To
The Members of
M/s Aris International Limited Report on the Financial Statements OPINION
We have audited the accompanying Ind AS financial statements of M / s Aris
International 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 Cash Flow Statement and the Statement of Changes in Equity for the year then
ended on that date, and 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 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, its 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 financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the
Auditors Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the Rules made there under, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of utmost
significance in our audit of the financial statements for 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. We have determined the matters described below to be the key audit matters to be
communicated in our report.
| Sr. No Key Audit Matters |
Auditors Response |
| 1 Accuracy of recognition, measurement, presentation and disclosures of revenues and
other related balances in view of adoption of Ind AS 115 |
We assessed the Companys process to identify the impact of the existing revenue
accounting policy. |
|
Our audit approach consisted testing of the design and operating effectiveness of the
internal controls and substantive testing as follows: |
|
(i) Verification of invoices raised during the year in order to establish recognition
criteria. |
|
(ii) The Company mainly doing the trading business. Verification of bill, dispatch of
material, collection of bill w.r.t. material. |
| 2 Valuation of Inventory in view of adoption of AS-2 |
We have assessed the Companys process to identify the impact of adoption of the
inventory Accounting standard. |
| Inventory |
Our Audit approach consisted testing of the design and operating effectiveness of the
internal control and substantive testing as follows: |
|
(i) Obtaining the valuation certificate from the company. |
|
(ii) Relying on the quantitative balance as per books of company. |
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the financial statements and our auditors report thereon. Our opinion on the
financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon. In connection with our audit of the financial statements,
our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, total comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error. In preparing the
financial statements, management is responsible for assessing the Companys ability to
continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do
so. The Board of Directors are responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements. As part of an audit in accordance with SAs, we
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 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 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 auditors 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 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 financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the 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 have
considered 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 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.
Other Matters:
Related to Going Concern:
The Companys net worth is eroded due to losses incurred by the company. We were
informed by the Management, that the companys inflow of fund from Trading and
professional income shall be sufficient for future survival and running of the company in
future.
Report on Other Legal and Regulatory Requirements
1. 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 purpose 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 the statement of Other
Comprehensive income, the Cash Flow Statement and statement of changes in Equity dealt
with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014, Companies (Indian Accounting Standards) Rules, 2015, as amended.
e. On the basis of written representations received from the directors of the Company
as on March 31, 2023 taken on record by the Board of Directors of the company none of the
directors of the company, 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 and the operating effectiveness of such controls, refer to our
separate Report in "Annexure A" to this report.
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, 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 litigations as disclosed to us.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses. iii. There are 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,
no funds (which are material either individually or in the aggregate) 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 or entity, including foreign
entity ("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, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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;
(b) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under and (b)
above, contain any material misstatement.
v. The company during the year has not declared or paid any interim, final dividend due
to the loss sustained by the company as explained to us.
2. As required by the Companies (Auditors Report) Order, 2016 ("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 Pams & Associates |
| Chartered Accountants |
| Firm Registration number: 316079E |
| sd/- |
| CA Manoranjan Mishra |
| Partner |
| Membership Number: 063698 |
| Place: Bhubaneswar |
| Date: 26.05.2023 |
| UDIN-23063698BGYHGJ6094 |
Annexure A
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 Aris
International Limited ("the Company") as of March 31, 2023 in conjunction
with our audit of the lone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company 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 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 Pams & Associates |
| Chartered Accountants |
| Firm Registration number: 316079E |
| sd/- |
| CA Manoranjan Mishra |
| Partner |
| Membership Number: 063698 |
| Place: Bhubaneswar |
| Date: 26.05.2023 |
| UDIN-23063698BGYHGJ6094 |
Annexure B
(Referred to in paragraph 2 of Report on Other Legal and Regulatory Requirements of our
report of even date).
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that:
i) In respect of the Companys Property, Plant and Equipment and Intangible Assets: a)
As the Company does not have any fixed assets, hence reporting under clause 3(i)
(a),(b),(c) and (d) of the order is not applicable. b) No proceedings have been initiated
during the year or are pending against the Company as at March 31, 2023 for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016)
and rules made thereunder.
