FOR THE YEAR ENDED 31st MARCH 2023
TO THE MEMBERS OF GAJANAN SECURITIES SERVICES LIMITED
Report on the Audit of the Standalone financial statements Opinion
We have audited the accompanying Standalone financial statements of Gajanan Securities
Services Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss (including the statement of Other
Comprehensive Income), Statement of Cash Flows and the Statement of Changes in Equity for
the year then ended, and notes to the Standalone financial statements, including a summary
of significant accounting policies and other explanatory information (hereinafter referred
to as the "standalone financial statements").
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 Indian Accounting Standards ("Ind AS")
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended ("Ind AS Rules"), and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March
31, 2023, and its profit/(loss), total comprehensive income/(loss), its cash flows 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") specified under section 143(10) of the Act.
Our responsibilities under those SAs are further described in the Auditors Responsibility
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 (ICAI) together with the ethical requirements that are
relevant to our audit of the standalone financial statements under the provisions of the
Act and the Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We
believe that the audit evidence obtained by us is sufficient and appropriate to provide a
basis for our audit opinion on the Standalone financial 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 of the current period.
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.
Other Information
The Companys Management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the consolidated financial statements, 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 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.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report
in this regard.
Managements Responsibility for the Standalone financial statements
The Companys Management and Board of Directors are responsible for the matters stated
in Section 134(5) of the 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 Ind AS prescribed under section 133 of the Act read with
Ind AS Rules, as amended, and other accounting principles generally accepted in India.
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 control that were operating effectively for ensuring the accuracy and
completeness 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 and Board of Directors are
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility 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 financial 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 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 the Management and Board of
Directors.
• Conclude on the appropriateness of Management and Board of Directors 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 Standalone 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.
Materiality is the magnitude of misstatements in the Standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the Standalone financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our
audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the Standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
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.
Other Matters
The comparative financial information of the Company for the year ended 31st March 2022
included in these standalone financial statements have been audited by the predecessor
auditor. The report of the predecessor auditor on the comparative financial information
dated 30th May 2022 expressed an unmodified opinion. Our opinion on the standalone
financial statements is not modified in respect of this matter on the comparative
financial information.
Report on Other Legal and Regulatory Requirements
1. As required by section 143 (3) of the Act, based on our audit 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 purpose 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, Statement of Profit and Loss including Other Comprehensive
Income, 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 Ind
AS specified under section 133 of the Act, read with Ind AS Rules; as amended;
(e) On the basis of written representations received from the directors as on March 31,
2023, and 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
financial statement of the company and operating effectiveness of such controls, refer to
our separate Report in "Annexure-A" to this report.
(g) 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 by the Company to its directors during the year is in
accordance with the provisions of section 197 of 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 does not have any pending litigations which would impact its financial
position;
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,
no funds (which are material either individually or in the aggregate) 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
entity ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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;
(c) Based on the audit procedures 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 (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement
v. The Company has not declared dividend during the year.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company w.e.f. April 1, 2023, and accordingly,
reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable
for the financial year ended March 31, 2023
2. 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-B a statement on the matters specified in
paragraphs 3 and 4 of the Order.
ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 (f) under the heading ‘Report on Other Legal and
Regulatory Requirements section of our report of even date)
Report on the Internal Financial Controls With Reference To Standalone Financial
Statements 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 financial statements
of Gajanan Securities Services Limited ("the Company"), as of March 31,
2023 in conjunction with our audit of the Standalone Ind AS 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 with reference to financial statements
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting issued by the 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 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to 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") issued by the Institute of
Chartered Accountants of India and the Standards on Auditing prescribed under Section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls with reference to standalone financial statements. 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 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 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 standalone financial statements, 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 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 and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls with
reference to standalone financial statements .
Meaning of Internal Financial Controls With Refernce To Standalone Financial Statements
A companys internal financial control 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 control 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
According to the information and explanation given to us and based on our audit, in our
opinion, the company has generally maintained, in all material respects, an adequate
internal financial controls with reference to financial statements and such internal
controls with reference to financial statements were generally operating effectively as at
31st March 2023, based on the criteria for internal financial control with reference to
standalone financial statements 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.
ANNEXURE ‘B TO THE INDEPENDENT AUDITORS REPORT:
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date)
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that:
i. (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property, plant and equipment and releavant details
of right-of- use assets.
(b) The property, plant & equipment have been physically verified under a phased
program of physical verification. To the best of our knowledge, no material discrepancy
was noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the company, the company does not have any title deeds on
its name, accordingly clause 3 (i) (c) of the said Order are not applicable to the
Company.
(d) The Company has not revalued its Property, Plant and Equipment during the year as
per the information given to us. Hence, clause 3 (i) (d) of the said Order is not
applicable to the Company.
