To the Members of Arunis Abode Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Arunis Abode Limited ("the Company"), which comprise the balance sheet as at 31st March 2025, and the statement of profit and loss (including other comprehensive income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the standalone financial statements, including 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 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 31st March 2025, and loss 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 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 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 Act and the Rules there under, 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.
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.
1. Assessment of Going Concern Assumption Description of Key Audit Matter:
During the year, the Company did not earn any revenue from its realestate consultancy business activity. Further, pursuant to a change in majority shareholding, the management has initiated a process to dispose of majority of assets and liabilities of the Company as part of internal agreements with the new stakeholders. These developments give rise to significant uncertainty about the Companys ability to continue as a going concern. Accordingly, assessing the appropriateness of the going concern assumption used in the preparation of the financial statements required significant auditor attention.
How the matter was addressed in our audit:
Reviewed Board resolutions and correspondence regarding the managements restructuring and disposal plans.
Examined the Companys liquidity position and cash flow projections.
Evaluated the classification and measurement of assets and liabilities under Ind AS.
Assessed the adequacy of disclosures relating to going concern in Note 27 to the financial statements.
2. Recognition and Valuation of InterCorporate Deposits (ICDs)
Description of Key Audit Matter:
As part of treasury operations during the transition period, the Company invested surplus funds arising from the sale of assets into shortterm InterCorporate Deposits (ICDs). The recognition and valuation of these financial assets require significant judgment with respect to the creditworthiness of counterparties, recoverability, and measurement under Ind AS 109 Financial Instruments. This was considered a key audit matter due to the materiality of these investments and the inherent risks associated with such transactions.
How the matter was addressed in our audit:
Obtained and verified ICD agreements and reviewed counterparties financial health.
Tested recoverability, including interest income recognition and impairment analysis under the Expected Credit Loss (ECL) model.
Evaluated compliance with Ind AS 109 and adequacy of related disclosures in Note [Y] to the financial statements.
Emphasis of matter
We draw attention to Note 27 to the financial statements which explain the fact that major shareholder and existing promoter of the Company executed a Share Purchase Agreement whereby he has sold his entire holding. As per a mutual understanding between the outgoing and incoming management, the existing investments and properties of the Company are being liquidated prior to full transfer of control. Pending deployment of such funds, the Company has temporarily placed surplus proceeds in the form of intercorporate deposits (ICDs) with select entities to optimize returns.
The outgoing management believes that the thresholds of netowned funds as defined under section 45IA of the Reserve Bank of India Act, 1934 and financial activity as principal business as explained in RBI vide press release 199899/1269 dated April 8, 1999, as determined by 5050 test are achieved by the Company only temporarily. No communication with the regulator, i.e. RBI is made as the breach of limits is only due to specific events and participation in ICDs is made in good faith for efficient fund utilization during the transition period.
Our opinion is not qualified in respect of this matter.
Other Matter
The financial statements of the Company for the year ended 31st March 2024 were audited by the predecessor auditor whose Audit Report dated 24th May 2024 expressed an unmodified opinion on the standalone financial statements.
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 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 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 and Board of Directors Responsibility for the Financial Statements
The Companys management and Board of Directors are 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 state of affairs and profit of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management and Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal 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 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 consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
(A) 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 A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
(B) 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 standalone balance sheet, the standalone Statement of Profit and Loss (including Other comprehensive income), the standalone Statement of Changes in Equity and the standalone Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid 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 31st March 2025, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2025, 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".
(C) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a) The Company does not have any pending litigations which would have an impact on its financial position.
b) The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses.
c) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
(D) With respect to the matter to be included in the Auditors Report under section 197(16) of the Act, as amended, in our opinion and according to the information and 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.
(E) (i) The management has represented that, to the best of its knowledge and belief, other than as disclosed in
the 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 person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(iii) Based on audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11(e), as provided under 2 (C) (i) and (ii) above contain any material misstatement.
(iv) The company has not declared or paid any dividend during the year in contravention of the provisions of section 123 of the Companies Act, 2013.
