To the Members of HEALTHY INVESTMENTS LIMITED Report on the Audit of
Financial Statements Qualified
Opinion
We have audited the accompanying standalone financial statements of
HEALTHY INVESTMENTS LIMITED (“the Company”), which comprise the Balance Sheet as
at 31st March 2023, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in 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, except for the effects of the matter described in the Basis for
Qualified Opinion section of our report, the aforesaid financial statements give the
information required by the Companies Act, 2013 in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, (“Ind AS”) and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2023, and its loss and other
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Qualified Opinion
The Company has not obtained Certificate of Registration from Reserve
Bank of India or its consent, in accordance with the provisions of Section 45 IA of the
Reserve Bank of India Act, 1934, for carrying on the business of dealing in investment in
shares and other securities.
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 qualified opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of the current period.
These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. We have determined that there are no key audit matters to communicate in
our report.
Other Information
The Companys Board of Directors is responsible for the
preparation of the other information. The other information comprises the information
included in the Management Discussion and Analysis, Directors Report including
Annexures to Directors Report and Shareholders Information but does not
include the financial statements and our auditors report thereon. The board reports
including Management Discussion and Analysis report is expected to be made available to us
after the date of this auditors report.
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 in the audit or otherwise appears to be materially misstated.
When we read the Directors reports including Management
Discussion and Analysis report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for
the 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, total comprehensive income, changes in equity
and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Ind AS 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 d
esign, 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, the 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 the 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.
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
issued by the Central Government of India in terms of sub-section (11) of Section 143 of
the Act (hereinafter referred to the “Order”), and on the basis of such checks
of the books and records of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure-1 a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. 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 Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other
comprehensive income), the statement of cash flows and the statement of changes in equity
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid said financial statements comply with
the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014. 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 over
financial reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in “Annexure -2”.
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, we report that the Company neither paid nor provided for any remuneration
during the year.
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),
2014, in our opinion and to the best of our information and according to the explanations
given to us;
i. The does not have any pending litigations which would impact its
financial position.
ii. In our opinion and as per the information and explanations provides
to us, the Company has not entered into any long-term contracts including derivative
contracts, requiring provision under applicable laws or accounting standards, for material
foreseeable losses, and
iii. The Company has no amounts required to be transferred, to the
Investor Education and Protection Fund during the year under audit.
iv. a. The management has represented that, to the best of its
knowledge and belief, as disclosed in the note.31 to the accounts, 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, 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, as disclosed in the note.31 to the accounts, 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, 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 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 (i) and (ii) of
Rule 11(e) contain any material mis-statement.
v. The company has not paid any dividend during the year 2022-23.
vi. Companys accounting software does not have the feature of
recording audit trial facility during the year under review. However, the requirement of
maintenance of books of accounts in such software which has the feature of recording audit
trial is applicable from April 01, 2023.
ANNEXURE - 1 TO THE INDEPENDENT AUDITORS REPORT:
(Referred to in Paragraph 1 under section ‘Report o n Other Legal
a nd Regulatory Requirements of our report of even date)
provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 1.1.1. According to the information and explanations given to us, the
Company is maintaining proper records showing full particulars including quantitative
details and situation of Property, Plant and Equipment.
1.1.2. The company does not have intangible assets.
1.2. According to the information and explanations given to us, all the
Property, Plant and Equipment have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such verification.
1.3. The Company does not have any immovable properties and as such,
paragraph 3(iii) of the Order is not applicable
1.4. According to the information and explanations given to us, the
company has not revalued any asset during the year.
1.5. According to the information and explanations given to us, no
proceeding is pending against the company for holding any Benami property under the
“Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder
2.1 The Company is an investment company, primarily d ealing in
shares/securities. Accordingly, it does not hold any physical inventories. Thus, paragraph
3(ii) of the Order is not applicable.
2.2 The company does not have borrowings from banks or financial
institutions, so reporting under this clause does not arise.
3. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Accordingly, the sub-clauses (a), (b) (c) (d) (e) and (f)
are not applicable to the company.
4. According to the information and explanations given to us, the
Company has not granted any loans nor has it made any investments or given any guarantee
or security which are covered under the provisions of Section 185 and 186 of the Companies
Act, 2013.
5. According to the information and explanations given to us, the
Company has not accepted any deposits in terms of the directives issued by Reserve Bank of
India and the 2013 and the rules framed there under.
6. As per the information and explanations given to us, maintenance of
Cost Records has not been specified by the Central Government, under section 148 of the
Companies Act, 2013.
