To The Members of Vaarad Ventures Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
VAARAD VENTURES LIMITED (the "Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
the Statement of Changes in Equity and the Statement of Cash Flows ended on that date, and
a summary of significant accounting policies and other explanatory information
(hereinafter referred to as the "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 (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 March 31, 2023, the loss and total comprehensive
income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing ("SA"s) specified under section
143(10) of the Act. Our responsibilities under those Standards are further described in
the Auditors Responsibilities for the Audit of the 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 ("ICAI")
together with the ethical requirements that are relevant to our audit of the standalone
financial statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of these consolidated 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.
Information other than the financial statements and auditors
report thereon
The Companys management and Board of Directors are responsible
for the other information. The other information comprises the information included in the
Companys 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 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 Responsibilities for the Standalone Financial
Statements
The Companys Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial position, financial
performance, including other 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 standalone
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 are responsible for overseeing the
Companys financial reporting process.
Auditors Responsibility 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 aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these 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 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.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit we report
that:
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.
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.
The Balance Sheet, the Statement of Profit and Loss including Other
Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt
with by this Report are in agreement with the relevant books of account.
In our opinion, the aforesaid standalone financial statements comply
with the Ind AS specified under Section 133 of the Act.
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.
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 A". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal
financial controls over financial reporting.
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.
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:
The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements.
The Company has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term contracts
including derivative contracts;
There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company and its
subsidiary companies incorporated in India.
As required by the Companies (Auditors Report) Order, 2020
("the Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
For Gada Chheda & Co. LLP Chartered Accountants
Ronak Gada
Designated Partner
Membership No. 146825
Firms Registration No. W100059
Place of Signature: Mumbai
Date:30/05/2023
UDIN:23146825BGWQVP9739
Annexure –A 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 the financial
reporting of Vaarad Ventures Limited (‘the Company) as of 31st
March 2023 in conjunction with our audit of the financial statements of the Company for
the year ended on that date.
Management‘s Responsibility for Internal Financial Controls
The Companys management and Board of Directors responsible for
establishing and maintaining internal financial controls with reference to consolidated
financial statements 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 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 our 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 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 exits, and testing and evaluating
the design and operating effectiveness of internal control based on the assed risk. The
procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatements 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
controls over financial reporting includes those policies and procedures that pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
provide reasonable assurance that the transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditure of the company are being
made only in accordance with authorisations of management and directors of the company;
and
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 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 31st 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 Gada Chheda & Co. LLP
Chartered Accountants
Ronak Gada
Designated Partner
Membership No. 146825
Firms Registration No. W100059
Place of Signature: Mumbai
Date:30/05/2023
UDIN:23146825BGWQVP9739
Annexure "B" to the Independent Auditors Report of even
date to the members of Vaarad Ventures Limited on the standalone financial statements for
the year ended 31st March 2023.
Referred to in paragraph 1 under ‘Report on Other Legal and
Regulatory Requirements section of our report to the Members Vaarad Ventures Limited
of even date.)
Details of tangible and intangible assets:
The Company has maintained proper records showing full particulars
including quantitative details and situation of Property, Plant and Equipment;
The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over a period of three
years. In accordance with this programme, certain fixed assets were verified during the
year and no material discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
Whether the title deeds pertaining to the immovable properties (except
properties which are leased by the company with duly executed lease agreements in the
companys favour) disclosed in the financial statements are held in the name of the
company.
According to the information and explanations given to us and on the
basis of our examination of the records of the Company, the Company has not revalued its
property, plant and equipment (including right of use assets) or intangible assets or both
during the year.
According to the information and explanations given to us and on the
basis of our examination of the records of the Company, there are no proceedings initiated
or pending against the Company for holding any benami property under the Prohibition of
Benami Property Transactions Act, 1988 and rules made thereunder.
Details of inventory and working capital:
(a) As informed to us, the physical verification of the inventories was
done by the management at reasonable intervals at the end of each month and for year end.
We have received confirmation with respect to inventories lying with third parties. In our
opinion, the frequency of verification is reasonable. Further, on the basis of our
examination of the records, the Company is generally maintaining proper records of its
inventories. No material discrepancy was noticed on physical verification of stocks by the
management as compared to book records.
Details of investments, any guarantee or security or advances or loans
given
The company has not made any investments during the year, neither given
any guarantee or security nor granted any loans or advances which are characterised as
loans, unsecured or secured, to LLPs, firms or companies or any other person.
According to information and explanation given to us, the company has
not provided any loans or advances, or given guarantee, or given security to any other
entity or any other person, Accordingly, clause 3 (3) of the Order is not applicable.
Compliance in respect of a loan to directors
The Company has not granted any loan under section 185 of the Act. The
Company has complied with the provisions of section 186 of the Act, with respect to the
investment and guarantees. The Company has neither given any security nor given any loans
during the year.
Compliance in respect of deposits accepted
According to the information and explanations given to us, the Company
has not accepted any deposits from the public as per the provisions of section 73 to 76 of
the Act and rules framed thereunder, and accordingly, the provisions of Clause (v) of Para
3 of the Order are not applicable to the Company.
Maintenance of costing records
We have broadly reviewed accounts and records maintained by the Company
pursuant to the rules made by the Central Government for the maintenance of cost records
under section (1) of Section 148 of the Act, related to manufacture of specialty petroleum
products and are of the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have, however, not made a detailed examination of records
with a view to determine whether they are accurate.
Deposit of statutory liabilities:
Undisputed statutory dues, including Goods and Service tax, Provident
Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, duty of Custom,
duty of Excise, Value Added Tax, cess and other material statutory dues applicable to the
Company have been regularly deposited by it with the appropriate authorities in all cases
during the year. There were no undisputed amounts payable in respect of Goods and Service
tax, Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax,
duty of Custom, duty of Excise,
Value Added Tax, Cess and other material statutory dues in arrears as
at 31st March, 2023 for a period of more than six months from the date they became
payable.
