To,
The Members of Chetana Education Limited
Report on the audit of the Standalone financial statements Opinion
1. We have audited the standalone financial statements of Chetana Education Limited ("the Company"), which comprise the balance sheet as at 31st March, 2025, and the Statement of Profit and Loss and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2025, its profit and cash flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the standards on auditing 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 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
4. 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.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
| Key audit matter | How our audit addressed the key audit matter |
| Estimation of sales returns and discounts: | Our audit procedures, among others, included the following: |
Refer Siginificant Accounting Policies in note 2 (ix) to the standalone financial statements. |
• Obtained an understanding of the Companys sales and return terms, including the historical patterns of returns and the policies in place for the academic season. |
The Company is engaged in the publishing and distribution of educational books. |
• Evaluated the design and implementation of controls around the estimation and approval process for provisions relating to sales returns. |
Owing to the nature of its business model, the Company provides its customers with the right to return unsold inventory. |
|
A substantial portion of sales returns is typically realized in periods subsequent to the initial sale, particularly following the academic season. |
|
In accordance with applicable accounting standards, the Company is required to estimate sales returns at the time revenue is recognized. |
• Reviewed the methodology used by management to estimate the sales return provision and tested the underlying data for completeness and accuracy. |
The estimation of such provisions involves significant management judgement and is based on a range of factors, including historical trends of returns, current sales and return policies applicable to the academic year, as well |
• Performed a retrospective analysis by comparing historical provisions with actual returns to assess the reliability of managements estimation process. |
as other known circumstances that may materially influence the quantum of future returns. |
• Examined subsequent return transactions occurring after the reporting date to validate the completeness and reasonableness of the provision as at year-end. |
The assessment of the provision for sales returns is inherently subjective and requires the application of critical judgement. Managements estimates are formulated by evaluating past return patterns in relation to current year sales, adjusted for anticipated changes in customer behavior or distribution arrangements. During the current year, the Company has made provisions for sales return amounting to ? 50.86 Lakhs. |
|
The measurement of provisions for sales returns has been identified as a Key Audit Matter due to the degree of estimation uncertainty involved. |
• Tested the actual sales returns to customers after the balance sheet date and upto 10 days prior to approval of financials to determine whether the revenue has been recognized in the appropriate period. |
The underlying assumptions, including managements expectations regarding return volumes, are sensitive to variation and require close scrutiny, espe- cially in the context of historical deviations between estimated and actual returns. Accordingly, this area necessitated focused audit attention and substantive evaluation during the course of our audit. |
• Assessed the adequacy and appropriateness of disclosures relating to the estimation of sales returns in the financial statements. |
Information other than the financial statements and auditors report thereon
6. The Companys board of directors is responsible for the preparation of the other information. The other information comprises the information included in the Boards Report including Annexures to Boards Report, Business Responsibility Report but does not include the financial statements and our auditors report thereon.
7. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
8. 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 standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
9. Based on the work we have performed, we conclude that there is a no material misstatement of this other information.
Managements responsibility for the financial statements
10. The Companys 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 financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting standards 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
11. 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.
12. The board of directors are also responsible for overseeing the Companys financial reporting process.
Auditors responsibilities for the audit of the financial statements
13. 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.
14. 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Companies Act, 2013, 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.
15. 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 financial statements.
16. 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.
17. 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.
18. 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
19. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure "A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
20. 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, and the cash flow statement dealt with by this report are in agreement with the books of account;
d) In our opinion, the standalone financial statements comply with the accounting standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 as amended.
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 31st March, 2025 from being appointed as a director in terms of Section 164 (2) of the Act;
f) There is no advance remark relating to the maintenance of accounts and other matters connected therewith.
g) With respect to adequacy of the internal financial control over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in Annexure "B". Our report expressesan unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial control over financial reporting.
h) 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/provided by the Company to its directors during the year is in accordance with the provisions of section 197 read with Schedule V to the Act.
i) 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; i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer notes to accounts attached to the financial statements;
ii. The Company does not have any long-term contracts including derivative contracts, as such the question of commenting on any foreseeable losses thereon does not arise.
iii.There were no amounts, which were required to be transferred to the Investor Education and Protection Fund by the company.
iv. a. The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any persons or entities, including foreign entities (‘the 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 (‘the Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (‘the Funding Parties), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and.
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub clauses (a) and (b) above contain any material misstatement.
v. The company has not declared nor paid any dividend during the year, hence the compliance of section 123 of the act is not applicable to the company.
vi. In respect of Rule 11(g) of the companies (Audit and Auditors) Rules, 2014, based on our examination which included test checks, the company has used an accounting software for maintaining its books of account which has 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, during the course of our audit we did not come across any instance of audit trail feature being tampered with.
For Paresh Vora & Associates CHARTERED ACCOUNTANTS Firm No: 118090W
Sd/-
(Paresh Vora) Partner Mem. No.103963
UDIN: 25103963BMZYYD3904
Place: Mumbai Date :22nd May, 2025
Annexure "A" to the Independent Auditors Report*
(Referred to in paragraph 1 under ‘Report on other legal and regulatory requirements section of our report to the members of Chetana Education Limited of even date)
(i) (a) (1) The company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment in digital medium.