(e) No proceedings have been initiated or are pending against the Company for holding
any benami property under the Benami Transaction (Prohibition) Act, 1988 and rules made
thereunder.
ii The Company does not hold any inventory and hence reporting under this clause is not
applicable.
iii. The Company has made investments in companies but has not granted any loans to
other parties.
a) The Company has not provided any loans or advances in the nature of loans or stood
guarantee, or provided security to any other entity during the year, and hence reporting
under clause 3(iii)(a) of the
Order is not applicable.
b) In our opinion, the investments made during the year are, prima facie, not
prejudicial to the Companys interest.
Since the company has not granted any loans or advances hence Clause 3 (iii) (c), 3
(iii) (d), 3 (iii) (e) and
3 (iii) (f) of the said Order is not applicable to the Company.
iv. The Company has complied with the provisions of Sections 185 and 186 of the
Companies Act, 2013 in respect of loans granted, investments made and guarantees and
securities provided, as applicable.
v. The Company has not accepted deposits during the year and does not have any
unclaimed deposits as at March 31, 2023 and therefore, the provisions of the clause 3 (v)
of the said Order are not applicable to the Company.
vi. To the best of our knowledge and as explained, the maintenance of cost records
under Section 148(1) of the Act, is not applicable to the Company. Hence, reporting under
clause (vi) of the Order is not applicable to the Company.
vii. According to the information and explanations given to us, in respect of statutory
dues:
(a) The Company has generally been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Investor Education and Protection
Fund, Income Tax, Custom Duty, Goods & Service Tax, Cess and any other material
statutory dues applicable to it with the appropriate authorities during the year.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income-tax, Customs Duty, Goods & Service Tax, Cess and other
material statutory dues in arrears as at March 31, 2023 for a period of more than six
months from the date they became payable.
(c) There are no dues of Income-tax, Goods and Service Tax & Customs Duty which
have not been deposited as on March 31, 2023 on account of disputes.
viii. According to the information and explanations given to us and based on our
examination of records of the Company, there are no transactions which are 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 (43 of 1961).
ix. (a) The Company has not taken any loans or other borrowings from any lender. Hence
reporting under clause 3(ix)(a) of the Order is not applicable.
(b) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
(c) The Company has not taken any new term loan during the year and there was no
unutilised amount at the beginning of the year and hence, reporting under clause 3(ix)(c)
of the Order is not applicable.
(d) On an overall examination of the Standalone financial statements of the Company,
funds raised on short-term basis have, prima facie, not been used during the year for
long-term purposes by the Company.
(e) On an overall examination of the Standalone 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 its subsidiaries, associates or joint ventures.
(f) The Company has not raised any loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies and hence reporting on
clause 3(ix)(f) of the Order is not applicable.
x. (a) The Company has not raised any money by way of Initial public offer or further
public offer (Including debt instrument) during the year and hence reporting under clause
3(x)(a) of the Order is not applicable.
(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) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
xi. (a) No fraud by the Company and no material fraud on the Company has been noticed
or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
(c) We have taken into consideration the whistle blower complaints received by the
Company during the year (and upto the date of this report), while determining the nature,
timing and extent of our audit procedures.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not
applicable.
xiii. According to the information and explanations given by the management,
transactions with the related parties are in compliance with section 177 and 188 of the
Act where applicable and the details have been disclosed in the notes to the Standalone
financial statements, as required by the applicable Ind AS.
xiv. The company does not have an internal audit system commensurate with the size and
nature of its business and hence reporting under clause 3 (xiv) (b) of the Order is not
applicable to the Company.
xv. In our opinion and according to the information and explanations given to us,
during the year the Company has not entered into any non-cash transactions with its
directors or persons connected with them and hence provisions of section 192 of the Act
are not applicable to the company.
xvi. (a)According to the information and explanation given to us and in our opinion,
the Company is not required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not
applicable.
(b) In our opinion, there is no core investment company within the Group (as defined in
the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting
under clause 3(xvi)(d) of the Order is not applicable.
xvii. According to the information given by the management the company has not incurred
any cash losses in the current and in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors of the Company during
the year.
xix. 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.
xx. In respect of other than ongoing projects, the company has not transferred unspent
amount to a Fund specified in Schedule VII to the Companies Act within a period of six
months of the expiry of the financial year in compliance with second proviso to
sub-section (5) of section 135 of the said Act. Since, section 135 of The Companies Act,
2013 is not applicable to the Company, clause 3 (xx) of the said Order is not applicable
to the Company. Section 135 of The Companies Act, 2013 is not applicable to the Company
and hence clause 3 (xx) of the said Order is not applicable to the Company.
xxi. Reporting under clause 3 (xxi) of the Companies Auditors Report Order is not
applicable to the Company as there is no adverse remark in the Audit Report to the
Standalone Standalone financial statements of the Company.
|
For P Khetan & Co |
|
Chartered Accountants |
| Place- Kolkata |
Firm Reg. No- 327386E |
| Date- 30.05.2023 |
Sd/- (Pankaj Kumar Khetan) Partner |
| UDIN: 23066080BGSAQI9241 |
M.No-066080 |
+91-9892691696
