone financial 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 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 standalone financial statements
for the financial year ended March 31,2023 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.
Report on Other Legal and Regulatory Requirements
1) As required by Companies (Auditors Report) Order, 2020, issued by the Government of
India in terms of sub-section 11 of section 143 of the Companies Act 2013 we give in the
Annexure-
"A", a statement on the matters specified in the 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.
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 including other comprehensive
income, Statement of changes in Equity and Statement of cash flow dealt with by this
report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standard) Rules, 2015 as amended including the companies (Indian Accounting
Standards) amendment rules, 2019.
e) On the basis of written representations received from the directors as on March 31,
2023, and 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.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the company in reference to the financial statements and the operating
effectiveness of such controls, refer our separate report in "Annexure- B"
g) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended, In our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
h) With respect to the other 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 has disclosed the impact of pending litigations on its financial
position in its financials.
ii) The company did not have any long-term contract 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,
other than as disclosed in the notes to the accounts,
(a) 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
(b) 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.
(c) 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 to
believe that the representations under sub-clause (a) and (b) contain any material
misstatement.
(d) 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 FY 2022-23.
| for Ayyar & Cherian |
| Chartered Accountants |
| Firm Registration No. 000284S |
| Dijo Philip Mathew |
| Membership No. 224930 |
| Place: Ernakulam |
| Date: 29.05.2023 |
| UDIN: 23224930BGTNWL4540 |
"Annexure A" to the Independent Auditors Report
Annexure referred to in Independent Auditors Report to the members of the company on
the standalone financial statements for the year ended 31st March 2023.
1)(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property Plant and Equipment. The Company does not
have intangible assets.
(b) According to the information and explanation given to us, all the xed assets were
physically veri ed during the year by the Management in accordance with a regular program
of veri cation which, in my opinion, provides for physical veri cation of the xed assets
at reasonable intervals. According to the information and explanation given to me, no
material discrepancies were noticed on such veri cation.
(c) According to the information and explanations given to us and the records examined
by us, we report that, the Company does not hold any freehold and leasehold immovable
properties of land and building as at the balance sheet date.
(d) The company has not revalued its Property, Plant and Equipment (including Right of
Use assets) or intangible assets or both during the year.
(e) According to the information and explanation given to me ,no such proceedings have
been initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
2) The inventories have been physically verified by the management during the year. In
our opinion, the coverage and procedure of such verification by the management is
appropriate and no discrepancies were noticed on such verification.
3) As explained to us, the company has not made investments in nor provided any
guarantee or security or granted any loans, secured or unsecured to companies, firms,
Limited Liability partnerships or other parties covered in the Register maintained under
section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the
Order are not applicable to the Company.
4) (a)In our opinion and according to information and explanation given to us, the
Company has not granted any loans or provided any guarantees or given any security to
which the provisions of section 185 of the Act are applicable. (b)In respect of
investments made by the Company and loans given to parties other than those covered in
Section 185 of the Act, the Company had complied with the provisions of section 186 of the
Act, except,
74
Non-compliance of Section 186 (Amount in Lakhs)
| Sl Particulars No |
Name of the party |
Amount Involved |
As at 31-03- 2023 |
| 1 Acquisition of Security (Non- convertible Debenture) exceeding the limits without
prior approval by means of a special resolution |
Vanchinad Finance Private Limited |
200 |
200 |
5) According to the information and explanation given to us, the Company has not
accepted any deposits from the public. Hence directives issued by the Reserve Bank of
India and the provisions of section 73 to 76 or any other relevant sections of the
Companies Act and rules framed thereunder are not applicable.
6) According to the information and explanation given to us the Central Government has
not prescribed the maintenance of cost records under sub-section (1) of the Section 148 of
the Act for any of the products or services of the company.
7) a) The Company has generally been regular in depositing undisputed statutory dues,
including Provident Fund, Income Tax, Goods and Service Tax, ESI other material statutory
dues have generally been regularly deposited by the company with the appropriate
authorities though there has been a slight delay in few cases.
b) There were no undisputed amounts payable in respect of Provident Fund, Income Tax,
Goods and Service Tax and other material statutory dues in arrears as at March 31, 2023
for a period of more than six months from the date they became payable.
8) According to the information and explanation given to us, the company does not have
any such transactions that are not recorded in the books of accounts that have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961).
9) 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. 10) In our opinion and according to the
information and explanations given to us, the Company has not raised money by way of
initial public offer or further public offer (including debt instrument) or term loans
during the year.
11) Based upon the audit procedures performed and the information and explanations
given by the management, we report that no fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the year.
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of
clause 3 (xii) of the Order is not applicable to the Company.
13) In our opinion and according to the information and explanations given to us, the
Company is compliance with Section 177 and 188 of the Act, where applicable, for all
transactions with related parties and the details of the related party transactions have
been disclosed in the financial statements as required by the applicable Indian Accounting
Standard.
14) a) The company has an internal audit system commensurate with the size and nature
of its business.
b) The reports of the Internal Auditors for the period under audit were considered
during the audit. 15) Based upon the audit procedures performed and the information and
explanations given by the management, the Company has not entered any non-cash
transactions with directors or persons connected with him. Accordingly, the provisions of
clause 3 (xv) of the Order is not applicable to the Company and hence not commented upon.
16) a) In our opinion and according to the information and explanations given to us,
the Company is not required to be registered under section 45-IA of the Reserve Bank of
India Act 1934.
b) In our opinion and according to the information and explanations given to us, the
Company has not conducted any Non-Banking Financial or Housing Finance activities without
a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the
Reserve Bank of India Act, 1934.
c) In our opinion and according to the information and explanations given to us, the
Company is not a Core Investment Company (CIC) as defined in the regulations made by the
Reserve Bank of India. Accordingly, paragraph 3 (xvi) (c) of the Order is not applicable.
d) In our opinion and according to the information and explanations given to us, the
Company is not a Core Investment Company (CIC) and it does not have any other companies in
the Group. Accordingly, paragraph 3 (xvi) (d) of the Order is not applicable.
17) The Company has not incurred cash losses in the financial year and in the
immediately preceding financial year. 18) No such resignation of statutory auditor took
place during the previous year. Therefore, the provisions of clause 3 (xviii) of the Order
is not applicable to the Company.
19) 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 auditors knowledge of the Board of Directors and management
plans, we are of the opinion that 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.
20) In our opinion and according to the information and explanations given to us, in
respect of other than on-going projects, there are no unspent amounts to be transferred to
a fund specified in Schedule VII to the Act.
21) In our opinion consolidated financial statement is not applicable for the company.
Therefore, the provisions of clause 3 (xxi) of the Order is not applicable to the Company.
| For Ayyar & Cherian |
| Chartered Accountants |
| Firm Registration No. 000284S |
| Dijo Philip Mathew |
| Membership No. 224930 |
| Place: Ernakulam |
| Date: 29.05.2023 |
| UDIN: 23224930BGTNWL4540 |
"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 Rajputana
Investment &
Finance Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the standalone 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 the 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
Our responsibility is to express an opinion on the Companys internal financial
controls over 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 were 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 judgement, 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 authorisations of management and directors of the Company; and (3)
provide reasonable assurance regarding prevention or timely detection of unauthorised
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 maintained 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 March 31, 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 Ayyar & Cherian |
| Chartered Accountants |
| Firm Registration No. 000284S |
| Dijo Philip Mathew |
| Membership No. 224930 |
| Place: Ernakulam |
| Date: 29.05.2023 |
| UDIN: 23224930BGTNWL4540 |
+91-9892691696