(2) According to the information and explanation given to us, the company has maintained proper records showing full particulars of Intangible Assets in digital medium.
(b) According to the information and explanation given to us, all Property, Plant and Equipment have been physically verified by the management during the year, and there is a regular planned programme of periodical physical verification of its Property, Plant and Equipment by which all property, plant and equipment are verified during that period. 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 company does not have any immovable properties. Accordingly, clause 3(i)(c) of the Order is not applicable.
(d) The Company has not revalued its property, plant and equipment (including rightof use of assets) or intangible asset during the financial year;
(e) No proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions(Prohibition) Act, 1988 and rules made there under. ii. (a) The management has conducted physical verification of inventory at reasonable intervals during the year, except for inventory lying with third parties. In our opinion, the coverage and procedure of such verification by the management is appropriate and no significant discrepancies were noticed. In respect of inventory lying with third parties, these have substantially been confirmed by the third parties. Discrepancies of 10% or more in aggregate for each class of inventories were not noticed on such physical verification and in respect of such confirmations.
(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 been sanctioned working capital limits in excess of five crores rupees, in aggregate, from banks or financial institutions on the basis of the security of current assets. In our opinion, the quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of accounts of the company except in some instances with minor variations, which are disclosed as under:
(iii) (a) Based on audit procedures carried out on by us and as per the information & explanation provided to us, the company has not made any investment or provided any guarantee in any companies, firms, Limited Liability Partnership or any other parties. During the year, the company has provided unsecured loans to 4 parties and 81 employees. The aggregate amount provided during the year and the balance outstanding as on balance sheet date with respect to such investments, guarantee and loans and advance in nature of the loans are given in below table.
Particulars |
Guarantees | Security | Loans | Advance in nature of loans |
Aggregate amount during the year |
||||
| Subsidiaries | 0.00 | 0.00 | 4.58 | 0.00 |
| Joint Ventures | 0.00 | 0.00 | 0.00 | 0.00 |
| Associates | 0.00 | 0.00 | 3481.27 | 2700.00 |
| Others (Including Employees and Other Parties) | 0.00 | 0.00 | 53.77 | 0.00 |
Balance outstanding at as the balance sheet date |
||||
| Subsidiaries | 0.00 | 0.00 | 0.00 | 0.00 |
| Joint Ventures | 0.00 | 0.00 | 0.00 | 0.00 |
| Associates | 0.00 | 0.00 | 0.00 | 0.00 |
| Others (Including Employees and Other Parties) | 0.00 | 0.00 | 108.47 | 0.00 |
(b) According to the information and explanation given to us and the basis on the audit procedures conducted by us our opinion, the company has not made any investment, provided any security or guarantee which are prima facie, prejudicial to the interest of the company. In respect of unsecured loans and advances, the terms and conditions are not prejudicial to the interest of the company.
(c) According to the information and explanation given to us and on the basis of our examination of the records of the company, the loans and advances other than granted to employees are in nature of repayable on demand. As per the information made available to us, the principal and interest has been repaid as and when demanded. In absence of repayment schedule as regards principal and interest, the question of our comment on regularity of receipt of principal amount and interest does not arise except as regards reporting in respect of cases where demand for principal interest is made by the company. In respect of interest free employee loans, the terms and conditions of repayment of principal have been stipulated and repayment thereof have generally been made regularly as per stipulations except respect of certain employees where there has been delay default in repayment of principal. Further, the company has not given any advance in the nature of the loan to any party during the year.
(d) According to the information and explanation given to us and on the basis of our examination of the records of the company, in respect of the loans and advances granted other than employees loans, there is no overdue amount remaining outstanding as at the balance sheet date as the Company has not demanded such loans and advance nature of loan. In respect of interest free employees loans, there are no overdue amounts for more than ninety days respect of the loans granted.
(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to same parties. Further, the Company has not given any advance in the nature of loan to any party falling due during the year.
(f) 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 Company has granted loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment to the following entity.
Particulars |
Ÿ in Lakhs |
| Aggregate Amount of Loans / Advances in the | |
| nature of loan | |
| - Repayment on Demand (A) | 108.47 |
| - No Agreement or Agreement does not specify | |
| 0.00 | |
| any terms or period of repayment (B) | |
| Total (A+B) | 108.47 |
| Percentage of loans / advances in the nature of | |
| 100.00% | |
| loan to the total loans | |
| Loans to Promoters & Related Parties | 0.00 |
(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 in respect of the loans and investments made, and guarantees and security provided by it, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted deposits and does not have any unclaimed deposits within the meaning of Section 73 to 76 of the Act and the Companie s (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of the clause 3(v) of the Order are not applicable.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the product of the by the Company.Therefore, the requirement of clause 3(vi) of the order is not applicable to the Company.
vii) (a) The Company does not have liability in respect of Service tax, Duty of excise, Sales tax and Value added tax during the year since effective 1st July, 2017, these statutory dues have been subsumed into GST.