(F) Based on our examination which included test checks, the Company has used accounting software "Tally Prime (Edit Log)" for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, where audit trail (edit log) facility was enabled and operated, we did not come across any instance of the audit trail feature being tampered with.
For B R Pancholi & Co.
Chartered Accountants
Firms Registration No.: 107285W
CA Bhupendra Pancholi
Partner
Membership No.: 041254
Place: Vadodara
Date: 14th May, 2025
UDIN: 25041254BMNTGK4368
Arunis Abode Limited
ANNEXURE "A”
TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF ARUNIS ABODE LIMITED FOR The YEAR ENDED 31ST MARCH 2025
(Referred to in paragraph A under Report on Other Legal and Regulatory Requirements section of our report of even date)
(i) (a) (A) The Company has maintained proper records of Property, Plant and Equipment regarding particulars
including quantitative details and situation of the said assets.
(B) The Company does not have any intangible assets. Hence the provisions of clause (i)(a)(B) of Paragraph 3 of the Order is not applicable to the company.
(b) As per information and explanations provided to us, the management has carried out regular program of verification in a phased manner which, in our opinion, is reasonable having regards to the size of the company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties disclosed in the standalone financial statements are held in the name of the Company, except that the title deeds bear erstwhile name of the Company "M. B. Parikh Finstocks Limited" which was renamed as "Arunis Abode Limited" in 2020.
(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 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 Transaction Act, 1988 and rules made there under.
(ii) (a) The company does not have any inventory as at the balance sheet date and therefore, 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 any working capital limits 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) (a) According to the information explanation provided to us and on the basis of our examination of the records
of the Company, the Company has provided financial guarantee and has given unsecured intercorporate deposits to companies and firms during the year, in respect of which the requisite information is as below. The Company has not provided guarantee or security, or made any investments in or granted any loans, secured or unsecured, to limited liability partnerships or other parties.
(? in 000)
Particulars |
Guarantees |
Security |
Loans |
Advances in the nature of loans |
Aggregate amount during the year ended 31st March, 2025 |
||||
Subsidiary |
||||
Joint Venture |
||||
Associate |
40,000 |
45,000 |
||
Other Parties |
60,700 |
|||
Balance outstanding as at 31st March, 2025 in respect of above cases |
||||
Subsidiary |
||||
Joint Ventures |
||||
Associate |
40,000 |
|||
Other Parties |
60,700 |
|||
Represents balance of parties in respect of which any transaction was done during the year.
(b) According to the information and explanations given to us and based on the audit procedures performed by us, we are of the opinion that the terms and conditions in relation to intercorporate deposits provided are not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular.
(d) There are no loans or advances in the nature of loans granted to companies, firms, or any other parties which are overdue for more than ninety days.
(e) There were no loans or advance in the nature of loan granted to companies 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 explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.
(iv) In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 ("the Act") in respect of the loans and investments made, and guarantees and security provided by it.
(v) 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 accepted any deposits or amounts which are deemed to be deposits from the public per provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules made thereunder, as applicable. 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 Companies Act, 2013 in respect of the products dealt with by the company. Accordingly, the clause 3(vi) of the Order is not applicable.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records
of the company, in our opinion amounts deducted / accrued in the books of account in respect of undisputed statutory dues including GST, Incometax, TDS, Cess and other statutory dues, have been regularly deposited by the company with the appropriate authorities. Provident Fund, Employees State Insurance, Duty of Customs, are not applicable to the Company in connection with the nature of the Companys operations.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no statutory dues referred to in subclause (a) which have not been deposited on account of any dispute.
(viii) 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.
(ix) (a) 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 defaulted in repayment of loans and borrowings or in the payment of interest there on to any lender.
(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 declared a willful defaulter by any bank or financial institution or government or government authority.
(c) In our opinion and according to the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.
(d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements of the Company, we report that no funds raised on shortterm basis have been used for longterm purposes.
(e) 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 not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, as defined in the Act.
(f) According to the information and explanations given to us and procedures performed by us, we report that
the company has not raised loans during the year on the pledge of securities held in its subsidiaries or associate companies as defined under the Act.
