ALOK BASUDEO & CO.
Chartered Accountants
TO THE MEMBERS OF VIKALP SECURITIES LIMITED.
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Vikalp Securities Limited (the
"Company") which comprise the standalone balance sheet as at 31 March 2023, and
the standalone statement of profit and loss (including other comprehensive income),
standalone statement of changes in equity and standalone statement of cash flows for the
year then ended, and notes to the standalone financial statements, including a summary of
significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("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 31 March 2023, and its profit and other
comprehensive loss, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statement in accordance with
the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our
responsibilities under those SAs are further described in the Auditors Responsibilities
for the Audit of the Standalone Ind AS 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 standalone financial statements under the provisions of the Act 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 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 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.
There is no Key Audit Matters Reportable as per SA 701 issued by ICAI.
Information Other than the Standalone 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 Boards Report
including Annexures to Boards Report, Business Responsibility Report, Corporate
Governance and Shareholders Information, Management Discussion and Analysis Report but
does not include the standalone financial statements and our auditors report thereon.
These reports are expected to be made available to us after the date of our auditors
report. 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 identified above when it becomes available 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 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, 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 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 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 are responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities
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 exercise professional judgment 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 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 Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by the Management and Board of
Directors.
• Conclude on the appropriateness of the Management and Board of Directors use of
the going concern basis of accounting in preparation of standalone financial statements
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
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 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 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 the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of subsection (11) of section 143 of
the Act, we give in the Annexure-A, a statement on the matters specified in the paragraph
3 and 4 of the order.
As required by Section 143(3) of the Act, based on our audit 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 the Statement of Cash Flows dealt with by this
Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS
specified under Section 133 of the Act
e. On the basis of the written representations received from the directors as on 31
March 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 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 with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of Sec 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, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i) The company has no pending litigation which would impact its financial position.
ii) The company did 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) a. The management has represented, that, to the best of its knowledge and belief,
as referred in notes to the accounts, 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, 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.
b. The management has represented, that, to the best of its knowledge and belief, as
referred in the notes to the accounts, 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, 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; and
c. Based on the information and details provided and other audit procedures followed,
nothing has come to our notice that has caused us to believe that the representations
under sub clause iv(a) and (b) contain any material misstatement.
v) No dividend has been declared or paid during the year by the company.
i. Proviso 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 1 April, 2023, and accordingly,
reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules 2014 is not
applicable for financial year ended March 31 2023.
| Place : Kanpur |
For GUPTA & SHAH |
| Date : 30.05.2023 |
Chartered Accountants |
|
FRN : 001416C |
|
CA SHARAD KUMAR SHAH |
|
Partner |
|
M.No.070601 |
|
UDIN: 23070601BGVZEN6628 |
Annexure A to Independent Auditors Report
(Referred to in paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements" of our report of even date)
i. In respect of property, plant & equipment and intangible assets of the Company:
(A) (a) The Company is maintaining proper records showing full particulars, including
quantitative details and situation of property, plant and equipment;
(b) Based on our scrutiny of the Companys Book of Account and other records and
according to the information and explanations received by us from the management, we are
of the opinion that the question of commenting on maintenance of proper records showing
full particulars of intangible assets does not arise since the company had no intangible
assets as on 31st March, 2023 nor at any time during the financial year ended on 31st
March, 2023;
(B) The property, plant and equipment were physically verified during the year by the
Management at reasonable intervals. According to the information and explanation given to
us, no material discrepancies were noticed on such verification;
(C) According to the information and explanations received by us, as the company owns
no immovable properties, the requirement of reporting whether title deeds is held in the
name of the company or not is not applicable;
(D) According to the information and explanations received by us, the company has not
revalued its Property, Plant and Equipment (including Right of Use of assets) during the
year, hence requirement of reporting on revaluation of Property, Plant and Equipment is
not applicable;
(E) According to the information and explanations received by us, no proceedings have
been initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder;
ii. (a). According to the information and explanations given to us, inventory comprises
of stock of shares which have been physically verified and reconciled by the management
with reference to the confirmation / statements from holding statements of depository
participants, during the year and coverage and procedure of such verification by the
management is appropriate. No discrepancies of 10% or more in the aggregate for each class
of inventory were noticed.