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 Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues have been regularly Deposited by the Company with the appropriate authorities. According to the information and explanations given to us and on the basis of our examination of the records of the Company, no undisputed amounts payable in respect of Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues were in arrears as at 31st March, 2025 for a period of more than six months from the date they became payable.
(b) Details of statutory dues referred to in sub clause (a) above which have not been deposited as on 31st March, 2025 on account of disputes are given below
Name of Statute |
Nature of Dues | Forum where dispute is pending | Period to which the amount relates | Amount in Lacs |
| GST | Demand Notice | GST Bhavan, Mumbai | 2018-19 to 2024-25 | 226.65 |
| Income Tax | Intimation Notice | CPC, Bangalore | 2023-24 | 0.13 |
(viii) According to the information and explanation given to us and on the basis of our examination of the records, 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. Accordingly, paragraph 3 (viii) of the Order is not applicable.
(ix) (a) The Company has not defaulted in repayments of loans or other borrowings or in the payment of interest thereon from any lender. Hence reporting under clause 3(ix)(a) of the Order is not applicable.
(b) The Company has not been declared a wilful defaulter by any bank or financial institution or any other lender.
(c) The Company has taken term loan and the same were applied for the purpose for which the loans were obtained.
(d) On examination of the financial statements of the Company, Company has not raised any funds on short term basis which has been used for long-term purposes hence reporting under clause 3(ix)(d) of the Order is not applicable.
(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 hence reporting on clause 3(ix)(e) of the Order is not applicable.
(f) The Company has not raised any loans on the pledge of securities held in its subsidiaries, associate companies during the period and hence reporting on clause 3(ix)(f) of the Order is not applicable.
(x) (a) During the year, the company has issued 54,00,000 Equity Shares of ? 10 each at ? 85 each per share. The company has raised ? 4590 Lakhs by way of Initial Public Offer and the moneys raised by way of initial public offer during the year,have been, applied by the company for the purposes for which they were raised. (Refer Note 45 of the Financial Statements) In respect of Initial Public Offer, the company has complied with the provisions of the Companies Act, 2013.
(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) under section 42 and section 62 of the Companies Act, 2013. Accordingly, reporting of the purpose for which amount raised under clause 3 (x)(b) of the Order is not applicable.
(xi) (a) According to the information and explanations given to us, no material fraud by the Company or by its officers or employees has been noticed or reported during the course of our audit.
(b) No reportable fraud has been committed by the Company hence Form ADT-4 has not been filed by the auditors as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) According to the information and explanations given to us including the representation made to us by the management of the company, there are no whistle-blower complaints received by the company during the year.
(xii) To the best of our knowledge and belief and according to the information given to us, the company is not a Nidhi Company. Accordingly clause 3(xii) of the order is not applicable to it.
(xiii) According to the information and explanation given to us and based on our examination of the records of the company, all transactions with the related parties are in compliance with section 188 of Companies Act where applicable and the details have been disclosed in the financial statements, etc., as required under Accounting Standard (AS) 18 "Related Party Transaction".
(xiv) In respect of internal audit system:
(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 issued to the company during the year and covering the period up to 31st March, 2025 for the period under audit.
(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 any non-cash transactions with directors or persons connected with him. Hence, the provisions of the section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) (a), & (b) of the Order is not applicable and Company is not a Core Investment Company and there is no core investment company within the group. Accordingly, paragraph 3(xvi) (c) & (d) of the Order is not applicable.
(xvii) The company has not incurred any cash losses in the financial year covered under audit and in the immediately preceding financial year.
(xviii) There has not been resignation of the statutory auditors during the year and disclosure on this regard is not appliable.
(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, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx) According to the information and explanations given to us, the Company is liable to adhere Corporate Social Responsibility compliance under section 135 of the Companies Act, 2013 for the FY24-25. The company has contributed ? 27.49 Lakhs for the FY24-25. (Refer Note No 32 of the Financial Statements)
(xxi) There have not been any qualifications or adverse remarks in the Companies (Auditors Report) Order (CARO) reports of the Companies included in the consolidated financial statements.
For Paresh Vora & Associates CHARTERED ACCOUNTANTS Firm No: 118090W
Sd/-
(Paresh Vora) Partner Mem. No.103963
UDIN: 25103963BMZYYD3904
Place: Mumbai Date : 22nd May, 2025
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT ON THE FINANCIAL STATEMENTS
Report on the Internal Financial Controls over Financial Reporting 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 with reference to financial statements of Chetana Education Limited ("the Company") as of 31stMarch 2025 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The management 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 the 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 of the company 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 as specified under section 143(10) of the Companies Act, 2013, 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 with reference to these financial statements 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 internal financial controls system over financial reporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial controls over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with Generally Accepted Accounting Principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us , the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2025, 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 Paresh Vora & Associates CHARTERED ACCOUNTANTS Firm No: 118090W
Sd/-
(Paresh Vora) Partner Mem. No.103963
UDIN: 25103963BMZYYD3904
Place: Mumbai Date : 22nd May, 2025
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.