(x) (a) The company has not raised any money by way of initial public offer or further public offer (including debt
instruments). Accordingly, clause 3(x)(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 made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable.
(xi) (a) Based on examination of the books of records of the company and according to the information and
explanations given to us, considering the principles of materiality outlined in the Standards on Auditing, we report that no fraud by the company or on the company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under subsection (12) of Section 143 of the Act has been filed by the auditors in Form ADT4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) As per the information given to us, no whistle blower complaints were received by the company during the year.
(xii) According to the information and explanations given to us, the company is not a Nidhi Company. Accordingly, clause 3(xii) (a), (b), (c)of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the transactions with related parties are in compliance with section 177 and 188 of the Act, where applicable, and the details of the related party transactions have been disclosed in the financial statements as required by the applicable 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 noncash 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) (a) As explained in detail in Note 27 to the standalone financial statements, major shareholder and promoter
of the Company has executed a Share Purchase Agreement whereby he has sold his ownership in the Company. As per mutual decisions taken between incoming management and outgoing management, existing investments and properties of the Company are being liquidated prior to full transfer of control. Pending deployment of such funds, the Company has temporarily placed surplus proceeds in the form of intercorporate deposits (ICDs) with select entities to optimize returns. As at the reporting date, ICDs constitute more than 80% of total assets, and related interest income constitute more than 80% of total income.
If 5050 test is applied, the Company is required to get registered under Section 45IA of the Reserve Bank of India Act, 1934. However, the Company has not obtained such registration. The outgoing management believes that the thresholds of 5050 test and netowned funds are achieved by the Company only temporarily and made in good faith for efficient fund utilization during the transition period. The incoming management shall review and realign asset deployment in due course, in compliance with applicable regulatory requirements.
(b) In our opinion and according to the information and explanations given to us, except for the ICDs as explained in (a) above, the company has not conducted any nonbanking financial or hosing finance activities without a valid certificate of registration (COR) from Reserve Bank of India as per the RBI Act, 1934.
(c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not applicable.
(d) According to the information and explanations provided to us during the course of audit, the Group does not have any CICs. Accordingly, clause 3(xvi)(d) of the Order is not applicable.
Corporate Overview Statutory Reports Financial Statements —
(xvii) The Company incurred cash loss in the current financial year aggregating to ? 2,334.43 thousand. The Company did not incur cash loss in the previous 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) According to the information and explanations given to us and 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 standalone financial statements, and in particular, our knowledge of plans of the Board of Directors and incoming management in respect of commencing new lines of business 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.
(xx) In our opinion and according to the information and explanations given to us, there is no unspent amount under subsection (5) of section 135 of the Act pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.
(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of Standalone Financial Statements. Accordingly, no comment in respect of the said clause has been included in this report.
For B R Pancholi & Co.
Chartered Accountants Firms Registration No.: 107285W
CA Bhupendra Pancholi
Partner
Membership No.: 041254
Place: Vadodara
Date: 14th May, 2025
UDIN: 25041254BMNTGK4368
ANNEXURE "B
”TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF ARUNIS ABODE LIMITED FOR The YEAR ENDED 31st MARCH 2025
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act
”)(Referred to in paragraph 1 (B) (f) under Report on Other Legal and Regulatory Requirements section of our report of even date)
Opinion
We have audited the internal financial controls with reference to financial statements of Arunis Abode Limited (the Company) as of 31st March 2025 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31st March, 2025, based on the internal financial controls with reference to financial statements 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 (the Guidance Note).
Managements and Board of Directors Responsibilities for Internal Financial Controls
The Companys management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal control with reference to 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 respective 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") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls over Financial Statements
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 with reference to Financial Statements.
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.
For B R Pancholi & Co.
Chartered Accountants Firms Registration No.: 107285W
CA Bhupendra Pancholi
Partner
Membership No.: 041254
Place: Vadodara
Date: 14th May, 2025
UDIN: 25041254BMNTGK4368
Arunis Abode Limited
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