To,
The Members of
CITIZEN INFOLINE LIMITED
OPINION
We have audited accompanying Ind AS Standalone financial statements of M/s. Citizen
Infoline Limited ("the Company") which comprises the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss, statement of changes in the Equity 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.
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
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 March 31, 2023, and profit & loss, statement of change in equity and its cash
flows for the year ended on that date.
BASIS OF OPINION
We conducted our audit by the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further
described in the Auditors Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Companies Act, 2013 and 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 MATTER
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Standalone Financial Statements for the financial year
ended March 31, 2023. These matters were addressed in the context of our audit of the
Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. For each key matter, our description of
how our audit addressed the matter is provided in that context.
We have determined that there are no key audit matters to be communicated in our
report.
We have fulfilled the responsibilities described in the Auditors responsibilities for
the audit of the Standalone Financial Statements section of our report, including in
relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the
Standalone Financial Statements. Accordingly, our audit included the performance of
procedure designed to respond to our risk of material mistaken of the Standalone financial
statements. The result of our audit procedure provides the basis for our audit opinion on
the standalone financial statement.
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Companys Board of Directors are responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the Standalone Financial Statements and our auditors report thereon. Our opinion on the
Standalone Financial Statements does not cover the other information and we do not express
any form of assurance conclusion thereon. In connection with our audit of the Standalone
Financial Statements, our responsibility is to read the other information and, in doing
so, consider whether such 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.
RESPONSIBILITY OF MANAGEMENT FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, (changes in equity)[iv] 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 implementation
and maintenance of 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. In preparing the financial statements, management is responsible
for assessing the Companys ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so. Those Board of Directors are
also responsible for overseeing the companys financial reporting process
AUDITORS RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the Standalone
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 Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Standalone Financial
Statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the
Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by 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 Standalone Financial
Statements, including the disclosures, and whether the Standalone Financial Statements
represent the underlying transactions and events in a manner that achieves fair
presentation. 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 le, related safeguards. From the matters
communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the Standalone Financial Statements for the financial
year ended March 31, 2023 and are therefore the key audit matters. We describe these
matters in our auditors report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditors Report) Order, 2016 ("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. As required by
Section 143(3) of the Act, we report that: We have sought and obtained all the information
and explanations which to the best of our knowledge and belief were necessary for our
audit.
1. 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
2. The Balance Sheet, the Statement of Profit and Loss, Statement of Change in Equity
and the Cash Flow Statement dealt with by this Report are in agreement with the books of
account.
3. In our opinion, the aforesaid 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.
4. On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms of Section
164 (2) of the Act.
5. We here by attach an audit opinion with respect to the adequacy of the internal
financial controls over financial reporting of the company and the operating effectiveness
of such controls vide notification dated June 13, 2017 in Annexure B to this report;
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
6. Concerning the other matters to be included in the Auditors Report by 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:
1) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
2) There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
3) (i)The management has represented that to the best of its knowledge and belief,
other than as disclosed in the notes to accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kinds 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 intermediately 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
like on behalf of the Ultimate Beneficiaries;
4) (ii) )The management has represented that to the best of its knowledge and belief,
other than as disclosed in the notes to accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with understanding whether recorded in writing or otherwise, that the
company shall whether directly and indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party
5) ("Ultimate Beneficiaries") or provide any guarantee, security or the like
on behalf of ultimate beneficiaries; and
6) (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 sub clause (i) and (ii) contain any material mis-statements.
7) The Company has not declared or paid any dividend during the year in contravention
of provisions of Section 123 of the Companies Act, 2013
8) With respect to the matter to be included in the Auditors Report under section
197(16) of the Act, in our opinion and according to the information and explanations given
to us, the limits prescribed for the payments of remuneration is not applicable to the
private company.
FOR KRUTESH PATEL & ASSOCIATES CHARTERED ACCOUNTANTS
PLACE: AHMEDABAD |
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DATE: 08th MAY 2023 |
KRUTESH PATEL |
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PARTNER |
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M No: 140047 |
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FIRM REG. No.100865W |
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UDIN : 23140047BGYUZS5480 |
1. (a) The Company does not have any Plant, Property and Equipments during the year
under consideration.
(b) The Company has a regular programme for physical verification in a phased periodic
manner, which, in our opinion, is reasonable having regards to the size of the Company and
the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to information and explanations given by the management, the title
deeds/lease deeds of immovable properties included in Property, Plant and Equipment are
held in the name of the Company.
(d) The Company has not revalued Property, Plant and Equipments or intangible assets
during the year.
(e) According to information and explanations given by the management, No proceeding
has been initiated or pending against the company for holding any property under the
Benami Transactions (Prohibition) Act, 1988 or rules made thereunder.
