To
The Members of M/s AJEL LIMITED, Mumbai.
Report on the Audit of the Standalone Financial Statements:
Opinion:
We have audited the accompanying financial statements of M/s AJEL LIMITED ("the
Company"), Mumbai which comprise of the Balance Sheet as at 31st March, 2023, the
Statement of Profit & Loss and the Cash Flow Statement for the year then ended, and a
summary of the 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 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
Accounting Standards prescribed under Section 133 of the Act read with the Companies
(Indian Accounting Standard) Rules, 2015, and other accounting principles generally
accepted in India of the state of affairs of "the Company" as at March 31, 2023,
the Profit and Loss and its cash flows for the year ended on that date.
Basis of Opinion:
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 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 the financial statements under the
provisions of the Companies Act, 2013 and rules thereunder, 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.
Other Information:
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 financial statements and our auditors report
thereon. The annual report is expected to be made available to us after the date of this
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.
When we read the annual report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance and
take necessary actions, as applicable under the relevant laws and regulations.
Managements Responsibility for the Standalone Financial Statements:
The Companys Management is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS
Standalone financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the Accounting
principles generally accepted in India, including the Indian Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provision 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 internal financial control, that were operating
effectively for ensuring the accuracy and completeness of accounting records, relevant to
the preparation and presentation of the Ind AS 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 Responsibility:
Our objective is to obtain reasonable assurance about whether the Ind AS 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 Ind AS 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 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 financial 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 financial controls system 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 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 audit report to the related disclosures in the 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 audit 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 financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation. We communicate with
those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may 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:
1. As required by the Companies (Auditors Report) Order, 2020("the Order")
issued by the Central
Government of India in terms of sub-section (1) of section 143 of the Act, we give in
the
"Annexure A" statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) we have sought and obtained all the information and 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 Statement dealt with by this
Report are in agreement with the relevant books of account.
(d) in our opinion, the aforesaid standalone Balance Sheet, Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards specified under
Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the
Companies (Indian Accounting Standards) Rules, 2015 as amended;
(e) on the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of
sub-section (2) of section 164 of the Act.
(f) 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".
(g) With reference 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 explanation given to us:
(i) The Company does not have any pending litigations which would impact its financial
position in its financial statements.
(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.
For RAMESH ATHASNIYA & CO., Chartered Accountants,
SD/-
CA. RAMESH ATHASNIYA, Partner. M.No. 204976
Firm Registration No. 007480S
UDIN: 23204976BGUICD9890
Date: 30th May, 2023.
Place: Hyderabad.
ANNEXURE A TO THE AUDITORS REPORT
(Referred to in Paragraph (3) of our Report of even date to the members of M/s AJEL
LIMITED
(i). (a) (A) The Company has maintained proper records showing full particulars,
including quantitative details and situation of property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of intangible
assets.
(b) 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 a regular programme of physical
verification of its property, plant and equipment by which all property, plant and
equipment are verified in a phased manner over a period of three years. In accordance with
this programme, certain property, plant and equipment were verified during the year. In
our opinion, this periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets. No material discrepancies were noticed
on such verification
(c) The title deeds of immovable properties shown in the financial statements are held
in the name of the Company.
(d) 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.
(e) 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.
(ii). (a) The Company is a service company, primarily rendering information technology
solutions services. Accordingly, it does not hold any physical inventories. Accordingly,
clause 3(ii)(a) of the Order is not applicable.
(b) 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 been sanctioned working
capital limits in excess of five crore rupees, in aggregate, from banks or financial
institutions on the basis of the security of current assets at any point of time during
the year. Accordingly, clause 3(ii)(b) of the Order is not applicable to the Company.
(iii) The Company has made investments in, companies, firms, Limited Liability
Partnerships, and granted unsecured loans to other parties, during the year, in respect of
which:
(a) The Company has not provided any loans or advances in the nature of loans or stood
guarantee, or provided security to any other entity during the year, and hence reporting
under clause 3(iii)(a) of the Order is not applicable. (b) In our opinion, the investments
made and the terms and conditions of the grant of loans, during the year are, prima facie,
not prejudicial to the Companys interest.
(c) The Company has not granted any loans during the year. For the outstanding loans
aggregating Rs. 1,00,94,587 to wholly owned subsidiaries and Rs. 85,96,143 in respect of
loan to others, the Company has not demanded any repayment during the year. Having regard
to the same, in our opinion, the repayments of principal amounts are regular.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the amount of Rs 1,00,94,587 in respect of Loan
to Subsidiary and Rs. 85,96,143 in respect of loan to others are overdue for more than 90
days.
(e) No loan granted by the Company which has fallen due during the year, has been
renewed or extended or fresh loans granted to settle the over dues of existing loans given
to the same parties.
(f) The Company has granted interest free unsecured loans to its wholly owned
subsidiaries which are repayable on demand, details of which are given below:
| Particulars |
Loan (Amount in |
|
Rs.) |
| Balance outstanding as at the balance sheet date - Others |
85,96,143 |
| Balance outstanding as at the balance sheet date - Subsidiary* |
1,00,94,587 |
(iv). The Company has complied with the provisions of Sections 185 and 186 of the
Companies Act, 2013 in respect of loans granted, investments made and guarantees and
securities provided, as applicable.
