To the Members of
Majestic Research Services and Solutions Limited
1. Report on the Indian Accounting Standards Financial Statements
We have audited the accompanying Statement of Standalone Financial Results of Majestic
Research Services and Solutions Ltd (the "Company"), for the quarter and
year ended March 31, 2021 (the "Statement"), being submitted by the Company
pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended (the "Listing
Regulations").
In our opinion and to the best of our information and according to the explanations
given to us, the statement: 1. are presented in accordance with the requirements of
Regulation 33 of the Listing Regulations; and 2. gives a true and fair view in conformity
with the recognition and measurement principles laid down in the Indian Accounting
Standards ("Ind AS") and other accounting principles generally accepted in India
of the net loss and other comprehensive income for the Quarter ended 31st March 2021 and
other financial information of the Company for the quarter and year then ended March 31,
2021.
Basis of Opinion
2. We conducted our audit of the Statement in accordance with the Standards on
Auditing ("SA"s) specified under Section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Results 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 Results for the
quarter and year ended March 31, 2021 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 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
Emphasis of Matter
We draw attention to:
1. The Financial Statements of the company is not in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (IND AS)
prescribed under Section 133 of the Act and also notes to accounts supplies to us are
defective.
2. Company has not made sufficient provisions for its expenses, interest and applicable
taxes for the financial year 2020-21 in financial.
3. In respect of non-availability of confirmation for outstanding closing bank
balances, trade receivables, advances, and deposits. In absence of alternative
corroborative evidence, we are unable to comment upon its recoverability, if any.
4. In respect of non-availability of confirmations for outstanding closing bank loans,
trade payable, other current liabilities including unsecured loans and provisions. In
absence of alternative corroborative evidence, we unable to comment on the extent to which
such balances are Payable or not.
5. We didnt receive the Management assessment on
Trade payables that representing Micro, Small and Medium Enterprises or not, which are
outstanding for the period of more than a year and Interest is also not provided on the
same if any. Hence, there would be noncompliance as per MSME Act, 2006.
6. Note 8 to the financial Results regarding impact and uncertainties arising from
COVID-19 Pandemic.
7. Non-Provisions of Gratuity as per As-15: Employee benefits" with regards to
Group Gratuity Scheme.
8. The Company has currently not recognized deferred tax assets in respect of
deductible temporary differences arising during the half year and year ended 31st March
2021.
3. Managements Responsibility for the Financial Statements
This Statement, which includes the Standalone financial results is the responsibility
of the Companys Board of Directors, and has been approved by them for the issuance. The
Statement has been compiled from the related audited Interim condensed standalone
financial statements for the three months and year ended March 31, 2021. This
responsibility includes preparation and presentation of the Standalone Financial Results
for the quarter and year ended March 31, 2021 that give a true and fair view of the Net
Loss and other comprehensive income and other financial information in accordance with the
recognition and measurement principles laid down in Ind AS, prescribed under Section 133
of the Act, read with relevant rules issued thereunder and other accounting principles
generally accepted in India and in compliance with Regulation 33 of the Listing
Regulations. 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 the 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 Results that give a true and fair view and is free from material
misstatement, whether due to fraud or error. In preparing the Standalone Financial
Results, the Board of Directors 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 Board of Directors 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 financial
reporting process of the Company.
4. Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the Standalone
Financial Results as a whole is 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 this Standalone Financial Results. As part of an audit in accordance
with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the Standalone Financial
Results, whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order
to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Board of Directors.
Evaluate the appropriateness and reasonableness of disclosures made by the Board of
Directors in terms of the requirements specified under Regulation 33 of the Listing
Regulations.
Conclude on the appropriateness of the Board of
Directors use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the ability of the Company 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 Statement or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the Standalone Financial
Results, including the disclosures, and whether the Standalone Financial Results represent
the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the Standalone Financial Results
of the Company to express an opinion on the Standalone Financial Results. Materiality is
the magnitude of misstatements in the Standalone Financial Results that, individually or
in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable
user of the Standalone Financial Results 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 Results.
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.
Annexure A to the Auditors Report
Annexure referred to in paragraph 5 Our Report of even date to the members Majestic
Research Services & Solution Ltd. on the financial statement for the year ended 31st
March 2021.
On the basis of such checks as we considered appropriate and according to the
information and explanations given to us during the course of our audit, we report that:
i. In respect of fixed assets;
a) The company has generally maintained records showing full particulars including
quantitative details and situation of fixed assets.
b) It has been explained to us that the Company has a regular program for physical
verification of fixed assets on a rotational basis, which in our opinion is reasonable
having regard to the size of the company and the nature of its assets and no material
discrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company. ii. In
respect of inventories; Since there is no Inventory in the company hence there is no
requirement for physically verification of inventory.
iii. The company has not granted any loans, secured or unsecured to any companies,
firms, Limited Liability Partnerships or other parties covered in the register maintained
under section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and 186 of the Act, with respect
to the loans and investments made.
v. The Company has not accepted any deposits from the public covered under Section 73
to 76 of the Companies Act, 2013.
vi. We have broadly reviewed the books of accounts relating to materials, labors and
other items of cost maintained by the company as prescribed by the Central Government for
the maintenance of cost records sub-section (1) of Section 148 of the Act and we are of
the opinion that prima facie the prescribed accounts and records have been made and
maintained.
vii. In respect of statutory dues;
a) According to the information and explanations given to us and based on the records
of the company examined by us, the company is regular in depositing the undisputed
statutory dues, including Provident Fund, Income-tax, Sales-tax, Service Tax, Customs
Duty, Excise Duty, Value added tax, cess and other material statutory dues, as applicable,
with the appropriate authorities in India, however there has been some delay in payment of
the some taxes. Undisputed amounts payable in respect of provident fund, income tax, sales
tax, value added tax, duty of customs, service tax, cess and other material statutory dues
were in arrears as at 31 March 2021 for a period of more than six months from the date
they became payable.
b) According to the information and explanations given to us and based on the records
of the company examined by us, there are dues of Income Tax, Service Tax, Sales Tax,
Customs Duty and Excise Duty which have not been deposited on account of any disputes the
same is not ascertainable due to non filling / delay in filling of returns.
viii. Based on our audit procedures and on the basis of information and explanations
given by the management, we are of the opinion that the company has not defaulted in
repayment of loans or borrowings to a financial institution or bank and it has no dues of
loans or borrowing to the government or dues to debenture holders.
ix. In our opinion, and according to the information and explanations given to us, term
loans raised during the year have been applied for the purpose for which they were raised.
The Company did not raise any money by way of initial public offer or further public offer
(including debt instruments).
x. During the course of our examination of the books and records of the company,
carried in accordance with the auditing standards generally accepted in India, we have
neither come across any instance of fraud by the Company or on the company by its
officials or employees, noticed or reported during the course of our audit nor have we
been informed of any such instance by the Management.
xi. The Company is the Private Limited Company, thus provisions of section 197 is not
applicable to the company.
xii. In our opinion and according to the information and explanations given to us, the
Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
xiii. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
xiv. According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has made preferential allotment or
private placement of shares during the year the requirement of Section 42 of the Companies
Act, 2013 have been complied and the amount raised have been used for the purposes for
which the funds were raised.
xv. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934.
| For, Suvarna & Katdare |
| Chartered Accountants |
| (Registration No. 125080W) |
| CA Ravindra Raju Suvarna |
| Partner Membership No.: 032007 |
| Mumbai |
| Date: 30th June, 2021 |
+91-9892691696
