To
The Members of
DHRUVA CAPITAL SERVICES LTD.
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the financial statements of ("the Company"),
which comprise the balance sheet as at 31st March 2021, 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.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the information
required by the Companies Act, 2013 ("the Act") in the manner so required and
give a true and fair view in conformity with Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended ("Ind AS") and the accounting principles generally accepted in India,
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2021.
b) In the case of the Statement of Profit and Loss, of the profit for the year ended on
that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
d) In the case of Statement of Changes in Equity, change in equity 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 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.
Information other than the financial statements and auditors report
thereon
The Companys board of directors is responsible for the preparation of
the other information. The other information comprises the information included in the
Boards Report including Annexures to Boards 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 during the course of our audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Emphasis of Matter
We draw attention to Notes to the financial results, as regards the
managements evaluation of COVID-19 impact on the preparation and assets of the company.
Our opinion is not modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance 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 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 statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error. In preparing the
financial statements, management is responsible for assessing the Companys ability to
continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do
so.
Those Board of Directors are 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 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.
• Obtain sufficient appropriate audit evidence regarding the financial information
of the Company to express an opinion on the financial statements.
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.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1. 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.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st
March, 2021 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2021 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.
g) 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 does not have any pending litigations which would impact its financial
position;
ii . The Company did not have any long-term contracts including derivatives contracts
for which there were any material foreseeable losses.
iii. There were no amounts required to be transferred, to the Investor Education and
Protection Fund by the Company.
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 to the Managing Director of the Company is
in accordance with the provisions of Section 197 along with Schedule V of Companies Act,
2013 and the remuneration limit is in accordance with the first proviso of Section 197(1)
and Schedule V of Companies Act, 2013.
|
For M/S T K BOHARA AND CO |
|
Chartered Accountants |
|
FRN: 0000798C |
|
Sd/- |
| Place:- UDAIPUR |
CA. MUKESH BOHARA |
| Date:- 30th June, 2021 |
(PARTNER ) |
| UDIN: 21401253AAAABB4335 |
M. No. - 401253 |
ANNEXURE A TO THE AUDITORS REPORT
Annexure referred to in Our Report of even date to the members of
Dhruva Capital Services Limited on the accounts of the company for the year ended 31st
March, 2021.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our audit, we report
that:
1. (a) The company has maintained proper records showing full particulars including
quantitative details and situation of its Property, plant and equipment.
(b) As explained to us, Property, plant and equipment have been physically verified by
the management at reasonable intervals; no material discrepancies were noticed on such
verification.
(c ) The title deed of immovable property is held in the name of Smt. Meena Karnawat as
a Director of the Company. The purchaser in the registered purchase deed is mentioned as
"Smt. Meena Karnawat W/o Shri Kailash Karnawat, Managing Director Dhruva Capital
Services Ltd., 003 A, Circle View, 169, New Fatehpura, Sukhadia Circle, Udaipur (Raj.)
2. As explained to us, the company is an NBFC and does not have any inventory.
3. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has granted loans, secured or unsecured,
to companies, firms or other parties listed in the register maintained under Section 189
of the Companies Act, 2013. There are two such parties and the amount involved is
Rs.1,56,26,794.00/-.The loans are in the nature of demand loan.
(a) Since the loans are in the nature of demand loans, in our opinion, the terms and
conditions of the grant of the loans are prima-facial not prejudicial to the interest of
the company.
(b) The schedule of principal and interest has not been stipulated and hence we are
unable to comment on regularity of repayments or receipts.
(c) According to the information and explanations given to us, since the natures of
loans are demand loans, there are no overdue amounts for more than ninety days.
4. In our opinion and according to the information and explanations given to us, the
company has complied with the provisions of Section 185 and 186 of the Act, with respect
to the loans and investments made.
5. The Company has not accepted any deposits from the public during the year.
6. As per information & explanation given by the management, maintenance of cost
records has not been prescribed by the Central Government under sub-section (1) of section
148 of the companies Act, 2013 for any of the services rendered by the company.
7. (a) According to the records of the company, undisputed statutory dues including
Provident Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, value added tax, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the appropriate
authorities.
According to the information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2021 for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us, there is no amounts
payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and
excise duty which have not been deposited on account of any disputes.
8. Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of dues
to a financial institution, bank or debenture holders.
9. Based on our audit procedures and on the information given by the management, the
company has applied the term loans for the purpose for which they have been obtained.
10. Based on the audit procedures performed and the information and explanations given
to us, we report that no fraud on or by the Company has been noticed or reported during
the year, nor have we been informed of such case by the management.
11. According to the information and explanations given to us and based on the
examination of the records of the Company, the Company has paid/provided for managerial
remuneration in accordance with the requisite approvals mandated by the provisions of
Section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the
Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
13. According to the information and explanations given to us and based on the
examination of the records of the Company, transactions with the related parties are in
compliance with Section 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
14. According to the information and explanations given to us and based on the
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.
15. According to the information and explanations given to us and based on the
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
16. According to the information and explanations given to us, the Company is not
required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Thus, paragraph 3 (xvi) of the order is not applicable to the company.
|
For M/S T K BOHARA AND CO |
|
Chartered Accountants |
|
FRN: 0000798C |
|
Sd/- |
| Place:- UDAIPUR |
CA. MUKESH BOHARA |
| Date:- 30th June, 2021 |
(PARTNER ) |
| UDIN: 21401253AAAABB4335 |
M. No. - 401253 |
ANNEXURE B TO THE 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 Dhruva Capital Services Ltd. (the Company) as of 31st March, 2021 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 (ICAI).
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to the Companys policies, the
safeguard 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 standards of 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 were 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 systems 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
procedure selected depend on the auditors judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Companys internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial controls 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 procedure that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of 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 the management and directors of the company; and
(3) provide reasonable assurance regarding prevention and 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 to 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
controls over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at 31 March 2021, 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 M/S T K BOHARA AND CO |
|
Chartered Accountants |
|
FRN: 0000798C |
|
Sd/- |
| Place:- UDAIPUR |
CA. MUKESH BOHARA |
| Date:- 30th June, 2021 |
(PARTNER ) |
| UDIN: 21401253AAAABB4335 |
M. No. - 401253 |
+91-9892691696
