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Lloyds Luxuries Ltd Auditor Reports

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Jul 18, 2025|12:00:00 AM

Lloyds Luxuries Ltd Share Price Auditors Report

To the Members of Lloyds Luxuries Limited Opinion

We have audited the accompanying financial statements of LLOYDS LUXURIES LIMITED (the "Company"), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss, the Statement of Cash Flows for the year ended on that date and Notes to the Financial Statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the "financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (the "Act") in the manner so required and give a true and fair view in conformity with the Accounting Standards prescribed under section 133 of the Act read with the Companies (Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025 and its loss, and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SAs") specified under section

143(10) of the Companies Act, 2013 (the Act"). Our responsibilities under those SAs 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 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 opinion on the Financial Results.

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 the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matters

How our audit addressed the key audit matter

1) Capital Work in Progress

The company maintains a "Service Equipment - CWIP" ledger to temporarily record assets that have been procured at central level by the Company but not yet delivered to stores. These assets have been acquired in anticipation of upcoming stores scheduled to commence shortly. We assessed the appropriateness of recording procured assets under "Service Equipment - CWIP" by:
1. Reviewing supporting documentation and verifying that the assets not yet capitalized are being held centrally;
2. Details of the dispatch of such assets and their corresponding capitalization in the books of accounts;
3. Furthermore, we reviewed the underlying store contracts to verify their execution status and assessed whether the timing and nature of the asset procurement were consistent with the planned commencement of store operations;
4. We also evaluated managements rationale for parking such assets in CWIP and assessed whether the recognition was in accordance with the applicable financial reporting framework.

2. Allotment of Preferential Equity Shares:

The company has issued 10,00,000 equity shares with a face value of Rs. 10 each through a preferential allotment, along with a premium of Rs. 89 per share. 1. Reviewed the Board and shareholders resolutions authorizing the preferential issue.
2. Examined the application submitted to the National Stock Exchange (NSE) for in-principle approval.
3. Verified compliance with the SEBI ICDR Regulations, including the determination of the relevant date and pricing formula
4. Ensured adequate disclosure of the preferential issue in the notes to the financial statements, including details of the issue price, number of shares allotted, and the identity of the allottees.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys Management and Board of Directors are responsible for the preparation of 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 Financial Statements and our auditors report thereon.

Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained 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 Responsibilities 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, and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The 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 Statement 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 scepticism throughout the audit. We also:

1. 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.

2. 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 through a separate report on the complete set of financial statements on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the Financial Results made by the Management under the direction of the Resolution Professional.

4. Conclude on the appropriateness of the Managements use of the going concern basis of accounting under the direction of the Resolution Professional and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. 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.

5. 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.

6. Obtain sufficient appropriate audit evidence regarding the financial results of the company to express an opinion on financial results.

Materiality

Materiality is magnitude of misstatement in the financial statement that, individually or in aggregate makes it probable that the economic decision of the reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factor in

(i) Planning the scope of our audit and in evaluating the result of our work; and

(ii) To evaluate the effect of any identified misstatements in 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.

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 Companies Act 2013, we give in the Annexure A, 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 Company has no branch office and hence the company is not required to conduct audit under section 143 (8) of the Act;

d) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

e) In our opinion, the aforesaid Financial Statements comply with the Accounting Standards (AS) prescribed under Section 133 of the Act, read with the Companies (Accounts) Rules, 2014;

f) On the basis of the written representations received from the directors as on 31st March, 2025 taken on record by the Board of Directors; none of the directors is disqualified as on 31st March, 2025 from being appointed as a director in terms of Section 164 (2) of the Act

g) 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 B"

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, 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 and outstanding demands on its financial position in the Financial Statements. The same has been disclosed in Notes to Accounts.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. During the year, no amounts were required to be transferred to the Investor Education and Protection Fund by the Company. So, the question of delay in transferring such sums does not arise.

iv. a) The management has represented that,

to the best of its knowledge and belief, other than as disclosed in the notes to accounts to the 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 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 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") or provide any guarantee, 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 subclause (a) and (b) contain any material misstatement.;

v. The Company has not declared or paid any dividend during the year

vi. Based on our audit procedures, the Company has used accounting software

for maintaining its books of accounts for the financial year ended 31st March,2025, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with and the audit trail has been preserved by the company for record retention.

i) With respect to the matter to be included in the Auditors Report under Section 197(16) of the Act as amended, in our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

ANNEXURE - A TO INDEPENDENT AUDITORS REPORT

The Annexure A referred to in Independent Auditors Report to the Members of the Company on the Financial Statements for the year ended 31st March 2025, we report that:

i. a) A. According to the information and

explanation given to us and based on the records produced before us, we are of the opinion that the Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. The Company needs to ensure the record is updated on regular basis.