According to the information and explanation given to us, the records
of the company examined by us, the dues outstanding of Income-tax, VAT, Excise duty,
Service tax, Custom duty, Goods and Service tax, Cess or/and any other material statutory
dues wherever applicable, which have not been deposited on account of any dispute, except
the following;
Name of the statute |
Nature of dues |
Amount(IN R in lakhs) |
Period to which the Amount
relates |
Forum where dispute is
pending |
Sales Tax Act, 1956 &
MVAT 2002 |
Sales Tax (MVAT) |
.68 |
FY2008-09 |
Appeal pending Deputy
Commissioner of Sales Tax - |
Central Sales Tax, 1956 |
Central Sales Tax |
.36 |
FY2008-09 |
Mumbai |
Sales Tax Act, 1956 &
MVAT 2002 |
Sales Tax (MVAT) |
49.34 |
FY2009-10 |
Appeal pending Jt.
Commissioner of Sales Tax -Mumbai |
Central Sales Tax 1956 |
Central Sales Tax |
0.15 |
FY2009-10 |
|
Central Excise Act, 1944 |
Central Excise |
50.00 |
FY 1998-1999 |
Daman District Court |
The Income Tax Act, 1961 |
Income tax |
24.26 |
FY 2010-11 |
ITAT, Mumbai |
Unrecorded income
According to the information and explanations given to us and on the
basis of our examination of the records of the Company, the Company has not surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income Tax Act, 1961 as income during the year.
Default in repayment of borrowings
In our opinion and according to the information and explanations given
to us, the Company has not defaulted in the repayment of dues to banks. The Company do not
have any borrowings from financial institutions, government or dues to debenture holders.
Based on our audit procedures and on the basis of information and explanations given to
us, the Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
Based on our audit procedures and on the basis of information and
explanations given to us, the Company has not taken loan form 10 parties and there are no
outstanding term loans at the beginning of the year and hence, reporting under clause
3(ix)(c) of the Order is not applicable.
on an overall examination of the financial statements of the Company,
funds raised on short- term basis have, prima facie, not been used during the year for
long-term purposes by the Company.
According to the information and explanations given to us and on an
overall examination of the standalone financial statements of the Company, we report that
the Company has taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, as defined in the Act. The Company does not hold any
investment in any associate or joint venture (as defined in the Act) during the year ended
31 March 2023.
based on our audit procedures and on the basis of information and
explanations given to us, the company has not raised loans during the year on the pledge
of securities held in its subsidiary.
Funds raised and utilization
The Company has not raised moneys by way of initial public offer or
further public offer (including debt instruments) during the year and hence reporting
under clause 3(x)(a) of the Order is not applicable.
Fraud and whistle-blower complaints
Based upon the audit procedures performed and the information and
explanations given by the management, no fraud by the Company and no fraud on the Company
by its officers or employees has been noticed or reported during the year.
No report under sub-section (12) of section 143 of the Companies Act
has been filed in Form ADT- 4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government, during the year and up to the date of
this report.
According to the information and explanations given to us, the Company
not received any whistle blower complaints during the year (and up to the date of this
report), while determining the nature, timing and extent of our audit procedures.
Compliance by a Nidhi
In our opinion and according to the information and explanations given
to us, the Company is not a Nidhi company. Accordingly, the provisions of Clause (xii) of
Para 3 of the Order are not applicable to the Company.
Compliance on transactions with related parties
In our opinion, the Company is in compliance with Section 177 and 188
of the Companies Act, 2013 with respect to applicable transactions with the related
parties and the details of related party transactions have been disclosed in the
standalone financial statements as required by the applicable accounting standards.
Internal audit system
In our opinion the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
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.
Non-cash transactions
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 the directors, requiring compliance
with Section 192 of the Companies Act.
Registration under Section 45-IA of RBI Act, 1934
In our opinion, the Company is not required to be registered under
section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause
3(xvi)(a), (b) and (c) of the Order is not applicable. In our opinion, there is no core
investment company within the Group (as defined in the Core Investment Companies (Reserve
Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is
not applicable
Cash losses
In our opinion and according to the information and explanations given
to us, The Company has not incurred cash losses during the financial year covered by our
audit and the immediately preceding financial year.
Resignation of statutory auditors
There has been no resignation of the statutory auditors of the Company
during the year.
Material uncertainty
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 and our knowledge of the Board of Directors and
Management plans and based on our examination of the evidence supporting the assumptions,
nothing has come to our attention, which causes us to believe that any material
uncertainty exists as on the date of the audit report indicating that Company is not
capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of one year from the balance sheet date. We, however, state that
this is not an assurance as to the future viability of the Company. We further state that
our reporting is based on the facts up to the date of the audit report and we neither give
any guarantee nor any assurance that all liabilities falling due within a period of one
year from the balance sheet date, will get discharged by the Company as and when they fall
due.
Transfer to fund specified under Schedule VII of Companies Act, 2013
In our opinion and according to the information and explanations given
to us, the company has not fall under the categories to spent amount under sub-section (5)
of section 135 of the Act pursuant to any project. Accordingly, clauses 3(xx)(a) and
3(xx)(b) of the Order as it is not applicable
For Gada Chheda & Co. LLP
Chartered Accountants
Ronak Gada Designated Partners
Membership No. 146825
Firms Registration No. W100059
Place of Signature: Mumbai
Date:30/05/2023
UDIN:23146825BGWQVP
+91-9892691696
