THE MEMBERS OF MKVENTURES CAPITAL LIMITED Report on the audit of the Standalone
Financial Statements Opinion
We have audited the standalone financial statements of MKVENTURES CAPITAL LIMITED
(‘the Company), which comprise the balance sheet asat31March,2023,thestatement profitand
loss (including other comprehensive income), the statement of changes in equity and
the statement of cash flows for the year then ended, and notes to financial statements
including a summary of the 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 and other accounting principles generally accepted in India, of the state of
affairsoftheCompanyasat31March,2023,theprofit,total comprehensive income, changes in
equity and its cash flows 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) prescribed 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 financialstatements 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 financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements, 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.
Information other than the standalone financial statements and auditors report thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Board Report including Annexures
thereon but does not include the standalone financial statements and our auditors report
thereon.
Our opinion on the standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the
otherinformationismateriallyinconsistentwiththestandalonefinancialstatements, or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Managements responsibility 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, changes in equity and cash flows of the Company in accordance
with Indian Accounting Standards (Ind AS) 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 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 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.
The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Ind AS standalone financial statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS 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 Ind AS 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 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 control 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 conditionsthatmaycastsignificantdoubt 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 Ind
AS standalone financial 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 Ind AS financial
statements, including the disclosures, and whether the Ind AS 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
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 ("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 specified in
paragraphs 3 and 4 of the Order.
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 Profitand Loss including Other Comprehensive
Income, the Statement of Cash Flow 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 Ind AS standalone financial statements comply with
the Indian Accounting Standards prescribed under section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st
March 2023 taken on record by the
Board of Directors, none of the directors is disqualified as on 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". Our report expresses an unmodifiedopinion on
the adequacy andoperatingeffectiveness Companys internal financial controls over
financial reporting. ofthe
(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, 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 litigation which would impact its financial
position. ii. The Company did not have any long-term contracts including derivative
contracts for which there were any foreseeable losses. iii. There has been no delay in
transferring amounts, 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 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 persons or entities, 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 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 have been received by the Company from any persons or entities, 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") or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that we considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement. v. The
Company has not declared or paid any dividend during the year.
For ARSK & ASSOCIATES
Chartered Accountants Firms Reg. No.: 315082E
Sd/-
CA. Ravindra Khandelwal
Place: Kolkata Partner
Date:30.05.2023 Membership No. 054615
Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of
MKVENTURES CAPITAL LIMITED of even date)
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) As the Company does not hold any property, plant and equipment, intangible
assets, reporting under clause 3(i) (a) to (d) of the Order are not applicable.
(e) No proceedings have been initiated or during the year or are pending against the
Company as at 31 March 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
2. Since the company does not have any inventories, paragraph 3(ii)(a) & (b) of
the Companies (Auditors Report) Order, 2020 is not applicable.
3. The Company is a Non-Banking Finance Company and its principal business is to
give loans, and hence reporting under clause (iii)(a) of the Order is not applicable.
Further the Company has made investments in companies and other parties. In our opinion,
the investments made during the year are, prima facie, not prejudicial to the interest of
the company.
4. According to the information and explanations given to us, 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.
5. According to the information and explanations given to us, the Company has not
accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under
clause (v) of the Order is not applicable.
6. The Maintenance of cost records has not been specified for the activities of the
Company by the Central Government under section 148(1) of the Companies Act, 2013.
7. (a) According to the information and explanations given to us and the books and
records examined by us, the company is regular in depositing with the appropriate
authorities the undisputed statutory dues including Goods and Services Tax, employees
state insurance, Provident fund, income tax, cess and any other statutory dues as
applicable to it.
According to the information and explanations given to us, no undisputed amounts
payable in respect of Goods and Service tax, Employees State Insurance, Income-tax, cess
and other material statutory dues as applicable to it, were in arrears as at 31st March
2023 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 are no statutory
dues referred in sub-clause (a) above which have not been deposited on account of disputes
as on March 31, 2023.
8. According to the information and explanation given to us, there were no
transactions relating to previously unrecorded income that were surrendered or disclosed
as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the
year.
9. (a) According to the information and explanations provided to us, In our
opinion, the Company has not defaulted in the repayment of loans or other borrowings or in
the payment of interest thereon to any lender during the year.
(b) According to the information and explanations provided to us the Company has not
been declared wilful defaulter by any bank or financial institution or government or any
government authority.
(c) According to the information and explanations provided to us, the Company has not
taken any term loan during the year and there are no unutilised term loans at the
beginning of the year and hence, reporting under clause 3(ix)(c) of the Order is not
applicable.
(d) According to the information and explanation given to us, the Company has not
raised any funds on short-term basis. Hence, reporting under clause 3(ix)(d) of the Order
is not applicable.