(b). According to the information and explanations received by us, during any point of
time of the year, no working capital has been sanctioned to the Company by banks or
financial institutions on the basis of security of current assets, hence requirement of
reporting on working capital is not applicable;
iii. 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 provided any guarantee or
security to companies, firms, limited liability partnership or any other parties during
the year. During the year the company has granted advances in the nature of unsecured
loans.
a. Details of unsecured loan provided during the year as under:
| Particulars |
Aggregate Amount in Rs. |
Balance outstanding as at 31.03.2023 in Rs. |
| total amount given during the year, and the balances due as at the balance sheet date
with respect to such loans or advances and guarantees or security to subsidiaries, joint
ventures and associates. |
NIL |
NIL |
| total amount during the year, and the balance due on the balance sheet date of such
loans or advances and guarantees or security to persons other than associates,
subsidiaries and joint ventures. |
88,50,000/- |
1,22,89,286/- |
b. According to the information and explanations given to us, the terms and conditions
of loans granted by the company are not prejudicial to the interest of the Company. The
company has not provided any guarantee during the year.
c. The schedule of repayment of principal is not stipulate and as such the loans are
repayable on demand. Payment of interest has also not been stipulated and the interest
receipts are regular except in case of some parties.
d. No amount is overdue to be received.
e. There were no loans granted to companies, firms, Limited Liability Partnerships or
any other parties which was fallen due during the year, that have been renewed or extended
or fresh loans granted to settle the overdue of existing loans given to the same parties.
f. According to the information and explanation given to us and on the basis of
examination of the records of the company, the company has not granted any loans or
advances to Promoters, related parties as defined in clause (76) of section 2 of Companies
Act,. 2013
iv. 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 given any loans, or
provided any guarantee or security as specified under Section 185 and 186 of the Companies
Act, 2013 ("the Act"). In respect of the investments made by the Company, in our
opinion the provisions of Section 186 of the Act have been complied with.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits
from the public. Accordingly, clause 3(v) of the Order is not applicable.
vi. According to the information and explanations given to us, the Central Government
has not prescribed the maintenance of cost records under Section 148(1) of the Act for the
services provided by it. Accordingly, clause 3(vi) of the Order is not applicable.
vii. According to the information and explanation given to us, in respect of statutory
dues:
a. The Company has generally been regular in depositing undisputed statutory dues
including Income Tax, Goods and Services Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities;
b. There were no amounts of statutory dues pending for depositing on account of any
dispute;
viii. According to the information and explanation given to us, no 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.
ix. The company has not taken any loans or borrowings from financial institutions,
banks and government or has not issued any debentures. Hence reporting under clause 3(ix)
of the order is not applicable to the company.
x. a. The Company has not raised any money by way of an initial public offer or further
public offer (including debt instruments) during the year and hence reporting under clause
(x)(a) 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 convertible debentures (fully, partially or
optionally convertible) during the year and hence reporting under clause (x)(b) of the
Order is not applicable.
xi. (a) According to the information and explanations given to us, no fraud by / on the
Company has been noticed or reported during the year.
(b) 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.
(c) As represented to us by the management, there are no whistle blower complaints
received by the company during the year.
xii. In our opinion and according to the information & explanations given to us,
the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
xiii. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with 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
Indian Accounting Standards
xiv. (a) Based on information and explanations provided to us and our audit procedures,
in our opinion, the Company has an internal audit system commensurate with the size and
nature of its business.
(b) We have considered the internal audit reports of the Company issued till date for
the period under audit.
xv. In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Act are not
applicable to the Company.
xvi. The Company is required to be registered under Section 45-IA of the Reserve Bank
of India Act, 1934but has failed to apply for the same.
xvii. The Company has not incurred cash losses in the current and in the immediately
preceding financial year.
xviii. here has been no resignation of the statutory auditors during the year.
Accordingly, clause 3(xviii) of the Order is not applicable.
xix. 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, 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 that the 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.
Also refer to the Other Information paragraph of our main audit report which explains
that the other information comprising the information included in other sections of the
Annual report is expected to be made available to us after the date of this auditors
report.
xx. In our opinion and according to the information and explanations given to us, there
is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any
project other than ongoing projects. Accordingly, clause 3(xx)(a) and 3(xx)(b) of the
Order is not applicable.
for Gupta & Shah
Chartered Accountants
Firms Registration Number :- 001416C
Sharad Kr Shah (Partner)
Membership No. 070601
PLACE :- KANPUR
Date :- 30.05.2023
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of M/s Vikalp
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. 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 the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls 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 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, to the best of our information and according to the explanation given
to us, 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 March 31, 2023, based on Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
| Place : Kanpur |
For GUPTA & SHAH |
| Date : 30.05.2023 |
Chartered Accountants |
|
FRN : 001416C |
|
CA SHARAD KUMAR SHAH |
|
Partner |
|
M.No.070601 |
|
UDIN: 23070601BGVZEN6628 |
+91-9892691696