7.1 According to the information and explanations given to us, the
company is generally regular in depositing undisputed statutory dues including provident
fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty
of excise, value added tax, goods and service tax, cess and other statutory dues, as are
applicable, with the appropriate authorities.
According to the information and explanations given to us, there are no
arrears of outstanding statutory dues as at the last day of the financial year under audit
for a period of more than six months from the date they became payable
7.2 According to the information and explanations given to us, there
are no statutory dues referred to in sub-clause (a) which have not been deposited on
account of dispute.
8. According to the information and explanations given to us, there are
no transactions not recorded in the books of accounts have been surrendered or disclosed
as income during the year in tax assessments under Income tax Act,1961.
9. According to the information and explanations given to us, there are
no loans or borrowings from financial institutions, bank, government or dues to debenture
holders. Accordingly sub clauses (a) (b) (c) (d) (e) and (f) are not applicable to the
company.
10.1 According to the information and explanations given to us, the
Company has not raised any money by way of initial public offer or further public offer,
during the year under audit.
10.2 According to the information and explanations given to us, the
Company has not made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally) during the year under review.
Hence, compliances of reporting requirement under Section 42 and Section 62 of the
Companies Act, 2013, whether the funds raised have been used for the purposes for which
they were so raised, is not applicable to the Company.
11.1 According to the information and explanations given to us and
based upon the audit procedures performed by us, no fraud by the Company or on the Company
committed by its officers or employees has been noticed or reported during the year.
11.2 According to the information and explanations given to us and
based upon the audit procedures performed by us, no report under sub-section (12) of
section 143 of
Companies Act has been filed by the Auditors in Form ADT-4 as
prescribed under rule 13 of Companies (Audit and Auditors) Rules,2014 with the Central
Government.
11.3 According to the information and explanations given to us company
has not received any whistle blower complaints during the year, and hence considering the
same by us does not arise
12. As the Company is not a Nidhi Company in terms of the provisions of
the Companies Act, 2013 read with Nidhi Rules, 2014, the matters to be reported under
clause (xii) are not applicable.
13. According to the information and explanations given to us, all
transactions with the related parties are in compliance with the provisions of Section 177
and 188 of the Companies Act wherever applicable. According to the information given to
us, details of such transactions have been disclosed in the financial statements as
required by the applicable accounting standards.
14.1 Based on information and explanations provided to us and our audit
procedures, in our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
14.2 We have considered the reports of Internal Auditors for the period
under audit.
15. According to the information and explanations given to us, the
Company has not entered into any non-cash transactions with directors or persons connected
with him and hence, reporting requirement on compliance with the provisions of Section 192
of the Companies Act, 2013 is not applicable.
16.1 According to the information and explanations given to us, the
Company has not obtained Certificate of Registration from Reserve Bank of India or its
consent, in accordance with the provisions of Section 45 IA of the Reserve Bank of India
Act, 1934, for carrying on the business of dealing in investment in shares and other
securities.
16.2 According to the information and explanations given to us, company
has not conducted any non-banking financial or housing finance activities without a valid
registration certificate from Reserve bank of India.
16.3 According to the information and explanations given to us, company
is not a core investment company as defined under the regulations by Reserve bank of
India.
16.4 According to the information and explanations provided to us
during the course of audit, the Group does not have any CIC. Accordingly, the requirements
of clause 3(xvi)(d) are not applicable.
17. The company has not incurred cash loss in the immediately preceding
financial year 2021-22.
18. There has been no resignation of the statutory auditors during the
year. Accordingly, clause 3(xviii) of the Order is not applicable.
19. According to the information and explanations given to us and on
the basis of the financial ratios, ageing and expected dates of realization of financial
assets and payment of financial liabilities, other information accompanying the financial
statements, our knowledge of the Board of Directors and management plans and based on our
examination of the evidence supporting the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty exists as on the date of the
audit report that the Company is not capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the
balance sheet date.
20. According to the information and explanations given to us, the
Company is not required to transfer any unspent amount to a Fund specified in Schedule VII
to the Companies Act, as the provisions of Sec.135 does not apply for the F Y 2022-23.
ANNEXURE 2 TO THE 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 ofHEALTHY INVESTMENTS 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 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 in accordance
with 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 in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the
company; and
3) Provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the companys assets that
could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial
Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, 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 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 NARASIMHA RAO & ASSOCIATES |
| FRN: 002336S |
| POORNACHANDRA RAO SAMBARAJU |
| M.No. 025403 |
| UDIN: 23025403BGUMFY1486 |
| HYDERABAD |
| May 29, 2023 |
+91-9892691696