B. According to the information and

explanation given to us and based on the records produced before us, we are of the opinion that the Company is maintaining proper records showing full particulars of intangible Assets.

b) According to the information and explanation given to us, the Company has not conducted any physical verification exercise of Property, Plant and Equipment during the current year. Hence, we are unable to comment on any material discrepancies.

c) The Company does not have any immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee) disclosed in the financial statements and hence the provisions of this sub-clause are 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 of the Company, the Company has not revalued its property, plant and equipment (including Right-of-use assets) or Intangible assets or both during the year.

e) According to the information and explanation given to us and based upon the records produced before us, no proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Hence, the provisions of this sub-clause are not applicable to the company.

ii. a) According to the information and explanation

given to us the based on the records produced before us, the inventory has been physically verified by the management during the year and no third-party was involved in the process. In our opinion the frequency of such verification is reasonable and adequate in relation to the size and the nature of business. No material discrepancies were found on such verification.

b) According to the information and explanation given to us and based on the records produced before us, the company has not sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets at any point of time during the year. Accordingly, the provisions of this sub-clause are not applicable to the company.

iii. According to the information and explanation given to us, the company has not made any investments in, provided any guarantee or security to companies, firms, Limited Liability Partnerships or any other parties during the year. However, the company has provided a loan to an Employee Welfare Trust.

(a) The company has not granted any loans or advances in the nature of loans, secured or unsecured, to subsidiaries, joint ventures and associates.

(b) According to the information and explanation given to us, the company has granted an unsecured loan to an Employee Welfare Trust.

(c) In respect of unsecured loan, the schedule of repayment of principal and payment of interest has not been stipulated and hence, opinion cannot be formed about the regularity of the repayments or receipts.

(d) No loan or advance in the nature of loan granted by the company which has fallen due during the year has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties.

(e) The company has granted an unsecured loan without specifying any terms or period of repayment. The aggregate amount of this loan is 6.78 lakhs in the current year and Rs 20 Lakhs in the previous year. But the company has not granted any loan to the Promoters and related parties as defined in clause (76) of section 2 of the Companies Act 2013, The company has not granted any loan to the Promoters and related parties as defined in clause (76) of section 2 of the Companies Act 2013,

iv. According to the information and explanation given to us, the Company has not given any loans, investments, guarantees and other securities. Hence the provisions of Section 185 and 186 are not applicable.

v. According to the information and explanation given to us, the company has not accepted any deposits within the meaning of Section 73 to 76 of the Companies Act, 2013 & the rules framed there under.

vi. Pursuant to the rules made by the Central Government, the maintenance of Cost Records prescribed u/s. 148(1) of the Companies Act, 2013, is not applicable to company

vii. a) According to the information and explanations

given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employees State Insurance, Income-tax, Goods and Services tax, duty of Customs, Cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employees State Insurance, Income- tax, Goods and Services tax, duty of Customs, Cess and other material statutory dues were in arrears as at 31st March, 2025, for a period of more than six months from the date they became payable.

b) According to the information and explanation given to us and the record produced before us, there are some disputed dues payable for the Goods & Service Tax ( Refer Note 25 (iii)).

viii. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income- tax Act, 1961 as income during the year under review.

ix. a. According to the information and explanation given to us and based on the records provided before us, the company has not defaulted in repayment of dues to financial institutions and banks.

b. According to the information and explanation given to us by the management, the company is not declared as a willful defaulter by any Bank or Financial Institution or other lender.

c. According to the information and explanation given to us and based on the records produced before us, there are no term loans taken by the company and hence the provisions of this subclause is not applicable to the company

d. According to the information and explanation given to us, no funds were raised for short term basis have not been utilized for long term purposes by the company.

e. According to the information and explanation given to us and the record produced before us, 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. In our opinion and according to information and explanation given to us, the company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

x. (1) a. According to the information and explanation given to us and the record produced before us, the company has not raised any money by way of initial public offer or further public offer and by way of any term loan in the current year. Hence, the provisions of this clause are not applicable to the company.

b. According to the information and explanation given to us and the records produced before us, the Company has raised funds through IPO during the financial year 2022-23. According to the information and explanation given to us and the record produced before us, the provisions of section 42 and 62 of the Companies Act, 2013 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 and other applicable regulations, if any, have been complied with. Also, the funds raised through IPO have been utilized in the financial year 2022-23, 202324 and 2024-25

c. The Statement of utilization of funds received from management is enclosed herewith as "Annexture-C"