(e) According to the information and explanation given to us, the company has not taken
any funds from any entity or person on account of or to meet the obligations of its
subsidiary.
(f) According to the information and explanation given to us, the Company has not
raised any fund during the year by pledging securities held in their subsidiary.
10. (a) According to the information and explanation given to us, the Company has
not issued any of its securities (including debt instruments) during the year and hence
reporting under clause 3(x)(a) of the Order is not applicable.
(b) According to the information and explanations given to us, 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
(x)(b) of the Order is not applicable to the Company.
11. (a) According to the information and explanations given to us, and to the best
of our knowledge, no fraud by the Company and no material fraud on the Company has been
noticed or reported during the year.
(b) According to the information and explanations given to us, and to the best of our
knowledge, no report under sub-section
(12) of section 143 of the Companies Act has been filed and Auditors) Rules, 2014 with
the Central Government, during the year and upto the date of this report.
(c) As represented to us by the Management, there were no whistle blower complaints
received by the company during the year.
12. In our opinion and according to the information and the explanations given to
us, the Company is not a nidhi company. Accordingly, clause 3(xii) of the Order is not
applicable.
13. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with related parties are in
compliance with the provisions of Sections 177 and 188 of the Act where applicable and
details of such related party transactions have been disclosed in the financial statements
as required by the applicable accounting standards.
14. (a) In our opinion the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(b) We have considered, the internal audit reports issued to the Company during the
year for the period under audit. 15. In our opinion during the year the Company has
not entered into any non-cash transactions with its directors or persons connected with
its directors and hence provisions of section 192 of the Companies Act, 2013 are not
applicable to the Company. Hence, reporting under clause 3(xv) is not applicable.
16. (a) The Company is required to be registered as a non-banking financing company
under section 45-IA of the Reserve Bank of India Act, 1934 and the company had obtained
the certificate of registration issued by Reserve Bank of India.
(b) The Company has not conducted any Non Banking Financial activitieswithout Certificateof
registration from valid Reserve Bank of India as per the Reserve Bank of India Act,
1934.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations
made by the Reserve Bank of India.
Accordingly, the reporting under clause 3(xvi)(c) of the Order is not applicable to the
Company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records, there is no company in the group which registered as Core
Investment Company (CIC) as defined in the regulation made by the Reserve Bank of India.
the reporting under clause 3(xvi)(d) of the Order is not applicable to the Company.
17. The Company has not incurredanycashlosses financialyear i.e., FY 2022-23
and during the immediately thecurrent preceding financial year i.e., F.Y 2021-22.
18. There has been resignation of the statutory auditors of the Company during the
year and we have taken into consideration the issues, objections or concerns raised by the
outgoing auditors, if any.
19. On the basis of the financial ratios, ageing
andexpecteddatesofrealizationoffinancialassets and payment of financial liabilities, other
information accompanying the financial statements and our knowledge of the Board of
Directors and 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 indicating that 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. We, however, state that
this is not an assurance as to the future viability of the company. We further state that
our reporting is based on the facts up to the date of the audit report and we neither give
any guarantee nor any assurance that all liabilities falling due within a period of one
year from the balance sheet date, will get discharged by the Company as and when they fall
due.
20. The Company was not having net worth of rupees five hundred crore or more, or
turnover of rupees one thousand crore or more or a net profit of rupees five crore or more
during the immediately preceding financial year and hence, provisions of Section
135 of the Act are not applicable to the Company during the year. Accordingly,
reporting under clause 3(xx) of the Order is not applicable for the year.
For ARSK & ASSOCIATES
Chartered Accountants Firms Reg. No.: 315082E
Sd/-
CA. Ravindra Khandelwal
Place: Kolkata Partner
Date:30.05.2023
Membership No. 054615
32 ND ANNUAL REPORT 67
ANNEXURE - 2 TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under the heading ‘Report on Other Legal and
Regulatory Requirements of our report of even date)
We have audited the internal financial controls over financialreporting ofMKVENTURES
CAPITAL LIMITED ("the Company") as of 31 March 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 (the
"Guidance Note") 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 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 theAct.
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") 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. 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 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 these 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 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 standalone financial statements, whether due to fraud or
error.
We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the
Companys internal financial controls with reference to these standalone financial
statements
Meaning of Internal Financial Controls with reference 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 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 financialstatements were operating effectively as at
31 March, 2023, based on the internal financialcontrol with reference to standalone
financial statements criteria established by the
Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Control Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
For ARSK & ASSOCIATES
Chartered Accountants Firms Reg. No.: 315082E
Sd/-
CA. Ravindra Khandelwal
Place: Kolkata Partner
Date:30.05.2023 Membership No. 054615
+91-9892691696