(ii) As explained to us, the inventories were physically verified during the year by
the management at a reasonable interval and discrepancies found on such verification has
been adjusted in the books of account. However for our audit purposes we have obtained the
valuation certificate.
(iii) The Company has not made any investment in, companies, firms, Limited Liability
Partnerships, and granted unsecured loans to other parties, during the year, and hence
reporting under clause 3(iii)(a), (b), (c), (d), (e) & (f) of the Order is not
applicable.
The Company has not provided any guarantee or security or granted any advances in the
nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships
or any other parties.
(iv) According to the information and explanations given to us, the Company has not
made any loans, investments, guarantees, and security under the provisions of section 185
and 186 of the Companies Act, 2013. .
(v) As explained to us the company has not accepted any deposit from the public,
consequently the provisions of sections 73 to 76 or any other relevant provisions of the
Act and the rules framed there under, are not applicable and hence not commented upon.
(vi) As explained to us the Central Government has not specified maintenance of cost
records under subsection (1) of Section 148 of the Act.
(vii) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues have generally been regularly
deposited during the year by the Company with the appropriate authorities. According to
the information and explanations given to us, no undisputed amounts payable in respect of
provident fund, employees state insurance, income tax, sales tax, wealth tax, service
tax, duty of customs, value added tax, duty of excise, cess and other statutory dues were
in arrears as at 31st March 2023 for a period of more than six months from the date they
became payable.
The Management of the Company gives clarification w.r.t. non applicability of GST on
the Turnover based on the Notification through their explanation to us.
(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
income tax act, 1961 (43 of 1961). However the management has written back some of the
liabilities which were duly accounted for.
(ix) a) As per information and explanations provided to us, the Company has not
defaulted in any repayment of loans or other borrowings or in payment of interest. b) The
Company has not been declared wilful 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. However the company has
inter corporate loan of Rs.120.99 lakh as on 31.03.2023. d) As per the record verified by
us, there are no short-term loans raised by the Company from any financial institution.
Hence reporting under the clause 3(ix) (d) of the order is not applicable. However the
company has inter corporate loan of Rs.120.99 lakh as on 31.03.2023. 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) During the year the Company has not raised any loans on the pledge of
securities held in its subsidiaries, joint ventures or associate companies, hence the
clause 3 (ix) (f) of the Order is not applicable.
(x) As per information and explanations given to us, the company has not raised any
money by way of initial public offer, further public offer (including debt instruments)
and term loans during the year. As per information and explanations given to us, the
company not has made preferential allotment of shares which is duly disclosed in the
financial statement of the company and has not issue any fully or partly convertible
debentures during the year under review.
(xi)
(a) During 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 upto the
date of this report. (c )According to the information and explanations given to us, there
are no whistle blower complaints during the year.
(xii) As the company is not a Nidhi company, reporting under clause (xii) of the Order
is not applicable;
(xiii) Based on our examination of books of accounts and as per information and
explanations given to us, all transactions with related parties are in compliance with
Section 177 and 188 of the Act, where applicable and the details have been disclosed in
the Financial Statements as required by the applicable accounting standards;
(xiv) As In our opinion the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
(xv) The company does not have any non-cash transactions with directors or persons
connected with directors.
(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 incurred cash losses during the Financial year covered by our
audit.
(xviii) There has been no resignation of the statutory auditors of the Company during
the year.
(xix) 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.
xx) In respect to Corporate Social Responsibility Company: As the company is a loss
making company CSR obligation is not applicable to the company.
| For Pams & Associates |
| Chartered Accountants |
| Firm Registration number: 316079E |
| sd/- |
| CA Manoranjan Mishra |
| Partner |
| Membership Number: 063698 |
| Place: Bhubaneswar |
| Date:26.05.2023 |
| UDIN-23063698BGYHGJ6094 |
+91-9892691696