2) The Company has allotted 10,00,000 equity shares of face value Rs.10 each through a preferential issue in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The date of shareholder approval for the issue was 3rd June 2024, and the shares were allotted on 7th June 2024. Each share was issued at a premium of Rs. 89 per equity share.

a. According to the information and explanation given to us and the records produced before us, the Company has raised funds through preferential allotment. According to the information and explanation given to us and the record produced before us, the provisions of section 42 and 62 of the Companies Act, 2013 and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 and other applicable regulations, if any, have been complied with.

b. The Company proposed to raise an amount aggregating up to Rs. 9.9 crores through the Preferential Issue. The proceeds of the Preferential Issue shall be utilized towards the general corporate purposes to drive the business growth and share issue expenses.

xi. a. During the course of our examination of the books of account carried in accordance with the generally accepted auditing standards in India, we have neither come across any instance of fraud on or by the Company, either noticed or reported during the year, nor have we been informed of such case by the Management.

b. No report under sub-section (12) of Section 143 of the Companies Act, 2013 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

c. No whistle blower complaints were received by the Company during the year. Therefore, clause xi(c) of paragraph 3 is not applicable.

xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company as prescribed under section 406 of the Companies Act,2013. Hence the provision of this clause is not applicable to the company.

xiii. We have been informed that the company has formed Audit Committee pursuant to section 177 of the companies Act, 2013. All transactions with related parties are in compliance with sections 188 of Companies Act, 2013, where applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.

xiv. a. According to the information and explanation given to us and based on the records produced before us, the company has conducted an internal audit in financial year 2024-25 as per requirement of section 138 of the Companies Act 2013.

b. We have considered the internal audit reports of the Company issued till date for the period under audit

xv. In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

xvi. The company is not required to be registered under 45-IA of the Reserve Bank of India Act,1934. Accordingly, reporting clause 3(xvi) of the order is not applicable to the company.

xvii. The Company has incurred cash losses in the current year of Rs. (18.08) Lakhs. In F.Y 2023-24 the company incurred a cash loss amounting to Rs. 115.44 Lakhs.

xviii. There has been no resignation of the statutory auditors during the year. Accordingly, clause (xviii) of Paragraph 3 of the Order is not applicable.

xix. 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 opinion that no material uncertainty exists as on the date of the audit report and based on that opinion the 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. Section 135 of the Companies Act. 2013, lays down the applicability for the Corporate Social Responsibility. The company doesnt exceed the limits given in the said section and hence, section 135 of the Companies Act,2013 is not applicable to the company. Accordingly, the provisions of this clause are not applicable to the company.

xxi. The company does not prepare Consolidated Financial Statements as it does not have any subsidiaries, joint ventures and associates. Accordingly, the provisions of this clause are not applicable to the company.

ANNEXURE - B 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 with reference to AS Financial Statements of LLOYD LUXURIES LIMITED ("the Company") as of 31st March, 2025 in conjunction with our audit of the AS Financial Statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to AS Financial Statements and such internal financial controls were operating effectively as at 31st March, 2025, based on the internal financial controls with reference to AS 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 Institute of Chartered Accountants of India (the "Guidance Note").

OPINION

In our opinion and according to the information and explanations given to us, the Company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2025, 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.

MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Companys Management and Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to AS Financial Statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as "the Act").

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on the Companys internal financial controls with reference to the AS Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note 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 AS 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 AS Financial Statements were established and maintained and whether 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 AS Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to AS Financial Statements included obtaining an understanding of such internal financial controls, 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 AS 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 AS Financial Statements.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A companys internal financial control with reference to AS Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of AS Financial Statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to AS 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 AS 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 with reference to AS 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 AS Financial Statements to future periods are subject to the risk that the internal financial controls with reference

to AS Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Annexure-C

Original Object Modified Object, If any Original Allocation Modified Allocation, if any Fund Utilized till 31st March 2025 Unutilized amount Amount of Deviation/Variation for the year according to applicable object
Financing the expenditure for opening new stores Not Applicable 543.65 Not Applicable 543.65 - Not Applicable
To repay short term borrowings ,-902.00 902.00 -
To meet Working Capital requirements 450.00 450.00 -
General Corporate Purpose 318.10 318.10 -
To meet issue expenses 186.25 168.94 17.31

Total

2400.00 2382.69 17.31

 

For S Y Lodha & Associates

Chartered Accountants

ICAI Firm Reg No. - 136002W

sd/-

Shashank Lodha

Partner

M. No.: 153498

UDIN.: 25153498BNOQKG7960

Date: 25th April, 2025

Place: Mumbai

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