2. (a) The management has conducted physical verification of inventory at reasonable
intervals during the year, and no material discrepancies were noticed on such physical
verification.
(b) During any time of the year, the Company do not have sanctioned working capital
limit in excess of Rupees Five Crore in in aggregate, from banks or financial institutions
on the basis of security of current assets.
3. The Company has not made any investments or provided guarantee or security or
granted loans to Companies, Partnership Firms, LLP or any other party or promoters or
related parties as defined under Section 2(76) of Companies Act,2013.
4. In our opinion and according to the information and explanations provided to us,
provisions of section 185 and 186 of the Companies Act 2013 and in respect of loans to
directors including entities in which they are interested and in respect of loans and
advances given, investments made and, guarantees, and securities given have been complied
with by the Company.
5. The Company has not accepted any deposits within the meaning of Sections 73 to 76 of
the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly,
the provisions of clause 3(v) of the Order do not apply to the Company.
6. According to the representation received, the Company is not required to maintain
the books of accounts pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Companies Act, 2013. Hence, the
same has not been reviewed by us.
7. (a) The Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State Insurance,
Income-Tax, Sales-Tax, Goods and Services Tax, Service Tax, Duty of Custom, Duty of
Excise, Value Added Tax, Cess and Other Statutory Dues applicable to it. (b) According to
the information and explanations provided to us, no undisputed amounts payable in respect
of Provident Fund, Employees State Insurance, Income-Tax, Service Tax, Sales-Tax, Goods
and Services Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and Other
Statutory Dues were outstanding, at the year end, for a period of more than six months
from the date they became payable.
8. No transactions not recorded in the books of account have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961,
9. (a) In our opinion and according to the information and explanations provided by the
management, the Company has not defaulted in repayment of loans or borrowing to a
financial institution, bank or government or dues to debenture holders.
(b) In our opinion and according to the information and explanations provided by the
management, the Company has not been declared as wilful defaulter by any bank or financial
institution or any other lender.
10. In our opinion and according to the information and explanations provided by the
management, the Company has utilised the monies raised by way of debt instruments and term
loans for the purposes for which they were raised. 11. (a) Based upon the audit procedures
performed for the purpose of reporting the true and fair view of the Financial Statements
and according to the information and explanations provided by the management, we report
that no fraud by the Company or no fraud on the Company by the officers and employees of
the Company has been noticed or reported during the year.
(b) The Auditor has not filed any report under sub-section (12) of section 143 of the
Companies Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government.
(c) The Auditor has not received any whistle blower complaint during the year.
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of
clause 3(xii) of the Order do not apply to the Company and hence not commented upon. 13.
According to the information and explanations provided by the management, transactions
with the related parties comply with section 177 and 188 of Companies Act, 2013 where
applicable and the details have been disclosed in the Financial Statements, as required by
the applicable accounting standards.
14. (a) The Company has an internal audit system commensurate with the size and nature
of business of the Company. (b) The reports of internal auditors were considered by the
statutory auditor of the company.
15. According to the information and explanations provided by the management, the
Company has not entered into any non-cash transactions with directors or persons connected
with him as referred to in section 192 of Companies Act, 2013.
16. According to the information and explanations provided to us, the provisions of
section 45-IA of the Reserve Bank of India Act, 1934 do not apply to the Company.
17. The Company has not incurred cash losses during the financial year and in the
immediately preceding financial year, it incurred the cash loss of Rs 6.39 Lakhs.
18. There is no resignation of the Statutory Auditor during the year.
19. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, the auditors knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is 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
20. Provisions of Section 135(5) of Companies Act, 2013 are not applicable to the
company.
21. The Consolidated financial statements are not applicable to the company.
FOR, KRUTESH PATEL & ASSOCIATES CHARTERED ACCOUNTANTS
PLACE: AHMEDABAD |
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DATE: 8TH MAY 2023 |
KRUTESH PATEL |
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PARTNER |
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M. No: 140047 |
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FIRM REG. No.100865W |
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UDIN : 23140047BGYUZS5480 |
Annexure – B TO INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls
Under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the
Act")
We have audited the internal financial controls over financial reporting of Citizen
Infoline Limited ("the Company") as of March 31, 2023, in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India". These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors 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 my /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 by 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 by generally accepted accounting principles, and that
receipts and expenditures of the company are being made only by 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 of 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, KRUTESH PATEL & ASSOCIATES CHARTERED ACCOUNTANTS
PLACE: AHMEDABAD |
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DATE: 8TH MAY 2023 |
KRUTESH PATEL |
|
PARTNER |
|
M. No: 140047 |
|
FIRM REG. No.100865W |
|
UDIN : 23140047BGYUZS5480 |
+91-9892691696