(v). The Company has not accepted any deposit or amounts which are deemed to be
deposits. Hence, reporting under clause 3(v) of the Order is not applicable.
(vi). The maintenance of cost records has not been specified by the Central Government
under subsection (1) of section 148 of the Companies Act, 2013 for the business activities
carried out by the Company. Hence, reporting under clause (vi) of the Order is not
applicable to the Company.
(vii). According to the information and explanations given to us and on the basis of
our examination of books of accounts and records, the Company has been generally regular
in depositing undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax, Goods & Services Tax, Duty of Customs, Cess and any other
statutory dues with the appropriate authorities except in the case of statutory dues as
mentioned in the table given below which are due payable for more than six months from the
date on which they become payable.
Sl. No. |
Name of The Statute |
Nature of Dues |
Amount Rs. |
Period for which the amount relates |
| 1 |
TDS |
Statutory |
6,68,819 |
2013-14 |
| 2 |
TDS |
Statutory |
6,90,819 |
2015-16 |
| 3 |
TDS |
Statutory |
1,32,236 |
2018-19 |
| 4 |
TDS |
Statutory |
10,702 |
2019-20 |
| 5 |
Provident Fund |
Statutory |
3,96,680 |
2013-14 |
| 6 |
Provident Fund |
Statutory |
12,047 |
2014-15 |
| 7 |
ESI |
Statutory |
4,14,867 |
2013-14 |
| 8 |
Service Tax |
Statutory |
59,65,837 |
2013-14 |
| 9 |
Income Tax |
Statutory |
41,98,992 |
2018-19 |
| 10 |
*Provision for Tax |
Statutory |
22,67,626 |
- |
| 11 |
**Other Statutory Dues |
Statutory |
3,11,181 |
- |
| 12 |
Provident Fund Payable |
Statutory |
29,024 |
- |
| 13 |
Profession Tax Payable |
Statutory |
2,900 |
|
|
Total: - |
|
1,51,01,730 |
|
* The year to which the Provision for Tax belongs to is not available in the books to
report in detail. ** The breakup of Other Statutory Dues is not available in the books to
report in detail.
According to the information and explanations given to us, there are no dues of
Provident Fund, Employees State Insurance, Central Excise, Sales Tax, Income Tax or any
other Statutory Dues not been deposited on account of any dispute except the following:
Sl. No. |
Assessment Year |
Amount (Rs) |
| 1 |
2012-13 |
Rs.1,00,97,200/- |
(viii). There were no transactions relating to previously unrecorded income that have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961).
(ix)
(a) The Company has not taken any loans or other borrowings from any lender. Hence
reporting under clause 3(ix)(a) of the Order is not applicable.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has not taken any term loan during the year 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.
(d) 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.
(e) On an overall examination of the financial statements of the Company, the Company
has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries. (f) The Company has not raised any loans during the year and hence
reporting on clause 3(ix)(f) of the Order is not applicable.
(ix). Based upon the audit procedures performed and the information and explanations
given by the management, the Company has not raised moneys by way of initial public offer
or further public offer including debt instruments and term loans. Accordingly, the
provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not
commented upon.
(x). (a) 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.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
(xi). (a) No fraud by the Company and no material fraud 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) We have taken into consideration the whistle blower complaints received by the
Company during the year (and up to the date of this report), while determining the nature,
timing and extent of our audit procedures.
(xii). In our opinion and according to the information and explanations given to us,
the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the
Order are not applicable to the Company.
(xiii). In our opinion, all transactions with related parties are in compliance with
Section 177 and 188 of Companies Act 2013 and the details of such transactions have been
disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv). (a) In our opinion the Company has an adequate internal audit system
commensurate with the size and the 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). 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 him as referred to in section 192 of
Companies Act, 2013. Accordingly, the provisions of clause 3(xv) of the Order are not
applicable to the Company and hence not commented upon.
(xvi). (a) 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.
(b) 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.
(xvii) The Company has not incurred cash losses in the current and in the immediately
preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
Accordingly, clause 3(xviii) of the Order is not applicable
(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 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.
(xx) The Company was not having net worth of rupees five hundred crore or more, or
turnover of rupees one thousand crore or more or a net profit of rupees five crore or more
during the immediately preceding financial year and hence, provisions of Section 135 of
the Act are not applicable to the Company during the year Accordingly, reporting under
clause 3(xx) of the Order is not applicable for the year.
For RAMESH ATHASNIYA & CO., Chartered Accountants, SD/- CA. RAMESH ATHASNIYA,
Partner. M.No. 204976
Firm Regn No.: 007480S
UDIN: 23204976BGUICD9890
Date: 30th May, 2023.
Place: Hyderabad.
"Annexure B" to the Independent Auditors Report of even date on the
Standalone Financial
Statements of M/s AJEL LIMITED
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 AJEL
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 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 judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 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 RAMESH ATHASNIYA & COMPANY, Chartered Accountants,
SD/-
CA. RAMESH ATHASNIYA, Partner. M.No. 204976 Firm Reg No.007480S
UDIN: 23204976BGUICD9890
Place: Hyderabad, Date: 30th May, 2023.
AJEL LIMITED
(CIN: L67120MH1994PLC076637)
106, 2nd Floor, Mahada Shopping Complex, New Link Road, Jogeshwari, Mumbai - 400102.
+91-9892691696
