To the Members of Emkay Global Financial Services Limited
Report on the Audit of the Standalone Financial Statements OPINION
We have audited the accompanying standalone financial statements of Emkay Global
Financial Services Limited ("the Company"), which comprise the Balance Sheet as
at
March 31, 2023, the Statement of Profit and the statement of Other Comprehensive
Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then
ended, and notes to the standalone financial accountingstatements, including a summary of
significant 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
Companies Act, 2013, as amended ("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, its profit and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act.
Our responsibilities under those Standards are further described in the ‘Auditors
Responsibilities for the Audit of the Standalone 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 audit opinion on the
standalone financial Loss, including statements.
Key Audit Matters
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 the matter below, our description of
how our audit addressed the matter is provided in that context. We have determined the
matter described below to be the 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 this matter. 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. The results of our audit procedures, including the procedures
performed to address the matter below, provide the basis for our audit opinion on the
accompanying standalone financial statements.
| Key audit matters |
How our audit addressed the key audit matter |
1. IT systems and controls |
|
| The financial accounting and reporting systems of the Company are
fundamentally reliant on IT systems and IT controls to process significant transaction
volumes. |
We performed the following procedures assisted by specialized IT auditors
on the IT infrastructure and applications relevant to financial reporting: |
| Automated accounting procedures and IT environment controls, which
include IT governance, general IT controls over program development and changes, access to
programs and data and IT operations, are required to be designed and to operate
effectively to ensure accurate financial reporting. |
• Tested the design and operating effectiveness of IT access
controls over the information systems that are important to financial reporting and
various interfaces, configuration and other identified application controls. |
| Therefore, due to the pervasive nature and complexity of the IT
environment, the assessment of the general IT controls and the application controls
specific to the accounting and preparation of the financial information is considered to
be a key audit matter. |
• Tested IT general controls (logical access, changes management and
aspects of IT operational controls). This included testing that requests for access to
systems were appropriately reviewed and authorized. |
|
• Tested the Companys periodic review of access rights. We also
inspected requests of changes to systems for appropriate approval and authorization. |
|
• In addition to the above, we tested the design and operating
effectiveness of certain automated and IT dependent manual controls that were considered
as key internal controls over financial reporting. |
Other Information
The Companys Board of Directors is 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 identified above when it becomes available and, in doing
so, consider whether such other information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. When we read such other information, if we conclude that there is a
material misstatement therein, we are required to communicate the matter to those charged
with governance and to comply with the relevant applicable requirements of the standard on
auditing for auditors responsibility in relation to other information in documents
containing audited standalone financial statements. We have nothing to report in this
regard.
Responsibilities of Management for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under section 133 of the Act read with the
Companies
(Indian Accounting Standards) Rules, 2015, as amended.
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 the design, implementation and maintenance of adequate
internal financial controls, that were operating effectively of the accounting records,
relevant to the preparation and presentation of the standalone financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the standalone 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 Standalone 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 judgment 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 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 we any significant
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 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
1. 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 Act, we give in the "Annexure 1" a statement on the matters specifiedin
Order . paragraphs 3 and 4 ofthe
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 itdoubt on the Companys ability appears from our examination of those
books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity
dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act;
(f) With respect to the adequacy of the internal financial controls with reference to
these standalone financial statements and the operating effectiveness of such controls,
refer to our separate Report in "Annexure 2" to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has
been paid / provided by the Company to its directors in accordance with the provisions of
section 197 read with Schedule V to the Act;
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its standalone financial statements Refer Note 44 to the standalone financial
statements;
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;
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, as
disclosed in the Note 63 (i) to the standalone financial statements, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person or entity, including
foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company("Ultimate any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, as
disclosed in the Note 63(j) to the standalone financial statements, no funds have been
received by the Company from any person or entity, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") security or the like on behalf of the
Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (a) and (b) contain any material
misstatement.
v. The final dividend paid by the Company during the year in respect of the same
declared for the previous year is in accordance with section 123 of the Act to the extent
it applies to payment of dividend.
As stated in Note 59 to the standalone financial statements, the Board of Directors of
the Company have proposed final dividend for the year which is subject to the approval of
the members at the ensuing Annual General Meeting. The dividend declared is in accordance
with section 123 of the Act to the extent it applies to declaration of dividend. vi. As
proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 is applicable for the
Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.
For S.R. Batliboi & Co. LLP |
Chartered Accountants |
ICAI Firm Registration Number: 301003E/E300005 |
per Viren H. Mehta |
Partner |
| Membership Number : |
048749 |
| UDIN : |
23048749BGVGKG2737 |
| Place of Signature : |
Mumbai |
| Date : |
May 15, 2023 |
Annexure 2 to the independent auditors report of even date on the standalone financial
statements of Emkay Global Financial Services Limted
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 with reference to standalone financial
statements effectiveness of internal controlof Emkay Global Financial Services Limited
("the Company") as of March 31, 2023 in conjunction with our audit of the
standalone 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 orderly that were operating effectively and efficient conduct of its
business, including adherence to the 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 with reference to these standalone financial statements 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, as specified under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls, both issued by ICAI. 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 with reference to these standalone financial statements 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 standalone financial statements
and their operating effectiveness. Our audit of internal financial controls with reference
to standalone financial statements included obtaining an understanding of internal
financial controls with reference to these standalone financial statements, assessing the
risk that a material weakness exists, and testing and evaluating the design and operating
on the assessed risk. The procedures selected depend on the auditors judgement, 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
opinion on the Companys internal financial controls with reference to these standalone
financial statements.
Meaning of Internal Financial Controls With Reference to these Standalone Financial
Statements
A companys internal financial controls with reference to standalone financial
statements 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 with reference to standalone financial statements 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 authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls With Reference to Standalone
Financial Statements
Because of the inherent limitations of internal financial controls with reference to
standalone financial statements, 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 with reference
to standalone financial statements to future periods are subject to the risk that the
internal financial control with reference to standalone financial statements 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, adequate internal financial
controls with reference to standalone financial statements and such internal financial
controls with reference to standalone financial statements based were operating
effectively on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance
Note issued by the ICAI.
For S.R. Batliboi & Co. LLP |
Chartered Accountants |
ICAI Firm Registration Number: 301003E/E300005 |
per Viren H. Mehta |
Partner |
| Membership Number : |
048749 |
| UDIN : |
23048749BGVGKG2737 |
| Place of Signature : |
Mumbai |
| Date : |
May 15, 2023 |
+91-9892691696
